Marketing: How does affiliate work?

Excerpt from Herve Bloch’s book

In the internet ecosystem, internet marketing has become an art in itself. Mastering the levers allows e-merchants to significantly increase their sales. So online tourism professionals are interested in learning the main principles, trends, and techniques. This is what Hervé Bloch’s new work, all about … online acquisition and loyalty, which TourMaG brings to you, in partnership with i-Tourisme, the first seasons exclusively. You will learn what are the pillars of an internet marketing strategy, and how to tame the growing values ​​of the sector, to finish with an overview of the legal framework for internet marketing.

Today, here’s an excerpt from Chapter 13 on affiliation: What is the evolution and work of affiliation?

Posted by Herve Bloch on Tuesday 5 November 2013

TourMaG, in partnership with i-Tourisme, brings you exclusive first chapters of Hervé Bloch's new book,
TourMaG, in partnership with i-Tourisme, brings you exclusive first chapters of Hervé Bloch's new book,

TourMaG, in partnership with i-Tourisme, brings you the exclusive first chapters of Hervé Bloch’s new book, “It’s All About… Online Acquisition and Loyalty”. © –

Affiliate is a performance ad template created by Amazon. The e-commerce site, which noted that some readers had never purchased books on its site, wanted to pay other sites to promote its offering.

This model was then adopted and manufactured by the affiliate platforms.

According to the Affiliation Platforms (CPA) Consortium of 19 players, including eight major market players (Affilet, Commission Junction, Effective, NetAffiliation, Public-Idées, Reactivpub, TradeDoubler, Zanox) and acquires 95% of the market, affiliation continued to advance in 2011 in France.

The number of programs increased +4% in one year and there are now 6,851 programs. The Internet Men’s Guild estimates that + 15% annual growth in affiliate investments.

slowing growth

Affiliate visits are also increasing: +25% in 2011, which enhances the attractiveness of such programmes.

The number of leads collected in 2011 since joining has also increased +36% in one year. Affiliate e-commerce sales increased by +14%.

However, this growth has begun to slow significantly compared to previous years.

On the other hand, the activity fell mechanically under the influence of the economic context. Consumers who cut back on their spending click on fewer campaigns to buy.

On the other hand, some sectors are reaching maturity, especially in e-commerce, while there is still room for improvement in other sectors.

The most profitable marketing leverage

Affiliate is the most profitable marketing leverage. For the advertiser, the risk is almost zero because he pays only when his goals are achieved.

CPA and FEVAD study also establishes Very strong ROI. With 226 million euros invested in 2011 on this leverage for 3 billion euros in sales on e-commerce sites, the return is 19 euros in turnover for a 1 euro investment.

it is expected thatAn e-commerce site can earn up to 12% of its turnover through performance campaigns, risk free. On the contrary, this means that he must search for the remaining 88% with more risky campaigns.

It must also be remembered that affiliation cannot satisfy all the marketing needs of an advertiser.

If it provides a direct return on investment, the fame and image processes will serve the long-term brand valuation and thus its commercial performance.

Membership Basics

Affiliate is the main lever of performance based internet marketing. An affiliate site editor rewards a program for the performance it generates for the partner site, the affiliate.

In concrete terms, when a user clicks on a campaign on the affiliate site, the platform identifies it with a cookie and records its actions on the advertiser’s site.

When the Internet user performs this paid action (order, registration, etc.), the advertiser’s site sends this information to the platform, which then pays to the affiliate.

Depending on the objectives of the subsidiary, this performance can take several forms:

Traffic, eligible or not;

– the potential customer, i.e. the qualifications of the potential customer;

– sales.

Compensation can also take many forms. In general, it corresponds either to a commission rate on the amount excluding taxes and shipping costs for sales generated by the affiliate, or a lump sum allocated to each registration or action specified in the program.

Depending on the complexity of some software, Rewards goals and methods can be mixed to improve associate performance or ensure a minimum income : Pay-per-sale (CPA) with minimal visibility (CPM), pay-per-click (CPC) or sign up.

This bonus is paid to the platform which then pays the affiliates, once their own commission (about 30%) is deducted.

Thus, when the publisher receives a bonus of €1, the affiliate has paid around €1.50 for the platform.

intermediate relationship

Thus, affiliation depends on the performance of the affiliate in relation to conversion goals.

Thus, the relationship between the subsidiary and the partner is a general one Through an affiliate platform that ensures the transparency and honesty of the affiliate company.

It provides advertisers with an advanced technology tool and a network of publishers who want to monetize their audience. At the same time, affiliate platforms offer additional services such as operations administrative support and advice.

From the model’s point of view, affiliation is not only shaped by the distribution of signs. exactly the contrary. The affiliate display network offers good visibility to the advertisers, but the click rates are low.

Affiliates don’t value them too much because they generate so little conversion. Affiliation takes on other faces like catalog integration on a publisher’s site, convenience stores, or gadgets.

Amazon has been a pioneer in affiliate campaigns and has built a program for tens of thousands of affiliates around the world.

In terms of formats, the e-commerce site stands out with a wealth of creations for its affiliates: text links, product links, ad banners, partner toolbars (for making links to the site), convenience stores with payment insurance, best site sales display, detailed product data Tool integration.

The role of a performance accelerator

Finally, this model has evolved a lot towards email performance. Some platforms earn as much as 40-50% of email sales volume.

These processes then act as a performance accelerator. This is because if an advertiser wants to get 500,000 clicks, it is easier to get them than sending out emails on a large basis.

So the contribution of platforms is less and they should Re-discover themselves through their technical services (retargeting, facilitator or manager role, etc.) and administrative services (simplification of billing procedures).

a[Les différents modes de rémunération]a

Basic billing per click (cost-per-click or cost-per-click). Corresponds to the goal of generating traffic on the advertiser’s site.

However, it is the least interesting solution for the latter that will necessarily see a rather high bounce rate, that is, a share of insufficiently qualified affiliate traffic.

Various Reward Methods

To avoid paying for lost traffic immediately, it is possible to choose Double click to pay.

It’s actually a matter of billing only for visits from the affiliate website (the first click) that will at least review another page or perform an action on the site (the second click). Thus, it is a bonus that does not take into account the bounce rate.

When online sales are not possible or the buyer needs a long period of thought, as in the case of insurance, auto or BtoB, it is necessary to plan Reward method does not take into account the transactions, but rather the actions that take place on the advertiser’s site, such as signing up for a newsletter, submitting a quote, or registering a trial request. So it’s a matter of identifying and qualifying a contact after his visit.

Thus the reward is made for each lead (CPL or Lead Cost) or for each action performed (CPA or Cost of Action)..

finally, The way to pay par excellence in e-commerce for sale.

In the most common case, the bonus is calculated as a percentage of the amount excluding taxes and costs of order delivery.

Thus, rewards up to 10% of sales while offers 7-10% of sales depending on volume. But in some sectors, such as online supermarkets, it is being fixed. pays 25 euros to hire a new client. differentiates the reward method according to products : flat rate (from 10 to 20 euros) for flights, stays, car rentals, flight deals + hotels and the percentage of hotels (9 to 12%).


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