Presenters: Fionn Hyndman, CEO, dgm Asia Micah Arnold, Sr' Director Affiliate Marketing, Apollo Grou

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Presenters Fionn Hyndman, CEO, dgm AsiaMicah
Arnold, Sr. Director Affiliate Marketing, Apollo
Group
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Discussion Points

• Overview of affiliate marketing
• Outline the benefits and challenges to affiliate
  marketing
• Case study examples

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• Marketing Strategy
• not
• Ad Campaign

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• Affiliate Marketing was the fastest growing
  segment of general online advertising
  increasing by 244.
• Affiliate Marketing in the UK grew by over 100
  in 2005, reaching more than 1.3bn in sales
  delivered through affiliates.

Frost Sullivan The Australia Online Advertising
Supply Report 2007
New Media Age March, 2006
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General Online Advertising by Segment
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What do you want a consumer to do online? What
will you pay for that action? Is this
sustainable for your business? Affiliate
Marketing
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Before You Start

• What are your goals online?
• What value is associated with each of those
  goals?
• Is this cost sustainable?
• If No, evaluate long term strategy
• If Yes, dont limit the budget
• Can you track the success or failure of a
  campaign?

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Consumers, sales and leads
Commissions and incentives
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CPL vs CPA
Consumer Clicks on Ad
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• Consumer information portals
• Value add sites
• Non Web businesses
• User based content

• Traffic is generated by
• Email databases
• Search engine optimisation
• Search engine marketing
• Integration/advertorials
• Display ads
• User based content
• Cross marketing

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Whats it worth?

• US - 6.5bn to 25bn (USD) in 2005
• UK - 2.17bn GBP for 2006.
• AU Over 1bn

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Beware of Tracking Overlap
SEO
Media
Affiliate
SEM
2000
2000
2000
2000
Only 4000 Unique Consumers

• If you must use different tracking solutions
  apply business rules to the recognition of
  results

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How do I do it?

• Work out the actions you want consumers to
  perform
• Work out what it is worth
• Sign with a provider or get internal resource
• Provide creative tag the site
• Thats it

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What to do

• Concentrate on the basics site, landing page,
  sign up process etc
• Work with a reputable provider who understands
  your needs
• Be clear about your programs TCs
• Play to your strengths brand, offer, cost etc
• Test and optimise, test and optimise (repeat to
  end)
• Use Permission based campaigns
• Be honest about your CPA/LTV it will work for
  you!

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How we do it

• University of Phoenix
• Largest private university in North America
• 300,000 students around the world both online
  and at campuses in US, CA, NL

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• Affiliate partners used to generate leads which
  are converted into students
• Email, Search, Display, EDU portals

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• Define affiliate partners and support them in
  doing what they do best
• Improves brand coverage in non-branded search,
  email, and education-specific websites.
• Inventive creative solutions, New Media testing
• Be clear with feedback
• Provide access to performance reporting
• Set objective standards for success
• Hold providers accountable to standards

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• World Class Service
• Attention to accounts
• Access to performance reporting and analytics
• Data driven team and business
• Test, Analyze, Optimize (again!)
• Encourage Approved Experimentation

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• Successes of Affiliate Marketing
• Improved coverage
• Diversity of sources, focused resources
• Affiliate partners as subject matter experts with
  their own fields of expertise
• Downsides to Affiliate Marketing
• No creative control over self-promotions
• Brand or product misconceptions
• Potentially mis-aligned interests

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• Other ways to use affiliates
• Not all affiliates are generic entities
• Employ each of them individually provide the
  access to creative unique to their position and
  content
• Brand, college, product line
• Identify what affiliates are really good at
• Some do better with SEM, some SEO
• Some are great creative designers or media buyers
• Empower them with the right assets and evaluate
  independently