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DMA Conference Roundup
Overall, I was impressed with this year’s e-commerce session line-up for the DMA’s Annual Catalog Conference. From e-mail to search and affiliate marketing all bases seemed to be covered; however, there was a serious lack of discussion around RSS and emerging technologies. Even though, the DMA’s reputation for keeping it simple and honest was maintained with their usual focus on speakers who are proven experts in their field - and this includes direct marketers themselves. Also, I should mention that the DMA continues to offer some of the best (most useful) Web site usability sessions and hands-on “usability labs” I’ve seen at any conference.
Early Affiliate Marketing Sessions
Unfortunately, I was unable to attend the Monday sessions that included the likes of Commission Junction’s Lisa Riolo so if anyone has details on what went on please share them. I was also hoping to report more “wide concerns” among catalogers after the more casual, Monday brunch round-table discussions; however, I was unable to make the brunch gab session due to scheduling conflicts.
Affiliate Marketing Roundtable
I’ll tease readers with details on the session I moderated as I plan on providing some fairly exciting “post coverage” featuring my panelists. In short, Jeff Nienaber of Celebrate Express (NASDAQ: BDAY), Pattiann McAdams of Avon.com and Lisa Papageras of ArtAndArtifact.com/Signals.com/TheWirelessCatalog.com/WhatOnEarthCatalog.com provided for one of the most diverse panel’s I’ve managed to corral in a while. Each panelist has experience dating back to the late 1990’s.
Nienaber’s multi-channel company is a former BeFree client who, after a few years of struggling, couldn’t make the numbers work and had a variety of concerns which are best expressed by his parting recommendation to the crowd. He suggests that direct marketers must ask themselves “what are affiliates doing for me that I cannot do (more cost effectively) for myself?” Obviously, there’s a lot more to Nienaber’s story and I’m here merely to tease so kindly keep comments in check. I promise to deliver more details on what “numbers” weren’t working for him.
In short, Nienaber made the decision to pull the program “in house” (out of a public network) and dramatically re-structure terms and conditions. I must admit, his T&C’s are restrictive enough (on affiliates) that even I said to him, “you’re serious… affiliates will work within those constraints?”
The second case study was presented by Papageras who was a former Commission Junction client until last fall when she canceled the program (for reasons to be discussed later), opting to re-launch with Kowabunga. In short, Nienaber and Papageras had congruent concerns over affiliate-based costs (as percentage of sales). For a variety of reasons the program did not re-launch and 4th quarter came and went. Rather impressively, the company beat numbers/expectations without an affiliate channel in place. Given her heavy (and similar - to Nienaber’s) analysis of the complete (read: multi-channel cost as percentage of sales) situation she, today, wonders if the re-launch is financially appropriate.
In contrast to the others, McAdams has heavily invested in resources to bolster affiliate channel returns and has a completely different set of needs, expectations and ROI metrics given the fact that Avon.com has not engaged much in direct mailing to customers. Although the company is an international multi-channel marketer the units are partitioned off to avoid channel conflict issues. In fact, her division is the “old” mail division which seems to have been shut down in an effort to quell Avon reps concerns regarding conflict (after all, reaching into the customer’s home via direct mail is rather different than throwing up a Web site and luring would-be consumers into making a purchase).
The Exhibit Hall
The hall this year was packed but quite a few major e-marketing services names were missing in terms of floor presence. Most notable was DoubleClick’s absence (along with Performics) although they did have signage as part of their sponsor package.
As reported by DM News:
Affiliate marketing specialist LinkShare Corp. relied on free compasses for hikers to introduce the market to two products. One was the new version of the LinkSynergy Analytics suite.
“What it does is [it] gives the merchant and the affiliate a view of everything that’s pertinent in affiliate marketing,” said Kevin Casper, client development manager at LinkShare.
The other LinkShare innovation was a new consolidated check system. LinkShare now can cut one check from merchants to the affiliate.”
This begs the question, “what is ‘everything?’” in terms of this new, more pertinent view?
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