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Business Planning - One Quarter at a Time
One of the greatest myths in online marketing is that the only time to make money is during the holidays. What might be most surprising is that 64 percent of all online sales in 2005 were not considered holiday sales (Source: Jupiter Research). The top industries in 2005 were computer hardware/software, telecom, travel, media and entertainment and finance and those are expected to only grow in 2006. So, what does this mean for publishers? To sustain a successful affiliate program throughout the entire year - it is very clear based off our research that each quarter presents revenue opportunities.
Here are some ideas and suggestions to look for when looking to grow your program.
Q1
For many businesses and individuals, the first quarter is a time of reflection and growth. Personally, people are making (and breaking) resolutions. Many companies are looking for new ways to reach new customers. Publishers can take advantage of both efforts by connecting consumers with new products. Take a look and see if any of these ideas spark your interest:
Health and Fitness - From exercise equipment to weight loss to even consumer electronics (wouldn't it be easier to run that five miles with a new iPod?) help new fitness buffs find everything they need. Commission Junction has a wide range of advertisers to help people get in shape.
Dating - From New Year's to Valentine's Day, Q1 is the time for love. In fact, according to VeriSign Inc., consumers spent $3.9 billion from February 1 to February 14 in 2005. Check out some of Commission Junction's leading dating clients for special promotions and Valentine creative.
Finance - Do you know one of the top resolutions is to save money? According to CardWeb.com, the average American household with at least one credit card has nearly $9200 in credit card debt, and the average interest rate runs in the mid to high teens at any given time. There are a lot of opportunities from credit reports, credit cards, consolidating debt and mortgage refinancing. And, don't forget tax season is just around the corner (see Q2).
Clubs - Many people might be looking to expand their horizons through a book club, CD club or even a gift of the month club - Commission Junction's network is filled with a variety of opportunities.
Internet Services/Computer Peripherals - Help consumers save time and money with competitive offers for new Internet providers, broadband connection, computer equipment and software.
Insurance - Getting financials in order includes ensuring everyone and everything are in order. Commission Junction has many insurance advertisers with a variety of offerings.
Tip – If you are adding new advertisers to your program, remember these helpful suggestions:
Quality online presence - Browse the advertiser's Web site. Would you want to buy from them? If not, odds are your customers won't either.
Ease of generating a transaction - Is the process to make a purchase simple or complicated? Is there adequate customer service?
Effective creative - If you are spending time and money promoting the advertisers, you need good creative to help you sell their products.
Q2
Q1 is just the beginning - you wouldn't believe how much the second quarter is peppered with online opportunities. For many people, tax season is a dreaded time of year, but as they say - when you have lemons - make lemonade. Make this time of season a time of sweetness to your clients; be helpful by providing multiple choices for those needing help. But it is not just about taxes - it is also about the perfect gifts for Mom and Dad.
Taxes - The stress begins in February and spikes in early April. People need help! And, maybe a few targeted travel opportunities to some accountants! According to the IRS, nearly one-third of all taxpayers wait until the final weeks before the April 15 tax deadline before submitting their returns. At the same time, the number of online filers increases with each year. In 2004, home PC filers increased more than 22 percent over 2003.
Mother's Day - The choices are endless - books, CDs, flowers, jewelry - Mom deserves the very best.
Father's Day - From consumer electronics to sports - Commission Junction's advertisers have everything Dad would like to celebrate his special day.
Tip – If you are adding new advertisers to your program, remember these helpful suggestions:
Program flexibility - Can you promote the offers in a variety of ways such as email, search and deep linking techniques?
Consistent offer - Look for offers that are consistent with the work required - if an item has a large commission but a low conversion rate, make sure you talk to the advertiser to find out why.
Incentives - If you are a top performing publisher, you should be rewarded accordingly.
Q3
Summertime! Everyone seems a little more relaxed, a little more upbeat. Summer brings travel, back to school and home improvement opportunities for you. Keep an open mind - would it surprise you that 54 percent of home improvement shoppers are women? It's true, according to the Gender Agenda, a report provided by Resource Interactive. The report also noted that women spend on average $177 as compared to $165 for men on everything from tools to home appliances to building materials (comScore Networks' Behavioral Panel April 2004-March 2005) - so take that into consideration when you are planning the third quarter.
Travel - Help those families planning their summer vacations now. Provide ideas for both domestic and international travel. Create an all in one travel site with complementary products such as clothing, books, cameras and provide a list of travel hints. In 2005, the American Society of Travel Agents reported that travel spending continues to rise. Hot spots included Orlando, Las Vegas and New York City with London the top international location. The Air Transport Association backs up the claim finding that 65 million passengers took to the skies in the summer of 2005, a 12 percent increase from 2004 summer months.
Home Improvement - Most people take on weekend or special projects around the home during the summer. Look for opportunities to help those budding handymen or women to get them on their way.
Back to School - Music for parents' ears around the country. Everything from school supplies to computer peripherals to clothing - kids need stuff! In 2005, parents spent $2.3 billion on back to school shopping.
Tip – If you are adding new advertisers to your program, remember these helpful suggestions:
Check EPC - An advertiser's EPC, or average earnings per 100 clicks, is a great way to measure success. An advertiser's EPC shows how well that advertiser converts traffic into actual sales or leads. It will also show what creative is working and what needs changing.
Keyword Link - Visible on an advertiser's detail page, they use the keyword link detail to tell you their preferred marketing message, keywords and rules for keyword bidding.
Q4
Dominated by the holidays, Q4 is bursting with opportunities. In 2005, more than one third of the holiday shoppers spent more money than in 2004, and 53 percent of consumers did some of their shopping online (source: KPMG LLP). The study also found that every age group up to 65 shopped online. The keys to a smooth and prosperous holiday season are planning and flexibility. Our most successful publishers plan their Q4 months in advance. Once the holidays approach, they spend their valuable time analyzing and updating their programs.
Halloween - Don't underestimate this early holiday. Everyone from ages 1-99 needs a costume.
Thanksgiving-New Year's - The earlier you can solidify you marketing campaign for the end of Q4 the better off you will be. Your plans need to be mapped out early so you can spend your time on adjustments and analysis. Shop.org surveyed over 100 of the top Internet retailers and more than 40% of sites offered discounts including free shipping and free gifts on "Black Monday," the Monday following Thanksgiving and one of the busiest online shopping days of the year. But there is no rest after Monday, many sites see increases in the following weeks as people rush to get last minute holiday items off their lists. According to SpendingPulse, a retail sales data service from MasterCard, holiday spending increased 8.7 percent in 2005 between Thanksgiving and Christmas over 2004. Hot items included flat panel TVs, MP3 players, home furnishings, sporting goods and women and men's apparel. What will be the hot item in 2006? Only the consumer will know, but if you keep your eyes open and your program flexible, you can work with the many Commission Junction advertisers to deliver the goods.
Tip – If you are adding new advertisers to your program, remember these helpful suggestions:
Management style - Is there someone dedicated to the success of the program? If not, it might be more difficult to get information and answers.
Communication - Does the advertiser communicate with their publishers? How? Is there a newsletter or some source for information?
As you can see, each quarter presents a number of opportunities for you to not only provide your customers what they want, but also to increase your revenues at the same time. If you focus on one market that falls into just one quarter, consider providing your customers complimentary products and services to keep them interested year round. If you are already providing your customers a full range of offerings, consider increasing the types of offers.
Source: Commission Junction |
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