Affiliate marketing: is it a good way to increase profits ?

1. Affiliate marketing:isit a good way to increaseprofits? Università degli Studi di Bari Aldo Moro Facoltà di Economia Corso di Laurea in Economia e Commercio Anno Accademico 2011-2012

2. Introduction • Nowadays almost 30% of the world’s population has Internet access: around 2 billion people • 32 billion hours spent online every month! (Source: Go-Gulf)

3. Italian Internet users are estimated to be close to 26 million, with a greatgrowthsince 2001 (source: Mclink)

5. What happens during those billions of hours spent online every month? • Who earns money?

6. General info Definition: affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts. The players of affiliate marketing are: • the merchant, also called “retailer” or “brand” • the publisher, also known as the affiliate • the customer.

7. Merchant Publisher Customer

8. One of the best ways to earn money online (Robert Kiyosaki) • Many hard-working affiliates made a fortune

9. How does affiliate marketing work? • A company sets-up an affiliate marketing program • The webmaster signs up to the program as an affiliate • The webmaster publishes banners or links

10. A random visitor clicks on a banner/link • The company’s web server is programmed so that the visitor will be sent to the webpage for the product/service promoted.

11. Short history • Affiliate marketing nowadays

12. Future growth: mobile market, social medias, social gaming

13. In-house vs outsourced affiliate programs Affiliate programs are the means through which affiliate marketing works

14. Whatshould a company do beforelaunching an affiliate program? • Competitor analysis • Commercials • Creatives • Communication • Campaignanalysis

15. Affiliate programs

17. Affiliate networks “Affiliate networks act as an intermediary between affiliates and the merchant’s affiliate program”

18. Benefits: • easy and free to join • all tracking and payments are done by one network • easy way to get deals with big companies • wide offer of banners that can be perfectly added to every website • chance to check every affiliate program’s record before applying

19. The main affiliate networks • Mainones: Tradedoubler, Zanox, Sprintrade, Netaffiliation, AffiliateWindow, Webgains, Buy. • How they earn their transaction fees

20. Tradedoubler: 1,900 advertisers and 138,000 publishers. Yearly gross revenue: 73 million € Zanox: 4,000 merchants; more than 1 million publishers. Yearly gross revenue: 77 million €

22. Rewardplans • CPM (Cost-per-Mille) • CPC (Cost-per-Click) • CPL (Cost-per-Lead) • CPA (Cost-per-Action)

23. How can a publisher drive traffic to his website? • SEM – Search Engine Marketing • DEM – Direct Email Marketing • Social media marketing Statistics Google Analytics

24. Case studies Case study #1Client: HyundaiAffiliate network: TradedoublerReward plan: CPLGoal: generate 1,000 sign-ups for a newsletter with a chance to win a €20 fuel voucherDuration: 5 weeksResults: 1,156 unique visitors, 1,000 sign-ups

25. Case study #2Client: BimbomarketAffiliate network: ZanoxReward plan: CPSGoal: increase salesDuration: 2009-ongoingResults: sales increased by 25% during the first weeks; new customers all around Europe

26. Case study #3Publisher: Paolo MoroAffiliate network: TradedoublerDuration: 2002-2008Revenues: €125,369.48

27. Case study #4Publisher: John ChowAffiliate networks/programs: severalDuration: 1 yearRevenues: more than $500,000! Currently he earns up to $40,000 each month with affiliate marketing.

28. Alternatives • Print advertising • Television advertising • Telemarketing

29. The main problems related to affiliate marketing are: • Email spam • Virus • Spoofing • Affiliate’sincentives

30. Conclusions

33. For further info: www.affiliatemarketing.nicoladisisto.ws nico@nicoladisisto.ws