If you want to see what all the fuss is about, then make sure you watch ‘The Kiss’ TV ad on Youtube! A Lovehoney spokesman has compared their new ad to the famous Gold Blend adverts in the 1980s but “with added desire”! We think it’s a terrific ad, subtle and sexy, and we loved it! There’s no doubt that the ad is going to generate loads of interest and clicks for Lovehoney, so affiliates should make sure they’re promoting it. Affiliates can also make use of the fab matching creative for Lovehoney’s ad campaign to help push up conversions and they’ll find this available on their affiliate network in the usual way. Plus of course affiliates can also make use of Lovehoney’s TV ad from Youtube!

If you want to let Lovehoney know what you think about their new ad, you can leave a comment on their blog or tweet them @Lovehoney with the hashtag #TheKiss. Exciting times indeed at Lovehoney!

If you have haven’t already signed up to the Lovehoney affiliate program then don’t waste any time in joining up! LoveHoney is the UK’s leading online adult retailer with lots of great offers that are constantly updated, low prices, and free UK delivery and returns. There’s a very generous 16-21% commission structure and 120 day cookies and you can sign up to the program here!

However the short sighted rush to gain top position on a prominent affiliate site is often at the expense of the long tail affiliate and this is where many retailers make the biggest mistake of all. For smaller affiliates may not always be small and if you ignore their long tail potential, then when they are somewhat bigger affiliates, they may not be so inclined to afford you the prominence that you seek.

Now I grant you it is imperative in these recessionary times, to make every possible use of all potential marketing channels. With liquidity squeezed, retailers do expect value for money and affiliates could certainly do more to evolve and modernise. Adapting to the ever changing face of Affiliate Marketing shall determine whether an affiliate shall succeed or remain on the sidelines.

What is clear however is that many affiliates understand far more about marketing than the advertisers they market for. It behooves the advertiser to take note as many success stories in marketing have come from the hands and hard and diligent work of the affiliate.

Not every retailer fully understands the imperative of conversion. It’s all very well for an affiliate/publisher to drive traffic to a retailers website but if the customer experience is less than satisfying, that affiliate would have been better off delivering their traffic to retailers with a greater understanding of customer care.

I have been very fortunate in the past to have had the vast majority of retailers that I represented as an Affiliate Manager, understand just how important that customer journey was. Customer retention or the lack of it will make or break a merchant and merchants only have themselves to blame if affiliates then turn to competitors which do convert. Ease of navigation, the right customer driven offers and a simple checkout process is surely just three of the most important aspects of customer presentation that every retailer should adhere.

What particularly occasionally causes me angst is the complete lack of understanding as to what an affiliate is. Now generally it is merely a simple case of educating the retailer, but some retailers just do not get it. Thankfully they are a minority. Those that do understand are a dream to work with. Those that just consider an affiliate to be a poorly paid milk cow generally perform badly in affiliate marketing. Those that are prepared to pull out the stops and work with rather than against their affiliates; the companies who embrace affiliates as a valued additional marketing channel, they are the ones who succeed.

Affiliate Marketing is a multi Billion Pound industry and when integrated to work with other marketing streams, can be a rewarding sector for any retailer. New marketing channels such as Mobile Marketing are designed to enhance that customer experience and affiliates will play a very important role in their expansion and usage.

This Christmas my wish to Santa is that every retailer demonstrates their commitment to affiliates and what affiliates can bring to their business and not just consider them as an irritating aspect of global marketing.

Google describe Google Instant as “an innovative new….interface that creates an interactive search experience for users by predicting their query as they type and instantly showing updated results”. They estimate it will shave 2-5 seconds off each search. But do we really want (or need!) Google Instant? Frankly the jury’s out on whether we love or hate it, but one thing’s for sure, we can’t ignore it!

If you’re wondering just how Google Instant is going to affect how we search, well it’s impossible to predict exactly what differences it’s going to make to individual sites. At the moment, we’re not seeing a huge difference in search results, but that could change. It’s likely that it will take users 3-4 months to really get used to using it, and that means we could be seeing very different results down the line. We shouldn’t ignore the fact that many searchers look down at the keyboard as they type, so that may minimise the effect of Google Instant. But again, this is behaviour that may change over time! So it’ll be interesting to see if the predictive nature of Google Instant eventually alters the way we search for good, for instance searchers may start to accept its suggestions as the final word without searching further. If that does happen, we’ll definitely be seeing a negative impact on the longtail.

