Affiliate Marketers: what look to join merchant program

While marketing affiliates remain focused on increasing revenues and joining programs that offer the highest commissions, many are still marketing half-heatedly and are overlooking or unaware of new technologies and online ad strategies that could bring them more success, according to a report based on a survey by Affiliate Benchmarks.

The survey, which set out to assess the state of the Affiliate Industry and of its key contributors, revealed a significant disparity between available tactics and usage among the affiliate community. It also uncovered opportunities, especially in the performance-based advertising and measurement areas, that it said can bring about both immediate and long-term improvement.

Affiliate Marketing Trends 2009
For example, top three factors in selecting an affiliate are commission amount (69%), the product being sold (53.8%), and the brand (33%). These results are consistent with last year’s study findings.

Despite these priorities, many affiliates are missing the chance to accurately measure their website performance, collect data on their audiences and use more ad tactics such as pay-per-click (PPC) search, video widgets and flash ads to promote their sites. Nearly four in 10 (38.5%) do not read any blogs for up-to-date information and helpful tips, nearly half (46.9%) do not collect data on their websites’ audiences, and 14.4% of those did not even know where this information comes from.

Additional study findings:
  • Nearly half (49%) of survey respondents joined the industry in the past two years.
  • More than half consider affiliate advertising to be a part-time job or hobby to make supplemental income.
  • Nearly half report that less than 5% or none of their links generated a sale in the month before completing the survey.
  • Although there is a clear correlation between the reported number of keywords purchased and the reported monthly revenue of the affiliate, only 36% of survey respondents utilize PPC search.
  • The use of flash ads and video widgets performed excellent or well for those who claimed to employ these tactics, however, the large majority of survey respondents did not leverage these formats.
About the survey and report: The survey received 3,500 responses. The report contains information for the entire online marking ecosystem, including advertisers, publishers, affiliate networks, managers and consultants.A report based on a survey by Affiliate Benchmarks.

Digital Marketing for Digital age

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Digital Marketing AgencyIn the digital age, every business bottom line is targeting, how to attract more customer and convert them into successful leads. The biggest challenge facing by digital marketers is how to utilize available marketing resources to acquire more customer base and to establish a cost effective communication process. Digital Marketing tools and technique provide you cutting edge marketing media to shout in front of your target audiences. That is exactly where digital marketing solutions come into play

The marketing sphere itself has witnessed a lot of changes and many new practices are now being devotedly followed. Capitalizing on these trends, marketers especially the ones engaged in the online businesses, make use of a number of channels. Such an extensive campaign includes the use of channels like Email, SMS, Banner ads, outdoor digital displays and more.

Digital Marketing bears an edge over other marketing practices following their global reach and speedy results that can be achieved. Such practices are audience oriented and the impact of the messages is more than would be possible with traditional media. To illustrate with an example, an email displaying a service or a product that a receiver is likely to be interested in, would be delivered in no time and received in the personal settings of the receiver. Such a message or advertisement is likely to bear more impact than say an advertisement on a paper.

The most pertinent bifurcation in Digital Marketing divides the whole exercise into two specific models - the Push model and the Pull model. In Push model marketers have to make a deliberate attempt to put their messages across the targeted audience, for example emails. In Pull model, the audience themselves select the appropriate messages to which they are exposed. Banner advertisement is one popular example.

To put it simply one can think of Digital Marketing as the practice wherein marketing professionals make use of multiple channels, which are driven by digital technologies. Digital Marketing Solutions is the contemporary answer to the fragmented and diverse market.

Digital Marketing Trends in 2010

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Digital Marketing TrendsAs 2010 fast approaches, digital marketers are gearing up for yet another year of changes that will incorporate both the transformational and the incremental. From the economy’s influence on the burgeoning “do-it-yourself” culture to an increasing reliance on collective wisdom, information-based art, and remote computing, digital experts at Last Exit have put together the following list of top digital marketing trends they believe will play out in the year ahead.

1. Facebook Replaces Personal Email: As Facebook becomes increasingly used as a verb (e.g.”I Facebooked you today”) in ways that Hotmail and gmail never were, it will be interesting to see the extent to which it will displace personal email as a communication tool. It’s already completely permission based, there is no spam (yet), and no address book required - your friends are already there.

