Shawn Collins reports in on the key trends identified at the Affiliate Summit earlier this month.
What do the San Antonio Spurs, U2 and the Affiliate Summit conference have in common? Stumped? In the month of June 2005, scalpers sold tickets to all three on eBay. That’s right, Affiliate Summit 2005 passes went for as much as 50 percent over the face value of $1,495.
It’s certainly a healthy sign for affiliate marketers when the leading conference in the space more than doubles from the previous year, and 200-plus people were on a waitlist to attend.
Some people are saying that affiliate marketing is experiencing a Renaissance, but that suggests that there was a time when affiliate programs were not working. From where I sit, the affiliate landscape has been in a crescendo for 10 years.
As the industry is still something of an adolescent, it frequently evolves and reinvents itself. Based on the happenings at the industry conference this year, I’ve identified some trends that seem to indicate where things are headed.
Legal compliance is the new black
Among the most popular topics being discussed over June 13 and 14 in Las Vegas were legal issues. Over the past year, a debate has been raging over whether affiliates should be able to bid on trademarks with their affiliate links and the associated legalities. This topic was dissected before a standing-room-only crowd.
Just as affiliate marketers are rediscovering email, CAN-SPAM and some recent changes were discussed by a diverse panel of affiliates, merchants and Steven Richter, partner in the law firm of Goodman & Richter, LLP. Moderator, Joshua Baer, CEO of UnsubCentral was surrounded after the session by affiliate marketers anxious to figure out a solution to the email suppression list complexities.
Gary Kibel, attorney for the law firm of Davis & Gilbert LLP, also presented on Affiliate Marketing/Interactive Advertising and the Law, where he addressed legal issues that affect affiliate marketers and all online businesses, such as contracts with business partners and online terms and conditions; privacy/security laws and best practices; adware/spyware litigation and legislation; the CAN-SPAM Act; Federal Trade Commission advertising regulations; fraudulent business practices and remedies for relief; and intellectual property issues.
CPA networks: the prius of affiliate marketing
They are the hybrid of affiliate marketing -- part merchant and part affiliate. CPA networks are garnering a lot of attention these days. In past affiliate marketing events, the affiliate networks, such as CJ, LinkShare and Performics ruled the day.
But the CPA networks are growing at a rapid pace and many people are noticing. Not only did the CPA networks make up the bulk of the exhibitors at Affiliate Summit 2005, but there have been some high profile acquisitions in recent months.
In April, Think Partnership acquired all of the stock of PrimaryAds in exchange for approximately $10 million in cash, and Experian acquired Thermo Media, LLC, also known as Affiliate Fuel. On day one of Affiliate Summit 2005, it was announced that ValueClick bought Web Clients for $141M.
While some people speculate that CPA networks are going to put a dent into the business of the affiliate networks, I think they will provide a further infusion of activity and growth for all, as they serve as affiliates themselves via the affiliate networks.
Google: loved or hated, but never ignored
As Affiliate Summit attendees lunched on teriyaki chicken brochettes, complimented by some jasmine rice and vegetable stir-fry, Stephen Messer, chairman & CEO of the LinkShare Corporation, delivered his luncheon speech.
One of his key points was that Google is no friend of affiliate marketers -- not the search side of Google, but Google AdSense. This stirred up some SE passion in the crowd, and at least two people were stabbed by brochettes in the ensuing mayhem. Oh wait, that didn’t happen, but there were lots of folks either nodding in agreement or wrinkling their brow in disdain.
On the SEO side of Google, Brad Fallon, founder of SEO Research, spoke on how to attain high search engine rankings to a standing-room-only crowd. Fallon explained “How to Make Google YOUR Affiliate” and was literally met with hosannas from the audience.
But that wasn’t all with regards to Google. There was a panel dedicated to the lofty topic of Google and Affiliate Marketing, moderated by Rob Key, president and CEO of Converseon. This panel included AdSense advocate and author of Google AdSense Secrets, Joel Comm, who was something of a celebrity among the affiliates in attendance that also dabble in the AdSense realm.
Dan Murray, internet marketing strategist for Ravenwood Marketing, was similarly mobbed by the throngs of affiliate marketers who were looking to tap into the brain of this Google AdWords maven.
Other presentations from fellows that know a thing or two about a thing or two when it comes to the convergence of Google and affiliate marketing were Kevin Lee, co-founder and executive chairman of Did-it.com, and Fredrick Marckini, CEO and founder of iProspect.
Hey Messieurs Page and Brin -- we don’t mean to talk behind your backs. Come along for the ride next time out.
It’s a blog world after all
It seems that blogs are much ado about something after all. How else to explain the electricity going through the room when Jeff Molander, CEO of Molander & Associates, kicked off a panel on blogs and RSS.
Aside from covering some territory that was of great interest to the crowd, this session served as something of a changing of the guard, as panelist Wayne Porter (whose company was recently acquired by FaceTime Communications) passed the baton of ReveNews chief, cook and bottle washer to fellow panelist, Jim Kukral.
ReveNews is the home to a large consortium of bloggers, many of which have a focus on affiliate marketing. Most of these folks were at the conference as speakers, attendees and correspondents, including, Connie Berg, Peter Figueredo, Beth Kirsch, David Lewis, Jonathan Miller, Tim Storm, Carolyn Tang and Brad Waller.
A straw poll of the crowd indicated that the majority of attendees either had a blog or RSS feed currently, or they planned to get one started shortly after the show.
The uses of blogs varied depended on the type of attendee, according to bloggers at the show. Many affiliates are using their blogs and RSS feeds to bring in targeted traffic and monetize their ad space. Merchants running affiliate programs are leveraging the technology to communicate with their affiliates.
On the side of affiliate program management, PartnerCentric uses its blog to communicate with affiliates, clients and the industry at large. Blogs are also being used by affiliate marketing technology companies, such as KowaBunga Technologies, to reach current and future clients.
Affiliate future: How soon is now?
The conference served as a launch pad for some interesting projects and ventures. The Affiliate List attempts to fulfill a need for every affiliate manager out there. For the price of $199.95, this report promises “rapid access to over 200 of the most productive retail-focused affiliates.”
Additionally, Intermark Media announced plans to Communicate, Perform and Achieve with the launch of COPEAC, which they’ve billed as “one of the boldest, most comprehensive affiliate network programs in recent history.”
On the heels of a panel on data feeds, which ran long by popular demand, DynamiFeeds was pre-launched. This service aims to simplify data feeds and make them more accessible to a larger sector of affiliates.
Speaking of data feeds, there was much informal chatter on the need for data feed standards. Judging from some meetings of the minds in between sessions, it looks like we may be close to seeing this loosely organized area of affiliate marketing finally getting some uniform organization.
Similarly, there was a groundswell of interest for a new trade organization of affiliate marketers. Many leading minds in the industry are brainstorming on this, so it looks like one of many joint ventures born at the conference for us to watch.
Anyhow, Tim Duncan is the top baller and Bono is the best singer of the past two generations, but nobody is trying to sneak in when they’re playing.
OK, maybe they are, but to the pundits that regularly declare the death of the affiliate space, sorry, but affiliate marketing is back bigger than ever.
Shawn Collins is CEO of Shawn Collins Consulting, an affiliate program management agency; and co-founder of the Affiliate Summit conferences. He authored the book Successful Affiliate Marketing for Merchants and the AffStat affiliate marketing benchmark reports.