Google Instant isn’t the first predictive search model we’ve seen, similar models have been introduced in the past from Yahoo and Altavista. But of course this is Google we’re talking about! If you’re worrying about the effect of Google Instant on your web traffic, just remember ‘Instant’ searches only work through Google, whilst a significant percentage of searches are still occurring within browser specific toolbars where Google Instant isn’t yet available. Plus of course not everyone can see Google Instant – in some countries you need to be logged into your Google account to view it. Eventually though, Google intends to make Google Instant the default feature for everyone (apart from those with slow ISPs or older web browsers).

The question on everyone’s lips; is how will Google Instant affect me? Affiliates and merchants alike rely on the traffic they’ve built to their sites, so they’ve got good reason to worry about any prospective changes Google Instant may bring. You’ve probably seen some of the scare-mongering stories about SEO and the longtail becoming irrelevant, because of the shifting results of Google Instant. But frankly it’s not that simple. Google Instant has made it much easier to switch between queries since it’s easier to just type another letter rather than scroll down the page (so eventually it’s likely we’ll all use this feature, no matter how much we moan about it now!). Google Instant will likely whittle down available keywords into a much smaller core group, which may make the longtail less relevant. For advertisers who’ve been targeting the longtail successfully, this could have implications. Google Instant will also make localization even more important – if you don’t enter a geo specific query, Google Instant will automatically serve you results based on your location (and that’s including ads). So to sum up, SEO will quite likely become more not less important – as long as you get it right of course!

Google Instant is using previous search volume to predict the most likely search term(s) that we’re looking for. But the likelihood is that by using search volume as their predictive indicator, Google will probably show the biggest budget advertising first. The way that Google Instant displays search results will likely favour well known brands and authoritative sites, so it’s clear Google is carrying on its trend towards favoring brands over small businesses. We’ve also noticed an element of censorship going on – adult terms are returning no suggestions whatsoever (adult sector merchants and affiliates take note!). As Google Instant speeds up our searches it’s even less likely that searchers will want to click through to the 2nd page of results and the top 3 spots are going to become even more important. This extends to PPC as well – potentially pushing up the price of CPC, but we’re thinking that as Google makes its money from Adwords, it’s quite likely they’ve already thought of that!

We’re also likely to see an increase in impressions. Google Instant counts impressions when you begin typing a search query and click anywhere on the page (such as search results, sponsored listings, spelling corrections or related search). Plus according to Google, an impression will be counted if a user stops typing for 3 seconds during a search. In terms of PPC, Google Instant may well skew impression results. As you type your keyword and Google Instant makes suggestions, we could see PPC ads unrelated to the search query appear. A likely result will be a hike in impressions which could result in a lower CTR. As a poor CTR can be detrimental to the Google Adwords quality score, this could force advertisers to increase their maximum CPC in order to get those (now even more important!) higher listings.

Finally, whenever Google changes anything there’s always a mad panic with lots of frenzied speculation. But let’s not forget that Google’s made changes in the past that we’ve coped with. So the best thing we can do is to just wait and see what effect Google Instant actually has – and then deal with it. But don’t forget, if you really don’t like Google Instant, you can always switch it off!

It is due to a number of factors, not least the devastating floods in Pakistan – one of the world’s biggest cotton producers. Fears over this year’s crop in China, threatened by heavy rain, have also pushed prices up. It comes at bad time for retailers already battling problems such as rising transport costs, supplier wage inflation and the VAT hike to 20 per cent due in January. Retail experts Verdict Research have forecast clothing inflation will hit 4.4 per cent in the UK this year, the highest level for 24 years.

All this woe has an impact on Affiliate Marketing with some smaller retailers cutting back on their Affiliate Programs and others looking closely at commission structures. The unpopular use of first customer order metric is also being looked at, despite the unpopularity by mainstream affiliates in the implementation by merchants, looking to cut expenditure. Fortunately merchants have not undertaken this generally owing to the counter-productive nature of payment on first order only.

However when companies like Next, BhS, Marks & Spencer all have to either take a cut in profit or put clothing prices up then this market space needs watching closely. Debenhams confirmed clothing prices were set to rise, however they did indicate that they hoped to shelter customers from most of the rises and predicted that budget retailers would be hard hit.

