the time is now for an affiliate marketing renaissance

The time is now! Join the Affiliate Marketing Renaissance —Maura Smith, Senior Vice President and Head of Affiliate Services

Maura SmithSVP, Head of Affiliate Services

Pepperjam

10 Years Affiliate Marketing Experience

Education

BS, Marketing University of Delaware

MBA, Marketing University of Scranton

Raising 1 child, 1 husband and a poodle

Fitness Wannabe

Wine Enthusiast

Shopaholic

The 2017 Renaissance—

How you can take part in the 2017 Affiliate

Marketing Renaissance

Explore the pain points brands & marketers are feeling.

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Understand exactly what a renaissance is and how 2016 growth set the stage.

2

Know where you fit into the renaissance and how you can leverage the power

of affiliate marketing.

3

Conversions alone are like social media followers without interactions.Without engagement, it just doesn’t matter.

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Quality Quantityvs

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Where We Are: The Pain Points

Data is widely available, but marketers are not able to leverage it to make real-time strategic decisions.

What should results be optimized to?

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Traditional revenue measurements no longer work.Static measurements can create false impression

that ad spend is ineffective.

Consensus to move away from ROI and towards new customer conversions.

Where We Are: The Pain Points

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“The price of light is less than the cost of darkness.”- Arthur C. Nielsen, founder AC Nielsen Company

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Learning to manage…Sharing control with third-party publishers.

Marketing decisions that may not be able to happen in real-time.

A general lack of education about the role affiliate marketing plays in the consumer journey.

Where We Are: The Learning Curve

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“When you’re trying to make an important decision, and you’re sort of divided on the issue, ask yourself:

‘If the customer were here, what would she say?’” - Darmesh Shah, CEO Hubspot

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Where We Are: The New Consumer

Consumers are researching more.

* Pepperjam, 2016 **Forbes Insights, 2016

Desktop and in-store purchases are seeing a

significant revival.*

Cyber Weekend 2016 saw a 20% increase in YoY

desktop revenue.*

of retailers report consumers research online but

purchase in-store.**

46%

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Reaching consumers is more challenging than ever.

Where We Are: The New Consumer

Marketers must now work around affiliate nexus laws.

Tactics must still be able to reach consumer with ad-blockers.

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2016: The Year of Affiliate Marketing Growth

Ad spend increased 10% from H1 2015 to H2 2016.*

28% of ad spend in H1 2016 went to affiliate. **

Affiliate now accounts for 7.5% of digital retail spend.*

* eMarketer 2016 ** Pepperjam

US Affiliate Marketing Spending, 2015 – 2020billions

2015 2016 2017 2018 2019 2020

$4.21$4.78

$5.37$5.94

$6.40

$6.82

Source: “Networks Help Drive Affiliate Marketing Into The Mainstream” conducted by Forrester Consulting, Feb 3,2016

www.eMarketer.com

2017: The Year of the Affiliate Marketing Renaissance

—

Renaissance  a movement or period of vigorous artistic and intellectual activity [revival, rebirth]

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“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect

of the customer experience a little bit better.”

- Jeff Bezos, Founder Amazon

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Using Affiliate Marketing to…Leverage the Power of Consumer Data

•A deep and expanding disconnect exists between C-suite and marketers as data and spend continue to mismatch.

•80% CEOs don’t trust marketing teams and 58% CMOs feel a growing pressure to prove their results.*

• Less then 1/3 of marketers utilize analytics.*

2017 Renaissance

* Duke Fuqua School of Business

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•Get a holistic view of consumer behavior.

•Optimize spend and ROI based on performance.

•Create the most resonant brand experience to target consumers and encourage engagement.

Using Affiliate Marketing to…Boost Marketing Value

2017 Renaissance

2017 Renaissance

new customer acquisition

due to targeting

57%Result

• Publishers were key to new business but stagnant.

• Flat-rate commissioning meant customer’s weren’t getting a unique experience from the start.

• Affiliate marketing allowed them to commission publishers based on customer type.

•Vast array of options = consumers that frustrate easily

•43% of non-couponers used to use coupons and loyalty sites but gave up because of setbacks.*

•2017 is the year to overcome past stigma and re-introduce affiliate marketing to consumers.

•Affiliate is evolving to consider the customer experience in its entirety, not on a brand by brand basis.

Using Affiliate Marketing to…Build Distinct CustomerExperiences

2017 Renaissance

* Pepperjam

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2017 Renaissance

Breaking Down Consumer Behavior

Consumers use publisher sites for 3 main reasons…

To save money To have fun browsing

Recommended byfamily/friends

They STOP using themfor the following reasons:

• Hard to navigate• Takes too much time• Deals are not good• Clunky transition to retailer site• Deals don’t work• No brands/retailers they like

*based on a recent study with 200 participants

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2017 Renaissance

What We’ve Heard from Consumers:

“When I clicked on the coupon code, it didn’t take me to the products.”

“I don’t want to go through 100 pairs of shoes, just the particular style I’m looking for.”

“I’m skipping over ‘up to % off.’ I like concrete things.”

Maximize Affiliate Marketing—

Time to turn the tables on traditional marketing

Yoga instructor gives business card to people in class with a unique code on it.

Unique code on card is tied to a Pepperjam link.

Customer places an order using the code.

Pepperjam gives that instructor credit.

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• Ambassadors now account for 28% of program revenue.

• Ambassadors now make up 18% of affiliate publishers.

• No traditional affiliate site was needed.

Using Affiliate Marketing to…Leverage Partner Distribution

2017 Renaissance

48charities

Top jewelry retailer integrated charities as

publishers/affiliates.

Affiliate platformreported on performance.

Charities shared acrosssocial media.

Jewelry retailer donated10% of purchase.

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• Pepperjam leveraged its technology to support a charitable campaign for a top jewelry retail partner.

• Pepperjam integrated 48 charities onto its platform.

• Participating charities shared campaign across social media & sites.

• Retailer donated 10% of the sales they generated.

Using Affiliate Marketing to…Incorporate Charitable Initiatives

2017 Renaissance

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Know your consumers inside

and out

Leverage your partners

Understand the customer journey

Think beyond traditionalaffiliate channels

Maximize Affiliate Marketing

The time is now for you to join the Affiliate Marketing Renaissance

Thanks! Let’s keep talking.

maurasmith@pepperjam.com

pepperjam.com

@pepperjam

#PepperjamASW