The Hitflip UK Blog

This is the continuation of ‘Affiliate Marketing 2.0 - Part 1: What has been said on the subject and what is Web 2.0′
As you have read, we believe we can recognise some trends with respect to Web 2.0. One of these is the new Work with Content. This new Work with Content in connection with Affiliate Marketing is observed under three stages:

1. Created or obtained content
2. Assimilated content
3. Dispersed content

Now that it is a little bit clearer what we mean, we will put forward three examples of how the points mentioned above can be effectively shown. In the following examples we use Video, Photo and dynamic text-content (RSS) but of course there are other types of content conceivable.

Examples of Affiliate Marketing 2.0 with Video content:

Video content can come directly from the merchant, from Affili.net VideoAds or the advertising of Zanox.tv. Affiliates can of course also make their own videos or video podcasts.

If you make your own content, the Affiliate-Links must be visually or acoustically installed. For example the text “hitflip.affiliatedomain.co.uk” can be shown in video, in order to recruit for the Hitflip affiliate programme. It is also possible that funny / viral videos can be associated with ad videos which are then put in an Affiliate-Link (e.g. with CJ Smart Links or similar technologies).

These videos can then be set up next to your own website or blog or with the many different video communities or podcasts in iTunes and similar portals.

Examples of Affiliate Marketing 2.0 with Photo Content:

Here we have already published a very good applied example from our own affiliates.
The content/photos/pictures can be made yourself or you can buy them. If it is not somewhat new/exclusive, you can also arrange them through clever combinations or new perspectives. (An example from Marcus with the WCs)

The adjustment of the content is then inserted accordingly with an Affiliate-URL in the picture.
The dispersion of the content can then occur on your own website or blog via photo communities or directly through News (2.0) sites like Digg.

Examples of Affiliate Marketing with dynamic text / RSS:

An RSS feed is a form with dynamic and continuously renewed text. These can come from a merchant (we offer our members some of it), from Affiliate networks (which I believe are called Dynamic Clicks by CJ and Superclicks - something we recently learned in London )

The adjustment of the content can then be seen in the regular feeds of the merchants to affiliate-links. Here is an example from one of our affiliates of an RSS advertising medium, (only available in German at the moment).
Further adjustments can be seen from ‘wider / bigger’, more specific RSS feeds, e.g. for a website about horror films, you may only receive a list of the new horror dvds from Hitflip. Adjustments of this kind are also of value for the user. Accordingly you can combine many feeds on the same topic into one feed. The circulation of feeds can be found under topic-specific tabs for Netvibes, Pageflakes and iGoogle, through which one can reach a wider readership. Feeds can often also be put into the profiles of diverse social networks (in Widgets, where applicable).

New Work With Content: Summary

We have used three examples (video, photo and RSS) to show how with Affiliates 2.0 this content is firstly created/obtained, then adjusted and finally published and how the concept of Affiliate Marketing 2.0 has come about.

In preparation for the CJU, we felt the need to address a new topic.
We are often associated with the topic of Web 2.0 and our first working-title was “Influences of Web 2.0 on Affiliate Marketing”. We started with the classic googling in german and in english. We didn’t find the results very satisfactory. Mostly it was just “blah blah blah” without any concrete evidence and without good examples, and that’s not what we had visualised. Therefore, we have broken the topic down simply.

What is Web 2.0?

As an introduction, we simply took the characteristics of Web 2.0 websites from Tim O’Reilly as a starting point:

1. They improve by getting more active users
2. They integrate data from different sources, including their own users
3. They open their data to other websites, allowing mashups (API)
4. They make people get together and let them create an online identity
5. Make use of modern technologies for creating great user interfaces

Here is an example from Hitflip:

1. Network effect: The more people with items to exchange and the more choice available, increases the demand and the attractiveness of Hitflip.
2. Data Integration (we will publish more on this at a later point)
3. Open API for mashups
4. Online Identity which we call my.hitflip
5. We continously work on our featureset

From Web 2.0 to Affiliate Marketing 2.0

As the title suggests, the subject of Affiliate Marketing 2.0 will be introduced in different stages as this is becoming too long for a blogpost/working day. In the coming days we will post 4 further posts. The next three will be concerned with the main trends that we believe to have recognised in Affiliate Marketing 2.0. Those are:

1. The new work with content
2. Working with Social Networks
3. New ways to generate conversion

Finally, another blog entry is planned which will summarise the Affiliate Marketing 2.0 blogs and will also contain our lecture from CJU.

