Affiliate marketing is changing rapidly and the future of affiliate marketing is no longer limited to the traditional players in the space. New partners and technology platforms have come into the mix that are shaping the affiliate channel moving forward. Brands are developing and managing strategic and integrated large-scale performance partnerships such as marketing, business or other digital partnerships on a global basis. Robert Glazer will share best practices on how to elevate your affiliate channel so you can deliver on the promise of incremental revenue, new customers and raising brand awareness. He’ll also share case studies from leading retailers on how they have applied these strategies to improve results. Attendees will learn how to transform their affiliate program by: Building the right team Valuing the right metrics Managing payouts to reward the most valuable affiliates Recruiting high-quality affiliates and performance based partners to your program Demanding transparency with centralized reporting, automatic payments and a standardized operating framework

1. Kissmetrics Webinar Series
NAVIGATING NEXT GENERATION AFFILIATE PROGRAMS
The webinar starts at 11am Pacific Time
Slides and Recording will be sent out within 24 hours of the webinar
Q&A after the presentation, but feel free to enter questions as they come up
10 min Demo of Kissmetrics Analytics after the Q&A

2. Navigating Next
Generation Affiliate
Programs

3. @Kissmetrics
#KissWebinar
@thuelmadsen

4. Thue is the Kissmetrics Webinar Wizard and Marketing
Ops Manager. Before joining forces with Kissmetrics, he
was a Lyft driver in SF, which is also how he ended up as
a Kissmetrics marketer. Whenever Thue is not trying to
automate everything around him, you can find him hiking
in the Sierras.
THUE MADSEN
Marketing Operations Manager, Kissmetrics
@ThueLMadsen
Robert is an award winning customer acquisition
specialist with an exceptional track record in increasing
revenue and profits for fast-growing consumer
businesses. He has extensive experience in the
consumer, e-commerce, retail, online marketing, and ad-
tech industries.In his spare time, Robert is an avid skier,
traveler, biker and serial home renovator.
ROBERT GLAZER
Founder & Managing Director, Acceleration Partners
@robert_glazer

5. @Accelerationpar
#KissWebinar
@robert_glazer

6. 1 Why Marketers Are Choosing Performance
2
3 Evolution of Affiliate Marketing
TABLE OF CONTENTS
4 Gen 3: Performance Partnerships
• Forces of Change
• Gen 1 to Gen 2
State of Affiliate Marketing

7. WATCH WEBINAR RECORDING NOW

8. Why Marketers Are
Choosing Performance

9. RISE OF AD BLOCKING
10% to 15% of US internet users are actively blocking digital ads,
particularly the younger demographics.

10. MARKETING SPENDING: DISPLAY
A 'CRISIS' IN ONLINE ADS:
ONE-THIRD OF TRAFFIC IS BOGUS
• As digital advertising climbs toward $50 Billion
this year, marketers battle fraudulent visitors
• Fighting fraud costs money, and just about
every company in the ecosystem can benefit
in some way from it.
• The result is a push towards viewability and
downstream channels.

11. State of Affiliate
Marketing

12. STATE OF AFFILIATE MARKETING

13. STATE OF AFFILIATE MARKETING
z

14. Evolution of Affiliate
Marketing

15. EVOLUTION OF SERVICES & PLATFORMS
Technology & Services start separate (BeFree)
The era of the network begins. BeFree acquired by CJ
(Technology & Services offered together)
Technology & Services are “consciously uncoupling”.
Market price set on technology driving major changes.
1
2
3
1 2 3

16. WHAT IS DRIVING CHANGE?
NEW OPPORTUNITIES
• Retailers want more measurement across all channels
• Partners are coming directly to brands
• More relationships need to be tracked and paid in a standardized way
ATTRIBUTION & VALUE
• 10-90-90 rule. 10 publishers represent 90% of revenue for 90% of large programs
• Misaligned incentives with performance fees
• Pay for performance model colliding with cross channel attribution

17. BUT…
• Brands won’t pay 2-3% of revenue or 20-30% of
commissions for relationships they originate
• They don’t want to pay performance in perpetuity
• They want more brand control

18. An affiliate program is not a
marketing channel. It is a way
to pay for media.”
“

19. Gen 1 to Gen 2

20. MANAGEMENT: GEN 1
MISALIGNED INCENTIVES JUNIOR STAFF LEADS
ENGAGEMENTS
BLOCKING & TACKLING
STATUS QUO QUANTITY MANAGEMENT

