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TRANSCRIPT
Affiliates: The Newest Ally in The
Quest for Omnichannel Presence
Michael Jones
Head of eBay Enterprise Affiliate
Network
Agenda
• About eBay Enterprise Affiliate Network
• Busting Affiliate Misconceptions
• Our View: What’s Next in Affiliate Marketing & How to Solve for It
• Open Discussion
eBay Enterprise Affiliate Network
Technology Foundation
Advanced Product Feed
Store Builder
Advertiser & Publisher API’s
Ad Serving
Customized Commissions
Relationship Management
Communication Tools
Reporting Tools with 1000’s
of Data Points
Scalable Tracking Levels
eBay Enterprise Affiliate Network
4000+
5 YEARS
150
7
200,000+
12:1
85MM
65+ 15+ YEARS AFFILIATE
EXPERIENCE
AVERAGE TENURE OF
EMPLOYEES
PROGRAMS LAUNCHED
IN 4 YEARS
PUBLISHER SITES
NEW PRODUCTS TO MARKET IN
PAST 12 MONTHS
PROGRAMS MIGRATED
IN 2 YEARS
IR 500 BRANDS
TRANSACTIONS
PROCESSED IN 2013
AVERAGE ROI
NETWORK WIDE
In Partnership with Magento
The extension empowers
merchants with:
• Automated integration and on-
boarding
• Easy-to-use tracking integration
• Ability to track and record affiliate
sales and conversions
• Flexible configuration
• Product feed export automated
nightly in eBay Enterprise Affiliate
format
• Correction feed automated nightly
in eBay Enterprise Affiliate format
Launching an affiliate marketing program has never been easier. With the eBay
Enterprise Affiliate Extension, you can start driving traffic and revenue right now.
THE OMNI-CHANNEL CONSUMER
The changing rules of commerce
Connected constantly
Everywhere
On the Go
To Their Work
To Their Home
To Their Friends
To Their Favorite Retailers
To Multiple Devices
91% of
consumers
have their
mobile phone
within reach
24/7*
79% of purchases made
on a traditional
device
40% of consumers
switched between
device types to
browse for the same
item
53% of consumers used
their smartphone in
the home to browse
Source: “Multi-device Ownership: Implications For Retailers and Consumers.” eBay Enterprise. November, 2013.
The Journey is Multi-Device
Initial
Consideration
Set
Trigger
Moment
of
Purchase
Consumers Expect More from Retailers
Initial
Consideration
Set
Trigger
Moment
of
Purchase
Social Listening &
Advocacy
Social & Brand Voice
Media & Display
Search
Social Listening &
Advocacy
Display
Retargeting
Partnerships
Social CRM
CSE &
Marketplaces
Rich Experience
Content
Commerce
Website
Social Commerce
Rich Experience
Content
Affiliates Affiliates
Affiliates
Affiliate
Multiple Channels Generate More Value
AFFILIATE MISCONCEPTIONS
Affiliate Misconceptions
• No incrementality
• Affiliate sales have lower AOV’s.
• Why pay for sales I would have gotten anyway?
• Affiliates hijack sales from other channels
• Affiliate Traffic is lower quality
Nearly half of all customers who closed
on Affiliate are New (no purchase on
site in the last 24 months).
Niche affiliates converting were New
70% of the time.
0%
20%
40%
60%
80%
Overall: 49%
New Customer Rate by Publisher Type
Affiliates Drive New Customers
Customers That Repeat Are Valuable
Coupon Loyalty/Rewards Mobile/EmergingTechnology
ComparisonShopping
Social Niche Content
Across all affiliates, AOV for a repeat customer was 7% higher than that of
someone New
Repeat
New For Loyalty sites, the AOV is 14% higher
Overall
- When affiliates introduce the path, AOV jumps to $114 (up from $94 site average)
- This number is similar on average when they serve as an influencer, but increases
significantly when more than one affiliate is seen.
