Transcript Slide 1

How to Use Affiliate Marketing to
Extend Your Subscription Marketing
Reach Online
More data on this topic
available from::
Peter Figueredo
CEO
NETexponent
Tuesday, May 8, 2007
Outline

About NETexponent
 Affiliate Potential
 The Basics
 Case Studies
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More data on this topic
available from::
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Brand Protection – The Financial Times
Harness Loyalty Power – NY Times
Manage Retention – NY Times
Holistic Search and Affiliate - Audible.com
Emerging Trends
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About
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More data on this topic
available from::
Founded January 2001
NYC headquarters
Deep agency roots
Performance Marketing Agency
specializing in Affiliate and Search
Practice Areas

Subscription Marketing
 Financial Services
 Online Retail
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Affiliate Potential
More data on this topic
available from::
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4
Affiliate Potential: Valuable Traffic
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comScore Networks panel of 1 million
affiliate marketing consumers in the US
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During the 2nd Quarter of 2006, affiliate
shoppers spent 7% more than the
average consumer in internet sales
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Affiliate marketing consumers were 43%
more likely to convert into a sale than
consumers directed by other referrals
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Affiliate marketing shoppers were 17%
more likely than the average Internet
user to have average household income
of greater than $75,000
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32% of affiliate shoppers were between
45 and 64 years of age, and were 4%
more likely to have children
More data on this topic
available from::
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The Basics
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Technology
 Staffing
 Core Strategies
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Report Card / Competitive Analysis
 Commission Strategy
 Communication Strategy
 Recruitment Strategy
 Optimization Strategy
 Quality Assurance Strategy
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The Basics: Keys For Success
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Relationships are  Success requires:
the major key to
 Relationships
success
 Compelling consumer offer
 Affiliate automation
 Treat them as true
 Motivation
partners
 Policing of sites
 Grow your
 Frequent contact
programs as you
 Proactive optimization
would grow a sales
 Flexibility
force
 Speed
 “Kaizen”
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Active recruitment
Integrity
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The Basics: 4 Main Affiliates
1.
Coupon
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2.
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provide consumers
with savings
Vertical Content
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specialize in a
particular niche
Loyalty
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3.
4.
use point systems
to motivate
consumer action
Search Arbitrage
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buy search
keywords on
behalf of
advertisers
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The Basics: Meet The Top Affiliates
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Case Study: Brand Protection
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Goal = grow subs without brand
risk
 Tactics used:
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More data on this topic
available from::
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Custom terms and conditions
Affiliate rescreen
Top affiliate monitoring
Daily monitoring (VSD)
Measured recruitment efforts
Strict rules for email and downloads
Allow CJ to weed out inactive affiliates
Dedicated affiliate QA team
Small manageable network
Affstat 2007
Report
Result = We have successfully
grown their affiliate volume and
protected their brand for 5 years
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1
Case Study: Brand Protection
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New publishers must opt into special terms and
conditions before joining the FT affiliate program
The terms and conditions state that publishers
must:
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More data on this topic
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Have a privacy policy included in their websites
Have no material which is illegal, defamatory or
discriminatory
Drive traffic from North America and/or South
America
According to the terms and conditions FT has the
right to:
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Review and approve the use of the FT trademark
Approve / Disapprove any pending payment due to
publishers
Review materials for an email campaign
Terminate the agreement without prior notice to the
publisher
Modify terms within the contract from time to time
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Case Study: Brand Protection
More data on this topic
available from::
Source: Quantcast.com
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Case Study: Harness Loyalty Power
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Goal = Increase subscription volume without
sacrificing retention rates
Tactics Used:
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More data on this topic
available from::
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Scrutinize incentive sites for relevant audience
demographics
Assign unique tracking to each incentive site to
monitor retention
Use test periods for less established affiliates to
gauge performance before full launch
Limit incentive structure provided to consumers
based on cost goals
Account for ABC guidelines with incentive traffic
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Case Study: Manage Retention
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Goal = Grow volume of valuable subscribers
based on retention rates
Tactics Used:
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More data on this topic
available from::
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Incentivize paid subscriptions
Tailor consumer offer to paid subscriptions
Marry front end and back end tracking
Optimize top sites based on retention
Remove/reduce low retention affiliates
Adjust commissions periodically based on
retention rates
Evaluate performance based on total costs
(media + agency + tech + incentive)
Result = Affiliate program retention rates
increased 20% in less than 6 months
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Case Study: Harness Loyalty Power
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Result = Loyalty affiliates helped us achieve
our 12 month volume goal in only 5 months
and retention rates remained at levels
consistent with other online marketing
General
channels
Affiliates
8%
More data on this topic
available from::
Custom
Recruited
Sites
92%
$
Dollars
Revenue
Operational Costs
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3
4
5
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Case Study: Holistic Search/Affiliate
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Goal = Grow affiliate search arbitrage
volume without hurting internal PPC
search efforts
 Tactics Used:
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More data on this topic
available from::
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Encourage affiliates to bid on generic terms
(audio books, audio book download, etc.)
Support a controlled group of top affiliates and
media partners on trademark terms,
Monitor key terms for affiliate violators
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Affiliate self policing helps
Utilize “transitional affiliate” for long tail build out
Managed by seasoned affiliate staff
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Case Study: Holistic Search/Affiliate
Agency
PPC
listing
Affiliate
PPC
listings
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available from::
Competitors
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Case Study: Holistic Search/Affiliate
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Result:
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12% over goal of new subscribers
35% reduction in cost per new subscriber
58% reduction in cost per sub in search
Able to dominate valuable keywords
Added ~500K keywords to search campaign
7000
6000
5000
4000
3000
2000
1000
0
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Holistic Sub
Volume
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Holistic AL Orders
Normal
seasonality
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Emerging Trends
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More data on this topic
available from::
Google PPA will complement affiliate efforts
 CPA Ad Networks become “Affiliate Networks”
 Lack of tech advancement leaves door open
for affiliate widgets
 Long tail concept justifies large affiliate
programs
 Affiliate tech provider value continues to be
challenges
 Holistic search and affiliate strategies spread
 Advertisers struggle to calc duplication and
decide which channel should get credit for
sales
© 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.
1
Credit/Thank You
Conference Attendees Receive A
Free Affiliate Competitive Analysis
Contact Me:
Peter Figueredo
More data on this topic
available from::
NETexponent CEO
212-981-2700 ext 200
[email protected]
© 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.
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