The Role Of The Traditional Media Agency. Should Marketers Go Direct Or Not?
posted in Affiliate Marketing |
Q. “The role of the traditional media agency. Should marketers go direct or not?
In the same way that they got to grips with search, media agencies are now becoming focused on the opportunities presented by affiliate marketing.
This has traditionally been an environment where brands work directly with affiliates, but is it time that media agencies got involved?
What value would a marketer get out of this?
Benefits: Gets dealt with alongside rest of digital media. Agencies will argue that having all your media together offers economy of scale, convenience etc
Cons: Another link in the chain; another cost?”
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Media agencies can’t all be tarred with the same brush, each has to be judged on their own individual merits though it is accepted that a significant portion have been weighed, measured and found wanting.
A rule of thumb I have established, is where the affiliate department or company is operated by a recognised affiliate (not just a previous network employee (s)) whom was previously or still does operate as an affiliate with grass roots experience & knowledge, this is a fairly recent trend which I am pleased to report is increasingly going upwards.
You’ll find that that these companies are more likely to have a mindset more attuned with affiliates and the industry, knowing what is required for the fruition of an affiliate program to achieve an optimum potential. Companies include the likes of Existem AM, APA (Affiliate Program Advice), Shine Marketing & Total Search Solutions . Though their client base may not be considered blue chip, they generally know how to communicate effectively and are professional in their approach. .
However on the opposite end of the spectrum you have a number of agencies who though may talk the talk, you know … the real wind bags with eloquent use of vocabulary with bells & whistles presentations, blind you with numbers, yet can’t walk the walk.
Affiliates are dynamic professionals, unlike some larger lethargic agencies, who effectively get down to the nuts & bolts in layman’s terms. Some Agencies can easily be perceived as setting their own agenda, by having really restrictive terms & conditions or disallowing usage of the display URL in paid search because they have an in-house search agency or sycophantic brand bidding groups milking the cash cow on low hanging fruit (and that is not just brand terms), leaving the unwanted christmas turkey giblets for affiliates to try and market. They do act as another layer or even a buffer between affiliate and the actual merchant, where really the circle needs to be complete with direct communication / dialogue between the merchant dmc (decision maker contact(s) & the affiliate, though some agencies & even networks are protective of this direct contact, even to the point of them chaperoning clients at affiliate events, avoiding the, well let’s say more vociferous affiliates.
I do see the point with reference to all internet marketing kept in-house, but though some claim to have the experience, they actually don’t, and I would recommend the merchant seeking alternatives like the aforementioned expert affiliate consultants when dealing purely with the affiliate channel. There are possibly a few larger agencies we might feel comfortable dealing with, others generally fairly lethargic at getting affiliate suggestions into action, maybe even claiming the idea themselves or getting the required reliable tools, promotions, incentives, voucher codes or product databases necessary for affiliate to market effectively.
Affiliate management definitely has a need for integration with other channels, for example manage search, online PR and PPC as well as AM for some clients and knowing what’s going on in each channel can arguably get positive results, but remember affiliates also deal with paid search & SEO and not just websites.
It’s not exactly rocket science, though ironically I have some experience in that subject, they simply need to provide affiliates the tools they request, reward them appropriately & affordably, treat them with respect, don’t have draconian t&c’s & you’ll find they will overall endeavour aim to portray the merchant’s brand in a favourably hue & in the correct manner whilst delivering cost effective results from the best performance marketing channel available. The downside though is that because some larger media agencies bring blue chip clients to a network, the network themselves (not all) can be too yellow bellied to stand up to the media agency (cos of a risk of losing future clients), but will quite merrily dictate & scold affiliates, using terminology like “abused” & “violated”, not very pleasant terms and words you would only associate with paedophiliacs.
Merchants maintaining affiliate program management in house is a nice ideal, but in reality most don’t have the resources to nurture staff or possess the required skill set, that’s why media agencies with staff / owners of sound affiliate grounding have the specialist skills and relations that an experienced affiliate manager will have. Clients (merchants) should focus on setting their strategy, positioning, and even down to the detail of the marketing calendar, then involve the experts to work their magic in their respective fields.
Merchants should also invite & speak with key affiliates first before deciding which media agency would be best to manage the affiliate channel. Please note : not a network’s pet affiliate. The proof of the pudding may also be which agencies will work purely on a CPA basis,especially in the current climate, with a nominal management fee, excluding brand bidding privileges to the agencies in house paid search team. These are just a few important points as part the decision making process.
