PowerPoint Presentation

AFFILIATE MARKETING IN A POST-EVERYTHING WORLD.

2015

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YOUR SPEAKERS.Sen Mahon Affiliate Team Leader, EquatorEmma Burnett BlairDisplay Team Leader, Equator@Equator_Aff

2015EmmaPreviously worked on affiliate accounts at Equator before moving onto leading the display team2

TOP 10UK INDEPENDENT DIGITAL AGENCY ON PERFORMANCE

16 YEARS OLDAND PASSIONATE ABOUT INNOVATION

140+IN-HOUSE DIGITAL EXPERTS

INSPIRATIONALSHORTLISTED IN SUNDAY TIMES BEST COMPANIES AWARD

GLA & NYC

2015

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ONCE UPON A TIME...

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PPC SEO Affiliates Display

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#INTEGRATION

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CURRENT LANDSCAPE

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A connected brand story across screens

2016This is a nice example of how the lines between channels are blurring and how they need to work together. For a long time, measuring tangible results from TV campaigns has been difficult and new trends in consumer behaviour such as second screening have raised new challenges. But now theres a real opportunity for digital to work in conjunction with TV and capitalise on awareness and interest generated from those campaigns, bringing it online and translating it into an actual conversion.The Second Screen is distracting from the commercial break, as the majority of TV viewers reach to their mobile devices when the ads start airing. With synced TV and digitals ads, Nissan won back the audiences attention, telling a connected brand story across screens and significantly increasing brand awareness.Golden Charters TV campaign faced these challenges so and in a bid to win back users attention, we ran display ads that synced with their TV ads and while we knew that users wouldnt click through a banner and convert straightaway, but those who did click onto site could be recaptured at another time by another channel after various retargeting activities across display, affiliates, PPC and email. Its nothing ground breaking or particularly difficult and Im sure many people here have done the same but it is effective and nice example of how channels really need to be supporting each other 9

2016Cross over between channels affiliates doing display, display doing social etcetcReach and frequency struggles10

WHERE DO WE GO FROM HERE?

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AFFILIATES GO PROGRAMMATIC

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affiliate marketing is very much a manual affair. CPAs are negotiated by phone and email, IOs are signed and scanned. Many fundamental processes are entirely manual Affiliates are scattered across multiple networks and technology solutions making it trying, or in some cases impossible, for an advertiser to work with every relevant affiliate.Elliot Myers, Maxus Global

2016Sean gives his view on this statement from affiliate point of view then Emma hops in to reference display?

DisplayBut this statement isnt wholly irrelevant for display The rise of programmatic and the automated way in which we now plan, buy and sell display ads has without a doubt reduced the amount of manual tasks we need to complete and therefore the amount of man hours required, but its not removed them altogether In the case of display, CPMs/ CPCs still have to be discussed, negotiated and agreed upon with the programmatic provider prior to the campaign going live (if partnering with a provider rather than DBM or in-house trading desk) CPAs that the campaign is working towards still has to be setIOs still have to be signed, scanned and returnedThe difference is that in the past display advertisers had to do this multiple times e.g. if you wanted to place ads on eBay, MSN, The Guardian etc etc, youd have to do that process for every publishers, whereas programmatic allows you to do this process once That being said, you may have more than one display strategy on your plan. Depending on the size of client, their objective and their budget etc, you may find that you want to supplement the programmatic activity with some social ads, in which case, the process will have to be repeated for that.

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PROGRAMMATIC: THE AFFILIATE VIEWRobots?Real time bidding on key partner sites?Or are we just saying programmatic Display on a CPA basis???Which youll probably pay for on a PI cookieWhich we already kind of do

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PROGRAMMATIC: THE DISPLAY VIEWBidding on a display advertising inventory source in real time, for the opportunity to show onespecific ad, to one consumer, in one specific context.

Individuals

AI & super smart targeting

RTB

Scale

Maximum ROI

2016Definition by Rocket FuelLots of jargon/ different definitions which can make understanding programmatic complicatedIts important to note that its not simply about automation, it goes far beyond that

Individuals Arguably, the most revolutionary aspect of programmatic is that advertisers buy mediaindividually, not grouped by the thousands or millions. Contrast this approach with traditional segment-based buying, where advertisers can onlyserve one generic ad to a large and potentially diverse segment of consumers who consumethe ad across a huge variety of contexts.Programmatic allows us to serve one specific ad to one single consumer in one single context.Never as the good old marketing phrase the right users, the right time, the right message, the right place been so true

AI/ targetingProgrammatic can utilise thousands of data points about each individual consumer. Clickstreamdata, demographic data, behavioural data, and many other first-party and third-party datapoints are all considered by complex algorithms to draw a fuller picture of the consumer who will view the ad. This means that the algorithms can decide with great precision if this consumer in this context is worth serving an ad to meaning that advertisers dont waste money on wasted ads and users get messages that are relevant to them.AI allows precision

RTBThe process of buying digital inventory from multiple publishers on an impression byimpression basisLets think of this like an auction programmatic algorithms, by analysing the data weve spoken about, allow us to identify the most value individuals to us. Once we identify these users, we can bid on them and the advertiser who places the highest bid wins the impressions. This all happens within a matter of milliseconds.

