Advertiser's Crash Course in Affiliate Marketing

210 Pages·2015·3.17 MB·English

by  Amanda Smith

Advertiser's Crash Course

in Affiliate Marketing
Geno Prussakov

CEO, AM Navigator (affiliate management agency)

www.amnavigator.com

Founder, Affiliate Management Days (conference)
www.amdays.com

888-588-8866 | Washington, DC

[email protected] | @ePrussakov
.
The
 Basics
Affiliate Marketing is…
...performance-based marketing, whereby affiliates
promote your product/service and get

remunerated for every customer/lead referred.
Size of the Industry (US)
•  Advertiser/merchant count: 10,000+

•  Publisher/affiliate count: 1,000,000+

•  Brings 20%-40% of online business

•  Spend: ≈$3,000,000,000
Size of the Industry (UK)
•  UK advertiser/merchant count: ~4,000

•  UK publisher/affiliate count: ~12,000

•  Impact scale: 4 billion clicks which converted into
~100 million transactions (sales/leads)
•  2014 expected spend: £1bn (up from £800 million)

•  Scale: 8-10% of UK online marketing spend; ~10%
of the UK Internet economy (up from 6% in 2012);
0.8% of UK GDP (up from 0.6%)

•  Growth: in 2013 affiliate marketing generated
£14bn in sales, or 15% YoY growth

Source: PriceWaterhouseCoopers study commissioned by the Internet Advertising Bureau UK, January 2014
Who are “Affiliates”?
v  “The term ‘affiliate’ means any company that
controls, is controlled by, or is under common control
with another company” /Compilation of State and
Federal Privacy Laws, 2002, p. 76/
v  “The term ‘affiliate’ can be used as a generic word to
indicate either a subsidiary or division” /Business
information: how to find it, how to use it, 1987, p. 38)
v  Terms “affiliate and subsidiary” are “used
synonymously” /International dimensions of
management, 1989, p. 2/
Who are “Affiliates”?
Affiliates: Types:

Independent marketers i.  Content (Answers.com)

who may choose to ii.  Coupons ( )
RetailMeNot
promote a business,
iii.  Data feeds ( )
Shopzilla
and be paid on
iv.  Display ( )
Forbes.com
performance-based
v.  Email
basis.
vi.  Loyalty ( )
TopCashBack
vii.  Mobile
viii.  SEM (SEO & PPC)
ix.  Social Media
x.  Video
How Much They Make
Source: Darren Rowse, The Ultimate Guide to Making Money with the Amazon Affiliate Program,
ProBlogger.net, 4/24/2013
Food for Thought:
“Uber, the world’s largest taxi company,
owns no vehicles. Facebook, the world’s
most popular media owner, creates no
content. Alibaba, the most valuable retailer,
has no inventory. And Airbnb, the world’s
largest accommodation provider, owns no
real estate…”
Source: Tom Goodwin, The Battle Is For the Customer Interface,
TechCrunch.com, 4/3/2015
Affiliates have been doing this since 1994!
Common Misconception: