We picked up with Katie Sebire, online marketing manager at Directline holidays.  She talked about what she thinks are the biggest gripes within the affiliate industry and what Directline holidays is up to at the moment.

CJ: How long have you worked in affiliate marketing?
KS: I have been in affiliate marketing for over five years now.
CJ: What attracted you to the sector?
KS: The affiliate landscape is always changing. We’re seeing new affiliate business models emerging all the time with innovative and exciting ideas and technologies. There are always things to learn and affiliates to meet which helps to keep the industry fresh and exciting. I have enjoyed moving from the network side to the merchant side as I’ve been able to put  all I have learned (through working on some top affiliate programmes) into practice to benefit and grow the Directline Holidays affiliate programme
CJ: What technologies are you investing in at the moment?
KS: We have recently invested in the Commission Junction Pay Per Call and our aim is to take this to the next stage where we will pay out commission for a sale (we currently pay on a cost per lead basis). We have also recently developed our product feed and are working hard to make sure this is provided in the best possible way for affiliates to easily implement. We also have search boxes and widgets available.
CJ: What advice can you offer publishers looking to work with Directline Holidays?
KS: We are quite unique in the market as we sell package holidays from all the major tour operators as well as packaging our own holidays with the best value flight and accommodation, thereby giving the consumer a breadth of choice. Our advice would be to make your lives simple and use our feed, search boxes and widgets to maximise conversion and make searching for a holiday as simple as possible.

Tell us a bit about Savoo….
Savoo promotes savvy shopping, deals and discount codes and is the international arm of the US deals giant Savings.com.  Savoo.co.uk, launched in 2009, is dedicated to offering consumers the best user experience while working closely with merchants and agencies to promote deals in a controlled and transparent way.

Recent examples of consumer driven innovation from Savoo include launching Savoo Personalisation where consumers complete a short wizard about their shopping preferences, and in return get their own personalised deal feed offering deals on exactly what they like.  Other recent innovations include Savoo Local, which features local restaurant deals, and Savoo Compare offering mobile, broadband and, soon to be launched, holiday and flight comparison.

And what is your roll within the company?
I’m the GM which basically means I manage the UK P&L, recruit and retain staff.  I also work with HQ in LA to implement successful US products and innovations.  On a day to day basis I meet and work with networks and merchants to help them maximise their ability to reach and optimise; I also work with our marketing team to grow our UK consumer reach and ultimately become a savvy shopping destination site.

What do you think are the most important factors facing publishers in the affiliate marketing space at the moment?
The major one for me is Google rankings and SEO – PANDA – and attempting to build a web presence that does not rely solely on Google is the ultimate challenge.  We always want to prove the worth of our business models to merchants – working to increase merchant spend. As we are working on performance we want to become a higher % of their spend as we grow and move forward.  Innovation is key and we can’t rest on our laurels – as the market becomes more competitive we must ensure that we continue to innovate to stand out.  The other issue facing us is in the deal space, ensuring affiliates are mindful of deal overload and deal fatigue – guaranteeing consumers receive relevant and timely deals.

Are you investing in or pioneering any new technologies with Savoo?
New technology is always at the front of our minds at Savoo and Savings and we are currently working on a number of new products.  Right now though we are looking to continue the success of personalisation and refining e-mail communication.  We also want to build on our local service pushing restaurants and promoting regional merchants.  We are lucky in that we have started to build a great community of what we call DealPros and we want to expand on that and we also want to successfully launch our new holiday and flight comparison service.

I know Savoo has strong US heritage; do you think we’re developing into a global economy and does this help or hinder an affiliate site?  
Yes I think we are developing into more of a global economy – e.g depending on exchange rates consumers are buying from other countries and I think it helps.  As sites operating from different companies start to receive traffic from other countries it’s important to work with affiliate or ad networks to geo target offers to that consumer.  However, at the same time it can be challenging – if your site does not offer relevant content to that individual it affects site stats like bounce rates which can adversely affect SEO.

Do you notice any huge differences between the US market and the UK market?
Yes we do – the UK seems to be more regulated and merchants are more distributed across a wider number of networks.  In the UK it’s easier to meet and network due to less of a geographical divide whereas more deals done over the phone in the US.  One obvious detail is that the US is a much bigger market where the volumes are huge.  In the deal space the US is far more centric towards grocery deals – in the US consumers grew up on cutting out coupons from newspapers, therefore it’s a cultural norm in the US to save money using coupons – it’s growing in the UK, however.

You’re one of the big publishers in the UK, what advice do you cherish that helped Savoo make its way in the market?
There’s a lot!  But make sure whatever you do, you think about what your USP is of your product or service to both consumers and merchants.  How are you actually adding value?  As you are their sales person, get under the skin of merchants – find out what they want to sell more of, and where are their margins?  Help make them look good!  In the deal space – don’t constantly nag the merchant for an exclusive deal. Put yourself in their shoes and realise they are working with other deal sites too – what makes you special? Why do you deserve that exclusive code or CPA increase?

The new EU cookie legislation is slowly being implemented in the UK, what impact do you think this might have on the affiliate industry? 
It depends on the final ruling which I don’t think will be as vigilant as what was embraced by the Netherlands which was actual consent (quite intrusive web pop-ups where consumers confirm cookies from the website).  Assuming the UK adopts informed consent versus actual consent, then affiliates need to work with the guidance provided by the IAB/ AMC. Overall it shouldn’t be as significant an impact as we all initially thought.

What changes would you like to see within the affiliate industry?
I think we need more transparency from affiliates and merchants alike. I’m a firm believer that the reason why merchants sometimes don’t hold the affiliate channel in high esteem (compared to other channels) is that affiliates aren’t being transparent enough with them. Affiliates need to work closely with merchants to share what’s happening on their landing pages to help to optimise the overall consumer journey.  More networks should be facilitating hybrid tenancy/ display deals – most merchants don’t take into consideration the power of all the millions/ billions of free impressions their affiliate channel drives them. Don’t dismiss this free exposure – work with key affiliates to encourage more brand building activities.

In a nutshell the bill would allow the US Department of Justice and copyright holders to seek court orders against websites accused of facilitating copyright infringement. This could bar online advertising networks from doing business with the websites in question. Supporters of the bill say it protects the intellectual property market and industries; whilst opponents, such as Wikipedia, claim it’s a violation of the first amendment and freedom of speech.

So what does this mean for sites such as Wikipedia? Well if we take the site under the label of internet search engine, it could be forced under the new legislation to remove links to hundreds of sites deemed “infringing” of the new laws. Then it would mean trawling through thousands of links every time one site is deemed an infringement of the new law. Smaller, free knowledge sites may not have the resources to undertake such a task and could be forced to shut down entirely. 

 The structure of the internet is fantastic and revered because of these smaller sites and because everyone has a voice – and don’t forget, some of the larger sites with teams that can handle this were once small teams.  The internet could be a very different place if this becomes legal. It will be interesting to see if today’s events have any bearing on the legislation being passed, whether Wikipedia will get their message across will remain to be seen.

I think that this law could have huge, detrimental impact.  Whereby piracy is a huge issue within the online world, I don’t see how this is the answer.  There’s a huge lack of knowledge behind the legislation and it’s our job, those of us who are employed in the online world I mean, to ensure people are educated and understand the inner workings of one of the largest sectors of society.  I’m sure there are similar concerns within UK government and discussions on how to attack online piracy, and if this is passed in the US it may only be a matter of time until we’re hearing similar murmurs.

CJ: Where are you from?
KH: I’m from Durban, born and bred.

CJ: What did you do before CJ?
KH: I worked in finance for a company called VATit. I enjoyed my time there and made good contacts but I felt it was time for a change.

CJ: What are your impressions of CJ so far?
KH: Great! I already feel like I fit in and I’ve learnt a lot in the few days I have been here.

CJ: What do you think about affiliate marketing?
KH: I think it’s a great industry to be in, lots of exciting developments, I’m looking forward to it.

CJ: Where was your most recent holiday?
KH: That was to ‘The Berg’ (CJ: We are guessing Johannesburg Kegan?) for a family golf weekend. What made it even sweeter was winning and having the bragging rights for next year (it’s a pretty big thing in our family).

CJ: What did you want to be when you grew up?
KH: As far back as I can remember I wanted to be a professional cricket player.

Who is your hero/heroine?
KH: My mom! (CJ: Oh Kegan, really?)

CJ: Give us two interesting facts about yourself?
KH: I like to try everything at least once – I’ve been sky diving, so now I can say I’ve been there, got the DVD and WILL NEVER do that again. I am also an only child.

CJ: Very insightful stuff Kegan, good luck trying ‘everything’ at least once and welcome to the CJ team.

The performance marketing space is now a truly multi-channel discipline.

It has grown significantly, from once being considered just search and affiliate, to encompass all forms of online marketing.

This growth is so much so that the field has broadened from an online channel to a digital one.

The world of affiliate marketing is just one element of this digital mix, and it certainly has evolved over the last year.  There are many technology developments which have had an impact, namely the increased popularity of smart phones and tablets.

The captive audience that was once chained to its computer can now engage on multiple platforms and this is rapidly transforming the market.

The past two years has seen the dramatic rise of mobile which is now a well-established, major player in the market.  However, there are many other platforms that are set for a similar rise to fame.

Offline to online is becoming accessible with pay per call, and publisher businesses are developing into corporations and established businesses at a much faster rate.  We’re set to see more innovation from publishers, shopping comparison has evolved to vouchers and group buying, and these create forms of commerce will only grow over the next three years.

In addition, Social Media has provided another marketing platform within the affiliate channel having developed as a key affiliate business model in the past year.

There is one major issue that is going to transform the digital marketing space and that is the EU cookie legislation.  Commission Junction is heavily involved with the IAB and Affiliate Marketing Council in developing plans to ensure the affiliate community adhere to the derivative and it has as little impact on the industry as possible.

Of course, there needs to be substantial consumer education to ensure potential customers are aware of the impact of the ‘opt in’, but it’s a major development and one that publishers and advertisers will need to fully understand.

It’s key to remember that the long tail will never deliver immediate returns, it’s an investment.  As an affiliate network we try to establish relationships with every publisher.  Of course, the big value corporation publishers are incredibly important, but there’s more to affiliate marketing than quick wins.  Programmes should be built bespoke; a holistic view is always going to have more of an impact.  Marketing is the art of communication for a brand, and the affiliate channel is no different.

An audience is at the heart of this – if we don’t know our audience how are we going to talk to them?  That’s why we try to speak to all our publishers and get feedback – it never falls on deaf ears.  Every piece of feedback we receive is discussed, otherwise how would we build an affiliate programme?

This may seem like obvious advice, but the basics are always the most difficult to master.  Advertisers who find their prime publishers in the long tail, invest in building relationships with them and use the feedback to shape an affiliate programme have the foundations in place for a long term, successful affiliate marketing programme which is exactly what we want to establish.

Today, the IAB’s Affiliate Marketing Council have released research into advertisers’ opinions of the affiliate marketing sector and it’s good news for the affiliate channel with results showing that the market is set to enjoy significant growth in 2012.
The IAB talked to 140 brands to evaluate the affiliate marketing channel and any issues that the new year may bring.  The stats are great: 77% said that marketing spend for affiliates had grown and 71% expected it to continue to grow in 2012.

However, the news does come with a shocking statistic as well. Half of respondents said that knowledge of affiliate marketing at CEO level was ‘little’ or ‘none at all’.  With affiliate programmes now accounting for around 15-20% of over-all sales for some of our key clients, it is worrying to hear that affiliates may not be getting the recognition they deserve at board level.  True, our channel moves at break-neck speed and the sheer volume of promotional methods that come under our umbrella can be baffling to the outsider, but the industry has evolved dramatically over the past five years and it is a shame that the professionalism and influence of our channel is not on the radar for key decision makers.  My hope is that Digital Britain and Race online 2012 will make some CEOs, who currently have their head stuck in the sand when it comes to the complex online world, stand up and listen.  One of our objectives for 2012 is to encourage brands to push for affiliate marketing to become fully integrated with more traditional marketing channels, especially as the industry continues to grow in the face of an increasingly gloomy economic outlook.

Despite this optimistic forecast, the Eurozone is looking like it’s going to head into another recession.  We’re not going to revive the economy and head back into the 1980’s euphoric hay day of mass employment, university education and new dot com businesses launching every other day.  However, for the UK to prosper, consumers do need to keep spending.  So there’s plenty of opportunity for publishers to increase their business; it’s a case of being clever with your choices.

Why not carry out a consumer survey early in 2012; understanding an audience is the key to success, and it’s a great way to start the New Year.  Then make a calendar of events, news hijacking has always been a great tool for advertisers, and if you offer a stellar platform to do this you could find yourself quids in.  Here’s my favourite advert ever from just after Obama won the Presidential election, you’ve just got to laugh!  And think, why should affiliate marketing not be able to utilise news?  People will be looking for content, searching for specific products, you just need to make sure you’re not behind the times.

There’s our first two pointers, let us know what you think!

CJ: Where are you from?
OH: I’m from Cambridgeshire originally; it’s flat as a pancake round that way so any sign of a hill makes me excited, but now I’m in Elephant & Castle which has its own particular charms…

CJ: What did you do before you joined Commission Junction?
OH: I was at a little social network called CitySocialising. The idea is to help people make new friends when they move to a city. It was great fun and I make some fantastic friends there, can’t wait to do the same at CJ.

CJ: What are your impressions of CJ so far?
OH: It’s been lovely. I’ve learnt a lot in my first few days and long may it continue (although perhaps not quite as long as Antonello’s tracking training )

CJ: What do you think about Affiliate Marketing?
OH: I think there’s so much potential in it. As someone who’s worked on the advertiser side in the past I obviously love the redistribution of risk, but what’s really exciting is all the possibilities for taking affiliate offline like Pay Per Call and mobile voucher apps.

CJ: Where was your most recent holiday?
OH: Salzburg, home of Mozart and The Sound of Music (neither of which I’m massive fans of incidentally).  It’s a beautiful little town though full of little winding streets and horse drawn carriages – I’d thoroughly recommend it.

CJ: What did you want to be when you grew up?
OH: Superstar footballer, sadly I failed to even make the cut for the school team so that dream soon died.

CJ: What is your favourite sandwich?
OW: Cheese and marmite! Some people call freaky, but I can’t get enough of it.

CJ: If you could be an animal, what would you be and why?
OH: A Chamois – athletic and full of energy + I’d get to live in some of the most beautiful mountain scenery Europe has to offer. (A Chamois is like an Alpine Antelope) Editor’s note: I’m really pleased you explained that one!

CJ: Tell us two interesting facts about yourself
OH: Before I started my career in marketing I worked as a thatcher – lots of cups of tea and lots of cuts and bruises. Sadly though I had to give up the physical labour after a big fall rock-climbing. The roofing world’s loss, the marketing world’s gain.

Earlier this year I foolishly decided to walk across Scotland (all the way across, from coast to coast!) to raise money for the Red Cross. Two days in, knee-high in snow and thoroughly soaked, I started to regret my foolhardiness but after a lot of perseverance (and a little lift from a part-time member of Travis) I made it all the way to from the Irish Sea to the North Sea!

CJ: both very interesting facts!  It’s great to have you on board Owen and we hope you settle down quickly and enjoy your time at CJ.  Thanks for your time