Understanding Incentivised Traffic in

Affiliate MarketingKevin Edwards

Partnerships Director Affiliate Window

Background

• Online loyalty: 10% less than high street...*

• £1.2m ‘lost’ per 100 customers over lifetime*

• Cashback, viral, codes all on rise

• Clear strategy essential *Webloyalty, Sept 2008

What is Incentivised Traffic?

Offering a reward or added perceived value to a consumer for transacting:

• Cashback• Loyalty or Reward Sites• Voucher Codes

Rapid Growth

The Issues - Cashback

• Understand the cashback consumer

Money Saving Expert

• Popular consumer site• 5k new subscribers every week• 3m uniques a month• 12,500 posts a day• Alexa ranking higher than Channel 4, ITV and similar to Yell and Daily Mail• Martin Lewis frequently on TV

“The cashback site told us to submit a ticket, so we did. We sent them all the necessary proof of purchase and everything

they wanted.”

“Obviously, we are not getting anywhere and we have been

screwed out of £45.”“Is it time that we called in Moneyclaim.gov and put

our claim in front of someone who will get us our

rightfully owed cash?”

“RBS are con merchants.I refuse point blank to use RBS products

now”

“DON’T USE RBS COMPANIES”

Understand the cashback consumer• Savvy online consumer• Appreciate savings are available online• Accesses multiple points of reference• Loyal to cashback site or cashback concept• Know the consumer; know cashback sites

The Issues - Cashback

• Understand the cashback consumer • Brand or price led?

Brand or price led?

3%?2.5%?4%?

3.5%?

Brand or price led?

3.5%

Brand or price led?

Cashback example

• ‘Landgrab’ to ‘buy traffic’ from competitors• Utility company offered higher rate to two cashback sites• Home page coverage, newsletter support & extra online exposure

Cashback example

Cashback example

The Issues - Cashback

• Understand the cashback consumer • Brand or price led? • New customers & commissions

New customers & commissions

• New customer acquisition• Incentives• Reduced cashback commission BUT launched voucher code• Why not trial new customer codes?• 5% base to 10% for new customer• Don’t offer automated tiers

The Issues - Cashback

• Understand the cashback consumer • Brand or price led? • Delivering new customers• Monitoring quality of leads

Monitoring Leads

• Appreciate ‘savvy’ consumers can take advantage of lead programmes• Set commissions accordingly• Monitor lead quality using your network• Set appropriate T&Cs

The Issues - Cashback

• Understand the cashback consumer • Brand or price led? • Delivering new customers• Monitoring quality of leads• Supporting marketing channels

Supporting marketing channels

• Newsletters, blog posts, emails etc...

Cashback Summary

Cashback sites have used your cost of sale to create a consumer

proposition: Use cashback sites to your

advantage

Loyalty & Reward Site

• Long standing brand equity• Offer sophisticated sites and loyal users• Potential multi-channel coverage• ‘Value add’ competitions, engaged content

Case Study -

•Airmiles run double and bonus Airmiles promotions at regular intervals• Agree in advance increased commissions with ‘cornerstone’ partners• On-site exposure, newsletter coverage and occasional direct marketing pieces

January 2008 Airmiles Statement

January 2008 Airmiles Statement

Merchant relationships sourced through networks

aerwerwer

qwerqwerwer3

January 2008 Airmiles Statement

January 2008 Airmiles Statement

Sales more than doubled for ‘double Airmiles’ promotion compared to normal earn rate periods

January 2008 Airmiles Statement

In line with the increase in sales was a more than doubling of the sales value

Benefit from their brand equity built over time; ‘value add’ rather than

pure cashback.Offer engaged content and build

affinity partnership opportunities. Wide scope for future growth.

Loyalty - Summary

• 12-fold increase in searches for ‘vouchers’ over last three years*• Neilsen named as 4th fastest growing site in the UK (June ‘08)

• Growth outstrips other affiliate groups• New entrants• PPC, SEO, Email, Forums, Offline• New tools and technologies

*Hitwise, Aug 2008

Voucher Codes

Voucher Codes – The growth

Top two voucher code sites currently driving over £6m in sales every month with Affiliate Window

• Displaying codes

Voucher codes

Voucher codes – Displaying codes

Voucher codes – Displaying codes

• ‘Click to reveal’ codes• Bespoke codes

Voucher codes

Voucher codes – Bespoke codes

Voucher codes – Bespoke codes

• ‘Click to reveal’ codes• Bespoke codes• Monitoring and tracking

Voucher codes

Voucher Codes - Tracking

Voucher Codes – Monitoring

• ‘Click to reveal’ codes• Bespoke codes• Monitoring & tracking• Test & optimise

Voucher codes

Voucher codes – Test & optimise ‘Stretch and Save’

Voucher codes – Summary

Be adaptable in your approach but closely monitor and optimise. Use for key pushes and promotions & mould

for business goals.Work your commissions according to

your ROI

• Improved reporting• Multiple referrer rewards• Revised commissions• Mainstream coverage • Amalgamation of technologies• New entrants; mass market

Incentivised Traffic – The Future

Understanding Incentivised Traffic in

Affiliate MarketingKevin Edwards

Partnerships Director Affiliate Window

kevin.edwards@affiliatewindow.com020 7553 0354