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Advertiser's Crash Course in Affiliate Marketing Geno Prussakov CEO, AM Navigator (affiliate management agency) www.amnavigator.com Founder, Affiliate Management Days (conference) www.amdays.com 888-588-8866 | Washington, DC [email protected] | @ePrussakov . The Basics Affiliate Marketing is… ...performance-based marketing, whereby affiliates promote your product/service and get remunerated for every customer/lead referred. Size of the Industry (US) •  Advertiser/merchant count: 10,000+ •  Publisher/affiliate count: 1,000,000+ •  Brings 20%-40% of online business •  Spend: ≈$3,000,000,000 Size of the Industry (UK) •  UK advertiser/merchant count: ~4,000 •  UK publisher/affiliate count: ~12,000 •  Impact scale: 4 billion clicks which converted into ~100 million transactions (sales/leads) •  2014 expected spend: £1bn (up from £800 million) •  Scale: 8-10% of UK online marketing spend; ~10% of the UK Internet economy (up from 6% in 2012); 0.8% of UK GDP (up from 0.6%) •  Growth: in 2013 affiliate marketing generated £14bn in sales, or 15% YoY growth Source: PriceWaterhouseCoopers study commissioned by the Internet Advertising Bureau UK, January 2014 Who are “Affiliates”? v  “The term ‘affiliate’ means any company that controls, is controlled by, or is under common control with another company” /Compilation of State and Federal Privacy Laws, 2002, p. 76/ v  “The term ‘affiliate’ can be used as a generic word to indicate either a subsidiary or division” /Business information: how to find it, how to use it, 1987, p. 38) v  Terms “affiliate and subsidiary” are “used synonymously” /International dimensions of management, 1989, p. 2/ Who are “Affiliates”? Affiliates: Types: Independent marketers i.  Content (Answers.com) who may choose to ii.  Coupons ( ) RetailMeNot promote a business, iii.  Data feeds ( ) Shopzilla and be paid on iv.  Display ( ) Forbes.com performance-based v.  Email basis. vi.  Loyalty ( ) TopCashBack vii.  Mobile viii.  SEM (SEO & PPC) ix.  Social Media x.  Video How Much They Make Source: Darren Rowse, The Ultimate Guide to Making Money with the Amazon Affiliate Program, ProBlogger.net, 4/24/2013 Food for Thought: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate…” Source: Tom Goodwin, The Battle Is For the Customer Interface, TechCrunch.com, 4/3/2015 Affiliates have been doing this since 1994! Common Misconception: