The Affiliate Marketer's Guide to Mobile

THE AFFILIATE MARKETER’S GUIDE TO MOBILE INTRODUCTION

No longer an afterthought, mobile is an increasingly important channel for retailers. According to Nielsen, 79 percent of U.S. smartphone and tablet users use a mobile device to shop. As online sales increasingly come from mobile, merchants are luring customers to their apps and mobile sites with their affiliate marketing programs. To succeed with these efforts, marketers are treating mobile as a distinct aspect of their affiliate program strategy to ensure they are keeping performance in-line with their goals.

With all these developments, if you haven’t experienced success with affiliate marketing on mobile in the past, it’s time to reevaluate your strategy and take advantage of the growing mobile opportunity.

Keep reading to learn:

• Why mobile is a lucrative channel for affiliate marketers • The most common pitfalls that impact your mobile ROI • Which affiliate partners that can help you make the most of mobile • Strategies to maximize your mobile affiliate investment WHY MOBILE IS RELEVANT FOR AFFILIATE MARKETERS Mobile is now a big area of focus in e-commerce and affiliate marketing is no exception. Here are five trends for affiliate marketers to keep in mind as they formulate their mobile strategy. 1. SHOPPERS RELY ON THEIR MOBILE DEVICES The latest eMarketer data shows that mobile commerce is becoming mainstream. Mobile commerce will grow 32 percent and account for 22 percent of retail e-commerce in 2015 and affiliate marketing is no exception. Growing interest in driving sales through mobile affiliate channels coupled with improved in-app and mobile website tracking and optimization offers a great way for retailers to improve their bottom line.

US RETAIL MCOMMERCE SALES, 2013-2019

2013 2014 2015 2016 2017 2018 2019 RETAIL $41.71 $56.67 $74.93 $96.22 $112.28 $130.12 $149.79 MCOMMERCE SALES (BILLIONS) -% change 65.3% 35.9% 32.2% 28.4% 16.7% 15.9% 15.1% -% of retail 16.0% 19.0% 22.0% 25.0% 26.0% 27.0% 28.0% ecommerce sales -% of total retail sales 0.9% 1.2% 1.6% 1.9% 2.2% 2.4% 2.7%

[source: https://www.emarketer.com] NOTE: includes products or services ordered using the internet via mobile devices, regardless or the method of payment or fufillment; excludes travel and event ticket sales; includes sales on tablets. 2. APPS ARE POPULAR Overall app usage grew 76 percent last year with retail app usage leading the way with a growth rate of 179 percent according to Flurry. People aren’t just trying new apps, they are getting more comfortable shopping on their mobile devices whether buying from retailers, comparison shopping or browsing coupons. Affiliates are taking note and with the right incentives they can earn attractive payouts for driving app downloads and sales. In some instances, merchants have found that affiliate marketing can be more cost effective than other mobile advertising channels.

MOBILE USE GROWS 76% YEAROVERYEAR SESSIONS

180% 174%

135% 121% 103% 89% AVERAGE 90% 89% 74% 76%

49% 45% 33% 30% 2013-2014 Year-Over-Year Growth Rate Growth Year-Over-Year 2013-2014

0% LIFESTYLE UTILITIES MESSAGING HEALTH & TRAVEL SPORTS NEWS & MUSIC, GAMES & SHOPPING & PRODUCTION SOCIAL FITNESS MAGAZINES MEDIA & ENTERTAINMENT

[source: http://flurrymobile.tumblr.com] 3. SHOPPERS CASH IN ON MOBILE COUPONS Shoppers continue to turn to digital coupons to save money. More people are making purchases with their smartphones and tablets and using coupons while they are in the store. By 2016, eMarketer expects 44.5 percent of marketers will offer mobile coupons. By providing coupons designed specifically for mobile affiliates, retailers have the opportunity to attract young, deal-savvy shoppers who are heavy mobile users and fuel overall growth.

