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Affiliates: The Newest Ally in The

Quest for Omnichannel Presence

Michael Jones

Head of eBay Enterprise Affiliate

Network

Agenda

• About eBay Enterprise Affiliate Network

• Busting Affiliate Misconceptions

• Our View: What’s Next in Affiliate Marketing & How to Solve for It

• Open Discussion

eBay Enterprise Affiliate Network

Technology Foundation

Advanced Product Feed

Store Builder

Advertiser & Publisher API’s

Ad Serving

Customized Commissions

Relationship Management

Communication Tools

Reporting Tools with 1000’s

of Data Points

Scalable Tracking Levels

eBay Enterprise Affiliate Network

4000+

5 YEARS

150

7

200,000+

12:1

85MM

65+ 15+ YEARS AFFILIATE

EXPERIENCE

AVERAGE TENURE OF

EMPLOYEES

PROGRAMS LAUNCHED

IN 4 YEARS

PUBLISHER SITES

NEW PRODUCTS TO MARKET IN

PAST 12 MONTHS

PROGRAMS MIGRATED

IN 2 YEARS

IR 500 BRANDS

TRANSACTIONS

PROCESSED IN 2013

AVERAGE ROI

NETWORK WIDE

In Partnership with Magento

The extension empowers

merchants with:

• Automated integration and on-

boarding

• Easy-to-use tracking integration

• Ability to track and record affiliate

sales and conversions

• Flexible configuration

• Product feed export automated

nightly in eBay Enterprise Affiliate

format

• Correction feed automated nightly

in eBay Enterprise Affiliate format

Launching an affiliate marketing program has never been easier. With the eBay

Enterprise Affiliate Extension, you can start driving traffic and revenue right now.

THE OMNI-CHANNEL CONSUMER

The changing rules of commerce

Connected constantly

Everywhere

On the Go

To Their Work

To Their Home

To Their Friends

To Their Favorite Retailers

To Multiple Devices

91% of

consumers

have their

mobile phone

within reach

24/7*

79% of purchases made

on a traditional

device

40% of consumers

switched between

device types to

browse for the same

item

53% of consumers used

their smartphone in

the home to browse

Source: “Multi-device Ownership: Implications For Retailers and Consumers.” eBay Enterprise. November, 2013.

The Journey is Multi-Device

Initial

Consideration

Set

Trigger

Moment

of

Purchase

Consumers Expect More from Retailers

Initial

Consideration

Set

Trigger

Moment

of

Purchase

Social Listening &

Advocacy

Social & Brand Voice

Media & Display

Search

Social Listening &

Advocacy

Display

Retargeting

Partnerships

Social CRM

CSE &

Marketplaces

Rich Experience

Content

Commerce

Website

Social Commerce

Email

Rich Experience

Content

Affiliates Affiliates

Affiliates

Affiliate

Multiple Channels Generate More Value

AFFILIATE MISCONCEPTIONS

Affiliate Misconceptions

• No incrementality

• Affiliate sales have lower AOV’s.

• Why pay for sales I would have gotten anyway?

• Affiliates hijack sales from other channels

• Affiliate Traffic is lower quality

Nearly half of all customers who closed

on Affiliate are New (no purchase on

site in the last 24 months).

Niche affiliates converting were New

70% of the time.

0%

20%

40%

60%

80%

Overall: 49%

New Customer Rate by Publisher Type

Affiliates Drive New Customers

Customers That Repeat Are Valuable

Coupon Loyalty/Rewards Mobile/EmergingTechnology

ComparisonShopping

Social Niche Content

Across all affiliates, AOV for a repeat customer was 7% higher than that of

someone New

Repeat

New For Loyalty sites, the AOV is 14% higher

Overall

- When affiliates introduce the path, AOV jumps to $114 (up from $94 site average)

- This number is similar on average when they serve as an influencer, but increases

significantly when more than one affiliate is seen.

