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Creating a Competitive Set
By Michael Kowal
LinkShare Corporation
Over time, advertiser programs have the tendency to take on a life of their own. The majority of time is spent handling day-to-day tasks, causing one to overlook a fundamental component of the program – its competitiveness in the market. One way to manage this industry information is to create a competitive set. Read on for suggestions on how to compile this essential data.
What is a Competitive Set?
A competitive set is essentially a living document used to track competition. Advertisers can use a competitive set to ensure that their program remains viable over time. It provides direction for the development of offers, communication strategies, and program perception within the marketplace. Here are some simple ways to gather intelligence on your competitor’s programs.
1. Study Your Competition:
Create a publisher account and join competing programs. View their basic offer information, return days and search policies. Take a look at their Create Links page and their Publisher Newsletter, and ask yourself the following:
A. Are your competitors promoting the same offers through the publisher channel as they are in their general consumer newsletters? Pay special attention to the richness of their consumer offer. If the offer is less enticing within the publisher channel, it can provide an indication as to the spread that they have in their margins.
B. How do your competitors view their publisher programs? Notice the way that they speak to their publishers. For example, are they offering their publishers a bonus for every new customer? If so, this demonstrates that they see their affiliate program primarily as a customer acquisition vehicle.
2. Monitor Reward/Loyalty Publishers:
See what publishers like Upromise, Ebates and Memolink are giving back to their users on your competitor’s programs. Pulling this information into your competitive set will provide a window into their private offers. These publishers often operate on a 60/40 split, meaning they will give 60% back to their users. Knowing this, you can make some good assumptions about the commission your competitors are giving to these reward/loyalty publishers for their private offers. A higher payout on Publisher A’s site vs. Publisher B’s might indicate that Publisher A is driving more volume and has a higher private offer than Publisher B.
3. Audit Publisher Websites:
Scan other publisher sites to look for coupons, deals, and/or placements they may be purchasing. It is also a good idea to see how your program is being presented on these sites.
After taking these steps you will end up with a matrix that might look something like this (this will vary by market segment):
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Competitor A |
Competitor B |
Competitor C |
Competitor D |
Competitor E |
Baseline offer |
5% |
3% |
4% |
6% $0-2K
7% $2-4500
8% $4500+ |
4% $0-5000
5% $5000+ |
Loyalty Site Payout |
3% |
2% |
3% |
7% |
5% |
Return Days |
5 |
7 |
30 |
45 |
10 |
Latest Affiliate offer |
Free Shipping on any shoe order |
Extra 1% Commission this month |
Spend $125 and receive free ground shipping |
none |
Activation contest |
Publisher Placements |
Buys the minimum, no logos, no extra banners |
Many placements on multiple publisher sites |
Buys logo placements |
Placements only with UPromise |
Included in emails from many publishers |
Latest consumer offer |
Free Shipping on any shoe order |
This week take an additional 40% off |
Spend $100 and receive free ground shipping |
Domestic Violence Awareness Month - $1 from every sale donated |
Weekly specials and offers based on home page rotation |
This matrix can now be used to:
• Identify strengths and weaknesses of competition’s offers
• Help recognize what is important to publishers in your market
• Determine clear competitive positioning against competing affiliate programs
• Remember that it is not all about commissions:
• Compete on product or brand
• Service to publishers
• Technology
Ultimately, this matrix will help you to identify what publishers view as the compelling elements of your program. The program can then be repositioned as needed at points of greatest publisher interest and competitor weakness. These course corrections are one of the hallmarks of a successful program.
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