US ADULT MOBILE COUPON USERS AND PENETRATION 2013-2016 millions, % of mobile device users and % of digital coupon users

104.1% 92.5%

78.7% 82.0% 76.5% 59.3% 70.0%

61.4%

45.7% 41.2% 35.7% 28.4%

2013 2014 2015 2016 Adult mobile coupon users % of digital coupon users % of mobile device users

[source: http://www.emarketer.com] Note: ages 18+; individuals who used a mobile device to redeema coupon/code obtained from an app,mobile internet, QR code/othermobile barcode or SMS for online or offline shopping at least once during the calendar year, includes group buying coupons purchased via mobile device 4. LOCATION BASED OFFERS DRIVE FOOT TRAFFIC Retailers are developing location based offers that can be delivered through mobile affiliates. These affiliates are leveraging location-based technology to deliver special offers to shoppers when they’re near a store, with coupons redeemed in store and credited to the affiliate. For example, shoppers who have downloaded the RetailMeNot app can elect to receive a notification promoting available in-store coupons for nearby stores when they cross a GPS-aware boundary around a store or shopping mall. This connection between online and offline will help marketers to close the gap between online and in-store and will further evolve as tracking conversions back to the appropriate affiliates becomes more precise. 5. OMNICHANNEL LEADS TO DEEP CONSUMER ENGAGEMENT Many shoppers start and finish their purchasing process through affiliates. This is due to the widespread usage of affiliate, deal, coupon, and comparison-shopping sites and apps. Smart retailers are investing in an omnichannel strategy to orchestrate the customer experience across platforms so it is consistent, integrated and easily tracked. By following the customer journey across all devices and channels, retailers can tailor affiliate offers that lead to deeper consumer engagement and a better ROI.

MOBILE IN-STORE

OMNI-CHANNEL

ONLINE MOBILE AFFILIATE MISTAKES YOU COULD BE MAKING

With all these developments in mind, mobile affiliate marketing is a highly effective way for retailers to gain new customers. But if you aren’t seeing results, it could be because you are making the following mistakes: 1. TREATING MOBILE AS AN AFTERTHOUGHT Mobile affiliate marketing begins not only with the affiliate channel but with ensuring that the your mobile apps, website or ads are optimized for the mobile experience. Are your customers able to easily navigate the site on a mobile device and complete the checkout process? Are your affiliates given credit for the traffic they are driving? When this doesn’t’ happen, 79 percent of visitors are likely to leave your site and affiliates won’t send their traffic.

Designed to provide a better search experience for mobile users, Google’s recent algorithm update made it clear that mobile is a top priority for marketers. Named “mobilegeddon,” it negatively impacted web and mobile traffic for brands that weren’t optimized for mobile and gave sites that deliver an excellent mobile experience a boost. If your website content and ads aren’t optimized for mobile, a lower mobile search ranking can lead to a substantial drop in overall traffic and conversions.

2. FAILING TO TRACK AFFILIATES Many retailers lack a clear understanding of the sophisticated data tracking methods required to measure the traffic and conversions their affiliates are driving. Retailers may prompt online customers to immediately download apps when they visit their mobile sites, but if they fail to track in-app conversions, it can seem as if affiliate marketers are underperforming simply because their performance isn’t being measured appropriately (if at all). Many retailers are also intentionally not adding app tracking as they feel it’s an extra expense — they’re already getting the revenue. The problem is that this is really stealing, and it won’t work in the long run.

If your tracking doesn’t work properly, you could lose valuable affiliates when they don’t see the results they’d expected. Affiliates are becoming savvier and dropping programs that convert poorly or don’t convert on mobile. Consequently, failing to pay affiliates what they’re due can derail new customer acquisitions and hurt your reputation. 3. WORKING WITH THE WRONG PARTNERS Once a retailer has a mobile optimized shopping and checkout experience, and accurate tracking, then next step is to work with the right partners. Research the affiliates that are best aligned with your brand, including existing partners as well as mobile specific affiliates. Understanding what your affiliates need and presenting them with new ideas and opportunities will help ensure that your mobile affiliate program is a success.

4. USING THE WRONG CREATIVE Screen sizes and people’s behaviors vary tremendously from mobile to desktop. Some brands make the mistake of using desktop ads or recycling creative and fail to spend enough time developing creative specifically for mobile.

Smartphones have smaller screens and ad formats are smaller, so creative is more effective when it is fast-loading, short and sweet, easy-to-navigate and includes relevant location- based information with a clear call-to-action. Tablets screen real estate is larger, allowing for more complex creative executions. With their large screen size and high-quality user experience, tablets are often used in people’s homes, whereas smartphones are typically used on the go.