Looking back at this years CJU EU in London I can put it in the words of Johann Wolfgang
von Goethe and Benjamin Franklin:

” Every second was of infinite value” as “lost time is never found again”

CJU EU was a great place to be and had deep value for all participants.

	Tim Waterstone - Founder of Waterstone (the largest book chain outside the US) held the the opening keynote and shared his thoughts on launching entrepreneurial businesses. It was great listening to Tim and his thoughts on entrepreneurs in general. An interesting thought was that he never wanted employees around him who wanted to work for him till the end of time but fellow entrepreneurs who would one day develop their own projects and companies.Tim pointed out that traditional bookstores haven’t really lost out due to Amazon & co. as online book stores are great for the long tail which traditional bookstores can’t deliver to in-house due to lack of space. He believes that the future will see the end of traditional sales channels for music - even though he believes it will take longer than some may hope. I totally agree with Tim on this point. Tim Waterstone pointed out that charisma is one of the most important characteristics for leaders - He has loads of charisma and I believe he left the stage looking at a ballroom full of inspired faces.
	Liz Jackson - Founder of Great Guns Marketing held Fridays opening keynote. Liz gained experience as a tele-marketer and had a wise boss who told her: “You have got 2 ears and 1 mouth - use them in this ratio.” Liz listened and performed. When asking the bank for a loan so she could start her new business there was only one side laughing - the bank. Liz was lucky though as the Prince’s Trust supported her with a kick-off of GBP 4000. When it comes to human resources Liz believes in intuition - even though her first hire was because she felt sorry for the woman, a mistake she didn’t do twice. Liz says “You can’t await people to invest in your visions unless we invest in theirs” and how right she is. “Luck is where hard work meets opportunity” - Liz worked hard and she believed in what she could achieve. In the first year after she founded Great Guns Marketing she turned blind - but she still has her voice and with her believe that she can change the world if she only wants to she can “see” more than many can dream of. Her main guideline is a quote from Henry Ford “If you think you can, or you think you can’t you’re right.”
	Not only the key-speakers were fantastic. I especially loved Catriona Campbell from Foviance. This girl is so full of power and she has stories to tell. One great story was the story of travelocity and a great example for translation vs. localization. Travelocity launched on new markets just translating the sites language files. When they launched in France the US management was wondering why the site wasn’t taking off. So they asked for a French peer-group. This lady comes in for the peer-group and they tell her that she is to test the french website “travelocity” and she says “no way!!!”. “Travelo” means transvestite in French… so the travel-site had launched with the name “Transvestite City” in France - I would say that this is very long tail
	On the publisher/advertiser breakout sessions Andre and myself attended the advertiser breakouts. On day 1 Martin (CJ), Karianne (CJ) and Andre (Hitflip) presented how you can use the technology of CJ for various innovative advertisement formats. Andre introduced Hitflip to the audience and how you can use web 2.0 sites for innovative affiliate marketing opportunities. In the next few days we will publish an extra blog entry on this topic - so don’t forget to subscribe to our RSS feed to keep up2date.
	CJU EU had loads of opportunities for networking and eating chocolate. On a sidenote: If you love chocolates you need to work for Adobe (just search for “click here” on google to find them) [I love insiders]. The champagne reception was great - the girls reminded me of the last James Bond movie “Casino Royal” and I really needed to watch my consumption as it just tasted great. Dinner was a dream and a signature for the landmark hotel in which CJU was located this year.
	Raffle tickets were sold for charity and we were more than happy to buy some to support “Kids Company“. Kids Company was founded in 1996 and provides emotional, practical and educational support to profoundly vulnerable children and young people in London. The great thing about charity raffles is that you can help and win at the same time and WOW DID I WIN!?! Thanks to Duncan at e-Conversions for sponsoring a fantastic prize: I will be driving a Ferrari and a Lamborghini - two Italian beauties for a day. A quarter million worth of cars - I hope they have a good insurance. Chris from Hotel Chocolat offered me the equivalent of the weight of the car in chocolate as a swap. He sure has understood how Hitflip works and his offer is really tempting

I would have loved to have headed to the airport in my new Lamborghini but life just told me that the time has come for the tube and Stansted Express - Life sure knows how to bring one back down to earth. Andre has noted down his thoughts in German and uploaded some pics of CJU EU to the internet. If you have also uploaded or posted your notes on the net let us know by leaving a comment

P.S. Oogolo.fr were brave enough to let a SEO panel discuss their new website They are in desperate need of links. So here you are: voyages en Egypte

Commission Junction has finally published the Agenda for CJU:

THURSDAY 21ST JUNE

08:15 – 08:45

Registration

08:45 – 09:00

Welcome to CJU EU 2007

Carl White, CEO, Valueclick Europe Ltd.

