Why the 2009 Census Can Be a How To Guide for Merchants
The all-encompassing 2009 Affiliate Census is the perfect opportunity for merchants to learn how to run their affiliate program most effectively, if they know what they are looking for. Here is the chance to listen to 100s of affiliates, what they want, what they don’t and how to make your program stand out from the crowd. Whether in the UK or US it does not matter, it is all there crying out to be heard and acted upon, however here I’ll concentrate mainly on the UK.
It is a well-known fact that it’s a few affiliates who generate most of the traffic and revenue for merchants and this census backs this up. The numbers show 31% only generating less than £50 a month (23% under $50 in the US) and 25% more than £10,000 (32% in the US). This doesn’t mean these ratios have to stay this way. It’s good to know how much activity affiliates are generating over time, segment them by activity and try to move them up levels. Not everyone will be generating £1,000s every month for you but it’s good practice to know your affiliates, types of sites, linking used and their potential. As we’ll see later on, knowing these things and tailoring communications and relationships with affiliates accordingly can be very beneficial to all concerned.
Knowing the types of affiliates signed up to, your program is important as, for example, content sites and PPC affiliates will need different things at different frequencies. Unsurprisingly these 2 types are the most common what is surprising to me is that email marketing only accounts for 5% and in the UK blogs are used much less than in the US. I think these two avenues can be used much more successfully given some thought and planning.
Different types of affiliates also require various linking methods so it’s important to find out what they need, as poor quality of links was the top reason given for not promoting a merchant. The UK seems much more traditional than the US in this area with video and widgets virtually not scoring at all whereas they’re 13% and 23% respectively in the US. Interestingly Mobile scored low in both territories, which suggest that although it’s a market that is there to be exploited in the future it’s not an immediate priority, but one that must continue to be considered and re-evaluated on an ongoing basis, especially as 55% of affiliates see it as an opportunity (58% in the US). For now Text links, Banners, PPC and Datafeeds remain the backbone of any good affiliate program.
A clear indicator of the need to stay competitive is the number of programs affiliates are promoting. In the UK 64% of affiliates are only promoting up to 30 programs and 21% more than 80 (69% and 22% respectively in the US). Whichever end of this spectrum your affiliates are it’s essential you stand out from the crowd. If they’re not promoting many then there’s going to be strong competition for places and if it’s more than 80 you could get lost in the list. Quality of links is important here but I would say good and fresh content even more so. Whether it’s about specific products or your business as a whole providing this regularly always goes down well and is one more reason to communicate with affiliates. Again, the number of programs an affiliate is promoting is a good indicator of the type of affiliate they are. True Content sites are much more likely to have a few advertisers compared to Price Comparison sites and PPC affiliates. This is another reason it’s important to know your affiliates and what they need from you because if you have what they want you’re more likely to be the one they push.
As I’ve already mentioned the top reason for not promoting a merchant is poor quality links, with slow acceptance to the program and commission potential following close behind. The main reasons for dropping a merchant is an alternative coming along and poor communication. You need to make sure you’re not replaced while at the same time making yourself the attractive alternative to your competitors. All of the above will help with that but are nothing at all without good communication and that’s the key. It’s essential you use the network’s tools to send regular newsletters to your affiliates with program information, incentives, tools for the affiliates and so on. This is good practice and is even more effective when backed up with communications with individual affiliates. Always keep in touch with your top affiliates but don’t limit yourself to just these for reasons already discussed above. When you find out what certain types of affiliates want, you can start to include these in your regular newsletters through the network. Use this information when planning campaigns and promotions in the short, medium and long term as well so you can get the most out of them.
I’ve only skimmed through the 2009 Affiliate Census here; it’s bursting with useful and relevant information that says to me the potential for affiliate marketing in 2009 is huge. In the UK 55% of affiliates see the recession as an opportunity (46% in the US) and instead of guessing what affiliates want now we know so can work towards giving it to them and realising their potential.
All the best
Emma Haslam
Emma at AffiliateProgramAdvice.com
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