ScaleProgrammatic buying can reach the ideal customer on many more properties than justa handful of sites. Due to its real-time connection with many large inventory sources,programmatic buying can consider vastly more websites and digital properties than anymanual media planner could.And because we have so much data on who our most valuable prospects are, we can find these users online Programmatic can aggregate high-performing audiences at mass scale targeting not just a handful of consumers at a high price, but a huge pool of them with accuracy and at a low cost

ROIProgrammatic is smart, one of the smartest tools we haveConsequently, it reduces ad wastage and make sure our investment goes towards reaching users who are valuable to usThis improved accuracy means better results that are measurable in real timeTechnology based approached reduces the requirement for time intensive, manual tasks the advertisers need to doAll these things make programmatic one of the most cost-effective strategies available15

2016In the past, there was a lot of time spend manually trawling through lots of data to identify audiences who we hoped would be the right fit it was time intensive and low in accuracy. But now16

2016In the past, brands would target the masses. Now they can target Wally/ Waldo!Its all about identifying and targeting individual users with relevant messagingNever before has the phrase right user, right time, right message been so relevant17

You cant fulfil your potential without communication in affiliate marketing. Technology and automation are still underpinned by relationships and that human element is vitalAnjulie Truong, Affiliate Window

2016SM fear that well lose relationships through automation

DisplayThere is no doubt that the rise in tech has been hugely beneficial in terms of reducing the amount of time humans have to spend setting up and managing campaigns but robots and machines have not replaced humans in every senseLike affiliates, relationships are still importantNegotiating dealsPlanning campaign strategiesCampaign management and optimisationsFewer relatnioships but stronger ones

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IN TODAYS WORLDTechnology is doing more of the heavy lifting But relationships are still keyIts about the individual, not the masses

2016ADD:Programmatic allows us to be hugely granular and consequently, more relevant

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THE FUTURE

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A ONE STOP AFFILIATE SHOP.Affiliate manager

One interface

Commission increases

Tenancies

Newsletter exposure

Multiple activities

2016With programmatic display, we have one piece of tech, one portal, that pools inventory from multiple different sources and allows us to manage it all from the one place. For example, we can run ads on multiple sites, to multiple users, with multiple types of creative, messages, propositions all from one place.

Commission increases Automatic as in the changing/ managing commission increases could be done from the 1 interface rather than approaching and negotiating with individual affiliates

TenanciesProgrammatic tenancies whereby 1 tenancy agreement is signed with a programmatic tenancy provider (like Rocket Fuel) but rather than tenancy appearing to all of an audience, e.g. a targeting segment on Quidco, the tenancy appears across multiple cashback sites according to the user 21

A WIN WIN WHEN IT COMES TO TENANCIES.

Unsold tenancies(Affiliate)(Advertiser)Unsold affiliate inventoryAdvertiser bids for and wins inventoryAffiliate sells previously unsold inventoryAdvertiser gets quality inventory at a reduced price

(SSP)(Ad Exchange)(DSP)

2016Heavily based on display programmatic model of SSPs, ad exchanges and DSPsQuidco unable to sell all tenancy inventory so put unsold inventory into a big pot (ad exchange)Advertiser can choose to buy a tenancy directly from Quidco, perhaps if they are looking to buy a particular or tailored product, but if they are simply looking to target an audience, they could select and purchase this audience from the pot, bidding an amount that they think said audience is worth. Consequently, Quidco sells unsold inventory, albeit at a slightly lower cost, while the advertiser could get a targeted tenancy at a lower price22

Sean

31 Years Old

Spends on shoes

Roughly 150 per month

Uses Cashback sites

Loyal to Nike

Will try other brands

2016AND AFTER THAT?

NOW

Programmatic TV

Programmatic OOH

AI in search

Challenges from ad blocking

Mobile & multiple devices

2016There are still some fundamental challenges within the modern day programmatic environmentWeve got to be careful we dont run before we can walkChallenges with mobile, cross-device, attribution, ad blocking, fraud, creative sophistication and optimisation and fundamentally, tech (especially when it comes to affiliates)Ambiguity surrounding the term programmatic here for TV and OOH it refers more to the data driven and automation aspects rather than targeting individual users AI in search e.g. RankBrainProgrammatic OOH that cool example about leaflet dropsMobile and multiple devices we havent mastered mobile programmatic; still big ways to go in terms of cross-device and attribution

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WHERE ARE WE HEADING?Erosion of channels?Determined by payment modelRelationships & CPAChannel has always embraced change and new technologies

2016CPAs more of a focus in displayDisplay providers offering cost per downloadChannels are no longer black and whiteIts about how all the channels work together to work to an end goal (attribution!) 25

IDEAS FOR A CONNECTED WORLD.

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THANKS FOR YOUR TIME!Wed love to hear from you!sean.mahon@eqtr.comemma.blair@eqtr.com@Equator_Aff

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