Chief Executive Rob Templeman said: “Cotton prices are only part of the equation. Prices are up 4% and volume is down 2%. What is driving inflation is Forex (currency markets).” He said his firm hedged against cotton price rises over a long period to avoid possible cost problems.

So will this mean a cut in commission for affiliates or the introduction of first order metrics? Not necessarily.

The use of first order metric is highly unpopular with affiliates and many have publicly stated they would not act as publishers for retailers adopting this, on the grounds that a high proportion of referred sales would be rejected for commissions. This is already an issue in the fast food sector and is currently subject to review by companies like Domino Pizza.

So this generally leaves a commission squeeze to reduce costs. This is already taking place in the clothing and fashion sector with many companies reducing publisher/affiliate commissions during sales periods. The emphasis that these commission cuts are by nature a temporary affair, has in no way reduced the levels of promotion overall.

Last year the clothing and fashion sectors, along with many other retailers, opted to absorb in part or in whole, the VAT increase from 15% to 17.5%. However with a rise to 20% and the potential for further rises, absorbtion of VAT by retailers will not be possible, especially when in the clothing and fashion sectors, we also see an increase in the Cotton price.

Clothing and Fashion retailers are constantly competitor monitoring and this particularly affects smaller retailers with seasonal ranges. So we predict we will continue to see discounting by Brand but with the hope that the “full price” season that is just commencing will enable Clothing and Fashion retailers to recover. It all depends if the major retailers don’t “blink” and cause a ripple effect in the industry.

Either way there shall be some hard decisions taken by retailers with regard to publisher/affiliate commission structures and it is probable that these commissions shall continue to be squeezed.

Already this is causing a huge impact on cashflow for affiliates with a number suggesting that adspend in the vital 4th quarter may be affected. Other in the cashback sector are having to pass on the unpleasant news to their customers that the expected cashback they were to receive shall no longer be available or that they are dipping into emergency funds to pay consumers.

The discussions at Affiliates4U concerning this debacle are becoming heated and quite rightly so. Affiliates seem to be at the bottom of the food chain when it comes to payment protection. In addition, hundreds of retailers are now having to endure additional expenditure switching network programs or even taking affiliate marketing in-house.

The impact for retailers cannot be understated. Many successful affiliates and affiliate companies have potentially lost significant sums of money. Retailers looking for strong promotion by affiliates over the coming months could find that some affiliates they would usually rely on to generate vast numbers of sales for them, are restricted in what they can allocate in terms of resources for successful marketing campaigns.

What I find absolutely incredible is that networks generally have no mechanism in place to ensure protection of affiliate earnings. Some networks like Paid On Results do require that merchants Pre Pay on their accounts. Others like Affiliate Window operate a traffic light system which advises affiliates on which retailers to safely promote.

However no network to date separates the revenue allocated for affiliate commissions into escrow, separating these monies from their general expenditure. This means that there is no underlying guarantee of payment protection directly for affiliates. Reputable networks like Affiliate Window spend huge sums of money on credit insurance each year. This ensures that the network gets paid for all merchants in the event of merchant defaults and this goes some significant way to ensuring affiliates get paid. Yet what precise level of protection does ANY network provide to protect affiliates from network over exposure beyond the laudable activities of voluntarily provided information on merchant credit protection and an alert system on merchants behind with payments? There is no mechanism in place which states that affiliate earnings are ringfenced and will be paid even if the network folds.

A step-by-step guide on how to break into affiliate marketing.

The following is an excerpt from the fast track guide on how to begin as an affiliate. The guide has been written aimed at people who know almost nothing about the industry or how to get started.  This guide walks newbie affiliates through the very basics just to get them started in generating revenue. The guide is filled with resources and tools and information using blogging methods by way of example for those who may not know how to get a website together. I have opted to charge a nominal fee of $8.73 for the complete guide which can be downloaded here
http://www.lulu.com/content/e-book/affiliate-marketing—how-to-begin-as-an-affiliate—a-step-by-step-guide-on-how-to-break-into-affiliate-marketing/8218631

I never understood and still don’t understand why so many people never looked at this industry to supplement their income. Affiliate marketing is ideal for people on low incomes, the disabled, parents who want to stay at home and look after their children or simply to supplement their income. Affiliate marketing facilitates the opportunity to work from home and enjoy what you will be doing.

