How to increase the ROI of affiliate marketing?
In this use case, you can learn how Odyssey Attribution helped a large sneaker retailer increase the ROI of the affiliate channel. Thanks to multi-touch attribution there was a clear insight into what actions needed to be taken to increase the ROI of the channel.
Finding a better way to measure the performance of affiliates
This large sneaker retailer was using the common last-click attribution model to determine the value of the affiliate marketing channel. The ROI of the affiliate marketing was relatively low and the business was looking for a way to increase the ROI of the channel.
As neither Google Analytics nor the affiliate network was able to identify incrementality for different affiliates the sneaker retailer was looking for a better way to measure the performance of the different affiliates.
Improvements to the affiliate channel
In order to get a clear insight into the performance of the different publisher, an analysis was made based on Odyssey’s multi-touch attribution insights. The analysis showed that the #1 affiliate (based on last-click attribution revenue) was being over rewarded.
With the goal to increase the ROI of the affiliate channel, this large sneaker retailer decided to remove this publisher from the program and decrease the commissions of several other discount-driven affiliates based on Odyssey Attribution recommendations.
Crunching
The numbers
Growth
in channel ROI
+76%
YoY growth for the affiliate
channel in attributed revenue
+215%
A higher ROI, more attributed revenue to the channel and fewer costs
By removing the #1 affiliate from the program significant budget was saved. Besides that, the sneaker retailer saw an increase in the attributed revenue to the affiliate channel. Due to these two changes, the ROI of the affiliate channel increased by 76%.
Besides the cost savings, the attributed revenue of the affiliate channel also increased. Because the company experienced overall growth, we compared the growth of the affiliate channel to the paid search channel. As shown in the graph, the affiliate channel had significantly higher growth than the paid search channel.
Cases
A large fashion retailer struggling with incremental affiliate growth
This use case explains how Odyssey Attribution helped a large fashion (e-)retailer get better insights into the performance of their affiliate publishers and how they used that information to optimize the channel.
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