2. The Cloud Helps Open-Source Software Make Proper Money: Open-source software projects that were typically the purview of programmers and technophiles are now available to the masses. In one example, Beanstalk, a fully hosted, version-controlled code repository that uses the Subversion open-source project has created a subscription based service that - for a small fee - removes the hassle of setting up Subversions and maintaining servers. Services like this can really only be financially viable with cloud computing infrastructure - so companies such as Beanstalk don’t have the huge upfront capital outlay for servers. With the right skills any open-source project can be commercialized this way.

3. Mobile Commerce: The Promise That Has Never Delivered, Yet: Though mobile phones have, for a while now, delivered real benefits to global societies by facilitating the transfer of money, only recently has mobile device use extended to payment for goods and services. The game changer has - and will continue to be - the iPhone/iTunes platform. In-app purchases on the iPhone can tempt users to buy small items, upgrades, updates, etc, while iTunes holds their precious credit card information. All, of course, is done in seamless fashion, enough to promote impulse purchases. It would seem like an easy task for this to be extended to other platforms with PayPal or Google Checkout, but so far it has not been done.

4. Fewer Registrations: One Sign-in Fits All: As consumers grow increasingly frustrated and resentful about registering yet again on another website, juggling different IDs and remembering a dizzying array of passwords, information-managing services such as Facebook Connect and OpenID will becoming even more useful and will continue to be adopted at great speed through 2010.

5. Disruption vs. Continuity : Alternatives to the “Big Idea”: As the significance of social networks continues to grow, businesses are investing more in community building as a marketing driver. According to the recent Tribalization of Business study released by Deloitte, 94% of businesses will continue or increase their investment in online communities and social media and, for the majority of these companies, their marketing function will drive this investment. At the same time, as evidenced by Google’s recent release of “free floating” social tools, such as Google Waves and Sidewiki, there is an increasing shift toward online identity and social activity being an integrated part of the network as a whole, rather than concentrated within discrete platforms such as Facebook.

With the increasing emphasis on marketing and advertising through social networks and the increasing pervasiveness of social tools, marketing objectives come into conflict with advertising techniques. While advertising has often sought to distinguish itself and stop the consumer in their tracks with a disruptive “big idea,” the emphasis is now shifting toward persuasion through fitting organically into the consumer’s social sphere. It will always be the objective of marketing to provide creativity and novelty, but the way in will increasingly be one of persistence and continuity.

6. Self-Sufficiency: The Continuing Evolution of Web-Driven, Open-Source DIY Culture: Much has been said about the power and potential of collective intelligence, and many of the breakthrough solutions of tomorrow appear to lie in more effectively pooling the resources and intelligence of our increasingly networked world. On the other side of the equation, the power of pooled intelligence and networked resources have empowered individuals to take on more and more complex undertakings themselves.

From drawing on the collective intelligence of blogs and university open courseware to educate themselves, to services like ponoko, spoonflower and cafe press that facilitate small-scale production, to offline resource pooling like pop- up retail and collective office spaces, individuals are discovering that it has never been easier to try doing it themselves.

7. Info-Art: Where we once had pop-psychologists and pop-philosophers, we now appear to have pop-statisticians and pop-economists. The growing wealth of data and the access to rich and diverse data sources that are significant by-products of information networks have made the art of data analysis a defining skill of our time.

At the same time, the skill of elegantly visualizing that data has become a defining art of our time. The art of the infographic is becoming increasingly pervasive as people look more and more to the growing amount of data at our disposal for insight, and more refined as the interactions of that data becomes more complex. Expect to see greater innovation spurred by more elegant ways of capturing and visualizing information by a growing number of info-artists.

8. Crowd Sourcing: Across many industries and organizations, crowd sourcing will become a growing tool as part of various outsourcing strategies. Organizations will mobilize the passionate special-interest groups to not only carry a message but also to lead and take part in activities on their behalf. From political canvassing to software development, from people journalism to environmental activism, expect to see huge growth in crowdsourcing models provoked and led, in large part, by digital social media strategies.

9. More Flash, Not Less: Outside of the obvious brand sites, micro-sites and media sites (video, games, etc.) where it appears absolutely necessary, Flash has often been looked down upon if not completely discounted by both techies and search engine optimizers. It seemed to face an uncertain future as a viable tool for serious websites and applications such as eCommerce tools and corporate websites. However, Adobe’s rich media tool has enjoyed the grit and determination of its advocates and external development community. Now, several tricks, authoring tools and server side scripting workarounds have meant that Flash-built websites no longer serve up a single, impenetrable page. They offer deep, searchable, indexable sites that will allow acute, detailed traffic and behavioral analytics and search engine optimization.

