Phone , Keys, Wallet.The mobile media & advertising blog

By Sanjit Atwal, Founder of Social Media & Mobile consultancy Eagle5Fox7 and a lecturer for the Digital Marketing Institute.

Much of the noise coming out of affiliate networks at the moment is centered around mobile. And it’s easy to see why…with ad spend rising through the roof and consumer usage of mobile internet flying quicker than Superman on genetically enhanced super-steroids, it seems like an obvious area to expand out performance marketing solutions. And I should know…I used to be the guy making the noise…

However, I can’t help but feel there is a different strategy Mobile needs to adopt in the performance marketing channel. The ecosystem of affiliate marketing online is perfectly geared to growing an advertiser’s sales through a partner network of virtual sales people (or ‘affiliates’). This works because users are continually seeking advice/vouchers/cashback on their online purchasing decisions.

But is this the same consumer dynamic as Mobile browsing?

Clearly not. And, if I’m brutally honest, I feel it would be trite of us to try and ‘copy-paste’ the same methodology onto the Mobile channel. Yes, there is mobile traffic to be found through the affiliate networks however a majority of the traffic is down to iPad and tablet device usage observed across standard browsing sites.

So, is there a real and defined future for affiliate marketing through Mobile?

Yes, yes there is. And it all lies within merging on/offline strategies.

Companies such as VouChaCha and VoucherCloud are pioneering the in-store voucher code. But the problem with voucher codes are that they are rarely store-wide (rather, on a select group/one product). From a sales point of view it can be used to effectively protect margin and shift un-sold stock but will never scale sales quickly in the way an online affiliate programme would.

Quidco, one of the leading online shopping sites (and one of the largest affiliates in Europe) have been effectively showing the benefits of in-store check-ins. Great for the user but again, not as efficient ROI as an affiliate programme.

So, where do we go from here….?

Google Wallet and the introduction of NFC (near-field communication) technology is, for me, a hugely important development. Granted, Google doesn’t have the best track record of product roll-outs but the horizon is clear for all to see. Google Wallet enables payment via phone ‘swipe’ (in the same way you would use an Oyster card or, if you’re lucky, PayPass with NetWest debit cards). Now, I live and travel in from Essex and the Gods of Transport For London have deemed me unworthy of an Oyster card but I do have a PayPass enabled debit card. It’s very convenient and the only odd looks I have gotten are from the staff at Eat that keep forgetting they have NFC enabled checkouts…

Square, dreamed up by Twitter co-founder Jack Dorsey is similar but offers a physical attachment to the iPhone. Funnily enough it looks like a square. The implications are that any retailer – from a store owner to a ice cream van can take ad-hoc credit/debit card payments.

Where does performance marketing come in? Well, if we suddenly have a bridge between the online consumer deal-hunter and off-line purchase points then we can work all the way back to a specific return-on-investment metric (or CPA – Cost-Per-Acquisition). And if we have a CPA…we have affiliate marketing in Mobile.

About the author…
Sanjit is the Managing Partner at investment incubator at Combusta, Commercial Director at Digital Animal, Founder of Social Media & Mobile consultancy Eagle5Fox7 and a lecturer for the Digital Marketing Institute.

Originally from a creative background, Sanjit has worked across film, press, magazines, radio, local government, digital, mobile and social media in a variety of commercial and strategic senior leadership positions. Having created and managed digital strategy for some of the biggest name advertisers in the world, Sanjit has a wealth of experience in monetization techniques and user trends. A self-confessed technology and social media junky, Sanjit is passionate about creating and advising the most cutting edge of start-up projects. Clients Sanjit has worked with include: Dell, British Gas, lastminute.com, Apple, RBS, Nike, Expedia, Hotels.com, Mothercare, Kelkoo, eBookers, Thomas Cook, Nectar, Groupon, Natwest, Hertz, Tesco.com.