Alison Guise, UK Managing Director, Commission Junction

09:00 – 10:00

Keynote: Swimming against the stream

Tim Waterstone, founder of Waterstone’s book stores, Chairman of Chelsea Stores (including the Daisy and Tom brand and until recently the Early Learning Centre retail chain) and former Chairman of HMV Media Group plc

10:00 – 10:30

The long tail becomes the thick tail

Rebecca Jennings, Senior Anaylist, Forrester Research

10:30 – 11:00

Break

11:00 – 12:00

Getting users to your site and keeping them there – SEO & usability tips from the expert

Catriona Campbell, Director, Foviance

Warren Cowan, Managing Director, Greenlight Search

12:00 – 12:30

Metrics that matter

Jeremy Palmer, Founder & Affiliate, Quityourjob

12:30 – 14:00

Thomas Cook Lunch

14:00 – 15:00

The emerging importance of affiliate marketing within a multi-channel strategy

Gary Goodman, European Marketing Director, Pricerunner

Emmanuel Brunet, Managing Director, Carat Internetional, France

TBC

15:00 – 15:30

Break

15:30 – 16:45

Advertiser and Publisher breakout sessions

16:45 – 17:15

TBA

Andrew Walmsley, Founder, i-level

17:15 – 19:30

Drinks reception

19:30 – 24:00

Gala Dinner & CJU Awards

FRIDAY 22ND JUNE

08:40 – 09:10

Breakfast

09:15 – 10:15

Keynote: If you think you can…Liz Jackson MBE, founder and MD of business-to-business telemarketing and lead generation company, Great Guns Marketing and winner of numerous business awards

10:15 – 10:45

Break

10:45 – 12:30

Advertiser and publisher breakout sessions

12:30 – 13:15

Lost and found – turning site visitors from deserters to converters

John Ardis, VP of Corporate Strategy, Valueclick, Inc.

13:15 – 14:45

Adobe Lunch

14:45 – 15:45

Spotlight – the next generation affiliate marketing

Vinny Lingham, Founder, incuBeta (parent company for Click2Customers)

Michael Edwards, Managing Directos, Traffic Junction

TBC

15:45 – 16:15

Break

16:15 – 16:45

Marketing in a networked culture

Jay Stevens, CP Operations, MySpace EMEA

16:45 – 17:15

TBA

Stephen Taylor, Regional Vice President and MD, Yahoo! Europe

Andre (Co-Founder) will be speaking at this years CJU. Adam and Andre will be attending CJU on both days - so more than enough time to meet up with you guys.

Topics of CJU are:

o Innovation in affiliate marketing

o Multi-channel marketing – where does affiliate marketing fit in?

o Ideas for European/International expansion.

o Behavioural Targeting

o Specialised sessions for smaller groups with bespoke content

o The impact of offline marketing on online marketing

o SEO tips and advice

Who else is planning to attend? You can show everyone that you are attending here.

Maybe a little more insight on our plans as well:

We will be launching our affiliate programme with Commission Junction ( www.cj.com ) and you can earn up to £10 per new user and a lifetime commission of 30% on flipsales. Obviously this is a great opportunity as Hitflip is new to the UK market and lots of people still want to hear the news of the new swapping phenomena.

In preperation of our affiliate programme here some more creatives. This time fullsize banners and a nice buttonbanner:

 … more to come

*drum roll* Ladies and Gentlemen, we proudly present….
well not quite yet, but we will be proudly presenting our great new affiliate programme for the UK in the next few days.