AOV

increases

with

Frequency of

Influences

Affiliate AOV is Higher

0%

20%

40%

60%

80%

100%

Apparel,Accessories& Footwear

GeneralMerchandise

Specialty SportingGoods

% of all Conversions

within 24 Hours from last

Affiliate click

Within 7 Days

Within 14 Days

73% of conversions occur

Within 30 minutes.

Retail Vertical

Affiliates Convert Fast

WHAT’S NEXT IN AFFILIATE

What’s Next in Affiliate Marketing

• A Shift Towards Mobile

• The Rise of Content

• Dynamic Commissioning Rules

• Social Commerce via Peer to Peer Sharing

0

20

40

60

80

100

2011 2012 2013 2014 2015

Adult Digital Coupon Users (Millions)

Source: eMarketer, “Digital Coupons, Mobile Give

Cheapskates Staying Power” April 2013.

Projected The number of users

couponing with mobile

devices will increase

20% in 2014.

(After even bigger

growth in 2013.)

Nearly 100MM Use Coupons

Commission publishers on App Installs and In-App

purchases

Shop via

Publisher App

for Target

If Retailer App not

installed, directed to

iOS/Android store

to download

Consumer makes

in App Purchase

Commission Event #1 Commission Event #2

App Install & In-App Purchase Tracking

Coupon 51%

Loyalty/ Rewards

42%

Mobile/ Emerging

Technology 4%

Comparison Shopping

1%

Social 1%

Niche Content

1%

Demand Contribution, Q3 2013 Affiliate marketing spend is

projected to reach $4.4bn by

2016.*

For retail e-commerce affiliate

programs, Loyalty/Rewards and

Coupon sites remain the majority

of the business.

Affiliates who capture 7% of that

spend are growing faster than

market.

Coupon & Loyalty Drive Demand

Coupon 52%

Loyalty/ Rewards

25%

Mobile/ Emerging

Technology 10%

Comparison Shopping

6% Social

5%

Niche Content

2%

Traffic Contribution, Q3 2013 Loyalty sites pull more than their

weight in demand with less traffic

because of high conversion

rates

The smaller categories which

currently drive 7% of demand

are driving 24% of traffic, and

may have the most room to

mature and grow.

But Others Influence Traffic

Social commerce brings

social media, content and

curation into the online buying

experience

By 2015, companies will

generate 50% of web sales

via social presence and

mobile applications

$30

Billion 2015 projected market potential

for social commerce brands

Social Commerce on the Rise

Compensation

Today

$100 Purchase

x 5% Commission

---------------------------

$5 Payout

Dana Just found a new

store via her

favorite affiliate

Compensation

Tomorrow

$100 Purchase

x 4% Commission

---------------------------

$4 Payout Subtotal

+ $1 Per New Customer

+ $1 Per Mobile Purchase

---------------------------

$6 Payout

Multi-Action Commissioning

Recruit Share Redeem Reward Track

Invite your existing

advocates to spread

news in exchange

for rewards

Your advocates

share offers/

products with their

friends and family

via Social, E-mail

Friends and family

can redeem offers

when they buy

products online or

in-store via web

code, printable

coupon or mobile

bar code

Your Advocates earn

rewards from every

“friends & family”

sale made

Track advocate’s

activity and gain

valuable insights into

your program’s

social landscape

Turn Friends into Affiliates

Thank You

Contact: michaejones@ebay.com

Avoiding the Pitfalls and Perils

of Display Advertising

Serge Del Grosso Head of Media Strategy

eBay Enterprise Marketing Solutions (U.S.)

