Empowering AffiliKana Roberts

Empowering Affiliates to Drive Incremental Revenue GrowthKana Roberts, Affiliate Summit West 1/9/18

Agenda

• 101’s of Incremental Revenue

• Tools to Develop Incremental Revenue Campaigns

• Incremental Test #1

• Incremental Test #2

Demand Generation

• Determined by the merchant

• Acquiring revenue we wouldn’t acquire normally

• Classified as new opportunities

• Beyond general program growth

101’s of Incremental Revenue

WHAT is incremental revenue? WHY is this important? HOW do I create incremental campaigns?

• Avoid program fatigue or plateau

• Show leadership an affiliate program can be versatile, limitless & provides the highest ROI

• Allows you to be creative

• Identify the business KPIs

• Build out a gap analysis

• Confirm alignment on goals

• Test often, fail fast, & repeat successes

Example Microsoft.com Minimum Requirements:

• 1,500% ROAS minimum

• YoY double digit % revenue, traffic, & CR growth

Example Microsoft.com Incremental Requirements:

• 3,000% ROAS or more

• YoY triple digit % revenue, traffic & CR growth

• Additional revenue, LTV, AOV growth on 1st party categories

Tools to Develop Incremental Revenue Campaigns

Data Measurement Tool Step By Step Guide

Tool: Affiliate Incremental Calculator

Creators: B Fink & K Roberts

Business Objectives:

• Ability to forecast and measure incremental placements (includes premium commissions and flat fees)

• Unify globally how we measure incremental performance

• Enable deeper strategy conversations with affiliate partners

**Sample data **

• 80/20 Rule does not apply. Include mid-tier or new affiliates

• Collaborate and share goals with your selected affiliates

• Confirm your affiliate portfolio is low cost risk

• Enable affiliates to do what they do best under the agreed upon goals

• Actively monitor performance daily and make changes in real time

• Review performance immediately after and determine next steps

Microsoft.com Affiliate Program

Traffic Affiliates

CR Affiliates

LTV Affiliates

Revenue Affiliates

Incremental Initiatives

FY18 Q2 US Affiliate Incremental Test #1: Slickdeals Influencer Strategy

Affiliate Partners: Slickdeals

Dates: 10/6-11/10 (7 additional days for tail KPIs)

Campaign: X Marks the Spot! $1K Giveaway Xbox One X

Business Objectives: We wanted to amp up exposure and excitement around the highly-anticipated Xbox One X by working with Slickdeals, who has an influential and loyal community of gamers. The goal was to grow fan-centric synergies between Slickdeals users and Microsoft/Xbox by conducting a social media-based contest with Xbox artwork and promotional hashtags.

Campaign Results: SUCCESS

• +150% revenue YoY, +456% conversion YoY & 2,400% ROAS overall campaign period performance

• Solid incremental contributions to other 1st party categories (Surface saw a +223% revenue YoY lift and Office saw a +300% revenue YoY lift)

• During the week of the winner announcement, Slickdeals drove +3,275% revenue YoY and +2,048% traffic gains YoY

• During the week after the announcement, Slickdeals drove +2,102% revenue YoY and +6,277% traffic gains YoY

Comments from Slickdeals: “We announced the Xbox One X contest winners to our biggest audience in the show's history! Most concurrent live viewers and comments. It was the best performing giveaway to date.”

Our Favorite Customer X Marks the Spot Maps

Affiliate Partners: Ebates

Dates: 11/1-12/11

Campaign: Singles Day Featured Merchant & New to File $50 Cash Back on a $250+ Purchase

Business Objectives:

• 11% Treat Yourself: We were the featured merchant for the net new 11/11 one day campaign out of 490 participating merchants.

• NTF Bonus: Cut through all the noise from multiple merchants trying to obtain the same customers. Leverage an obtainable purchasing threshold and minimize purchasing limitations. Organic pilot test.

Campaign Results: SUCCESS

• 11/11: +213% traffic YoY and +376% revenue YoY

• NTF: +$1M in revenue campaign to date organic driven results. +100% traffic YoY & 3,900% ROAS overall campaign period performance.

• Solid incremental contributions to other 1st party category (Surface +15% revenue YoY lift, Xbox +30% revenue YoY and Office +35% revenue YoY lift).

Comments from Ebates: “Taking into consideration the fact your program has had many changes I would say the 11/11 campaign with the premium package exposure absolutely killed it. NTF performance is impressive!”

FY18 Q2 US Affiliate Incremental Test #2: Ebates New To File

0% 20% 40% 60% 80% 100%

Nov 01, 2017

Nov 06, 2017

Nov 11, 2017

Nov 16, 2017

Nov 21, 2017

Nov 26, 2017

Dec 01, 2017

Dec 06, 2017

Dec 11, 2017

EBATES BONUS IMPACT

Bonus Rev

Other Rev

3% 4% 2%

10%

30%

19%

32%

EBATES CATEGORY DISTRIBUTION

Mobile

MR/VR

Office

Other

PC

Surface

Xbox

Thank you!

Q&A