As websites continue to increase in their importance as a company’s storefront, the demand for rich, brand-extending experiences will also increase. Further proliferation of fast broadband will reduce download issues while the adoption of Flash on mobile devices will dramatically increase and fuel reach and the desire/need for highly usable, brand transporting, conversion oriented experiences

Online Advertising Spend: Projection and Forecast

Though 2009 has been dismal for advertising overall, local online advertising is expected to hit $14.2 billion by year’s end, a 12% increase over 2008, according to a report and five-year forecast from Borrell Associates.

Despite this growth, however, Borrell predicts that things will get tougher in 2010, when local online sales will hit only $14.9 billion, or 5% higher than 2009 figures. This slowdown will likely occur because the market is approaching saturation and the “wave many locally focused media companies have been riding for the past several years has peaked,” the report said.

Local online advertising will only reach $16.4 billion by 2014.

Online Advertising forecast
In addition to this overall slowdown as the market starts to shake out next year, Borrell Associates also predicts increasing pressure on existing players as host of new competitors rush into the market to “become purveyors of hyperlocal everything.” For example, PBS, ESPN, AOL, Huffington Post, The Knot, Microsoft, Yahoo and numerous others have announced plans to immerse themselves in local ad sales, the report said.

“The game in 2010 will center more around stealing market share than growing the market. Local advertisers have had plenty of time to assess the effectiveness of banner ads, search, streaming video and e-mail advertising peddled to them over the past decade,” the report said. “They will abandon programs that just do not work, and embrace those that produce measurable results.”

Online media buys currently hold a 13.8% share of all local advertising. Borrell Associates predicts it will peak at a 16% share by 2013.

Mobile, Online Promotions on Horizon

In terms of the next waves of growth for the local online industry, the report said that online promotions and mobile advertising are expected to be the next big things.

Though mobile is not likely to play a significant role on the media landscape in 2010 (the firm estimates that local buys will comprise only 20% of all mobile advertising, or $500 million), Borrell said it is a category worth watching because couponing, mobile directory advertising and sponsored text messages will become increasingly viable applications for local marketers as the audience grows.

In terms of online promotions, smaller locally focused companies will continue to follow a few years behind the spending patterns of national advertisers by expanding their use of online promotions, which give them more direct access to their customers and prospects - without having to rely as heavily on media companies to help reach them.

Digital Branding: How business utilize new media

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aayus Digital BrandingIn 2008, US measured media was $280 billion, of which $254 billion was offline and $26 billion online. 73% of offline media was brand marketing whereas online, direct response marketing was 76% of the mix. Part of the skew is attributable to the measurability of direct response, particularly online, and the difficulty of measuring brand marketing.

Connecting online ads to offline purchases is difficult at best. Comscore published a white paper in 2008 on the dramatic underestimation of display advertising ROI, primarily the result of the fact that any assessment of less tangible brand marketing is qualitative and after the fact.

Online has been held to higher standards than traditional, because everything is measured, and probably because we still need to prove the value of online for branding. In the past few years we’ve made great strides to prove the efficacy of digital advertising on the consumer funnel. According to the panelists, we’ve reached a threshold and there are now good technologies that can help us measure. However, the truth is it’s still difficult to connect the dots between online ads and offline purchases.

Online brand campaigns and offline-style extrapolated measurements lead to suspicion and mistrust, as well as fears of inaccurate sampling which make brand marketing an easy budget-cutting target. Most marketers think about online brand campaigns as a murky immeasurable necessity. Can we use new technology to close the gap and measure online brand advertising ROI? Can we directly attribute sales lift or brand lift to the online campaign?

The problem is that the online content environment is very fragmented. Efficient tools have been developed to run direct response campaigns online but there are no (or few) efficient tools to run branding campaigns online. There are platforms out there but they are complicated and not well developed. The challenge is to “operationalize” the efficiency of things like multivariate testing, that is to make the analysis routine and embedded in the process.

The numbers are somewhat misleading since the direct response portion is driven by search and not necessarily display advertising. There are still a lot of marketers who are not convinced of the efficacy of brand advertising online, and some technologies are being developed. But the bottom line is, it’s still very qualitative.

Consumers don’t understand the difference between “direct response” and “brand”. The data suggests that on average the offline sales lift vs. online spending is 140%. The good news is that with digital, we are starting to have the ability to read the effects in real time, even with the tools we have now. This means you can see your campaign results in days or weeks instead of months, and adjust accordingly.