AOV
increases
with
Frequency of
Influences
Affiliate AOV is Higher
0%
20%
40%
60%
80%
100%
Apparel,Accessories& Footwear
GeneralMerchandise
Specialty SportingGoods
% of all Conversions
within 24 Hours from last
Affiliate click
Within 7 Days
Within 14 Days
73% of conversions occur
Within 30 minutes.
Retail Vertical
Affiliates Convert Fast
WHAT’S NEXT IN AFFILIATE
What’s Next in Affiliate Marketing
• A Shift Towards Mobile
• The Rise of Content
• Dynamic Commissioning Rules
• Social Commerce via Peer to Peer Sharing
0
20
40
60
80
100
2011 2012 2013 2014 2015
Adult Digital Coupon Users (Millions)
Source: eMarketer, “Digital Coupons, Mobile Give
Cheapskates Staying Power” April 2013.
Projected The number of users
couponing with mobile
devices will increase
20% in 2014.
(After even bigger
growth in 2013.)
Nearly 100MM Use Coupons
Commission publishers on App Installs and In-App
purchases
Shop via
Publisher App
for Target
If Retailer App not
installed, directed to
iOS/Android store
to download
Consumer makes
in App Purchase
Commission Event #1 Commission Event #2
App Install & In-App Purchase Tracking
Coupon 51%
Loyalty/ Rewards
42%
Mobile/ Emerging
Technology 4%
Comparison Shopping
1%
Social 1%
Niche Content
1%
Demand Contribution, Q3 2013 Affiliate marketing spend is
projected to reach $4.4bn by
2016.*
For retail e-commerce affiliate
programs, Loyalty/Rewards and
Coupon sites remain the majority
of the business.
Affiliates who capture 7% of that
spend are growing faster than
market.
Coupon & Loyalty Drive Demand
Coupon 52%
Loyalty/ Rewards
25%
Mobile/ Emerging
Technology 10%
Comparison Shopping
6% Social
5%
Niche Content
2%
Traffic Contribution, Q3 2013 Loyalty sites pull more than their
weight in demand with less traffic
because of high conversion
rates
The smaller categories which
currently drive 7% of demand
are driving 24% of traffic, and
may have the most room to
mature and grow.
But Others Influence Traffic
Social commerce brings
social media, content and
curation into the online buying
experience
By 2015, companies will
generate 50% of web sales
via social presence and
mobile applications
$30
Billion 2015 projected market potential
for social commerce brands
Social Commerce on the Rise
Compensation
Today
$100 Purchase
x 5% Commission
---------------------------
$5 Payout
Dana Just found a new
store via her
favorite affiliate
Compensation
Tomorrow
$100 Purchase
x 4% Commission
---------------------------
$4 Payout Subtotal
+ $1 Per New Customer
+ $1 Per Mobile Purchase
---------------------------
$6 Payout
Multi-Action Commissioning
Recruit Share Redeem Reward Track
Invite your existing
advocates to spread
news in exchange
for rewards
Your advocates
share offers/
products with their
friends and family
via Social, E-mail
Friends and family
can redeem offers
when they buy
products online or
in-store via web
code, printable
coupon or mobile
bar code
Your Advocates earn
rewards from every
“friends & family”
sale made
Track advocate’s
activity and gain
valuable insights into
your program’s
social landscape
Turn Friends into Affiliates
Avoiding the Pitfalls and Perils
of Display Advertising
Serge Del Grosso Head of Media Strategy
eBay Enterprise Marketing Solutions (U.S.)