Russ Carroll Head of Partnerships

eBay Enterprise Marketing Solutions (EMEA)

Agenda

• Display Media Industry Trends – U.K. & EMEA

• Targeting Data is the New Oil

• Accelerating Ecommerce with Targeted Display

• For Magento Customers – eBay Enterprise

Display Extension

• Questions

Display Industry Trends –

U.K. & EMEA 02

In the UK,

Display Media’s

share of digital

spend is

growing

Display ad spend

also growing in

Western Europe

Mobile share of ad

spend accelerating

in the UK

In Middle East &

Africa, Mobile ad

spending will see

rapid growth in 2015

and beyond

Deep Customer Engagement

79% of smartphone users

keep their phones with

them for all but two hours

of their waking day

Programmatic and

Real Time Bidding

(RTB) is the new

emerging standard

for Display

Programmatic drives user-level targeting at scale

CONTEXTUAL FILTERING

& BRAND SAFETY

EXCHANGE/ NETWORK

PARTNERS

MOBILE & CROSS-

DEVICE TARGETING

PREMIUM PUBLISHERS

DATA PARTNERS

Actioned through major supply-slide exchanges

Now you can

real-time bid on

15+ billion

impressions daily.

Who should I target?

Targeting Data is

the New Oil

+200

Petabytes

of

Consumer

Data and

growing…

Nearly a

billion

consumers

worldwide

Credit cards

Thousands

Product

Categories

Multiple

cookies

across

dozens of

business

Actionable

search

insights

+ 9M

payments

every day

+ 6K

Total

Payment

Volume per

second

Pair of

shoes

sold

every 2

second

Loyalty

Mobile

phone

sold every

4 seconds

Click

behaviour

and

patterns

Device

IDs

Email

addresses

Bank

accounts

POS

A ladies

handbag is

bought via

mobile every

12 seconds A

motorcycle

sold every

10 minutes

IP Address

WE UNDERSTAND OUR SHARED

CONSUMERS ACROSS A WEALTH OF

COMMERCE DATA

2 OUT OF 3

OF YOUR

CONSUMERS

ARE OUR

CONSUMERS

BIG DATA

THE VALUE OF EBAY INC. DATA

PRIVACY

DATA

SCIENCE

ACTIONABLE

INSIGHTS

Accelerating Ecommerce with

Display 04

THE VALUE OF TARGETED DISPLAY

1. Generate Demand 2. Capture Demand

BENEFITS OF DISPLAY

It allows for a visual representation of a product or brand

that supports other online marketing efforts – in places

that desired audiences exist.

Display is the most scalable marketing channel for taking

multiple sources of data and deploying messages to

those target audiences/consumers in real-time.

Successful Display Targeting Strategies Include

Campaign Reach

Expert Targeting

Capabilities

Quality

Inventory

Access to in-market shoppers

Data

Science

True

Partnership

Targeting the right person starts with using data to construct an audience.

Client’s Data

Our Data (eBay Inc.) Other Parties’ Data

• Branded Website

• Customer Database

• eBay Marketplaces

• PayPal

• Demographic

• Behavioral

THE RIGHT PERSON

Display solutions account for When, Where and How a user experiences the

digital world.

When

Where How

• Time of day

• Timing (Seasonality)

• Recency to a signal

• Physical location

• Medium

• Content Adjacency

• Devices

• Browsers

• Apps

THE RIGHT CONTEXT

Once we’ve targeted the right user and are aware of her context, it’s time to

use the information we have in order to connect.

Earn Attention

Resonate Inspire Action

• Conspicuousness

• Visual Appeal

• Mnemonic Device

• Relevance

• Personalization

• Compelling Offer

• Ad engagement

• Visit to owned media

• Conversion

THE RIGHT MESSAGE

TARGET BUYERS WITH SAME CHARACTERISTICS, PATTERNS, BEHAVIORS

Never

Purchased

Inactive Buyers

In-Market

Shoppers

Active Buyers

Acquisition

Reactivation

For Magento Customers –

eBay Display Extension 05

AVAILABLE NOW!

Quick & easy

implementation, and

a complete set of

custom-built Display

Ads

Access to all of

the major

exchanges,

Facebook, Tablet,

eBay.com

Account

optimization,

analytics access

and a real live

person if you have

questions.

1 2 3

IMPLEMENTATION IS EASY!

DISPLAY - THE ROAD AHEAD

• Display media is a growing

business in your markets

• Programmatic (RTB) display is an

engine of this growth

• Data-driven display is the new oil

• Activate your display program now

with the eBay Display Extension

THANK YOU!

