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AFFILIATE MARKETING HANDBOOK OCTOBER 2016 the 2016 Affiliate Marketing Handbook Was Compiled by the IAB Affiliate Marketing Working Group

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AFFILIATE MARKETING HANDBOOK OCTOBER 2016 the 2016 Affiliate Marketing Handbook Was Compiled by the IAB Affiliate Marketing Working Group AFFILIATE MARKETING HANDBOOK OCTOBER 2016 The 2016 Affiliate Marketing Handbook was compiled by the IAB Affiliate Marketing Working Group. Members of the IAB Affiliate Marketing Working Group: Anthony Capano Chris Garner Rakuten Marketing Cashrewards Isabell Schneider Matthew Sheppard MediaCom Navigate Digital Richa Dani Roger Lee Columbus APD Verity Beard Zane McIntyre Allure Media Commission Factory IAB Affiliate Marketing Working Group member companies: APD is a full service, 360 degree digital marketing agency. Affiliate has always been one of the core services that we offer, having brought the industry to Australia in the early 2000’s as dgm. We now have offices in Sydney, Melbourne and around the APAC region. We believe in working collaboratively and openly with our advertisers to develop their digital strategies and achieve their digital goals. Our premium Affiliate Network uses state of the art tracking technology and allows our advertisers to partner with Australia’s top Affiliate Publishers. Allure Media is one of the fastest growing digital publishers in Australia. We partner with some of the world’s largest and most innovative publishing partners to bring their brands to Australia. As brand custodians in this market, we are about fast-paced content produced by high profile local editors and distributed in a way that is fresh, relevant and actionable. The Allure Media team is responsible for the publication and continuous development of ten global brands in Australia, including the likes of POPSUGAR, ShopStyle, Business Insider and Gizmodo amongst others. Cashrewards is the fastest growing online shopping community in Australia and we are still in start up phase. Based on the NAB online retail index, Cashrewards delivered 1.05% of all online retail spend in Australia in FY16 with over $210M in sales. We are now delivering $20M a month in sales for the largest brands including eBay, David Jones, Expedia, Coles, Woolworth’s. Our aim is to disrupt shopping in Australia and give over 2M Australians more cash rewards than any other loyalty site in the country. Columbus is a digital connections agency driven by a blend of performance and experience expertise underpinned by data and technology. Our talented and passionate team partners with our clients to build meaningful connections between people, ideas, and brands. Our expert data navigation, pioneering strategy and exploration of emerging technology push us further to understand the customer journey and drive people’s behaviour; we create value for our clients. Since its inception in 2006, Columbus has been a pioneer in the Performance and Experience space, growing to become the largest agency in Australia in our field. Rakuten Marketing is the global leader in omnichannel marketing, delivering its vision of driving the omni experience – marketing designed for a streamlined customer experience. Offering an integrated strategy that combines consumer centric insights with e-commerce expertise, Rakuten Marketing’s omnichannel services include Rakuten Affiliate Network (formerly LinkShare), Rakuten Display, and Rakuten Attribution. Operating as a division of Rakuten Inc. (4755: TOKYO), one of the world’s leading Internet service companies, Rakuten Marketing is headquartered in New York City, with additional offices in Australia, Brazil, Japan, the United Kingdom, and throughout the United States. Follow us on LinkedIn or learn more at http://rakutenmarketing.com.au. MediaCom is the “The Content + Connections Agency”, working on behalf of its clients to leverage their brands’ entire system of communications across paid, owned and earned channels to step change their business outcomes. MediaCom delivers not just individual channel silo efficiencies but also connected communications system effectiveness, by developing and optimising all content – defined as any form of consumer messaging – as the fuel that drives high-performing systems. MediaCom measures and quantifies communications systems across paid, owned and earned through their unique Connected System Audit. Navigate Digital is an award winning, independent, experienced, straight talking and approachable performance marketing agency. It employs a strategic approach that is bespoke to each of its clients, ensuring it creates innovative digital media solutions that deliver tangible results. Commission Factory is one of the largest affiliate networks in APAC with over 400 retailers or service providers. Launching in 2011 as a startup within a local tech incubator Commission Factory was researched and developed by ex-Publishers and Advertisers that had a desire to disrupt the status quo of affiliate marketing and to be more accessible to a wider range of clients. From SME’s to large Enterprise clients, the platform lends itself to be as simple or complex as you need it to be with new features and technology being added regularly. CONTENTS Contents INTRODUCTION ... 