Affiliate Marketing: Data Data Everywhere and Not a Drop to Drink

Affiliate Marketing: Data Data Everywhere and Not a Drop to Drink

See google doc for updated post Big Data is all the rage these days.  A quick google search of ”

 

Big Data is all the rage these days.  A quick google search of “affiliate marketing & big data 2017” brings up over 5M results.

From  X to X – and from our personal live to business to politics we are swirling in a sea of data.  As Michael Levanduski explained on PaceDM , a recent report from the Economist stated that data is now the most precious valuable resource in the world.    As with all things – particularly data – more is not necessarily better.  The true value of this precious resource resides in your ability to extract insights and act on them to grow your business.

How Big Data is Changing Affiliate Marketing, there are four ways that smart merchants can leverage data for affiliate marketing [Source:  WhatRunsWhere]

  1. Insights into What Works and What Doesn’t
  2. Discovery of Previously Ignored Markets
  3. Accurate Evaluation of the Value of a Partnership
  4. More Attractive Affiliate Program= Easier Affiliate Recruitment

Top Rated Digital Marketing Trends of 2017 according to SmartInsights:

digital marketing trends 2017

 

In their report, they discuss that marketing automation has been in the Top 3 for the last 5 years.

Analytics – business intelligence – understand your analytics before you get mystified.

Makes you smarter about your data so you can have smarter conversations with your affiliates.

Attribution:

– in order to do it properly –

Identify channel [campaign] and vertical [product] that campaigns fall under – run report on those markers – start to see trends – over multiple campaigns. If you have higher chargeback rate for one vs the other – is price point too high? is the offer a bit unrealistic?

AFI and SID – also want to know what the affiliate is doing.  Is affiliate doing email? Link, Display

Campaign Analytics: Aggregating affiliates – multiple campaigns

Affiliate Quality – Talk to your affiliates about the quality – what’s going on? Separate into links so I can see it and

Early indicators vs late indicators: in-trial cancellation rate higher than 15.6% – we know that source of traffic is a problem. On day zero .8% – an indicator that

  • in-trial cancellation rate higher than 15.6% – we know that source of traffic is a problem. On day zero .8% – an indicator that have a problem. 1-4 days anything higher than .3% – investigate further.
  • Fraud percent – from third party plug-ins

Late indicators:

  • Chargeback rate
  • Rebill rate:Rebill rate  – what percentage of your customers are you rebilling at high rate [more than 68.8% across $3B of transactions]
  • Refund rate
  • CLV

 

Text book says large data sets – data analyzed to figure out patterns]

Big Data is not just transactional not just campaign its bringing in data from multiple sources [like google api data]

BD allows you to look

Dont be mystified by bog data – shiny object.  Reality is most marketers dont understand the basic concepts of attribution, quality enough to even overlay the intelligence learned from big data.

 

How does this impact you?