With advertisers contemplating the value of reward-based activity, price comparison sites focusing on direct partnerships and companies taking their search campaigns in-house, the affiliate industry has important choices to make about where its future lies. Brands want to increase their reach and engage customers across a wide range of publishers, which is opening up opportunities for the networks best placed to meet their demands. Helen Southgate, MD of affilinet, takes an honest and direct review of the mythical ‘long-tail’ of websites and explains the steps affiliate marketing must take to ensure its sustainability.

1. SECURING THE FUTURE OF
AFFILIATE MARKETING
HELEN SOUTHGATE
UK MD AFFILINET

2. LET’S TALK ABOUT…
• The state of the market today
• Publishers
Ssh don’t tell anyone but it’s not just cashback and vouchercodes
• My three most hated words
Omni, Incremental and the “A” word
• What does the future hold…

3. #challengethechannel
@HelenMarie21
@affilinetuk

4. THE STATE OF THE UK
AFFILIATE MARKET
JUST
12,000
ACTIVE
PUBLISHERS

5. THE STATE OF THE UK
AFFILIATE MARKET
51%
12%
29%

6. PUBLISHERS WANT TO
JOIN A NETWORK
36,000
ON AVERAGE
PUBLISHER APPLICATIONS
TO AFFILINET EACH YEAR
2009 2010 2011 2012 2013

7. APPLICATIONS FROM
CONTENT SITES
DOUBLED APPLICATIONS FROM
CONTENT SITES
DOUBLED

8. PUBLISHER
SURVEY

9. 18%
150 RESPONDENTS
BLOGS &
SOCIAL
SITES
CONTENT
SITES
15%
PRICE
COMPARISON
SITES
34%

10. 40%£6,000 A YEAR
EARN LESS THAN
44%MORE THAN
FIVE YEARS
20%ONE YEAR ALMOST
LESS THAN

11. THE UNLOVED…

12. WAS THERE A GOLDEN AGE
OF AFFILIATE MARKETING?
29%EARNING MORE
AFFILIATES ARE
15%EARNING
THE SAME
37%LESS
EARNING

13. WHAT
AFFILIATES
THINK A BATTLEFIELD
OF
“THEM” VS. “US”
92% OF TRANSACTIONS
THAT WE WERE
INVOLVED IN WENT TO
ANOTHER CHANNEL
MUCH MORE
COMPETITION
FROM VOUCHER
CODE AND CASH
BACK SITES
I THINK CASHBACK
AND VOUCHER
SITES HAVE TAKEN
THE LAST CLICK
AFFILIATE MARKETING
HAS STILL NOT GRASPED
ITS POTENTIAL, SOON YOU
WILL SEE IT GROW MORE
QUITTING EMPLOYMENT
TO PURSUE
AFFILIATE MARKETING

14. TWO KEY AREAS
TO ADDRESS
LAST CLICK
DEBATE
SUPPORTING
MID- LONGTAIL

15. LAST CLICK
DEBATE

16. WHAT WOULD
HELP AFFILIATES?

18. SO, WHAT’S
REALLY
HAPPENING? SO WE ARE
LOOKING AT
21% OF
ALL ORDERS
THAT INVOLVE
MORE THAN ONE
AFFILIATE
IN 42% OF
CASES WHERE
SALES ARE ‘STOLEN’
FROM ANOTHER
AFFILIATE CHANNEL,
IT IS WITHIN THE
SAME AFFILIATE
CATEGORY
THAT LEAVES
11% OF TOTAL
ORDERS WHERE
ONE AFFILIATE
CATEGORY IS
OVERWRITING
ANOTHER
79%
OF ALL
ORDERS ‘WON’
INVOLVED JUST
ONE AFFILIATE

