Transcript Anton E. Konikoff

Dealing with Affiliates:
Strategies for Search Marketers
Anton E. Konikoff
Acronym Media
December 6, 2006
Search Marketing Experts Since 1995
It’s time to admit the truth:
Hi. My name is Anton
and I am a..
BIG fan of
affiliate
marketing!
Search Marketing Experts Since 1995
$$$$$ -- New Affiliate Program! Big BuXX -- $$$$$
• Become an Acronym Media affiliate!
• Refer enterprise-level SEM clients
($150K+/yr in agency revenue)
• Let us deal with messy closing process..
• Get 15% commission – no questions asked
Retire in a year!!!
Search Marketing Experts Since 1995
Terms and Conditions on Use of Search Marketing
• Cannot bid on brand terms, Anton
Konikoff’s name (incl. misspellings),
Empire State Building, 55th floor, New
York City skyline, best place to work..
• Cannot bid more that $0.25 on awardwinning SEO, SEM, Search Marketing
and variations
• Must build at least 20 page unique
content-rich site about Acronym’s search
brilliance, with its own domain name
Search Marketing Experts Since 1995
No bids on current client names!!
Search Marketing Experts Since 1995
Refer to full T&C on file with our office
• Non-compliance will
result in a forced exile
to the coldest part of
wherever in Russia
Anton is from…
Search Marketing Experts Since 1995
Affiliate programs can be very
challenging for search
marketers, but at the same
time their value cannot be
discounted.
With firm ground rules, smart
strategies, and well-executed
monitoring, search marketers
can find ways to operate
successfully alongside affiliate
programs.
Search Marketing Experts Since 1995
Bad, bad affiliates!!
• Affiliates can drive up bid prices
• On Google, affiliates can effectively
block your ads from showing up
• In either case, they can cause a lower
volume of traffic, higher costs per
acquisition, and massive headaches!
• Unfortunately, many clients are
unwilling—or unable—to control
their affiliates’ use of paid search
Search Marketing Experts Since 1995
7 of the top 10
results for “kids
book club” on
Yahoo are
affiliates.
Search Marketing Experts Since 1995
Getting Blocked In Google
Just because you’re the SEM agency of
record doesn’t mean that AdWords will
always favor your ad over affiliates’.
Who does Google favor?
• Amount of historical data
• Higher CTR – poorly regulated affiliates may get away with
misleading copy, leading to a CTR advantage
• Better Quality Score
– more on this in a minute
It can be near impossible to take back your spot once you’re knocked
off — often $100 bids won’t even bring your ads back!
Search Marketing Experts Since 1995
Some Good News From Google
Google has recently made changes to the way it
calculates the Quality Score which have made things
less pleasant for many affiliates.
• Minimum bids are raised for poor quality
landing pages
• The biggest losers: affiliates that operate
“doorway” pages, “MFA” (made for AdWords)
sites and affiliates that provide a lower
quality experience than direct advertisers.
Search Marketing Experts Since 1995
Case Study: Sirius Satellite Radio
Affiliates used Sirius.com as their
display URLs and “doorway” sites as
their destinations
Google:
Display URL has to match destination!
Last three months: as these changes
went into effect, volume has
increased by 15%, driven by higher
CTRs and lower bid prices
Search Marketing Experts Since 1995
Case Study: Scholastic Books Clubs
Status Quo:
• Stiff competition from affiliates
• Affiliates running wild.. With few restrictions
• Higher bid prices and CPA in Yahoo & MSN,
causing higher CPAs and fewer subscriptions
• Regularly shut out of Google for top-converting
keywords
Resolution:
• Thorough analysis and presentation to the
Client
• Missed opportunities and what if analyses
• The client gave their affiliates an ultimatum:
play by the rules or lose the account.
Search Marketing Experts Since 1995
Just Say NO?
– No bidding on brand terms.
– Limit the engines/channels affiliates can use
– Unique offer for affiliates, different from paid
search?
– No brand name in ad copy!
– Don’t let affiliates bid higher than the search
vendor
Search Marketing Experts Since 1995
Search Marketing Experts Since 1995
From the creators of
‘Google Bombing for Dummies’
7
brilliant
ideas
on
dealing with affiliates
(intelligently)
Search Marketing Experts Since 1995
IDEA 1: Ground Rules? Or Blue Sky Rules?
• Fight reflex to restrict but make
affiliates work for their search $$
• Revise inventory estimates with
affiliates in the equation
• Create a search revenue model for
affiliates??
• Show the shortest path to long tail
Search Marketing Experts Since 1995
IDEA 2. Learning From Affiliates (yes, learning!)
• Closely examine affiliates that
appear to be performing better
than you (or that block you in
Google)
• Why are they beating you out?
- Better landing pages?
- Better ad copy?
- Larger sample?
- Test budgets?
Search Marketing Experts Since 1995
IDEA 3. Reconnaissance Mission
• Monitor top affiliates’
keywords, landing pages and
ad copy for brand compliance
• SEMs: offer affiliate
monitoring as a stand-alone
service
• Automated tools can help
harvest the data for analysis
Search Marketing Experts Since 1995
IDEA 4. Are You Good at Sharing?
• Build loyalty: give away select
data on keywords, ad copy, and
landing pages
• In exchange, ask for affiliates’
search intelligence/learnings
• ID 2-3 key affiliates and use
them to complement your efforts
• Develop metrics to report on
affiliates’ search contribution.
Search Marketing Experts Since 1995
IDEA 5: Battle for Search Domination
• Use affiliates intelligently to own
more SERP real estate (paid and
organic)
• Design search programs to boost
awareness and trial
• Quantify benefits using branding
metrics
• No love for non-exclusive
affiliates!
Search Marketing Experts Since 1995
IDEA 6: A Taste of Organic
• Run ranking reports on
affiliates
• Educate affiliates on SEO best
practices and potential pitfalls
• Use them as a workaround if
unable to affect Client’s site
Search Marketing Experts Since 1995
IDEA 7: Advocating Your SEM Work
• Success will require solid
relationships — between SEM
and the Client, SEM and other
agencies, and between Client
and affiliates
• Create ‘what if’ scenarios
showing opportunity costs and
potential
• Be vocal in advocating your own
interests
Search Marketing Experts Since 1995
Contact Information
Questions?
(or for a visit to the top of the Empire State Building):
Anton Konikoff
Acronym Media
[email protected]
www.acronym.com
Search Marketing Experts Since 1995