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CCT356: Online Advertising and Marketing. Class 4: Affiliate Marketing. Admin. Online ad campaign critiques due two weeks from now – questions? Annotated bibliography coming along well – post to page please. Affiliate Marketing.

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cct356 online advertising and marketing

CCT356: Online Advertising and Marketing

Class 4: Affiliate Marketing

  • Online ad campaign critiques due two weeks from now – questions?
  • Annotated bibliography coming along well – post to page please
affiliate marketing
Affiliate Marketing
  • Well before social networking technologies, the power of leveraging contacts was understood and leveraged
  • WOM monetized – on completion of referral (actual purchase) referee would receive a small payment
the internet is for porn
The Internet is for porn
  • As with much onlinemarketing, the adultindustry was at the fore of early innovation
  • Other examples?
early affiliate programs
Early affiliate programs
  • Amazon Affiliate program – allows individual users to set up their own “mini-stores” on their sites/blogs
  • Multiple points of presence, all centrally serviced – drives content
  • Good for small/independent publishers – challenges for such groups?
types of reward
Types of Reward
  • Cost per acquisition
  • Cost per lead
  • Revenue sharing
  • Cost per click
  • All possible, depends what you’re trying to do
  • As with online ad models, acquisition can be anything – but it is a positive action (e.g., downloading a paper, signing up to a mail list, buying a product)
  • Sometimes, potential leads are enough
  • Benefit to affiliates?
  • Benefit to merchants?
  • Example: HR recruiting
revenue sharing
Revenue Sharing
  • Benefits both merchant and affiliate
  • Can be tiered to encourage and reward affiliates who drive revenue – e.g., Amazon tiered rates example
  • Simple clickthrough awarded
  • Used early when infrastructure was less sophisticated – used less used due to click fraud
  • Could still drive a lot of traffic and awareness, but if clicks are garbage, more traffic is a net loss
  • Still handy though – e.g., blog traffic networks
  • Tracking URLs with specific start and end points
  • URLs carry information – affiliation network, ID of affiliate and merchant, other relevant information to a given campaign
  • Supported by cookies to track behavior for given period of time determined by merchant
  • Allows for tracking of success by merchant and affiliate alike
  • Case: affiliate clickthrough leads to exposure, but conversation happens after cookie timeout or through other means
  • Cookie reputation – blocked or deleted cookies = no tracking = no commission
  • Offline purchasing = no easy way to track
  • Mobile devices = different levels of cookie support
affiliate marketing concerns
Affiliate Marketing Concerns
  • Good affiliate marketing = supplying merchant ads that are relevant to topic and focus of site
  • Bad affiliate marketing = accepting any old ad, creating a cacophony of advertising and no consistency
  • Issues of competition – as an affiliate, you probably don’t want to host ads to competitive sites
  • Issues of stickiness – if affiliate program makes viewer leave your site, not effective
affiliate networks
Affiliate networks
  • Amazon, Google etc have the resources to run their own affairs
  • Smaller companies use affiliate networks – middlemen who collect potential merchants and affiliates and try to make good matches
setup considerations
Setup considerations
  • Clear identity of business identity, goals, market
  • Clear identification of affiliate campaign goals – leads, acquisitions, simple exposure?
  • Run your own program or join network? If latter, what are costs associated, benefits?
  • Prepare data for feeding to affiliates – and provide copy/banners for use (e.g., download Firefox banners – designed by Firefox for consistent look/feel, ease of use)
a note on mlm
A note on MLM
  • Multi-level marketing – a form of affiliate networking, but a problematic one
  • How it works – levels and trickle-up effect of commissions
  • Why are they problematic?
next week
Next week
  • Search Engine Optimization – Search Engine Marketing