A discussion on how Affiliate Marketing fits within the online marketing mix. To assist affiliates specifically in understanding why decisions are made by agencies and merchants and how they are seldom made in isolation. Why merchants may even question the value of some of the internal channels such as vouchers, paid search or cashback and where and why affiliates are called into question. An understanding of these issues will enable affiliates to tailor their strategy to meet client demands and attempt to future proof strategy.

1. Affiliate Marketing in the Media Mix Ewan Darby Business Director, Affiliates Neo@Ogilvy

2. A quick show of hands... If you feel confident that you know the role of an agency in affiliate marketing

4. 3rd party tracking and performance analysis

5. Planning

6. Network management

7. Reporting

9. According to the A4U web site this session is... ...a discussion on how Affiliate Marketing fits within the online marketing mix. To assist affiliates specifically in understanding why decisions are made by agencies and merchants and how they are seldom made in isolation. Why merchants may even question the value of some of the internal channels such as vouchers, paid search or cashback and where and why affiliates are called into question. An understanding of these issues will enable affiliates to tailor their strategy to meet client demands and attempt to future proof strategy

11. Awareness Consideration Conversion Purchase Loyalty Building media strategy Building awareness Creating demand Positioning brand Capture demand Converting consumers

12. Awareness Consideration Conversion Purchase Loyalty Building media strategy Offline media Online display Search Search Affiliates CRM

13. Identifying and Targeting the Audience Search - generic Display media Retargeting Propensity to purchase Product Purchasers One-time Customers Merchant Customers Search - Brand Affiliates

19. A simplistic ROI... Each channel within the plan needs to demonstrate value to the performance of the overall campaign (ROI) Display has a lower ROI than search and affiliates as their function is higher up the sales funnel Trying to understand value in isolation is difficult and may provide a skewed view of marketing performance

20. Affiliate marketing in the media mix Agencies presenting affiliate marketing within the media planning mix means: The channel is a serious consideration for marketeers It receives the support that other media channels have enjoyed Merchants understand the opportunity and the risk better than ever

21. Affiliate marketing in the media mix But this means greater scrutiny

22. Adding to the mix – a marketeer’s concerns What does affiliate marketing add to the media mix? Are all affiliates appropriate? How can I measure channel effectiveness? How can I measure affiliate effectiveness? What is the implication of de-duping?

23. An affiliate shaped space

24. De-duplicating sales De-duplicating sales means agencies and merchants can effectively segment sales It ensures each channel reports last click sales There are caveats It should not be used as a cost-saving measure Savings made should be put back in to the CPA It’s not right for every client It’s not perfect

25. Non de-duped programme Tracking Tag Search SALE MADE Tracking Tag Affiliate Tracking Tag Display TIME

26. A de-duped programme SALE MADE Search Floodlight Tag Affiliate Display TIME

28. Who will it affect most?

29. What does the client want from it?

30. How can it be managed professionally and effectively?

32. Weighing up the opportunity How will a search affiliate affect our own paid search activity? Are voucher codes claiming the last click unfairly? How do email affiliates derive their lists? Can they be de-duped against a merchant’s? How would a loyalty affiliate impact a merchant’s own loyalty programme? If a merchant’s prices are not competitive is it damaging to the brand to appear on price comparison sites? Are meta-search and comparison affiliates populated by habitual brand-switchers? Are they valuable customers, or will I lose them this time next year?

33. Getting the right balance – affiliate selection Coverage Sales Volumes Channel effectiveness Value Cost Incremental Channel erosion

34. Selling in to the agency and client Have you spoken to the network? Why do you want to promote the brand? How will you promote the brand? What’s in it for the merchant? Are they doing something similar already?

35. Further questions and comments