Where is Affiliate Marketing Heading? Nick Caulfield & Edwyn McFarlane

Post on 23-Jan-2018

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Where is Affiliate Marketing Heading?Nick Caulfield, Client Services DirectorEdwyn McFarlane, Business Innovation Director

We have all tried really hard to grow the industry and show why it is so great by focusing on ROI and CPA. But this has

meant innovation has waned, and there aren’t enough new publishers entering the

industryJames Little, Topcashback

Cause Effect

Google Legislation Industry

Economy Technology Consumerism Problem

AdWords Launch

AdWords TM

Site Links (2009)

(2008)

(2006)

Panda (2011)

Google Shopping (2012)

Penguin (2012)

(2015)Mobilegeddon

Voucher Code of Conduct

Software Code of Conduct

EU Cookie Directive (2011)

(2010)

(2009)

Publisher Charter (2013)

EU GDPR (2018)

Amazon Associates

100% Cashback

Econversions & VCUK (2008)

(2005)

(1996)

1st Awin De-Duplication (2008)

1st Awin Attribution Model (2010)

Financial Crisis (2008)

Comet (2012)

Phones4U (2014)

BHS (2016)

EU Referendum (2016)

Napster (1999)

iPod (2001)

Online Gaming Consoles (2006)

iPhone (2007)

iPad (2010)

Smart TV (2010)

Adblocking (2012)

1-Click (1997)

PayPal IPO (2002)

3G Bandwidth (2007)

App Store (2008)

Facebook Platform (2010)

Mobile overtakes Desktop (2013)

£1bn Spend on Black Friday (2015)

12,500

Change in

publisher type over time

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cashback & Loyalty Comparison Engine Discount Code PPC Content Other

17.1%

69.5%

13.4%

Retail & Shopping

Content Incentive Other

Outcome

INFLUENCE PURCHASE

Research

Recommend

Influence

Reviews

commission

structure

DiscountContent

Validation

Discovery Decision

Interest

Communities

The Little Plum

PAST 2017 FUTURE

PAST 2017 FUTURE

2017

AdvertisersContent

sitesIncentive

sites

Catering for all

partners

17.1%28.9%

61.1%

32.7%

69.5%59.1%

28.7%

52.1%

13.4% 12.0% 10.2% 15.2%

0%

20%

40%

60%

80%

100%

Retail & Shopping Travel Telco's & Services Finance & Insurance

Content Incentive Other

Programme

makeup

PAST 2017 FUTURE

2017

2017

2017

Longtail Engagement &

Activation Projects

Joined

Click Active

SalesActive

17.2%

69.5%

13.3%

AFTER

Content Incentive Other

17.1%

69.5%

13.4%

BEFORE

Content Incentive Other

1/3rd

OF OUR SALES INVOLVE MULTIPLE PARTIES. OUR BIGGEST ISSUE IS

WITH CUSTOMERS WHO USE OUR SITE TO COMPARE THE BEST DEALS

AND THEN REDEEM ELSEWHERE.

Soft Click for Code Sites

17.8%

68.8%

13.4%

AFTER

Content Incentive Other

17.1%

69.5%

13.4%

BEFORE

Content Incentive Other

WE DO A LOT OF BRANDING CAMPAIGNS

AND THAT REPRESENTS AROUND 25% OF OUR

BUSINESS.

Influence Payments for Content

19.8%

67.1%

13.1%

AFTER

Content Incentive Other

17.8%

68.8%

13.4%

BEFORE

Content Incentive Other

YOU DON’T GET TO ASK FOR MONEY BACK FROM GOOGLE WHEN ORDERS

ARE RETURNED, SHOULD AFFILIATES REALLY BE

ANY DIFFERENT?

No Returns for Content Publishers

22.3%

65.0%

12.7%

AFTER

Content Incentive Other

19.8%

67.1%

13.1%

BEFORE

Content Incentive Other

WE DON’T JUST WORK ON A CPA. ALL PUBLISHERS

INFLUENCE ALL CHANNELS. WE DRIVE

BRAND AWARENESS AS WELL AS A FINAL SALE

48hr Post View for Content

23.8%

63.8%

12.4%

AFTER

Content Incentive Other

22.3%

65.0%

12.7%

BEFORE

Content Incentive Other

IT’S SO FRUSTRATING TO SEE DECLINED

TRANSACTIONS FOR CODES WE’RE NOT EVEN

PROMOTING.

Universal Code Control

26.2%

61.8%

12.0%

AFTER

Content Incentive Other

23.8%

63.8%

12.4%

BEFORE

Content Incentive Other

IT’S EXHAUSTING TO SEE DECLINES FOR MY OWN SHOPPING PURCHASES! COMMISSION RATES ARE DROPPING AND DECLINES

ARE INCREASING.

Different Dedupe Rules for Content

34.6%

54.6%

10.8%

AFTER

Content Incentive Other

26.2%

61.8%

12.0%

BEFORE

Content Incentive Other

PAST 2017 FUTURE

2017

Post view

Change dedupe rules

Pay for influence

Universal code control

Pay for returns

Soft Click voucher sites

17.1%

17.8%

19.8%

22.4%

23.7%

26.2%

34.7%

34.8%

69.5%

68.8%

67.1%

65.0%

63.8%

61.8%

54.6%

54.5%

13.4%

13.4%

13.1%

12.7%

12.4%

12.0%

10.6%

10.7%

Content Incentive Other

The impact of

our alternate reality

Cross Device Contribution:

Starting Point:

Soft Click for Code Sites:

Influence Payments for Content:

No Returns for Content:

48hr Post View for Content:

Universal Code Control:

Different Dedupe Rules for Content:

Step taken: Spend

Soft Click for Code Sites: 0%

Influence Payments for Content: 2.5%

No Returns for Content: 3.4%

48hr Post View for Content: 2.0%

Universal Code Control: 0%

Different Dedupe Rules for Content: 14.6%

Cross Device Contribution: 2.6%

THANKYOU