Affiliate Marketing

ASE, Bucharest, 03.12.2014

What is affiliate marketing?

Performance marketing channel that exists from the beginning of the ecommerce
You pay only the performance. The advertiser offers a commission only action based: sale, lead,
etc.
The advertiser sets up the commissioning scheme and the conditions for validating the actions.

The most performant solution from the ROI perspective, you are always in control of the costs

Excellent solution for the advertisers that dont have consistent budgets on CPM/CPC channels

Key players in affiliate marketing

ADVERTISER
REWARD

CONVERSIONS

CLIENT

AFFILIATE

RECOMMEDATIONS, NEWS, ETC

Advertisers that use affiliate marketing in RO

Currently there are about 400 advertisers in Romania that use affiliate marketing in their
online marketing campaigns.

The affiliate network

Offers for the advertisers and
affiliates the platform and the
necessary instruments for both
sides.
Tracking
Financial

Cookie Tracking
When a visitors clicks on an affiliate link, a cookie its
stored on the visitors browser

When the visitors buys from the advertiser,

if its find a match between a cookie and an
action, the order details are sent to the
affiliate network to register in the
affiliate/advertiser account the commission
Besides having a commission offered by the
advertiser, each cookie has a lifetime, set by
the advertiser.
If the cookie expires, the conversion will not
be registered in the affiliate platform

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Cost models in affiliate marketing

CPA (Cost-per-Action)
CPS (Cost per sale) and CPL (cost per lead) are the most popular
methods for commissioning the affiliates
CPS can be a percent or a fixed amount for the sale, used mostly by
ecommerce websites

CPL its a fixed commission used mostly for tracking a single action
(completing a form, subscribing to a newsletter, etc)

Cost per Sale

CPS
4%

Comission
28.35 Lei
From the price without VAT:
708.87 Lei

Cost per lead

CPL
10 lei

How are promoting the affiliates?

BANNERS & WIDGETS

Big publishers use widgets or banners.

With proper targeting, on this websites
the graphic instruments offer a good
conversion rate.

CONTENT, ARTICLES,
REVIEWS

Affiliates are sharing on their

websites opinions or reviews about
the advertisers products and/or
services.
These websites are upper in the sales
funnel and have a good conversion
rate.

GOOGLE ADWORDS
&
FACEBOOK ADS

The affiliates are risking their own money to

promote the advertiser on PPC networks
such as Google AdWords or Facebook Ads.
With a good budget they can reach many
clients and convince them to buy online.

Niche websites

RESULTS:
Orders: 56
Orders value: 31.294 lei

Commissions offered by the advertiser: 892 lei

Niche websites
RESULTS:
Orders : 9
Orders value : 2.826 lei
Comissions: 386 lei

Websites/personal blogs

News websites

PPC Google Search

Social networks

Video

Cashback websites

Price comparison websites

How do affiliates choose which advertisers to

promote?
60% of the affiliates are promoting only 3 advertisers, and 81% are
promoting up to 5 advertisers
The most important thing for affiliates are the commissions offered
and the advertisers reputation
Affiliates are calculating their revenue based on EPC; the higher the
conversion rate and the commissions, the higher the EPC

EPC
Conversion Rate

(usability, one-page checkout, offers, availability)

Average order value

EPC
(Earnings per
100 clicks)

(cross-sell & upsell)

Commissions and cookie lifetime

(Atractive for the affiliates, sustainable by the advertiser))

Approval rate of the commissions

(In stock products, fast shipping, etc)

Terms and conditions for the affiliate program

Has the same importance as the commissions in determining
whether affiliates will promote or not the advertiser
The affiliates usually read the T&C and if something its not
explicitly denied, they will consider that as acceptable promotional
method
Always be carefull when setting the T&C!

Affiliate marketing performance indicators

New visitors
Average order value
Relevant
KPIs

Bounce rate
Customer lifetime value
Assisted conversions

Recommendations for advertisers

Converted visitor
Visit from Profitshare

Without navigation errors

FAST load time of the website
Friendly UX Design
Stable links for the landing pages
Optimised for online conversion (without
aggressive phone number display, etc)

Advantages for affiliate marketing

Classic online advertising

Affiliate marketing

Limited budgets

Unlimited budgets

Standard display banner sizes

Various creatives

Fixed locations

Any locations in the website (even links!)

Limited optimization for the website

Can be easily optimized for performance

owner

They are complementary!

Record payments
The biggest payment to an
affiliate ever in Profitshare:
79.080 Lei
Affiliates can easily earn an
extra income with little
effort
Top affiliates are earning
more than 5.000 lei each
month. We have regular
payments of 20.000 lei or
more

...Now we go BLACK

Black Friday 2014 Objectives

2013 results
35 advertisers
25k sales
15M lei sales amount

2014 objectives
50k sales (+100% YoY)
30M sales amount (+100% YoY)

46 affiliates with over 1.000 lei commissions in one day

+10% affiliates with over 1.000 lei commissions in one

day

1319 affiliates with commissions registered in one day

+10% affiliates with commissions registered in one day

Challenge
How to double the number of conversions and sales amount YoY?

We needed something big

We had experience in driving good results for clients based on Black Friday 2013.
He organised competitions for all the affiliates for 2 times (Incinge Conversia campaign)

What motivates affiliates?

Competition

Reputation & Acknoledgement

How did we promote the campaign?

skin BF
profitshare.ro

AdWords
Display
newsletter
(adv &
affiliates)

Facebook
Ads

paid

Video

Landing Page

Social
Networks
Page

owned
alerta conturi
afiliati &
advertiseri

special logo

Bloggers

Zendesk
ticketing
service
signature

Realtime ranking
In order to keep affiliates
motivated we had a
realtime ranking for the
number of conversion
generated and showing
affiliates position
Affiliates could adjust their
strategy real-time

Black Friday 2014 Results

2014 objectives
50k sales (+100% YoY)
30M sales amount (+100% YoY)
+10% affiliates with over 1.000 lei
commissions in one day

2014 results
86.318 sales
40.000.000 LEI sales amount for Profitshare advertisers
51 affiliates with over 1.000 lei commissions in one day
23 affiliates with over 1.000 sales in one day

+10% affiliates with commissions registered

in one day

1798 affiliates with commissions on 21.11

Thank you!
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