Affiliates can be a great source of incremental traffic and revenue. The challenge for a marketer is how to best regulate and manage your affiliates. They are an important part of your marketing puzzle, and you want to provide them the right resources as well as make sure that you reap the benefits. Actively managing your affiliates will help you protect your brand and ensure that you maximize every revenue opportunity.
Here are a few helpful tips for how to manage affiliates:
Managing the display URL
All of the Search Engines have what is called a double serving policy. The principle is that if there are two advertisers buying a keyword and driving to the same Display URL, the engine will only allow one ad to show. Since the engines use their ranking criteria to determine which ad to display, you may not have control to appear over your affiliate.
Recommendation
Affiliates should be required to have their own domain name and URL. Their ads should be directed to their site before redirecting to your website. This way they can track the lead, but ultimately send customers to your site.
Selecting Keywords
Depending on your product, there are only a limited amount of keywords that will drive clicks and conversions. This means that you and your affiliates may have similar (if not identical) keyword lists.
Recommendation
Marketers should QA affiliate’s keyword lists in order to review the crossover and allowable CPC. QA’ing also allows you to help manage what competitors’ keywords or negative keywords you may or may not want affiliates to use.
Leveraging the Brand Name
Since brand names will drive a significant portion of the conversions, it is important that they are protected. This allows you to control the messaging as well as ensure that the CPC on your brand is maintained at an appropriate level.
Recommendation
You should allow an affiliate to use your Trademark only if you are prepared to monitor them. If this is the case, set CPC limits for your brand terms to the minimum bid allowed by a Search Engine. You may also want to disallow an affiliate from using your Trademark within their copy. In doing this, your CTR should be higher, which would help you to gain a higher position.
Using Match Types
Google has the most match type options between broad match and expanded broad match. This means that restricting usage of match types for affiliates is imperative. For example, in the expanded broad match, someone who bids on the term “shoe” could also come up as a match for “tennis shoe” or even “sneakers.”
Recommendations
Work with affiliates to use exact and phrase match in Google and MSN. For Yahoo!, it would be advisable to allow them to use standard match. This will help their keyword list to be more focused and efficient.
Understanding CPC Rules
Despite a heavy relevancy model, there is still an element of traditional bidding. If there are multiple advertisers bidding on the same terms, there needs to be a bidding strategy to manage CPC costs. For example, if you are Disney, you have retailers selling your movies, as well as yourself and your affiliates.
Recommendations
Give affiliates a CPC limit when buying terms on Google, Yahoo! Search Marketing, MSN, Ask.com, Business.com and IndustryBrains.com. Managing it this way will also help you to not compete with one another.
Ad Positioning
Since affiliates are supposed to be driving incremental revenue or leads, a position restriction will allow your advertising not to be hindered.
Recommendations
Require that affiliates have a position no higher than position 3.
Affiliates are useful to companies as they help lift your overall brand awareness while driving additional revenue. However, they are not without work. Upfront work and continued monitoring is the key to building and maintaining a successful affiliate program.
Article by Emma Cockburn