am days san francisco 2013 - measuring the value of affiliate marketing

Measuring the value of affiliate marketing

Measuring the value of affiliate marketing

Kevin Edwards, Affiliate Window [email protected]

Kevin Edwards, Affiliate Window [email protected]

GLOBAL PERFORMANCEMARKETING EXPERTS

PART OF LARGEST GLOBAL PERFORMANCE

NETWORK

ESTABLISHED IN

2000

CUSTOMIZED

PORTFOLIO SERVICES

2

TIMES WINNER OFPUBLISHERS’ CHOICEOF NETWORK

TIMES WINNER OFAFFILIATE NETWORKINNOVATION

$2.5bn

1,700MERCHANT

S

Where we’ve come from & where we’re going

4

Are they the right type of

sale?

Are they the right type of

sale?

Am I paying for sales I would

have got anyway?

Am I paying for sales I would

have got anyway?

Are coupon affiliates goal

hangers?

Are coupon affiliates goal

hangers?

Are affiliates cannibalizing

my other activity?

Are affiliates cannibalizing

my other activity?

Am I paying too much for

sales?

Am I paying too much for

sales?

How do I measure how

incremental my sales are?

How do I measure how

incremental my sales are?

5

in·cre·men·tal adjective : of, relating to, being, or occurring in especially small increments <incremental additions> <incremental change>

“How incremental are my sales?”

≈ “would I have got my sales if I didn’t run an affiliate marketing campaign?”

mea·sur·ing val·ue There are practical ways we can do so:

• how many sales are standalone?• how close are the clicks to the sale?• how many affiliates are involved in the sale?• how many of the sales are new customers?• how many of the sales drove repeat custom?• how many of the sales drove good quality?• how many channels were involved in a sale?

What is incremental? Average Order Value

Upselling

Volume

Profitability

Frequency

Demographics

New vs. Existing

Churn

De-duplication is not an attribution strategy!

Cross-channel reporting is vital to understanding incrementality

What is incremental?

How many channels are affiliates de-duplicated against?


What channels are de-duplicated against?


Prioritising de-duplication: retail client

11

All channels de-duplicated


12

Priority Campaigns Secondary

Campaigns

Affiliate PPC Brand

PPC Generic Direct to Site

Email Brand SEO Brand

SEO Generic Retargeting

Social Natural


13


14

15

-22.5%


The incrementality of affiliates

• Brief: to understand how affiliates impact sales and other channels across whole online ecosystem

• Retail client’s data from August 2012• All channels, both paid and unpaid

marketing, assessed• Insight project handled by Affiliate

Window’s Strategy and Business Intelligence Teams

16


17

38% single interaction 88% three interactions or less


18


19

The incrementality of affiliates: AOVs

20

The incrementality of affiliates: AOVs

21

• Use promotions strategically to boost AOVs

• Different affiliates can improve AOVs: work with them on an individual basis

• Targeted campaigns can be run on certain product ranges to increase basket values


22


• Understand how affiliates are influencers in the path to conversion. Work with them to influence the products they are promoting.

• Work with influencers to understand how they can convert rather than just influence customers

• Recognise the value these partners add in the research phase of the customer journey and how to increase exposure across these partners

23


24


25


26


27


• Understand the affiliates that are involved in sales on an individual basis to find out the profile of their customers

• Look at offers that could help convert from the affiliate sites that are frequently involved without winning the sale on a last click basis

• Work with individual partners to get better placements across their sites. Alternative payment models may need to be considered

• Look at bespoke offers for the largest incentivised sites to see how to best capitalise on their loyal membership base to drive incremental value

28

Understanding the value

29

AWin visibilityClient visibility Client visibilityClient visibility Client visibility

Wider AWin project to conduct ongoing analysis of affiliate programme quality: will rely on data sharing


30


31


32


33


It is important to understand the variances amongst individual affiliates: same categorisation, different results

Coupon Coupon Coupon Coupon

ADD THE SHOPPING TROLLEY SLIDE

35


36

Assess ‘incremental’ in context of changing consumer

habits

There is no one measure of incremental: Look beyond

volume to value

Cross-channel paths to purchase can show where value

is added: a single attribution model does not work for all

Demand insight into publishers’ audiences / member

bases

Not all affiliates with same promotional method are the

same

am days san francisco 2013 - measuring the value of affiliate marketing

Technology