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Affiliate Marketing and Advertising for Canadian PublishersPresenters:Ryan McKegney, VP of Business Development at Clear Sky Media Derek Szeto, President of Clear Sky Media Summary: Our presentation was meant to be a primer on affiliate networks and online advertising with a focus on our experiences in Canada. Affiliate ProgramsHow It Works:Retailers and service providers will pay you either a commission on sales or a bounty on leads if you refer your readers to their sites. Most retailers and service providers join affiliate networks to have the networks manage their programs. Why do these programs exist? All affiliate marketing is performance based, so instead of buying a full page ad in the Toronto Star for $25,000 and hoping that it works; marketers can set up an affiliate program and only pay for the results they actually receive. It can be a very cost effective approach to marketing. Affiliate Networks Commission Junction (CJ): The largest affiliate network and usually the easiest to work with. Linkshare: One of the largest networks. Represents clients such as Dell, Canadian Tire and Sony. Performics: A medium sized network similar to CJ and Linkshare. They represent Chapters.Indigo.ca and HBC. Azoogle: A lead generation network (cost per acquisition) that pays bounties for referred sign ups. They are based in Toronto, but work mainly with American offers. IntactEarnings: A smaller Canadian specific network with a few major clients. Other Affiliate Programs Amazon: Runs their own program. Google: Pays a bounty for sign-ups to Adwords and if you refer FireFox downloads with the Google Toolbar. Poker Sites: Pay extremely large bounties for sign-ups. Zip.ca: 2 Week Trial. Can anyone join one of these networks? Usually you will need a site that already exists to join one of these programs. Once you are accepted by one of the networks you usually have to be approved for each merchant program you join within the network. Different merchants will have different criteria for sites they allow to join their programs. Some only allow highly targeted sites to join while others will let anyone join. Tips for publishers: Things to watch out for: http://www.redflagdeals.com/deals/main.php/info/help#h8 Advertising Networks in CanadaHow it works:Advertising networks sell banner advertising on a network of websites that they represent. Ads can be sold on specific sites, across content channels (for example only on automotive sites), or across the entire network. Generally ads sold on specific sites offer the highest payouts, followed by channel based campaigns, and ads run across the entire network tend to sell for the lowest amount. Ads typically pay out either on a cost per thousand impressions (CPM) or cost per click (CPC) basis. CPM rates can range anywhere from $0.25 CPM to $30 CPM or more. CPC rates can range from $0.05 CPC to $2 CPC or more. Banner advertising technical specifications are set by the Interactive Advertising Bureau (IAB). Big Box (300x250 pixels) and Leaderboard (728x90) are generally the highest paying standard ad sizes. Ads that contain rich media (video, sound, Flash) pay at much higher rates than normal ads, but can be annoying to readers. Advertising Networks: 24/7 Canada: The largest ad network in Canada. They represent large sites such as YellowPages.ca, Weather.ca, and RedFlagDeals.com. Rydium: A smaller network that represents many US tech sites. Tribal Fusion: A large American network that has expressed interest in expanding into Canada. Google Adwords: Google’s contextual ad network. Can anyone join one of these networks? Larger networks will usually want a site with at least a few million page views a month unless the site occupies an attractive niche. Google Adwords will allow anyone to join. Bulk vs Niche: There are two ways to make money with banner advertising. Either you have to have so many page views that you can make money through sheer bulk or you have to target a niche that is very attractive to advertisers. From our own experiences the most attractive niches are automotive (new car buyers in particular) and business to business. Advertisers are willing to pay much, much more if your audience specifically targets these niches. |
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