Essential International Growth Trends in Affiliate Marketing Today | AWasia 2017

Essential International Growth Trends in Affiliate Marketing Today | AWasia 2017


Hey everybody, how’s it going? All right,
you guys are doing awesome. I know it’s late in the day, how many of you guys are
affiliates in the crowd? Raise of hands please. Thank you. How many people are selling on an e-commerce store or would consider
themselves some kind of a retailer? Awesome. How many people are with a CPA Network some kind of a sub network or network? Okay cool, so today we’re going
to talk about essential international growth trends and affiliate marketing,
today I want to set the stage and give you guys some background, a little bit of
a foundation to help you spring really strongly into 2018, and before we jump in
before I give you some meat and some action items to execute on, I’ll give you
a little bit of background on myself, I’ve been in the affiliate marketing
space since 2004 so I’m going into my 14th year, I own a digital marketing
company, a performance-based affiliate management company called All-Inclusive
Marketing and we help brands mostly ecommerce, retail, travel, hospitality type
of brands reach engage and convert their buyers online and we can’t extend that
to our partners and our publishers and our affiliates and we help them reach
engage and convert their buyers online as well, and helped it help them scale
their businesses on a performance-based model, we had the honour last year we were
recognised in the profit 500, in the top 100 female entrepreneurs in Canada, as
well as the top 100 fastest growing companies in the country and as of last
month actually we’re listed in the top 40 under 40 in business in Vancouver as
well, so my hope is that some of the information that I can provide with you
today and the insights and the experience that I’ve had over the last
decade will be useful for you as you move into the new year, so let’s take a
look at the world it is changing at exponential rates the way people are
buying is more global than ever, the cross-device opportunities, the
immediacy marketplaces coming into the market, such as Amazon, eBay, Alibaba, and Aliexpress are making things so seamless and available at people’s
fingertips on the spot, so the question is as an affiliate and as an advertiser,
how are you competing, how are you gonna continue to compete, how are you gonna
continue to grow your audience, how are you going to be able to capture new
customer acquisitions and consume, and build your audience and your value
proposition, this is a billion-dollar industry and I’m going to tell you
really quickly, I’m sorry to move off stage here for a second, there are three
markets that by themselves are encompassing billions of dollars of
transactions on an e-commerce scale, the Japanese market, the US market and the UK market individually are multi-billion dollar industries, on a global scale the
year-over-year population skews me, the year-over-year spend is expediting in
double digits in every populated continent of the world, so the question
is, how are we going to compete, step one is really to better understand what are
the main KPIs that retailers, advertisers, people who are selling product as well
as affiliates are all struggling to measure, and to focus on with number one
being incremental revenue, so revenue is going to be really key, but really the
incrementalist of revenue is what people are focused on that right now is being
measured by new customer acquisitions, advancements and capturing new market
share in niche markets, especially in an international and global growth
perspective increases to things like average order value, improvements to your
conversion rate, all of these particular types of KPIs are actually driving that
incremental revenue that advertisers and publishers are both valuing a lot, the
other side of it they’re literally looking at from a KPI perspective is profitability,
so that profitability right now is being measured by ROI, return on advertising
spend and also a really strong focus on
retaining those buyers, it is very expensive to find and engage and reach
and convert and capture these new buyers, so once you get them, how are you
retaining them, recently, I’m gonna give you a couple of examples of leaders in
the US market and actually the Canadian and the Chinese market, these are
individually affiliates who have built out substantial businesses that are
selling for multiples of millions of dollars a year and being acquired even
into the billions, I’m gonna show you how they do that, so here are the examples
and this is how the leading publishers, the leading affiliates are competing in
an international scale and these are the types of things that are trending and I
keep hearing at this show reoccurring themes as to building communities social
influence or marketing, facebook advertising groups, even ecommerce itself
being able to create your own store and drop shipping,so a couple of examples
here we’ve got Ebates in the United States who’s heard of Ebates?