Russ Carroll Head of Partnerships
eBay Enterprise Marketing Solutions (EMEA)
Agenda
• Display Media Industry Trends – U.K. & EMEA
• Targeting Data is the New Oil
• Accelerating Ecommerce with Targeted Display
• For Magento Customers – eBay Enterprise
Display Extension
• Questions
Display Industry Trends –
U.K. & EMEA 02
In the UK,
Display Media’s
share of digital
spend is
growing
Display ad spend
also growing in
Western Europe
Mobile share of ad
spend accelerating
in the UK
In Middle East &
Africa, Mobile ad
spending will see
rapid growth in 2015
and beyond
Deep Customer Engagement
79% of smartphone users
keep their phones with
them for all but two hours
of their waking day
Programmatic and
Real Time Bidding
(RTB) is the new
emerging standard
for Display
Programmatic drives user-level targeting at scale
CONTEXTUAL FILTERING
& BRAND SAFETY
EXCHANGE/ NETWORK
PARTNERS
MOBILE & CROSS-
DEVICE TARGETING
PREMIUM PUBLISHERS
DATA PARTNERS
Actioned through major supply-slide exchanges
Now you can
real-time bid on
15+ billion
impressions daily.
Who should I target?
Targeting Data is
the New Oil
+200
Petabytes
of
Consumer
Data and
growing…
Nearly a
billion
consumers
worldwide
Credit cards
Thousands
Product
Categories
Multiple
cookies
across
dozens of
business
Actionable
search
insights
+ 9M
payments
every day
+ 6K
Total
Payment
Volume per
second
Pair of
shoes
sold
every 2
second
Loyalty
Mobile
phone
sold every
4 seconds
Click
behaviour
and
patterns
Device
IDs
addresses
Bank
accounts
POS
A ladies
handbag is
bought via
mobile every
12 seconds A
motorcycle
sold every
10 minutes
IP Address
WE UNDERSTAND OUR SHARED
CONSUMERS ACROSS A WEALTH OF
COMMERCE DATA
2 OUT OF 3
OF YOUR
CONSUMERS
ARE OUR
CONSUMERS
BIG DATA
THE VALUE OF EBAY INC. DATA
PRIVACY
DATA
SCIENCE
ACTIONABLE
INSIGHTS
Accelerating Ecommerce with
Display 04
THE VALUE OF TARGETED DISPLAY
1. Generate Demand 2. Capture Demand
BENEFITS OF DISPLAY
It allows for a visual representation of a product or brand
that supports other online marketing efforts – in places
that desired audiences exist.
Display is the most scalable marketing channel for taking
multiple sources of data and deploying messages to
those target audiences/consumers in real-time.
Successful Display Targeting Strategies Include
Campaign Reach
Expert Targeting
Capabilities
Quality
Inventory
Access to in-market shoppers
Data
Science
True
Partnership
Targeting the right person starts with using data to construct an audience.
Client’s Data
Our Data (eBay Inc.) Other Parties’ Data
• Branded Website
• Customer Database
• eBay Marketplaces
• PayPal
• Demographic
• Behavioral
THE RIGHT PERSON
Display solutions account for When, Where and How a user experiences the
digital world.
When
Where How
• Time of day
• Timing (Seasonality)
• Recency to a signal
• Physical location
• Medium
• Content Adjacency
• Devices
• Browsers
• Apps
THE RIGHT CONTEXT
Once we’ve targeted the right user and are aware of her context, it’s time to
use the information we have in order to connect.
Earn Attention
Resonate Inspire Action
• Conspicuousness
• Visual Appeal
• Mnemonic Device
• Relevance
• Personalization
• Compelling Offer
• Ad engagement
• Visit to owned media
• Conversion
THE RIGHT MESSAGE
TARGET BUYERS WITH SAME CHARACTERISTICS, PATTERNS, BEHAVIORS
Never
Purchased
Inactive Buyers
In-Market
Shoppers
Active Buyers
Acquisition
Reactivation
For Magento Customers –
eBay Display Extension 05
AVAILABLE NOW!
Quick & easy
implementation, and
a complete set of
custom-built Display
Ads
Access to all of
the major
exchanges,
Facebook, Tablet,
eBay.com
Account
optimization,
analytics access
and a real live
person if you have
questions.
1 2 3
IMPLEMENTATION IS EASY!
