Practical marketing information for small to midsize marketers from Nader Ashway in NYC

In marketing, there’s almost nothing new under the sun. Even new developments in mobile and RTB are just platform-leveraging automations and algorithmically-enhanced functions of previous procedures. But what would happen if we took two sort-of-new concepts and smashed them together?

Here’s what I’m talking about: we all have a pretty good idea of what affiliate marketing is. In this arrangement, a marketer pays an affiliate on a performance basis for referral clicks from prospects. Clicks are more likely to occur when the prospect has trust in the content provider and understands that there’s an implied endorsement of the marketer’s product or service. The financial model is typically a revenue share.

 

affiliate_model

 

We also have a clear understanding of what retargeting is. In this arrangement, a cookie is dropped on a potential customer’s computer after they’ve visited a particular site. For a period of time, that prospect is served display ads for that site/product/service, creating context and recall. The financial model is typically on a CPM basis.

 

retargeting_model

Both of these are used in many ways, with varying degrees of frequency, and usually as a component in an integrated digital marketing plan. But what if we took these two models and smashed them together?

I’d call it affiliate retargeting.

In this arrangement, a prospect visits a site and consumes or browses content. A cookie is dropped on that prospect’s computer, and then contextual and relevant ads would follow that prospect around the web for a period of time. However, the ads would not be simply from the site the prospect visited, but rather from affiliated, relevant marketers that have made an arrangement with the content provider around certain keywords and targeting variables. (I smell an algorithm cooking!)

 

affiliate_retargeting_model

For vertical marketers, in either consumer or business marketing, this could create much deeper context and help prospects connect the dots. Here’s a simple example:

Let’s say you have a prominent blog in the popular music category. Let’s call the blog “MusicToday.com.” The site gets serious traffic, and discusses all the latest news, releases, tour information and more for various artists, categorized by genre. A prospect visits the site, reads an article about a country artist like Carrie Underwood, then exits the site. For the next several weeks, any number of marketers may be interested in serving ads to that prospect, especially if we could ascertain some basic targeting parameters:

  • A television network may be about to broadcast a special featuring the artist and is looking to increase tune-in. They may be one of the retargeters affiliated with MusicToday.com.
  • The record company may be trying to push a Carrie Underwood greatest hits album, or tour dates. They may be one of the retargeters affiliated with MusicToday.com.
  • A fashion brand may have a co-marketing deal with the artist, and wants to drive traffic to stores to check out her new line of signature jeans. They may be one of the retargeters affiliated with MusicToday.com.

In this arrangement, the affiliate would purchase the display ads (through an automated partner of course,) and pay a CPM for the impressions. The retargeters would pay the affiliate on the same model, but likely with a premium added for a more “qualified” or “targeted” impression. They may also set up an arrangement where conversions pay out on a revenue share model.

With all this talk about “brands as publishers,” this would really create a model where any blogger, content provider, gossip site, even corporate marketer could become a publisher in the truest sense of the word.

Is affiliate retargeting being done currently in b-to-b or b-to-c? If it is, I’d love to know how partners are arranging these deals, how they’re measuring/tracking performance and what kind of automation is being leveraged.

If it’s not being done, what the heck are we waiting for?

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