Pres:Digital Marketing - Affiliate Marketing

From EcommerceWiki

Digital Marketing - Affiliate Marketing

Digital Marketing - Affiliate Marketing

Title Digital Marketing - Affiliate Marketing
Target group Students, Beginners
Topics Affiliate Marketing
Go to slideshow Go to print version

Public summary

Slides

Notes

This is the overall framework of the Digital Marketing couse. We will start with explaining the elements of an online marketing plan. Than we will zoom in on the different marketing aspects based on the customer journey. We start with those online media most suitable to reach consumers and slowly move down the funnel. In the end we discuss customer loyalty which has as goal to re-start the entire process from the beginning.


  • What is affiliate marketing?
  • The affiliate market dictionary
  • What are the affiliate marketing benefits & costs
  • Setting up an Affiliate Program
Logo Ecommerce Foundation1.png 3


Affiliate marketing is a form of performance-based online marketing. The advertiser, the affiliate network and the publisher enter into a partnership, where the publisher promotes the product of the advertiser. The affiliate network facilitates the advertiser and the publisher with tools to run the programs.

Logo Ecommerce Foundation1.png 5



  • Companies can track affiliates in two ways:
    • Developing or purchasing affiliate software
    • Joining an existing affiliate network
  • Only very large companies choose for their own affiliate software.
Logo Ecommerce Foundation1.png 8



  • ID tracking
  • Fingerprint tracking
  • Sales & lead validation
  • Ad media
Shutterstock 151745126.jpg
Logo Ecommerce Foundation1.png 9



  • Advertisers:
    • Companies selling goods/services
  • Affiliate Networks:
    • Intermediates who register clicks & transactions
  • Publishers:
    • Content sites (blogs, news websites, ...)
Logo Ecommerce Foundation1.png 13



  • Affiliate Window/ Zanox
  • Affiliate4You – Familiyblend
  • Affilinet
  • CJ (formerly Commission Junction)
  • Dasicon
  • Netaffiliation
  • Rakuten
  • Tradedouble
  • Tradetracker
Logo Ecommerce Foundation1.png 14



  • Content publishers
  • Bloggers
  • Content platforms
  • Discount/Voucher portals
  • Folder Sites
  • Cashback and savings programs
  • Comparison sites
  • Incentivized and non-incentivized mailings
Logo Ecommerce Foundation1.png 16



  • Nearly any type of media can be used by affiliates:
    • Text (deep) links to the home page or product pages
    • Banners and other visuals
    • Data Feeds with product information
  • The publisher creates the material affiliates can use.
Logo Ecommerce Foundation1.png 17



  • Retail & Fashion
  • Travel
  • Telecom & Services
  • Energy
  • Financial Services
Logo Ecommerce Foundation1.png 19



  • Cost per Sale (CPS)
  • Cost per Lead (CPL)
  • Cost per Click (CPC)
  • Cost per Mille (CPM)
Logo Ecommerce Foundation1.png 20



  • Pay Per Click (PPC)
  • Pay Per Lead (PPL)
  • Pay Per Sale (PPS)
  • Pay Per View (PPV)
Logo Ecommerce Foundation1.png 21



A website has the following rates:

  • 256 products were sold last week
  • 5,189 people viewed the products
  • The products were viewed 1,515,923 times
  • The consumers bought the products for a total of €4,245,676



Calculate the CR, CTR and AOV

Class Assignment.jpg
Logo Ecommerce Foundation1.png 23



  • There are no investment costs
  • Little to no operating costs
  • Making money 24/7
  • A global marketplace at one’s feet
  • Little risk involved
  • No need for a warehouse
Logo Ecommerce Foundation1.png 25



  • Performance based
  • Low entry price
  • Low operational costs
  • Increased SEO ranking
  • Extra traffic/exposure
  • In control of expenses
Logo Ecommerce Foundation1.png 26



  • Publishers do not pay
  • Affiliate networks charge Advertisers:
    • A set up fee
    • A network or license fee
    • Publisher fees (for clicks, leads, sales)
Logo Ecommerce Foundation1.png 27



  • The network creates a tracking pixel for the advertiser
  • The advertiser implements the tracking pixel on its website
  • The advertiser creates an affiliate program on the affiliate network
  • The network and the advertiser promote the program to publishers
  • Publishers (hopefully) start to use the advertiser material on their media
  • The Network registers clicks, leads and transactions
  • The advertiser approves the proposed reimbursements to publishers
  • The network charges the advertiser and pays the publishers
Logo Ecommerce Foundation1.png 29



  • Commissions offered
  • Policies concerning
    • Cookie time
    • Keywords, coupons, emails, etc.
    • Approval and payment speed
  • Verticals where it wants to advertise
  • Contact information
  • Promotion and banner materials
Logo Ecommerce Foundation1.png 30


The advertiser can offer a ladder:

  • 0-10 sales per month: 3%
  • 11-20 sales per month: 4%
  • 21+ sales per month: 5%

Offer different commission per publisher type:

  • Content websites: 6%
  • Email publishers: 3%
  • Vouchercode websites: 4%
  • Other: 5%
Logo Ecommerce Foundation1.png 32



  • Deduplication between online channels
  • How does it work?
    • Deduplication realtime via a script
    • Deduplication manyally afterwards
Logo Ecommerce Foundation1.png 33



  • Advantages of an exclusive affiliate program
  • Disadvantages


  • Advantages multiple programs
  • Disadvantages
Logo Ecommerce Foundation1.png 34



Prepayment: The advertiser pays the commision in advance to the network.

Post payment: The commission will be invoiced to the advertiser by the network, as soon as transactions have been approved by the advertiser.

Logo Ecommerce Foundation1.png 35



  • Conversion of advertiser site
  • Commissions offered
  • Promotion material quality
  • Program settings (e.g. cookie period)
  • Recruitment of right publishers
  • Communication with publishers/network
  • Sales approval rates and payments
  • Additional incentives (extra gifts)
Logo Ecommerce Foundation1.png 36



  • Create an affiliate program for a:
    • Travel organization
    • Fashion retailer
    • Other product or service provider
  • Include all major components:
    • Introduction to publishers
    • Commission model offered
    • Examples of media
    • Policy rules
Logo Ecommerce Foundation1.png 37


  • Affiliate terms: publishers/affiliates, advertisers and networks.
  • Publisher benefits: no investments, little costs, global reach.
  • Advertiser benefits:performance based, low costs, SEO ranking, control
  • Payment types: CPC, CPM, CPL, CPS.
  • Ad media types: text links, banners, data feeds.
  • Tracking types: cookie/ID, fingerprint, sales/lead validation.
Logo Ecommerce Foundation1.png 38