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Affiliate Marketing

  2. What is Affiliate Marketing? Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. Merchants look to earn revenue from sale of their products or services, pay affiliates (publishers) who want to earn revenue from placement of product banners or text links on their site. Merchants only pay affiliate partners for results, such as a lead or a purchase “pay-for-performance” or other performance criteria.
  3. Who are the Key Players? There are three key players in any affiliate program: 1. 1. The Merchant (Advertiser) 2. The Affiliate (Publisher) 3. The Affiliate Network
  4. Who is a Merchant A company/organization who wants to sell their product/services
  5. What is An Affiliate Network? An Affiliate Network is a third party that acts as liaison between Affiliates and Merchants •Allows Affiliates to find Merchants which are suitable for their site •Allows Merchants to find Affiliate sites that expands reach to their target audience •Services include tracking technology, reporting tools, payment aggregation and processing •Provides a creative bank or repository for storing and accessing creative assets •Is no cost for an Affiliate to join
  6. How Does Affiliate Marketing Works? •Affiliate obtains Merchant creative from Affiliate Network and loads to their site •Consumer visits Affiliate’s site and clicks Merchant banner •Cookie is set on Consumer’s browser which identifies Merchant, Affiliate and link •Consumer is directed to Merchant site •Affiliate ID is captured by Merchant in referring URL •Consumer makes purchase from Merchant •Cookie information sent to Affiliate Network •Merchant transmits sales file to Affiliate Network which includes Affiliate ID •Affiliate Network tracks sales transactions with Affiliate ID and pays Affiliate
  7. Top Industries in Affiliate Marketing 1. Financial Services 2. Travel 3. Retail 4. Telecom 5. Broadband 6. Gaming 7. Recruitment
  8. Affiliate Program Models •CPC – Cost per click – The affiliate is paid for every click which he/she generate •CPA – Cost per acquisition – The affiliate is paid a fixed amount for every conversion which he/she generate •CPS – Cost per sale – The affiliate is paid a certain amount of transaction value for every transaction which he/she generate •CPL – Cost per lead – The affiliate is paid a fixed amount for every filled up query form •CPM – Cost per mille (a.k.a. Cost per thousand impression) – The affiliate is paid for every thousand impression which he/she serve on their website/blog •CPO – Cost per open – The affiliate is paid for every mailer opened •CPV – Cost per Visit – The affiliate is paid for every visit/session they generate for a website
  9. Mediums used by Affiliates  Search  Email marketing  Portal  Price comparison  Rewards/ Loyalty  Shopping Directories  Content
  10. Types of Affiliates Sites
  11. Shopping – site are virtual malls. The consumer shops for various brands and products on site. These sites are not driven by particular coupon or deal offer
  12. Coupon/Deal – most popular affiliate model. These sites are shopping sites that require merchant to provide consumer with either a coupon, percent off savings, or free shipping offer
  13. Comparison Shopping – sites sell items using a comparison model. These sites usually require a data feed of merchants’ products.
  14. Content – sites are usually not shopping sites. Consumers go to sites because the content is of particular interest. Sites to particular product contained in site
  15. Search – affiliates promote merchants via search engine marketing, using either natural or paid search practices.
  16. Blogs/Forums – sites post or feature article that focus on a particular product or merchant and include an product affiliate link to the product.
  17. Infographic
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