We are just getting the tech setup and are preparing for our roll-out. Fantastic conditions with high sign-up rates. Here you can sneak preview some of our skyscrapers. Keep up to date on our plans with this blog:

These days I am reading a lot of affiliate and online marketing blogs (here’s a good selection of links by Fraser) and one of the articles I found very informative is the dissection of affiliate marketing by Lee. Because I find it interesiting to figure out how affiliate marketing works in the UK I thought it might be interesting for people from the UK to know how things work in Germany. Of course I do not now everything but I have some insights and experience so I allow myself to assume my estimations are close to the truth. (You know we Germans are overmodest, right? ;-)) Not only does the affiliate network market differ but also the way affiliates generally work. I’ll try to stick to Lees nomenclature to avoid misunderstandings. Three of seven ways of affiliate marketing mentioned are not an issue in Germany (Web Spam / Made for AdSense / Blog spam / Email Spam Spyware / adware / malware) as most merchants and networks do not allow you to do it and you will get kicked out of the affiliate programm or affiliate network if they catch you doing it. Affiliate referral does exist but of course it is naturally a niche market. That leaves three areas uncovered: PPC, (respectable) SEO and Community Sites. PPC seams to be the biggist thing in english affiliate marketing in all it’s different variations. In Germany it is a niche! When German companies want to appear in paid search results they either do it themselves or hire an online marketing agency specialized in keyword buying. This marketing via paid seach / keyword buying is seen as something independent of affiliate marketing. Of course when you have an affiliate programm some affiliates might also do some AdWords, Yahoo Search Marketing, Miva or whatever but that is a very, very small fraction. If I’d had to guess a number I’d be 10% or less. Most of affiliate marketing in Germany happens in a mixture of community sites and SEO if I stick to Lees terms. Affiliates have their “projects” and they optimize it so it appears as far up as possible in the natural (non paid) search results. Then the webmaster/affiliates and the users of their websites add content to make the site more unique, bigger and important for more topics. So this kind of websites / projects are 90% of German affiliate marketing! Quite different, don’t you think?

To learn more about the UK advertising market and to meet some key players before our expansion I went to AdTech and the Affiliate Get2Gether. I was especially looking for differences compared to the German market. I can compare Ad Tech (German) to the corresponding fair OMD (German) in Germany.

At OMD you will find more CEOs of the companies who actually advertise, rather than the big websites where those ads are published. At Ad Tech I had the impression that there were almost only intermediaries. By that I mean companies who offer advertisers their services. I also had the imporession that there were many companies “of the same kind” with hardly anything differentiating them from their competitors. There were at least 20+ companies who offer to manage your emailings for you. We don’t need one of those companies because we do that ourselves. I wonder whether UK online-companies tend to outsource more?

You can find all my pictures from this occasion on our Flickr-Account. Here’s a selection with some comments.

The Dixie Queen.

I think it is a great idea to “mark” everybody according to their “role”. Haven’t seen that in Germany yet.

There was heavy networking going on on two decks.

In Germany Affiliates gatherings are actually never this big. Usually there will be 50 to a max of 100 people but the meetings are more frequent and take place in many different cities. In Germany the online market is not concentrated in one city as in the UK (I’m talking about London! ;-)). There is a lot of action happening in Cologne, Berlin, Munich, Hamburg, Frankfurt and a couple of other cities.

On the other hand the affiliate to “other” ratio is different. There are more affiliates compared to the “others” wanting to talk to the affiliates. Luckily I didn’t need to be on an “affiliate contact hunt” because talking to other merchants or networks was also very valuable to learn about the UK.

At German Affiliate Mettings there is usually no entrance fee and either sponsors who pay for one or all drinks or everyone pays their own bill.

Actually I found the Dixie Band very entertaining.

I also shot some movies while being on the boat to capture the vibes of the event.

In Germany we have seen quite a funny phenomenon happening where you would see many women and some internet celebs wearing a Hitflip Merchandising Bag. It really seems to be a fashion item in the German affiliate marketing scene. For me as a Hitflip founder it was so great to see that this fashion trend has alredy reached UK even though our website hasn’t even launched yet. Here’s some pics to prove what I’m saying:

If you see anybody else walking around with this trendy bag we’d be thankful for a short message.

Afterwords I found it a pity I coulnd’t make to the after boat tour meeting at the hotel because I had to catch my flight. I’m looking foreward to visiting UK / London again for further market research.

Here’s some other blogposts reporting on the event:

• Fraser
• Jessica Luthi
• Azam
• Patrick
• 5Star
• Paul Wright