21. MANAGEMENT: GEN 2
STRATEGIC& INSIGHTFUL SENIOR TALENT LEADS
ENGAGEMENTS
DIVES DEEP TO LEARN YOUR
BUSINESS
ADAPTS BEST PRACTICES TO
NEW MARKETS
CAN EXECUTE ACROSS
CHANNELS
DEEP ANALYTICS

22. NETWORKS: GEN 1

23. NETWORKS: GEN 2
+
LARGE & DIRECT PARTNERS
MID & LONG TAIL
+

24. AFFILIATES: GEN 1

25. AFFILIATES: GEN 2

26. AFFILIATES IN MANY CHANNELS
EMAIL PAID SEARCH SOCIAL
DEALS PARTNERSHIPS REFERRALS

27. EXAMPLE AFFILIATE TYPES
COUPON and DEAL
Primary focus are coupons and deals for their audience (ie. RetailMeNot and
Slick Deals)
LOYALTY and REWARD
Collect an audience base by offering a unique reward or loyalty incentive
(eBates)
CONTENT
Focus on quality content (mommy blogs and product review sites)
NETWORK
Network of sub-affiliates (FlexOffers.com and rewardStyle)
STOREFRONTS
Schools, nonprofits, and other groups promote to their networks

28. REEBOK AFFILIATE: RONDA ROUSEY

29. TINYPRINTS PHOTOGRAPHER STOREFRONTS

30. REWARDSTYLE FASHION BLOGGER AFFILIATES

31. YIELDIFY ONSITE CONVERSIONS

32. MARKETING GEN 1

33. MARKETING GEN 2

34. METRICS & PAYOUT GEN 1

35. METRICS & PAYOUT GEN 2
LEAP FROG
BLOGGER COUPONS
11/27
10:07
11/27
11:28
11/27
11:29
Paid Commission
Transaction
AffiliateClick
$
LATE ENTRANCE
COUPON
11/27
11:28
11/27
11:29
COUPONS COUPON
Paid Commission
Transaction
Reduced Commission
AffiliateClick
$

36. WAYFAIR CASE STUDY
LEAP FROG
BLOGGER COUPON/LOYALTY
11/27
10:07
11/27
11:28
11/27
11:29
Paid Commission
Transaction
$
External policy of only paying
last affiliate site a visitor clicks
on before adding something to
the cart

37. Gen 3:
Performance
Partnerships™

39. MANAGEMENT
Custom Strategy
Program Operations
New Ideas & Best Practices
Recruitment & Engagement
Compliance
Measurement & Optimization
BRAND
ProvidesGoals& Strategy
Internal Business Knowledge
Branding Guidelines& Creative
Origination of Campaigns
& Promotions
TRACKING &
PAYMENT PLATFORM
Real-TimeTracking
Analytics& Reporting (APIs)
Global Payouts
Contract Administration

40. WHAT MERCHANTS WANT
BRAND ALIGNED PARTNERS INCREMENTAL SALES
BETTER ATTRIBUTION IMPROVED ROI

41. MOBILE: BUTTON

42. ONE MEASUREMENT PLATFORM
CRM
Influencers
NATIVE
affiliate
social
partnerships
referrals
SEARCH
Business Development

43. GOING GLOBAL THE SMART WAY
CHICAGO GERMANY NEW ZEALAND
Multiple airlinesworking as one team
Seamless check-in, baggage handling and transfers

44. GOING GLOBAL FRAMEWORK EXAMPLE 1
Merchant Point Agency
US Network
Tracking
Account
Management
Global SaaS
Platform
Tracking
Account
Management
UK/EU
Network
Tracking
Account
Management
Tracking
Account
Management
US Agency
Tracking
Account
Management
ROW Agency

45. GOING GLOBAL FRAMEWORK EXAMPLE 2
Merchant Point Agency
Global SaaS
Platform
Tracking
Account
Management
US Network
Tracking
Account
Management
Tracking
Account
Management
US Agency
European
Agency
Tracking
Account
Management
Australian
Agency
Tracking
Account
Management

46. GEN 3 PERFORMANCE MARKETING
• Performance Partnerships
• Improved attribution modeling
• Consolidated measurement and
tracking platforms
• Price transparency for technology
and services
• Global expansion and coordination

47. LEARN MORE NOW
Discover how Kissmetrics can help you optimize your marketing

48. Is there room for
improvement in your
affiliate program?
Find our with our free Affiliate Grader! Get
started today by visiting:
www.affiliategrader.com

49. ROBERT GLAZER
Founder & Managing Director, Acceleration Partners
@robert_glazer
rglazer@accelerationpartners.com
THUE MADSEN
Marketing Operations Manager, Kissmetrics
@ThueLMadsen
tmadsen@kissmetrics.com
Questions?