Okay Ebates recently sold, I guess in 2014 sold to Rakatan for just over a
billion dollars, they work exclusively on a performance marketing basis, they do
have an introduction to placements at a premium, where you can play upfront but
one of the values that they specifically have, is that they capture and own their
audience, they are a cash back site, they offer coupons and deals and then you get
a cash back for purchasing through them, they offer and make sure that they put
out the best content, the best deals and offers that their user experience is
completely seamless, both in their mobile experience and on their web version of
their site, they make sure that they have a strong brand, the personalisation is
strong, they know everything about their consumers, there’s different ways to do
this too so if we’re looking at 55Shaitao, they’re looking at more of a
visual approach or video approach on a product basis, again personalised to the
audience that’s there and they’re building up a community and they’re
building up and collecting data on a purchase, a consumer basis and then
they’re pushing you out those offers and feeds and testing these
things and generating billions of dollars in sales,
Quebecers an example of a different type of partner these guys are an affiliate
in Canada, they own all of the leading media publications across the country
and their purpose was to actually own the entire French market, which they have
accomplished and it’s very focused on editorial newspapers, TV, radio and have
now expanded across Canada into the English market, so they’re an example of
a leading content public publisher, all three of those guys have
done all of these things incredibly well, they are feeding best of class content,
best-in-class deals and offers best of class experience through different
mobile and online touch points and have claimed and owned position themselves as
a market leader to a particular type of audience or vertical, so I want to give
you an example of the Wire Cutter, the Wire Cutter is a company that is what we
would consider a content affiliate in the United States, they recently sold to
the New York Times for 30 million dollars and they’re a publisher, so
they’re an affiliate, 30 million dollars they were acquired, the way that these
guys have actually built out their community in their trust is by featuring
and reviewing and trying to break apart products against each other, so in this
example they were reviewing the best action camera, they have hundreds of guys
who will get sent a free product, they take it into scenarios that go surfing,
they go snowboarding, they take their kids out, they take four dog walks on
their skateboards and they experience it in real time and then
talk about the features the benefits, what they liked, what they didn’t like
about it, they use their own original photography in it and
they write about a 2,000 word article so they’re ranking really well in search
engines, they push this out in social channels and interestingly enough even
though these guys were content affiliates, they rank really well, they’re
considered a top of funnel type of partner, which a lot of advertisers going
back to the main KPIs of driving new customer acquisition and incrementality,
there’s a lot of value to this particular type of partner,
but we’re starting to see that even content publishers are starting to focus
more on coupon and deals they have a sales section, on the flip side you’ve
got coupon affiliates and loyalty affiliates cashback, guys who are
starting to try and retain their buyers and acquire new customers by switching
sides and focusing more on the content development in the social channel
engagement, so we’re seeing as we’re trending, the merger of different types
of publishers because of everybody is trying to acquire new customers,
everybody is trying to regain market share and everyone is trying to retain
their buyers but these are examples of guys who’ve done it really well,
so on the advertiser side of the business if you’re a big brand, let’s say
you’re the gap or let’s say you’re Nike right, what’s trending right now across
the world is the divergence and the need for brands to move away from the
reliance on coupon and loyalty publishers, which right now in the United
States generate over 90 percent or I should say are tracked 90 percent of the
transactions back to that type of partner and that’s normal, that’s the
sort of the what we’re consistently seeing across the board and what they
want to see, what these big brands are trying to move towards is a diversified
portfolio that looks more like this, where they can have relationships with
key bloggers and social influencers and magazines like the examples that I gave
you there with a New York times, the WireCutter, Quebecers, and all the media
publications, offline, pay per call actually ends up being part of that as
well, you literally can put a phone number on the side of a car and drive it
around town and have that be tracked back to a particular partner, so we’ll
talk about some monetisation and tracking methods in a second here, but
this is where the industry needs to go and is the demand and need of the
advertisers and as an affiliate, this is where a lot of the value is that you can
bring to the table, because if you can develop these communities, if you
understand how to integrate API’s, if you understand how to do personalisation in
your content, if you own an audience and you’re building at a really strong
community, you are in high demand and you have greater negotiating power as a
publisher, because you are now considered a diversified top of funnel, new customer
acquisition strategy for an advertiser in a brand, so these guys are gonna be
diversified, this is a real-life example of one of the clients that we manage,
what they’re diversified portfolio looks like, with the 39% actually being content,
which then a lot of the advertisers and you guys as publishers can break down
and make sure that you’re focused on these different verticals, such as
fashion or beauty or lifestyle business perhaps, you can do it based on
promotions or time of year or seasons, maybe it’s back to school, maybe it’s
Valentine’s Day promotion, maybe it’s Black Friday, Cyber Monday and you can
tag these things and plan your content accordingly, make sure that if you’re
doing this you’re always tying it back to the main KPIs, revenue, profitability,
new customer acquisitions, buyer retention, which encompasses frequency of
purchase and extended lifetime value, all right, so who has ever seen this before?