4 WHAT IS AFFILIATE MARKETING? ... 5 HISTORY, KEY PLAYERS & CURRENT CHALLENGES ... 7 AFFILIATE TYPES ... 10 BEST PRACTICES FOR ADVERTISERS ... 12 CHOOSING YOUR AFFILIATE NETWORK ... 14 ROLE OF AFFILIATE MARKETING IN THE MARKETING MIX ... 16 KEEPING CONTENT ALIVE IN THE AFFILIATE CHANNEL ... 18 KEYS TO SUCCESS ... 20 CAPITALISING ON TECHNOLOGY ... 22 A MODERN MARKETPLACE ... 25 GLOSSARY ... 28 INTRODUCTION The Australian digital advertising and marketing ecosystem is growing and Affiliate Marketing is a key part of the value chain. Affiliate Marketing has outgrown its role as just another marketing channel and become an objective in its own right. Affiliate Marketing uses many of the same tools as the more traditional digital marketers - such as email, search, social, SEO and retargeting - and now is an integral part of “ many integrated marketing campaigns. Well managed and executed affiliate campaigns will help brands thrive by driving efficient consumer acquisition. I know from my time at lastminute.com just how valuable Affiliate Marketing can be in driving product sales. Yet it can do so much more for a brand: With the ubiquity of mobile devices and the continued rise of programmatic trading, it can deliver valuable audience- and consumer-data insights across multiple platforms. Councils and Working Groups are the lifeblood of the IAB: With representation from some of the best minds in the industry, they are an unmatched repository of knowledge on all things digital. The Affiliate Marketing Working Group will help define this flourishing marketing discipline going forward by setting standards and best practice guidelines to benefit the entire industry. This Handbook has been complied by the best in the industry to provide an outline of the industry as it exists, the role of content and technology and place of Affiliate Marketing in the modern digital marketplace. Vijay Solanki CEO, IAB Australia ” WHAT IS AFFILIATE MARKETING? ROGER LEE marketing family, meaning the return on investment is guaranteed and the advertiser is APD only paying for advertising that has succeeded. It’s a versatile channel and is very effective at It’s a good question, and one with an ever driving actions for merchants selling consumer evolving answer. So let’s start at the beginning products or services across a wide range of by trying to give it a simple definition: verticals, including apparel, travel, electronics, Affiliate Marketing is the practice whereby a health and beauty, telecommunications, finance digital publisher or website promotes an online and groceries. It should be considered as a retailer and earns a commission based on the key part of an advertiser’s marketing mix in an sales or leads that the advertising generates integrated campaign, specialising in turning for that online retailer. brand awareness and interest into conversions towards the end-of-purchase funnel. We term this payment metric CPA – Cost Per Action. Typically an ‘Action’ is a sale of an We use the terms ‘Affiliate’ or ‘Publisher’ online good or service, but it can also be a to define the website that is promoting the lead or registration, a call, a download or any brand or products. In later chapters we’ll other trackable action that is desired of the look more in-depth at the business models end customer. In recent years this has grown to even include offline sales — provided they that affiliates employ to drive actions for the can be tracked back by a coupon or barcode. advertiser. For now, let’s just dispel a common misconception: Affiliate Marketing isn’t just There are two ways the CPA are set: banner advertising, in fact, most campaigns will get less than 10% of their sales as a Flat rate: For every action a fixed fee is paid. result of banner advertising. Consumers This is typically used for registration type have learned to ignore these banners, so actions with no cost, such as a credit card successful affiliates employ smarter, more sign-up or for a fixed price product like a engaging tactics to generate sales for the mobile phone contract. advertisers they work with, with most sales Revenue Share: The price of the item coming from ‘text links’ often hidden behind purchased is tracked and a percentage of ‘Buy Now’ or ‘Shop Here’ type buttons. A ‘text that price is then paid to the affiliate. This is Link’ in the affiliate world is just a trackable generally favoured by advertisers selling a URL that redirects to the relevant page of the range of tangible goods at varying prices, advertiser’s website. such as fashion retailers. Whilst the majority of affiliates still generate Affiliate
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