DISPLAY - THE ROAD AHEAD
• Display media is a growing
business in your markets
• Programmatic (RTB) display is an
engine of this growth
• Data-driven display is the new oil
• Activate your display program now
with the eBay Display Extension
The accurate and timely
understanding of the
value and role of each channel
in the marketing mix has
become mission-critical for
marketers.
Meet Elizabeth
64
How Do I Quantitatively
drive clarity across the
entire customer
journey?
I must get smarter with
my marketing
Marketing tactics that are regarded as
“top of the funnel”,
such as display advertising,
are undervalued in their contribution
to overall eCommerce sales.
Source: Forrester Research
DA
Y 8
Site
Visit
DA
Y 1
Challenge 1:
Siloed Marketing Measurement Based on Last Click
£200
Search
Display
Affiliate
Social
Paid
Search
100%
Solution: Identify ROI for each marketing channel
ROI Measurement
Revenue from Product Sale
Keyword CPC £1.00
Conversion Rate 4%
ROAS 800%
£200
DA
Y 8
£200
Paid
Search
100%
Challenge 1:
Siloed Marketing Measurement Based on the Last Click
Paid search
matters most for
new customers.
Email matters
most for repeat
customers-
Source: Forrester Research
DA
Y 8
Site
Visit
DA
Y 1
INTRODUCER INFLUENCER CLOSER
£200
Search Display Affiliate Social
Paid
Search
100%
Challenge 2: Managing marketing spend across a diverse range of
marketing touch points.
Solution: valuing marketing touchpoints throughout the
customer journey
DA
Y 8
Site
Visit
DA
Y 1
INTRODUCER INFLUENCER CLOSER
£44
Paid
Search
22%
Organic
Search
13%
Affiliate
40% Display
17%
Social
8%
£26 £34 £80 £16
Challenge 3: Plan marketing spend, execute and track the investment impact
on consumers interaction with the brand.
Solution: advanced attribution
Elizabeth's Approach
Paid Search
CSE
Affiliate
Cancellations,
Costs, POS,
Order # etc
Organic
Search
Social Mobile
1st Party
Cookie
Display
SINGLE SOURCE OF TRUTH
Offline Data
Ingest offline non-addressable channels –
television, radio, outdoor & print campaign data.
Non-addressable media data is
comprised of 2 main components:
1. Schedule/flight data
(where and when the ads ran)
2. Performance / response data
(i.e. ratings or other performance
metrics)
Cross device Tracking
Hard Linking devices
1. Customer keys; email address &
user log-ins
2. Customer Profile IDs (cookie,
IDFA, Android ID, device ID, etc.)
3. Probabilistic ‘non cookie’
techniques mapping devices &
sessions together.
eBay Inc. Data
Enriching cross device associations
using eBay Inc. customer data.
BUILDING PROFILES ACROSS DEVICES
100% 0% 0% 0% £
25% 25% 25% 25% £
35% 40% 5% £ 20%
Organic
Search Email Display Paid Search
Different models for valuation
Predict investment Scenario
planner
79
I have £1MM to spend. How to
maximize my return?
I need to get £10MM in revenue.
How much channel spend?
I need to get 10,000
conversations, conversions,
opens, clicks.
Chose scenario type based on your goals
1. Forecasted + Actual data sets available
2. Day, Channel, Source, Campaign, Site, Placement
3. Spend, Impressions, Orders, Revenue, Gross Profit (+ calculated metrics)
• Configure results based on appropriate metrics
(spend, revenue, profit, orders, ROAS)
• Forecast at summary, channel + sub channel
• Create multiple “what if’s” to determine best go forward plan
Its not only about how to and
requirements by channel,
its also about gaining senior leadership support for
marketing investment.
What does it
mean to you?
Revenue per order increased by 66%
Increased conversion rate by 50%
Reduced ad spend by £100,000 per year
Annual digital spend budget £32MM to £47M
Results:
Solution: Create A Single View
Elizabeth’s Challenge:
Optimising Digital Marketing
Spend & Justifying Budget