Anybody? Okay, who’s this new to? All right so this is an example of a click to
consume path of a real purchaser, a real consumer and this is indicative of a
different type of consumer, so attribution basically is referencing if
somebody’s gonna purchase something, how do we attribute that sale, which
marketing channels do we attribute that sale to, and if you have an affiliate
marketing program and you’re working with different types of affiliates,
which affiliate do we attribute the different touch points of that
transaction to, so technologies today, a lot of the affiliate networks are
starting to provide the transparency into the click to consume paths of
buyers, which are helping advertisers make smarter decisions about how to
spend their budget, what types of partnerships are highest value, how to
even negotiate or give credit to different particular types of partners,
in this example if you look on the far left, you’ll notice that this particular
buyer 49 days, if you look over here 49 days before they purchased, with the
purchase being the sale over here in black, in this model, this is an example
of a last click model attribution, this is still what’s normal across the
globe, last click attribution modelling is still the norm. but what we’re seeing
trending is that a lot of the advertisers starting to test different
attribution models. they’re trying to see if first click makes more sense. where
the affiliate who actually hit that first touch point or was the first
publisher to actually contribute to the transaction should be getting the
Commission instead of the last one that converted it. so in this example. the last
affiliate which was RetailMeNot whaleshark media. this was a coupon buyer, they went they got hit by email marketing campaigns, they did some
searches in Google with some keywords and read some content, they went directly
to the site but throughout their purchase, they kept going back to
RetailMeNot, they kept going back to whale shark media, so this indicates that
this particular type of buyer was looking for a coupon almost every single
time that they were engaging with this particular transaction, so if I’m an
advertiser and you’re an affiliate, I would want to know which type of
attribution do you have set up, are you crediting first-click, are you crediting
last-click, are you doing commission splitting, does everybody get credited
for it, do I have to share that Commission, are you actually crediting
last to cart, which is actually the affiliate who got the products into the
shopping cart first, because if that customer is in the shopping cart and
then they leave to go find a coupon code, they click around whether they found a
coupon code or not if that was based on the last click model, wherever they
clicked around, that guy would get credit for the sale and you would not, even
though you got it into the shopping cart, so you’d want to find out what’s working,
you know what are if you’re working with, particular types of partners, what kind
of attribution model do they have set up, what are the KPIs that are going to be
most important to them if they’re tracking new customer acquisitions they
put or you’re a social influencer, your content affiliate, you might want and ask
for first click attribution to be set up or some kind of a commission splitting,
what we’re also seeing trending, especially going into 2018 is the really
strong importance on understanding omni-channel, online, offline, multi device
type of tracking and for that to take place, the tracking actually has to be set up in the correct way, you need to be able
to have, whether it’s an exclusive code or some kind of it’s a tag management or a URL or even, through the affiliate networks that
you’re working with all these different touch points to understand that click to
consume path, so because my background is more on the e-commerce side, I know that
there’s you know, conversations a lot of people who are talking about CPIs and
different types of CPI’s and that’s all good, in this particular example though,
we’re going to talk about ecommerce and what we typically see in this space,
again thinking about billion dollar industry, billion dollars in the United
States, billions of dollars in Japan, billions of dollars in the UK, a
transaction and acquisition of one affiliate for over a billion dollars by
Racketan and they’re looking at different monetization models like this, CPA flat
dollar payout, more commonly we’re seeing a percentage of revenue share and some
people might say and a lot of affiliates here, you know, as I’ve been listening
well, why would I, why would I earn 8 percent on a $50 product, like that’s I’d
have to sell a whole lot of those in order to earn any money but the deal is
is that the growth weight of people purchasing online is expediting so
quickly and the direction, if you’re able to build a community and the volume is
there and the demand is there and you can own that audience, you’re building up
a very sustainable high value business, where you not only earn the percentage
of sale, but you actually have an opportunity to be acquired, or acquire in
the future as well,so CPA, flat payouts, revenue as a percentage of sale, a lot of
the social influencers are still charging flat payments or if you want to
have a premium placement with one of these larger affiliates, they’ll
typically send a media kit for placement opportunities, in which case you have an
opportunity to negotiate a lower rate with a higher commission payout for the
extended lifetime, excuse me, a longer earning opportunity as publisher, we are
seeing more hybrid model types of interactions and negotiations taking
place and in some instances we’re also seeing a reverse engineering of what an
affiliate would have been paid out, if they’re in specific areas of the United
States, so for example if you are marketing to the US and there are US
buyers and you were promoting a US-based Advertiser, you need to be familiar
what’s what called what is called Nexus tax, the advertiser would be required to
