Affiliate Marketing

During a session at last week’s Internet Retailer Conference in San Jose, Calif., a panel of speakers explained the reasons why the following five attributes are myths of affiliate marketing: * Affiliate shoppers are undesirable. “Affiliate shoppers are wealthier, tend to have children in the home and skew older than the overall Internet shopping average,” said Stuart Frankel, president of Doubleclick Performics, an online advertising agency. He based his information on a recent Performics-sponsored affiliate insight study commissioned by ComScore Networks (see www.performics.com). * You can’t control your brand. “Affiliate marketing at its root has absolutely nothing to do with affiliates,” said

Catalogers and other search advertisers are justly concerned about click fraud. Click fraud is when a person (or computer) imitates a legitimate user clicking on a pay-per-click ad, without actual interest in the ad’s target. Like Justice Potter Stewart’s definition of pornography — “I know it when I see it” — click fraud escapes precise definition. To know when a click is fraudulent, one needs to know the clicker’s internal motivation for clicking or be able to prove the clicker was an automated ’bot. Most experts agree that few individual clicks are “good” or “bad.” Instead, investigators assign quality scores that indicate the probability

Customer referrals from online affiliates converted at 3.2 percent and 3.4 percent respectively in the first and second quarters of 2006, according to a survey of 63 online merchants conducted by Internet marketing firm Performics and research firm ComScore Networks. This compares to 4.3 percent and 4.4 percent conversion for direct traffic to merchant sites and 2.3 percent each quarter for other referrals, such as paid search and e-mail campaigns. Other data revealed by the survey: • 6.6 percent of affiliate shoppers have household incomes under $25,000; • 18.9 percent have household incomes between $25,000 and $50,000; • 27.4 percent have household incomes between $50,000 and $75,000; •

For smaller catalogers like Chinaberry, the Web can certainly be the great equalizer. Here are some tactics used by Chinaberry’s namesake children’s books and toys catalog and its spiritual gifts catalog Isabella. Search engine marketing: Both catalogs use Google AdWords for prospecting. “Google is the most compatible for us in sending us our types of prospects,” he explains. “MSN is starting to do well, and everyone is waiting for the Yahoo! paid search relaunch. We’ve had Yahoo! on hold for a few months until its ‘Project Panama’ has its full rollout.” Affiliate marketing program: Using Performics’ tracking system, Chinaberry can monitor the online relationships

For many catalogers, paid search will be the single most important channel for new customer acquisition this year. Here are what I believe to be the 12 best ways to do it. 1. Focus on Google. The reality is, Google controls more than two-thirds of the search market and is growing rapidly. Yahoo! continues to lose market share each quarter. MSN is a far distant third. Ask.com is even further back. Allocate your attention proportional to your ad spend. Don’t completely ignore Yahoo! or MSN, but invest the most love and attention in your Google campaigns. You’ll be rewarded with the largest return for your time.

The Web is an essential channel for catalogers. Customers expect catalog companies to have effective, well-designed e-commerce sites. The Internet is undergoing a period of rapid innovation, often labeled “Web 2.0.” It includes tagging, visual search, wikis and Ajax. Web 2.0 technologies will transform online retail over the next two years. Catalogers will need to upgrade their sites to remain competitive. I suggest you read this month’s column with a computer close by — as I’ll tour some Online Retail 2.0 ideas that will transform e-commerce. The first stop is del.icio.us, the social tagging site. (Go to del.icio.us/catalogsuccess, and you’ll find a

Successful catalogers know that putting the right offers in front of the right customers at the right times will result in strong sales. But the online affiliates putting your offers on their sites may not. Following are eight strategies your online affiliates should be using in order to maximize their contributions to your holiday sales offered by affiliate network Performics and multichannel strategy and research firm the e-tailing group. 1. Centralize and prominently position free shipping offers. Potential shoppers flock to these, the authors write. 2. Create a sense of urgency. Your affiliates should remind shoppers of the number of days until Christmas. 3. Inspire impulse

During a session at last week’s Lenser & Associates client summit in San Rafael, Calif., Lenser partner Michelle Farabaugh offered several Web and e-mail marketing tips to the firm’s client base, which included more than 100 mid-size catalog marketers. Following are some that are worth keeping in front of you. * Increase your advertising effectiveness by improving headlines, copy and destination landing pages. Include a value proposition, promotions, deferred billing and a buy now button. * In e-mail, separately test segmentation, frequency, time of day/day of week, subject line, “From” address, format, offers, deadlines, length, landing pages and hold out panels in order to see true

Take the road less traveled. Cataloging, by its very nature implies acquiring customers via renting lists. For some, that’s prospecting in a nutshell. But most catalogers eventually go beyond lists as a means to not only grow the business, but also to combat limited list universes, or as part of an overall expansion into multichannel marketing. But which directions make sense for your business? There are so many traditional choices, such as co-op databases, inserts, space ads, solo mailings, television or radio advertising. Compound that dilemma with the influx of newer online methods, such as paid search, Amazon.com, eBay and

If attendance at affiliate marketing sessions at industry conferences is any indication, many catalogers and online merchants struggle with how to effectively manage and grow their affiliate programs. In a Q&A with Catalog Success associate editor Matthew Griffin, Kelli Beougher, vice president of distribution services at Linkshare, a New York-based affiliate network, offers some tactics that can enhance your affiliate program, setting it apart from the the competition. Catalog Success: Say a cataloger has an affiliate marketing program; the merchant manages its affiliates well and communicates on a regular basis. What are some next-level steps to improve on an existing affiliate program? Kelli Beougher: Beyond the