Read Time: Approx. 3 Minutes 3 Seconds
Author: Ben Thompson
An Anonymised Case Study from a Global Fashion Retailer: Background
Customer First Digital inherited an affiliate programme from a global fashion brand operating across the UK and US, which received approximately 9% of total affiliate revenue from subnetwork publishers.
Whilst contribution was strong (if not higher than average), limited transparency offered by the subnetworks on the underlying traffic sources made it difficult to fully assess publisher quality, incrementality, and how best to optimise with these publishers.
Four subnetworks were selected, reviewed, and consulted to understand the criteria Customer First Digital required from publishers before being removed from the programme as part of a broader strategy focused on transparency and stronger, direct publisher relationships.
Customer First Digital analysed performance from two periods:
• Period 1 or ‘pre’ subnetwork removal
• Period 2 or ‘post’ subnetwork removal
The Results
Metrics Period 1 vs. Period 2
Revenue: +34.6%
Orders: +4.1%
Active Publishers: -10.9%
New Customers: +61.5%
Average Order Value: +29.4%
Commission Cost: +4.7%
Key Findings
Despite subnetworks driving upwards of 9% of the overall affiliate programme revenue, we found that when they were removed from the programme, the overall performance improved significantly.
Specifically, we saw Revenue increase by +34.6%, and this was achieved with commission increasing by just +4.7%. Amongst other metrics, it was key for the brand to see the number of New Customers acquired go up, which also increased by +61.5%.
This suggests publishers who were more willing to engage in transparent conversations around performance and make it easier to optimise future campaigns, were not just rewarded better (commission cost increase), they improved outcomes for the brand which also strengthened the relationship between them.
Where Did Growth Come From?
The programme growth came from a mix of publisher types across the funnel, with several publishers enjoying greater performance in the pre/post period comparison.
Performance highlights included:
• A leading content publisher increased revenue by +231%
• A creator network partner increased revenue by +741%
• The programme's primary reward partner increased revenue by +250%
Together, the publishers that saw greater performance more than offset revenue previously attributed to subnetworks.
What We Learned
Whilst there are no requirements for subnetworks to break policy by sharing full platform publisher lists, nor must they spend time combing through individual publisher performance, this case study suggests that focusing on transparent, accountable publisher relationships the outcome directly supports both programme compliance and commercial performance.
In this instance:
✓ Revenue increased
✓ New customer acquisition improved
✓ Average order value grew
✓ Publisher transparency improved
✓ Growth was achieved with fewer active publishers
Our Approach
Customer First Digital have a whitelist of publishers who have met and continue to meet the criteria we set for publisher and advertiser transparency. [DT1.1]What’s more, we use the great references shared by The APMA (The Affiliate and Partner Marketing Association), using their guides and recommended code of conduct for subnetworks active in the UK affiliate marketing industry, to help guide us in our decision-making process.
If we inherit a programme with subnetworks onboarded, we would always begin by reviewing historic performance between a given publisher and an advertiser and where relevant, cleansing the programme of those with low to no past activity (e.g. due to a mismatch in target audience).
Our attention then switches to those who are actively generating traffic and/or sales, conducting in-depth reviews to understand traffic quality, source, and other data points like country distribution in order to understand whether said traffic appears legitimate and relevant to the advertiser. Any publisher that doesn’t meet such criteria is actively removed from the programme.
In such cases (like in this case study), where publishers are generating meaningful revenue and there is a nervousness to remove them (and as a result, lose this revenue), we recommend testing slowly. i.e., begin by focusing on one publisher at a time to understand what it is they bring to your programme.
How Customer First Digital Can Support You
If you are currently adopting subnetworks as part of your affiliate marketing activity, and are unsure whether they are adding value, we would advocate following the above steps. If you are unsure where to start, or would like further insights about your programme, our no obligation free Appraise consultation will provide you with the recommended approach.
Share this post:
