evolution of affiliate marketing
TRANSCRIPT
Evolution of Affiliate Marketing
January 12, 2011
SPEAKERS
Panelists
Eric Collins, COO, MobilePosse
Rob Duva, Co-Founder and CMO, RingRevenue.com
Mark Silliman, founder and CEO, Spadout.com
Moderator Carolyn Kmet
Director of Affiliate Marketing, Groupon.com
AGENDA
• Origin of the Affiliate Marketing Species• Consumer Evolution• Merchant Evolution• Affiliate Evolution• Call Performance Marketing• Mobile/Video Marketing• Consequences• Conclusion
Definition: Affiliate marketers are compensated for driving traffic and sales to retailers– From Avon to online, 1886 vs. 1990
– Straight text and banner ads
– Passive, billboard style advertising
ORIGINS
In 1994, HotWired launched one of the very first paid banner ads– Messner Vetere Berger McNamee Schmetterer
– Ask for forgiveness rather than permission
– “Oh wait, it’s clickable?”
ORIGINS
Source: http://www.wired.com/thisdayintech/2010/10/1027hotwired-banner-ads/
Consumers explore their new playground– Responsive to free and discounted offers
– Approving of smileys and animation
CONSUMER EVOLUTION
Sources: http://www.addemoticons.com/emoticons.html, http://thelongestlistofthelongeststuffatthelongestdomainnameatlonglast.com/banner42.html, http://web.archive.org/web/*/http://www.mypoints.com
Consumers lose interest in flashing marquees, marketers adapt
CONSUMER EVOLUTION
Consumers backfire: interference with browsing experience, privacy invasion
CONSUMER EVOLUTION
Sources: http://www.longtail.com/about.html
The key is delivering content that is relevant to the individual consumer– Groupon: dynamic landing page, daily deal widget
– Amazon: Omakase
– Best Buy remix
MERCHANT EVOLUTION
Affiliate marketing becomes device agnostic
“There is no spoon…”
AFFILIATE EVOLUTION
Rob Duva, RingRevenue.com
CALL PERFORMANCE MARKETING
CALL PERFORMANCE MARKETING
HELP! I have QUESTIONS! Why can’t I find a phone number?!
want human interaction before making big-ticket purchases.
want live assistance when making online purchases.
abandon their shopping carts due to lack of human interaction.
Source: Harris Interactive poll – August 2009
54%
77%
53%
Not including phone numbers on landing pages or lead forms is bad
for customers #FAIL
CALL PERFORMANCE MARKETING
“Consumers are increasingly using their mobile phones to engage with advertisers. But when it comes to making a purchase, they’re still hitting the call button” - Jason Cianchetti, Liquid Wireless
Mobile:
Affiliates not including phone numbers in mobile ads = #FAIL
CALL PERFORMANCE MARKETING
Local:
Affiliates don’t have access to local merchant offers #FAIL
CALL PERFORMANCE MARKETING
Offline Publishers:
RADIOTV PRINT Outdoor
Advertisers spend about 90% of their budgets offline
For the past 10 years, offline publishers haven't participated in
affiliate marketing #FAIL
CALL PERFORMANCE MARKETING
Track Calls Like Clicks
= 800-555-1234Affiliate marketers can now track calls like clicks. Including phone
numbers in ads = #WIN
CALL PERFORMANCE MARKETING
2010 Results
• Adopted by nearly all leading affiliate networks• Over 25,000 publishers signed up• Advertisers launched hundreds of campaigns• Millions in sales and commissions• Calls converting at 30-50%• Average order values 1.5 to 2x online• Improved CTR’s by 5-30%• Mobile users placing phone calls
Call performance marketing increases ROI across every marketing channel #WIN
CALL PERFORMANCE MARKETING
What does call performance marketing mean for
the continued evolution of affiliate marketing?
• More advertisers • More offers• More budget• More publishers
For Affiliate Networks, Advertisers, and Publishers,
More Calls = More Money #WIN
Eric Collins, Mobile Posse
MOBILE MARKETING
Case Study: Ford TaurusCase Study: Ford Taurus
• Ford Taurus– Branding/informational campaign
promoting the new 2010 Taurus
– Educates, informs users about the model on Banner, Offer Screen
– Lifts brand awareness
– Drives users to dealer locator
• Success Factors– Timely message
– Variety in messaging
– Click-to-WAP functionality
Results• 20% CTR from banner• Over course of campaign 50% of target audience interacted with creative• Delivered 270,000 consumers to Ford’s dealer locator site in the month of June
Additional Industry Coverage: eMarketer
MOBILE MARKETING
Case Study: Ford TaurusCase Study: Ford Taurus
• Industry Coverage
– “Across the board…we saw lifts in brand awareness, intent to visit the mobile site and purchase consideration… Specifically, we had a 20% click-through rate on it. So one in five people who saw the ad clicked through it.” -Alex Hultgren , Ford Digital Team 6/11/10 eMarketer
• Added Value Surveys
– In conjunction with SafeCount, Mobile Posse facilitated the pre, mid, and post-campaign audience surveys. Users “Clicked-to-Web” to complete and submit the surveys.
01/05/11 22- Confidential -
MOBILE MARKETING
01/05/11
• Jack in the Box (Restaurants)– Educates, informs users about special
offer on Banner, Offer Screen
– Prompts users to display and redeem coupon from Offer Detail and Coupon Code screens
• Success Factors– Significant in store coupon redemption
– Redemption likely under-reported by stores (training, new coupon medium, low dollar offers, minimal coupons per store)
Results Reported Redemption was almost 5% of consumers who clicked from banner
01/05/11 Confidential
Case Study: CouponingCase Study: Couponing
MOBILE MARKETING
Case Study: RetailCase Study: Retail
• Ace Hardware– Branding/informational campaign
promoting Memorial Day Sale event
– Educates, informs users about Ace Memorial Day Sale on Banner, Offer Screen
– Summarizes selected sale offer on seasonal item on Offer Screen
• Success Factors– Timely message (sales event)
– Variety in promoted items/messaging
– Special pricing encourages near-term purchase
Results• Post campaign user survey discovered a 30% lift in store visits among exposed users • Survey also discovered a 40% lift in store visits among users exposed to both Ace Hardware creative units
01/05/11 ConfidentialAdditional Industry Coverage: MobileMarketer.com
MOBILE MARKETING
Mark Silliman, Spadout.com
VIDEO MARKETING
Youtube's Solution … Wac-A-Mole Ads
Sooner or later you'll miss the X.•$0.001 earning per view | 0.005 click through rate
•(296,910 page views. 1,412 clicks. $541.20 revenue.)
VIDEO MARKETING
Spadout’s solution – Value adding ads.
Offer solutions.•$0.114 earning per view (114x) | 0.24 click through rate (48x)
•(142,010 page views. 34,239 clicks. $16,211.92 revenue.)
VIDEO MARKETING
Is mobile the new internet?– FTC policy
– Opt-in and privacy issues
– Viral deals
– Tax issues
CONSEQUENCES
CONCLUSION
Questions, comments,
kindly worded concerns?
CONCLUSION
Carolyn Kmet Eric Collins
Rob Duva