de-duping: the great unknown in affiliate marketing

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Affiliate Summit West 2010 Deduping, the Great Unknown in Affiliate Marketing Mary Young Head of Account Management, AffiliateFuture Inc.

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De-duping affiliate sales against other channels is common practice, but what are the rules and how far is too far? Find out common practice and why we need an industry-wide best practice standard.

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Page 1: De-Duping: the Great Unknown in Affiliate Marketing

Affiliate Summit West 2010

Deduping, the Great Unknown in Affiliate Marketing

Mary YoungHead of Account Management, AffiliateFuture Inc.

Page 2: De-Duping: the Great Unknown in Affiliate Marketing
Page 3: De-Duping: the Great Unknown in Affiliate Marketing

Transaction Deduplication

Deduplication of transactions across affiliate networks is widely known and commonly accepted.

Merchants engaging in multi-channel marketing are increasingly deduplicating their affiliate transactions against other channels to avoid paying multiple times for the same transaction.

Page 4: De-Duping: the Great Unknown in Affiliate Marketing

Cross-Channel DedupingMerchants/agencies may dedupe affiliate transactions against other channels including:

Search Paid Natural

Display

Email Third party Internal

Other

Page 5: De-Duping: the Great Unknown in Affiliate Marketing

The Problem

Lack of transparency Which channels are being deduped How affiliate traffic is being prioritized

Misallocated resourcesUnder/over performance of channels

Data will largely drive what becomes best practice, but it can’t stand alone. Stakeholders in the performance marketing industry must secure a seat at the table

Page 6: De-Duping: the Great Unknown in Affiliate Marketing

Cross-Channel Deduping

Why is this important to you?

Now more prevalent and a higher priority

Performance based marketing requires optimization and this is an essential piece of the puzzle

Technology is evolving and attribution is becoming more sophisticated

Page 7: De-Duping: the Great Unknown in Affiliate Marketing

Rise in Deduping Prevalence

Greater overall online marketing spend

Multi-channel marketing diversification

Growth of affiliate marketing as a key channel, also sharing space with more traditional e-marketing channels

Economy has forced merchants to cut spending, boost ROMI

Page 8: De-Duping: the Great Unknown in Affiliate Marketing

Performance Marketing

CPS/CPL model means deduping directly impacts an affiliate program’s bottom line, affecting all types of affiliates if bundled together

Optimization is critical for affiliate programs. Relevant information needs to be communicated to make strategic decisions

Sustainability and growth of affiliate programs depends on performance

Page 9: De-Duping: the Great Unknown in Affiliate Marketing

Evolving Technology

Manual deduplication – where companies match up reports post- transaction and reactively dedupe transactions.

Technical deduplication - agencies and major brands are most likely to depend on technology to proactively dedupe, whereby the relevant advertising tag is displayed.

Last click – a standard that advertisers/agencies are keen to shift away from Attribution – weighted credit/commissions

Page 10: De-Duping: the Great Unknown in Affiliate Marketing

Evolving Technology

Third party proactive tagging providers: Atlas Doubleclick Mediaplex Tagman Other

Advertisers desire greater integration and transparency

Shifting towards increased flexibility for credit/commission prioritization and attribution

Page 11: De-Duping: the Great Unknown in Affiliate Marketing

Interactive Attribution

Forrester defines this as:

The practice of measuring the correct partial value of each interactive ad that drove a desired outcome.

In performance marketing this translates to weighted commissions

Page 12: De-Duping: the Great Unknown in Affiliate Marketing

Attribution Vendors

“ClearSaleing, Atlas, and Visual IQ lead the pack.”

- The Forrester Wave™: Interactive Attribution, Q4 2009 by Emily Riley

“… We can classify them [attribution touchpoints] into three roles: introducers, influencers and converters. Introducers are very good at bringing the brand to the user; influencers are good at keeping the user engaged and persuading further; and converters cause the user to do the desired action, like making a purchase.”

- Anto Chittilappilly is the President, Founder and CTO of Visual IQ

Page 13: De-Duping: the Great Unknown in Affiliate Marketing

Attribution: Sample Report Weighted Commissions

Page 14: De-Duping: the Great Unknown in Affiliate Marketing

A Shared Responsibility

Your voice is needed

No one network, merchant, affiliate, OPM, agency, or technology partner should control the outcome of this conversation

Shape the future of the affiliate marketing industry with your valuable insight

Page 15: De-Duping: the Great Unknown in Affiliate Marketing

Best PracticeAn industry wide best practice = a more meaningful conversation all stakeholders can participate in. Involve key organizations and groups in discussions:

IAB – Interactive Advertising Bureau DMA – Direct Marketing Association PMA - Performance Marketing Association Affiliates Merchants Affiliate Networks OPMs Media Agencies

Page 16: De-Duping: the Great Unknown in Affiliate Marketing

Best Practice: What Would We Suggest? Do not dedupe against or give priority over affiliate traffic for:

Brand search Post impression

Do not paint (or track!) all affiliates with one brush

Plan ways to meet objectives with stakeholders They can give you insight before you make decisions about your deduplication policy and attribution models

Inform stakeholders of changes to your deduplication policy and attribution models that will affect them prior to them occurring so affiliates can support your efforts

Page 17: De-Duping: the Great Unknown in Affiliate Marketing

Moving Forward: The SolutionDedupe Right!

Collaboration to establish best practice, covering:

Communication of major changes to stakeholders

Common pitfalls to avoid

Capabilities of technical providers

Education, including white papers and case studies

Page 18: De-Duping: the Great Unknown in Affiliate Marketing

The Future

Other variables may be added to the mix.

Offline channels

Environmental factors

Use to our advantage to propel performance marketing forward.

Page 19: De-Duping: the Great Unknown in Affiliate Marketing

Take Action Now!

Claim your seat at the table. Please take action now to join the debate:

Twitter – Start your own discussion, #DedupeRight

LinkedIn Group – DedupeRight

Performance Marketing Association – join the PMA and get involved! [email protected]

Page 20: De-Duping: the Great Unknown in Affiliate Marketing

Thank you for listening!

Now what do you think?

Page 21: De-Duping: the Great Unknown in Affiliate Marketing

(Hint: The End is NOT Nigh!)