pay Nexus tax if you are promoting on a performance basis to buyers in those
states, so if you switch to a CPC model instead, which a lot of the technologies
are able to track, then they are not at risk of having to pay that Nexus tax, in
which case they can still work with you within those states, so this is just sort
of what’s trending right now, when it comes to different monetization models
in e-commerce retail, omni-channel travel hospitality all right, so I’ve got a
couple of minutes left, I’m gonna power through some of the trends and tracking
technologies attribution we talked about, different types of click to consume and
crediting logic first click last you click last a cart commission splitting
omni-channel multi device, we are seeing not only an influx of tools and
technology integrations available in order to engage more social influencers
but also different types of ways to reach, engage and convert them and their
audiences and really empower them to convert in the various channels,
including API integrations that actually are like little widgets, where you
connect people can see sort of where or what you’ve looked at in the past,
where you’re located, feed you specific offers that might be in a different
currency of choice, it’s very smart, automated, marketing using API
integrations, the mobile web and app tracking that we talked about, the one
piece that I would suggest if you are an e-commerce store or retailer looking to
launch an affiliate program, or you’re an affiliate that’s promoting mobile, talk
to your guys, talk to the people that you’re working with and make sure that
their mobile transactions are tracking, so you get credited properly, because
there’s three types of mobile types of tracking, there’s mobile web, which would
be like a Shopify site, which then has a mobile-friendly version of it, which
would track, there’s mobile app tracking, where you can track within the app or
the app download, that’s a separate type of tracking and then there’s m-commerce,
which we’re starting to see more frequently, this is what’s trending in
the industry right now, is a lot of the advertisers are trying to give a better
user experience on mobile so they’re starting to engage mobile
e-commerce stores, such as Mobify, which is it integrates, it looks the same
but it’s a different platform and they’re not setting up affiliate
tracking correctly on those, the pixels not being placed, so if you were
promoting mobile ads or mobile web, talk to your guys make sure that
tracking is in place, because you want to make sure that you’re getting credit for
the sale, and if you’re an advertiser make sure you place the pixel, so that
you’re crediting your partners properly, Two more, trends as translation services
and currency capabilities, we’re seeing a lot more in hearing a lot more about affiliate networks and CPA networks and sub networks doing and taking care of
translation services or the automation of currency PO’s, which can actually take
place next day and directly into your bank account, so that’s a trend that
we’re seeing and also more granular data insights that are on a transaction level,
on a consumer level, on a product level so that people can really optimise the
margins and the profitability of these campaigns, again tied back to the KPIs, so
I’m gonna leave you with a couple next steps and then I’m gonna open up the
floor to some questions, well the team here actually sets up for the next group,
but last few things, so make sure you understand it, leverage all of your
ticket technology capabilities, make sure that you look at the data and optimise
not only the types of buyers that you have, but look at the margins, look at —
I won’t fall off the stage. Look at your data, understand the
technology capabilities, use what you can to automate because a lot of the
technologies are actually really robust now and can provide you with automation
capabilities to help you scale further into different types of markets, if
you’re in a publisher make sure you own your niche, choose a place for you can be
the leader, where you can capture the audience, you can own the community, you
can own the consumer data, that’s where a lot of the value gets built out, that’s
where you have a lot more negotiating power, and that’s where you can actually
customise a lot of the offers, more to help with things like AOV, higher
conversion, new customer acquisitions, incremental revenue growth, when you do
your targeting, you want to make sure that you’re doing targeting on a
regional level consider the consumer behaviours, we’ve been to some
amazing sessions about the psychology of how people buy based on different
personality traits, based on different demographics, likes, dislikes things like
that, make sure you’re considering cross-device, that you ask the questions
about tracking with those and also cross channel, whatever you can do to
understand the different touch points in our attribution model, the clicked
consume path, make sure you focus and measure your main KPIs, which we talked
about both in the beginning, in here again and use your newfound power and
knowledge in all of this to continue to provide value not only to your audience,
but also if you’re a publisher working with an advertiser, work with them as a
partnership communicate the things that you’re consistently doing, to continue to
grow your value and it will give you some more negotiating power, where you
can earn more money and have a more close relationship with the advertisers,
who have wiggle room for partners, who have that capability and want to
continue to stretch with you, so that’s it, if you guys have any questions. Thank
you, thank you, if you guys have any questions I’ll take two minutes, right
now and just answer a couple questions.

One comment

  1. I had absolutely no idea so many amazing hustlers are from vancity. Its a good age to be alive my friends. go network. make relationships. and make your life happen!

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