19. WINNERS AND LOSERS
PRICE
COMPARISON
-14%
CASHBACK
+10%
VOUCHER
-4%
CONTENT
-3%

20. THERE IS MORE TO
KEEP US AWAKE AT NIGHT

21. OUTSIDE OF OUR
KNOWLEDGE & CONTROL
RETARGETING BRAND PAID
SEARCH & SEO

22. THE WORD BEGINNING WITH
‘A’ IS NOT THE ANSWER

23. IM NOT CONVINCED
SPLITTING COMMISSION
IS THE ANSWER...
EFFORT VS REWARD

24. IM NOT CONVINCED
SPLITTING COMMISSION
IS THE ANSWER...
CASHBACK
& LOYALTY?

25. IM NOT CONVINCED
SPLITTING COMMISSION
IS THE ANSWER...
MULTI-OMNI-WHATEVER-CHANNEL

26. HOW DO
YOU FAIRLY
ATTRIBUTE
VALUE?

27. SO WHAT’S
THE ANSWER?
£EXPLORE
OTHER
PAYMENT
MODELS

28. SO WHAT’S
THE ANSWER?
ANALYSE
THE DATA

29. SO WHAT’S
THE ANSWER?
UNDERSTAND BETTER WHAT IS INCREMENTAL

30. SUPPORTING THE
MID AND LONGTAIL

31. 59% OF RESPONDENTS PREFER TO
WORK WITH A NETWORK
SAFETY DIRECT
WITH
LEVERAGE ADVERTISERS
PAYMENTS & INVOICING
LACK OF
TRUST
HIGHER EARNINGS
EFFICIENCY
CONFLICT
OF INTEREST
GOOD / BAD ACCOUNT
TRACKING MANAGERS
IGNORED

32. WHAT DO WE NEED TO DO TO
BETTER TO SUPPORT AFFILIATES?
MAKE IT EASIER
BETTER TOOLS TO WORK WITH US
AND INNOVATION
BETTER
COMMUNICATIONS
AND MARKETING
AUTOMATION OF
ONE TO MANY

33. CUSTOMER CENTRIC DATA-LED TARGETING
THROUGH THE AFFILIATE CHANNEL

34. CUSTOMER CENTRIC DATA-LED TARGETING
THROUGH THE AFFILIATE CHANNEL

35. WHAT DO WE NEED TO DO TO
BETTER TO SUPPORT AFFILIATES?
MAKE IT EASIER
BETTER TOOLS TO WORK WITH US
AND INNOVATION
BETTER
COMMUNICATIONS
AND MARKETING
AUTOMATION OF
ONE TO MANY

36. PUBLISHER SIGN-UP
PROCESS IMPROVEMENTS
0.4 DAYS
AVERAGE
APPLICATION
APPROVAL
2.5 DAYS
AVERAGE
APPLICATION
APPROVAL
PRE-OCTOBER OCT- FORECAST

37. WHAT DO WE NEED TO DO TO
BETTER TO SUPPORT AFFILIATES?
MAKE IT EASIER
BETTER TOOLS TO WORK WITH US
AND INNOVATION
BETTER
COMMUNICATIONS
AND MARKETING
AUTOMATION OF
ONE TO MANY

38. THE IAB AFFILIATE
MARKETING COUNCIL
33%
NEVER
HEARD
OF IT
29%
I THINK IT HAS DONE EXCELLENT
WORK AND IT SUPPORTS ME AS
A PUBLISHER
IT HAS DONE LOTS OF GOOD
WORK BUT IT COULD
SUPPORT ME MORE AS A
PUBLISHER
I KNOW OF IT BUT
IT’S ABOUT AS
USEFUL AS A
CHOCOLATE
TEAPOT
33%
5%

39. ARE YOU
ATTENDING
PMI?
49%
NOT
SURE
3% YES
48%
NO

40. ARE YOU
ATTENDING
PMI? 60%
IT’S TOO
EXPENSIVE
LONDON/
TRAVEL
TOO
CORPORATE
HOPING TO
WIN A TICKET!
NOT RELEVANT TO
SMALL PUBLISHERS
“IT'S A POINTLESS UNINTERESTING BACK
SLAPPING FEST THAT WON'T HELP A SINGLE
SME PUBLISHER”

41. PUBLISHERS
WANT A VOICE

42. WHAT DOES THE
FUTURE HOLD..?

43. 2015. THE AFFILIATE
MARKETING AWAKENING
AUTOMATE
ONE TO MANY
PUBLISHER TOOLS
AND INNOVATION
TARGETING AND
PERSONALISATION
DATA AND
ANALYTICS
CONTENT/ NATIVE
DEVELOPMENT
MARGINAL
GAINS

44. THE UNLOVED…

45. THE END.

46. #challengethechannel
@HelenMarie21
@affilinetuk