affiliate marketing in a post-cpa era_owen hancock
TRANSCRIPT
© 2016 Commission Junction, LLC. All rights reserved.
Presented By
The Future’s
Bright For
Affiliate!
Affiliate Marketing
in a Post-CPA Era
Owen Hancock
© 2016 Commission Junction, LLC. All rights reserved.
Why are we here?
• Where are we heading?
• Started by maximising
transactions
• Now we see a lot more
about our customers
• Knowing more opens new
opportunities for affiliate
2
© 2016 Commission Junction, LLC. All rights reserved.
But Owen,
who are you
and why
should we
care about
your
opinion?
3 © 2016 Commission Junction, LLC. All rights reserved.
© 2016 Commission Junction, LLC. All rights reserved.
But Owen,
who are you
and why
should we
care about
your
opinion?
• Name: Owen Hancock
• Role: Director of Client Development
• Company: CJ Affiliate
• Background: Economics > Security
Guard > Thatcher > Marketing Academic >
Social Networks > Affiliate Marketing
• Experience: 5 years at CJ, worked
across scores of clients, driven billions in
revenue, won 7 PMAs
4 © 2016 Commission Junction, LLC. All rights reserved.
© 2016 Commission Junction, LLC. All rights reserved.
Why am I excited about the
future of affiliate?
5
• Born in Philadelphia in 1838
• Open his first store in 1861
• Credited with inventing the price
label
• First man to take out a full page ad
in a newspaper
© 2016 Commission Junction, LLC. All rights reserved.6
"Half the money I
spend on advertising
is wasted; the trouble
is I don't know which
half.”
© 2016 Commission Junction, LLC. All rights reserved.
Look how far
we’ve come
7
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
IAB Voucher Code of Conduct
First A4U conference
at ExCeL
A4U rebrands to PerformanceIN
Jay Radia founds Yieldify
The rise of the
Super Affiliate
Quidco reach 1
million members
Advertiser
spend £1.1
billion on
Online
Performance
Marketing
Owen
Hancock
joins CJ
API’s launched to
access product
catalogue data
Post View
Tracking
launched
Cross device
trackingCommission
Junction founded
Introduction of EPC and
Open Marketplace
Pay Per Call
systems launch
Performance Marketing
delivers £17.7 billion for
advertisers
Paul and Jenny Nikkel launch cashback
site to help students save money
CPA
Re-targeting
begin
Quidco
reach
2 million
members
© 2016 Commission Junction, LLC. All rights reserved.
How have we been recognising value so far?
8
Clickpath Attribution Econometrics Game Theory
Attribution
Quality Adjusted
Traffic
2012 2013 2014 2015
© 2016 Commission Junction, LLC. All rights reserved.
What do advertisers actually want?
9
Offline
sales
Customer retention
Frequency of purchase
Full stock redemption
RevenueProfits
Website visits
AOV
Footfall
Future sales
Social
Engagements
Eyeballs
Reach
Email Opens
App
Downloads
Online
participation
Sales
New
Customers
Conversion
• Life Time Value
• Profitability per Sale
• Quality Adjusted Traffic
• Contribution to offline
sale
© 2016 Commission Junction, LLC. All rights reserved.
How are these
metrics being used?
• These new metrics allow us to
support new aims, work with new
publishers and re-engineer how we
achieve our existing goals
• Practical examples will show how
the projects that have been opened
to affiliate and how we have
delivered against them
10
© 2016 Commission Junction, LLC. All rights reserved.
Leveraging
Influence
11
© 2016 Commission Junction, LLC. All rights reserved.
How many
advertisers find it
difficult to work with
influencers on CPA?
76%
Everyone wants influence
1212
How many
advertisers work
primarily on a CPA
basis?
How many
advertisers
measure/reward on
metrics outside last
click?
How many
advertisers have
been tasked with
recruiting more
influencers?
100%
6%
65%
© 2016 Commission Junction, LLC. All rights reserved.
How does an advertiser approach this…
13
Tagging publisher
types separately
Looking at where
non-converting users
departed advertiser
site and what
information they
lacked
Highlight trends in
behaviour the
recognise value
e.g. Content sites typically drive
visits lasting 22 minutes (50%
higher than Coupon or
Cashback).
Create a metrics to
record if this value is
being delivered
© 2016 Commission Junction, LLC. All rights reserved.
