How a Private Affiliate Program Can Meet Your Goals

Transcription

1 How a Private Affiliate Program Can Meet Your Goals Chris Henger Vice President, Affiliate Marketing, Performics Laurie Barkman Senior Manager, Marketing, American Eagle Outfitters The Performance Marketing Division of DoubleClick A leading provider of performance-based marketing services and technologies and the only leader in affiliate and search marketing Founded in 1998 as an affiliate marketing network To provide cost-effective affiliate marketing solutions for traditional direct marketers Launched paid search marketing practice in 2000 Expanded to provide comprehensive performancebased marketing services and technologies Affiliate marketing agency specializing in delivering sales to retailers Search services and technologies encompass paid, natural and data feed marketing 1

2 Affiliate Marketing -- It s Just Marketing An Affiliate Advertiser s Product = Product selection, Program Terms & Conversion Rate 2

3 The Metrics that Matter in Affiliate Marketing Performance Marketing Metrics Average transaction value Conversion rate Click through rates Active affiliate ratio Productive affiliate ratio Percent of online sales Referral quality Multi-channel Marketing Indicators ROI Life-time value Acquisition versus retention Retention versus reacquisition Channel attribution Online metrics compared to other channels 3

4 Adoption of Channels by Multi-Channel Marketers E-catalogs/Web site Paper catalogs Keywords from Search Engines 93% 90% 87% 83% Direct mail Non-paid search optimization 71% 69% Online affiliate marketing program 52% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: DMA Multichannel Marketing Report, 2005 Requires Recognizing the Value Affiliate Traffic Plays in a Multi-channel Environment Increased complexity and choice for the consumer make it harder to determine the true drivers of sales Offer Channels Mass Media Online, Print, Broadcast DRTV Search, and Affiliate Catalog, Direct Mail, Insert Media Store Promotions , RSS, Blogs, Podcasts Response Channels Mail Order/FAX Retail Stores Outlet Stores Call-Center Website Mobile Awareness Consideration Purchase Issues in Affiliate Marketing Today Brand Management Empower publishers with what they can and cannot do with your brand Educate publishers with best practices Control your program by understanding publisher activity Risk Management Effective affiliate marketing requires control Compliance monitoring A relationship with publishers to address behavior and enforce noncompliance, if necessary Implications in Multi-Channel World Promotional coordination Who s customer is it? Contact strategy 4

5 Issues in Affiliate Marketing Today Brand Management Empower publishers with what they can and cannot do with your brand Educate publishers with best practices Control your program by understanding publisher activity Risk Management Effective affiliate marketing requires control Compliance monitoring A relationship with publishers to address behavior and enforce noncompliance, if necessary Implications in Multi-Channel World Promotional coordination Who s customer is it? Contact strategy Growth Opportunities Emerging Distribution Social Marketing: Blogs, social networking and personalized pick lists Blending online shopping with the viral aspects of Web 2.0 Examples: ThisNext, MyPickList Loyalty in a box: Pre-packaged loyalty programs for affinity groups Examples: NASCAR, LA Dodgers, Epilepsy.com Printable coupons Niche Content Blogs Content sites focused on specific target markets Examples: parenting, tech-savvy, product lovers Advanced Placement Affiliate marketing is more than pure CPA Some publishers warrant premium placement, hybrid media buys and slotting fees Types of Affiliate Programs Mass Auto-approval No criteria for publishers to join the program Open Available for all publishers to apply Advertisers can choose to approve publishers or not Private Invitation-only Requires proactive recruitment Closed Invitation-only Focused on a very small, select group of publishers 5

6 What is your affiliate program situation? A. Considering launch B. Re-thinking current C. Satisfied, just curious Today s topics AE brand Marketing challenges Affiliate program, AE style Maximizing programs Q&A Marketing challenges: Drive incremental sales without increasing markdowns Acquire new online customers without leveraging stores Uphold AE brand standards 6

7 Results: a profitable program uniquely AE Tightly managed (small program) 40% new customers Low coupon use Strong conversion rate Repeat purchases Success driven by structure Other options AE In-house Outsourced Open Closed Homepage link Not marketed on website General T&Cs Specific T&Cs Delegated approval Approval required Other considerations: the bigger picture Do you have an Online Marketing & Advertising (OMA) roadmap? How does affiliate marketing play a role? 7

8 Affiliate program checklist Even if outsourcing, be involved Establish success metrics & monitor Include affiliates in marketing plans & budgets Focus on 80/20 Talk to other retailers Consider role in overall OMA program Chris Henger Vice President, Affiliate Marketing Performics Laurie Barkman Senior Manager, Marketing American Eagle Outfitters 8

9 Direct Marketing Association 2006 Annual Presentation Outline for October 16, 2006: How a Private Affiliate Program Can Meet Your Goals Laurie Barkman, Senior Manager, Marketing, American Eagle Outfitters Chris Henger, Vice President, Affiliate Marketing, Performics I. Introduction by Chris Henger a. Affiliate marketing today i. Current trends How affiliate marketing has evolved from a mass concept Industry data and research ii. Key industry issues How brands are managed in affiliate marketing Managing risk Loyalty sites and super affiliates iii. Growth opportunities Emerging distribution Niche content Advanced placement opportunities iv. Types of affiliate programs Mass Open Private Closed b. Introduce Laurie Barkman to discuss American Eagle s affiliate marketing experience and outlook II. III. American Eagle overview by Laurie Barkman a. The American Eagle brand b. Marketing goals and program overview c. Affiliate program, AE Style i. Scope of the program ii. Preliminary goals iii. Sample distribution, types of sites or experience that has been effective Affiliate program, AE style a. What AE has done in the past versus today b. Where AE is headed

10 i. Challenges ii. Opportunities c. Results of AE s private affiliate program i. Discussion of goals and objectives for the program ii. Results achieved Cost per new customer Sales versus planned IV. Affiliate marketing as a component of integrated online marketing a. How AE sees the future of online marketing b. How other branded retailers can learn from AE c. Tips and opportunities V. Audience Q&A