5. NEGLECTING TO BREAK DOWN SILOS Many retailers today still make the mistake of viewing mobile as a silo, failing to integrate it to provide a seamless experience across all marketing channels. A cross-channel approach provides better insight into consumer behavior across all platforms, which you can use to develop the most holistic experience and drive purchases. HOW TO TURN YOUR MOBILE AFFILIATE STRATEGY AROUND

Mobile accounted for 25 percent of traffic and 15 percent of conversions on the major affiliate marketing networks in 2015. This increase had prompted marketers in every industry to start integrating mobile into all aspects of their affiliate strategy. Mobile screens and people’s behaviors vary by device and by keeping these strategies in mind, retailers can find success with mobile affiliate sales. 1. MAKE SURE YOUR SITE IS MOBILE FRIENDLY Too many retailers still consider mobile a simple add-on to a desktop site; in reality, however, it’s a completely different game. Mobile might not convert at the same rates as desktop and in-store shoppers, but having a mobile-friendly site that allows for easy customer browsing will increase your sales both online and in the store.

2. ATTRACT NEW CUSTOMERS The affiliate channel is known for delivering new, incremental customers and it’s no different on mobile. If you’re trying to attract new-to-file customers, keep in mind that mobile shoppers are more likely to try your brand after receiving an offer and will typically spend more when they do. Promotions that work well include a percentage or dollar amount off, and free shipping is always popular.

3. CULTIVATE AFFILIATE RELATIONSHIPS Establishing relationships with mobile affiliates will be essential to your ability to attract the right audience. As you formulate your marketing strategy, identify the affiliates that most align with your target buyers and consider providing compelling incentive and higher commissions for specific campaigns. It’s also important to reach out to affiliates and make sure their sites look good on mobile too. With insight into mobile activity across a variety of high-volume programs, we’ve assembled a list of the top affiliates driving mobile traffic and conversions.

4. DIVE INTO THE DATA As with any marketing channel, it’s important to make sure you are testing your campaigns and refining them based on data. By tracking clicks, installs, in-app events, revenue, costs and other key metrics, you will be better informed about which affiliates are performing and can use these insights to achieve higher returns. The key to success when working with affiliates is to keep the rules of attribution simple and avoid complicated models. Start with a multi-touch internal model of attribution first and then roll out external rules to affiliates that are easily understood. 5. DEVELOP CREATIVE FOR MOBILE For a successful program, it’s essential to make it as easy as possible for affiliates to promote your brand. This means providing affiliates with ad creative specifically designed for mobile. By providing creative that works across a variety of different mobile devices and screens, it will help to drive traffic and conversions with the same scale and scope as traditional desktop affiliate marketing.

6. COMPLEMENT THE IN-STORE EXPERIENCE Consumers who may not be purchasing with their mobile devices are often using them to research product availability, pricing and locations of brick-and-mortar stores. This unlocks the opportunity for affiliate marketers to push online-to-offline mobile marketing opportunities. With ongoing tracking and technology developments, retailers may eventually be able to track all offline conversions back to the proper affiliate.

7. TAKE A CROSS-CHANNEL APPROACH While affiliate marketers understand the mobile opportunity, many aren’t putting into place the right mix of strategies. They’re treating mobile as a silo rather than integrating it into other marketing channels. By taking a cross-channel approach, you can better understand customer behavior across all platforms and provide the best experience when driving a purchase, regardless of which device is being used. CONCLUSIONS

With retailers taking in more revenue from mobile than ever, now is the time to make sure your affiliate program is set up properly. People are clearly shopping on their mobile devices and with a smart strategy, those people could be future customers. To find success with mobile affiliate marketing, make sure you can answer the following questions in the affirmative:

• Are your online customers able to easily navigate the site on a mobile device and complete the checkout process? • Are your apps, websites, and ads optimized for the mobile experience by accounting for the smaller screen size and more limited functionality? • Is your content maximized in distinct ways for smartphones and tablets to provide creative offers and content that will work well on both? • Do all merchants have affiliate tracking on their mobile sites and apps so they can properly reward affiliates for the traffic they’re driving? • Do you offer a consistent brand experience across your print, social, mobile, and desktop campaigns? • Have you provided incentives to mobile users that will drive in-store sales for customers who typically shop online to capitalize on both digital and physical prospects? • Are you working affiliates that most align with your target audience and providing compelling incentive to drive traffic and conversions?

Managing a mobile affiliate program is no easy task, but if you’re prepared, you’ll come out well ahead of the competition. ABOUT Acceleration Partners is an award-winning digital marketing firm focused on online customer acquisition for growing consumer and e-commerce companies. A leader in affiliate marketing, organic search, and paid marketing, we work with clients to design strategies and implement programs that deliver sustainable growth through transparent, high-value tactics. Our focus on digital marketing strategies that are brand-aligned has led to a client roster that includes adidas, eBay, ModCloth, Reebok, Shutterfly, Target, Gymboree, Tiny Prints, Warby Parker, and many other consumer brands. [email protected] www.accelerationpartners.com

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