1. Work out what you want
2. Tell people what you want
3. Pay people for what you want
4. Get what you want
14
Make influence performance driven
© 2016 Commission Junction, LLC. All rights reserved.
What do you do with this in practice
15
Segment a top-of-
funnel budget
Book activity with
existing content
sites
Recruit new
publishers
Challenge bottom-
of-funnel
publishers
1 2 3 4
© 2016 Commission Junction, LLC. All rights reserved.
What does
working
like this
get you?
1. Higher engagement
2. More Publishers
3. More revenue
4.Consistent COS
16 © 2016 Commission Junction, LLC. All rights reserved.
© 2016 Commission Junction, LLC. All rights reserved.17
Supporting
Trading Teams
© 2016 Commission Junction, LLC. All rights reserved.18
“You ask me my
three main
priorities and I
tell you:
education
education
education
18
”(and results)
© 2016 Commission Junction, LLC. All rights reserved.
With cashback it’s easy
• Fund only the products you
want to push
• Invest trading budget with
direct return
• Gain more exposure for
product ranges
• Halo sales
• But don’t let your message
drown!
19
to go overboard
© 2016 Commission Junction, LLC. All rights reserved.
Codes are a winner too
• Geo-target competitors
Push notifications
Follow up on intent
• Digitally target competitors
Email targeting
On site exposure
• You have to be more prepared
(unless you’ve got a clever
technology like Uniqodo)
20
© 2016 Commission Junction, LLC. All rights reserved.
But trading teams love the chance to push a
single product!
21
• It doesn’t happen very often
• Pinned posts
• Newsletter spots
• Bags of potential!
© 2016 Commission Junction, LLC. All rights reserved.
It’s not
just
for
retail22
Travel has trading
teams too
• Destinations
• Departure points
• Time of travel
• More
© 2016 Commission Junction, LLC. All rights reserved.
Feeding back to the
trading team
If you want to do it again…
• Shout about your success
• Show ROI
• And do it quickly
It’s better than newspapers!
23
? £
© 2016 Commission Junction, LLC. All rights reserved.
What does
working
like this
get you?
1. More conversions for
trading
2. Halo sales for the
advertiser
3. More budget for
affiliates
24 © 2016 Commission Junction, LLC. All rights reserved.
© 2016 Commission Junction, LLC. All rights reserved.
Boosting
brand
awareness
25
© 2016 Commission Junction, LLC. All rights reserved.26
How many of you know
a marketer who has
provided little or no
data on a marketing
campaign because “it’s
just a brand piece”?
© 2016 Commission Junction, LLC. All rights reserved.
Brand activity must be measured
27
Source: Marketing Week
• Marketers must now report
back on the performance of
brand campaigns
• Social Media is at the top of
this list
• There are many more
metrics that could be
considered
• Brand teams still have
some catching up to do
© 2016 Commission Junction, LLC. All rights reserved.
Store Openings
• Geo-targeting stores
• Measuring footfall
• Measuring eyeballs
• Measuring engagement
AND
• Measuring conversions
28
© 2016 Commission Junction, LLC. All rights reserved.
Product branding
29
• Building awareness through
reach
• Measuring through digital
engagement metrics and
reach
• Supplier funded
• And following up with
conversion
© 2016 Commission Junction, LLC. All rights reserved.
Travel too
30
Beyond
retail?
30
Andorra
© 2016 Commission Junction, LLC. All rights reserved.
How does this set us up
for the future?
3
1
31
© 2016 Commission Junction, LLC. All rights reserved.32
Affiliate
industry
awareness
continues to
grow
Advertisers
definite value
beyond
revenue in turn
requiring
additional
metrics
Publishers
demonstrate
aptitude for
driving various
types of value
Publisher with
large audience
require
personalisation
ROI is still vital
but what that
return is
continues to
evolve
© 2016 Commission Junction, LLC. All rights reserved.
What might stop us from getting here?
Ad Blockers Drowning in Data Ourselves
33
© 2016 Commission Junction, LLC. All rights reserved.
Final thought
We work in a brilliant and
innovative industry and
we are at the forefront of
data driven demonstrable
value.
34
© 2016 Commission Junction, LLC. All rights reserved.35
Questions?
© 2016 Commission Junction, LLC. All rights reserved.36
But why do
advertisers
want
influencers?
36 © 2016 Commission Junction, LLC. All rights reserved.
+• Identify what these
user look like
?• Identify where these
users are coming from
so far
• They provide a type of
user that is more
valuable