QUESTIONS? SDELGROSSO@EBAY.COM

RCARROLL@EBAY.COM

The accurate and timely

understanding of the

value and role of each channel

in the marketing mix has

become mission-critical for

marketers.

Meet Elizabeth

64

How Do I Quantitatively

drive clarity across the

entire customer

journey?

I must get smarter with

my marketing

Marketing tactics that are regarded as

“top of the funnel”,

such as display advertising,

are undervalued in their contribution

to overall eCommerce sales.

Source: Forrester Research

DA

Y 8

Site

Visit

DA

Y 1

Challenge 1:

Siloed Marketing Measurement Based on Last Click

£200

Search

Display

Affiliate

Social

Paid

Search

100%

Solution: Identify ROI for each marketing channel

ROI Measurement

Revenue from Product Sale

Keyword CPC £1.00

Conversion Rate 4%

ROAS 800%

£200

DA

Y 8

£200

Paid

Search

100%

Challenge 1:

Siloed Marketing Measurement Based on the Last Click

Paid search

matters most for

new customers.

Email matters

most for repeat

customers-

Source: Forrester Research

DA

Y 8

Site

Visit

DA

Y 1

INTRODUCER INFLUENCER CLOSER

£200

Search Display Affiliate Social

Paid

Search

100%

Challenge 2: Managing marketing spend across a diverse range of

marketing touch points.

Solution: valuing marketing touchpoints throughout the

customer journey

DA

Y 8

Site

Visit

DA

Y 1

INTRODUCER INFLUENCER CLOSER

£44

Paid

Search

22%

Organic

Search

13%

Affiliate

40% Display

17%

Social

8%

£26 £34 £80 £16

Challenge 3: Plan marketing spend, execute and track the investment impact

on consumers interaction with the brand.

Solution: advanced attribution

Elizabeth's Approach

Paid Search

Email

CSE

Affiliate

Cancellations,

Costs, POS,

Order # etc

Organic

Search

Social Mobile

1st Party

Cookie

Display

SINGLE SOURCE OF TRUTH

Offline Data

Ingest offline non-addressable channels –

television, radio, outdoor & print campaign data.

Non-addressable media data is

comprised of 2 main components:

1. Schedule/flight data

(where and when the ads ran)

2. Performance / response data

(i.e. ratings or other performance

metrics)

Cross device Tracking

Hard Linking devices

1. Customer keys; email address &

user log-ins

2. Customer Profile IDs (cookie,

IDFA, Android ID, device ID, etc.)

3. Probabilistic ‘non cookie’

techniques mapping devices &

sessions together.

eBay Inc. Data

Enriching cross device associations

using eBay Inc. customer data.

BUILDING PROFILES ACROSS DEVICES

100% 0% 0% 0% £

25% 25% 25% 25% £

35% 40% 5% £ 20%

Organic

Search Email Display Paid Search

Different models for valuation

Predict investment Scenario

planner

79

I have £1MM to spend. How to

maximize my return?

I need to get £10MM in revenue.

How much channel spend?

I need to get 10,000

conversations, conversions,

opens, clicks.

Chose scenario type based on your goals

1. Forecasted + Actual data sets available

2. Day, Channel, Source, Campaign, Site, Placement

3. Spend, Impressions, Orders, Revenue, Gross Profit (+ calculated metrics)

• Configure results based on appropriate metrics

(spend, revenue, profit, orders, ROAS)

• Forecast at summary, channel + sub channel

• Create multiple “what if’s” to determine best go forward plan

Its not only about how to and

requirements by channel,

its also about gaining senior leadership support for

marketing investment.

What does it

mean to you?

Revenue per order increased by 66%

Increased conversion rate by 50%

Reduced ad spend by £100,000 per year

Annual digital spend budget £32MM to £47M

Results:

Solution: Create A Single View

Elizabeth’s Challenge:

Optimising Digital Marketing

Spend & Justifying Budget

Sebastian Gutierrez

Senior Product Marketing Manager

segutierrez@ebay.com

@seguti