I know that it will always be easy when you know how, but even I had to start somewhere and I am still learning after all these years. This article is intended for anyone coming into the industry that has little or no understanding about affiliate marketing. This is specifically aimed at anyone wanting to become an affiliate/publisher.

What is affiliate marketing? Some call this performance based marketing, some call it referral marketing, some call it revenue sharing, some call this loyalty marketing and I have heard it being called partner programs, associate programs, all these terms are correct. Affiliate marketing is predominantly on-line advertising whereby the affiliate is paid a small commission for referring their own website traffic to an online store. Affiliates get rewarded based on an action performed by his/her referred visitor, the affiliate remuneration (referred visitor action) can be based on cost per click, pay per sale, CPA, CPA (2) can also mean pay per lead (example, insurance quotes).

“A system of advertising in which site A agrees to feature buttons from site B, and site A gets a commission on any sales, clicks or leads generated for site B. Affiliate Marketing is on line advertising where the advertiser (Merchant) pays for advertising purely on results. All affiliate campaigns are based on a revenue share or hybrid commission/leads deal.”

          Source: Jessica Luthi, E-Consultancy.com (Affiliate Marketing–A Buyers Guide April 2004)

Do people really make money from Affiliate Marketing?

“High-level findings from USA Affiliate Census… At the hobbyist end of the spectrum, nearly a quarter of affiliates (23%) generate less than $50 per month in sales for their merchants, and a further 7% generate between $50 and $100. At the other end of the scale, 17% of affiliates generate more than $50,000 a month in revenue for their merchants”

          Source: http://econsultancy.com/reports/us-affiliate-census

Reported in the United Kingdom Affiliate Census, “the UK affiliate market was worth £3.82B in 2008, a 22% increase from £3.13B in 2007. An estimated £227M was paid last year in commissions and fees to affiliates and networks.”

          Source: http://econsultancy.com/reports/uk-affiliate-census

Please keep these figures in perspective; whilst there is big money to be made in this industry, the figures should not mislead you into thinking that you can give up your day job in a week. The report is to show you how much money some affiliates earn. I can tell you the majority of affiliates work very hard to achieve a sustainable income.

One problem with this industry that I have found is that it can be vague when it comes to information on how to do affiliate marketing from an affiliate’s perspective. The problem of ambiguity seems to stem from the fact it is an individually defined kind of sector, meaning it’s based upon the affiliate being seen and operating as an individual. Each affiliate will have their own level of understanding about the technology, marketing, how the internet works to name but a few. However, there are some basic rules to follow. Tip: walk before you can run, start off small, and get it all working before reaching for the moon.

When do you start making money?

Realistically, by month three you could be looking at double figures and depending on the subject/topic you chose, you may even reach three figures, (this is also subject to many variables) I can tell you if you have reached double figures by month three, you have something viable to build upon, don’t give up. What this will show you is that you are on your way and what you are doing is working, just some further fine-tuning may be required. There is no magic wand, there is no such thing as a sure thing, and it all takes time and effort. If I was coming into the industry as a newbie today, here is how I would do it and I wouldn’t need to have technical skills or even a website. This is how to become an affiliate using simple blogging

 To buy the guide
http://www.lulu.com/content/e-book/affiliate-marketing—how-to-begin-as-an-affiliate—a-step-by-step-guide-on-how-to-break-into-affiliate-marketing/8218631

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Don’t forget, if you need any assistance or there’s anything we can do to help you promote LoveHoney, just email: Chrissie at AffiliateProgramAdvice.com

Online Bingo Portal of the Year – Which Bingo.
Best Innovation – Cheeky Bingo
Best Newcomer” and “Innovation – Cheeky Bingo
Best Marketing Campaign – Foxy Bingo by Cashcade
Best Online Bingo Operator – Foxy Bingo
Best Affiliate Program – Income Access
Best Software – Virtue Fusion

They can, and should, highlight these successes widely. However one thing the 300+ attendees of the summit demonstrated it was that no one in the industry can afford to take it easy.

The discussions and conferences held show expertise is constantly growing as are the number of people with it so competition is showing no signs of abating in an already saturated market, depsite the economic climate. APA sat on one of the Afiliate Marketing panels this year and this was demonstrated clearly by the large turnout and topics covered in the discussion.

This can only be good for the future of online bingo and all of us connected to it as it pushes us to be that bit better each time.

Emma Haslam
Emma at AffiliateProgramAdvice.com

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.

New World Order full

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