Stay Up To Speed With The Netx Industry News Update!

Friday, August 19, 2011

Taking the headlines this week is Google’s acquisition of Motorola Mobility, find out more about it in this week’s Netx industry news update!

Participate In The 2011 AffiliateBenchmarks Survey!
Time is running out and the 2011 AffiliateBenchmarks survey needs your opinions now!  The survey, which is open to advertisers, publishers and anyone else in the affiliate community, is designed to help develop and reinforce best practices and strengthen the relationships between affiliates, advertisers, and agencies.  Everyone who participates in the survey will get the full study sent to them for free (a $3,000 value) within two weeks of the results being published.

Top Google Ranking Captures 18.2% of Clicks
SearchEngineWatch.com
A recent study conducted by Slingshot SEO re-examined the value of the top position in organic ranking.  The study found that the click-through rate for a website in the top position is 18.2%, with the second position at 10.05% and the third at 7.22%.  With the number one spot receiving more clicks than the second and third spot combined, it is still clear that the first position is the ideal place to be.

Google Lost Share in U.S. Searches in July as Yahoo Gained
Businessweek.com
Google’s share of the U.S. search market slipped 0.4% to 65.1% for the month of July.  Yahoo! Sites grew their share 0.2% to 16.1% overall while Microsoft’s market share remained steady at 14.4%.

14 Million Americans Scanned QR Codes on their Mobile Phones in June
comScore.com
According to comScore, 14 million mobile users in the U.S. scanned a QR code on their mobile device during the month of June.  Approximately 60.5% of the 14 million people that scanned a QR code were males while just over half of the scanners were between the ages of 18 and 34.

Google Acquires Motorola Mobility for $12.5 Billion
TechCrunch.com
Google announced this week that they are acquiring Motorola Mobility for $12.5 billion.  Google hopes that the acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and enhance competition in mobile computing.

Prepare Today for Online Holiday Sales
InternetRetailer.com
Now is the time to get e-mail, shipping offers and site performance up to speed!  More than half of consumers now expect free shipping and 51% of Cyber Monday shoppers say they learned of online deals through e-mail, says Forrester Research.  To accommodate the anticipated spike in traffic and sales during the holiday season, e-retailers need to optimize their sites for speed and functionality rather than style.  With the ballooning popularity of mobile devices and tablets, e-retailers also need to make sure essential site functions work for all screens.

Filed in Affiliate Marketing, Online Marketing, Search Marketing | |

What Advertisers Should Know About Affiliate Nexus Tax Laws

Friday, August 19, 2011

With affiliate nexus tax laws popping up across the country it seems that everyone is in search of answers.  Thanks to Gary Kibel and Brian Gallagher of Davis & Gilbert Law, Netx was recently able to address some of the bigger concerns that advertisers currently have.  Together we were able discuss topics such as the different responsibilities of advertisers with affiliates in a nexus state as well as how advertisers can try to protect themselves.  A recap of the main points that were addressed is below.  We encourage anyone who is seeking independent legal or tax counsel to reach out to Gary via email, GKibel@DGLaw.com, or by phone, 212-468-4918.

The Origins of the Affiliate Nexus Tax
The Advertiser’s Responsibilities
How can advertisers help protect themselves?
What affiliates can cause advertisers to be obligated to collect sales tax?
Are there ways advertisers can still work with affiliates in nexus states?
What if my company doesn’t deal with physical goods?
How is the law going to be enforced?
What is the outlook for affiliate nexus taxes?

The origins of the affiliate nexus tax:
• Affiliate nexus tax began in New York when it was determined that an independent contractor who is actively soliciting a company and generating sales in return for a commission is enough to create nexus.
• Amazon launched a lawsuit claiming that the law was unconstitutional.
• The case fought its way up to the New York State Appellate Division before returning to a lower court where it is still pending.
• Since New York, California has been the largest state to pass a nexus tax.
• Amazon is petitioning to have the law added to California’s next ballot and needs just over 500,000 signatures to do so.  Once on the ballot, the law is suspended until voters decide to approve or dismiss the tax.

The Advertiser’s Responsibilities:
•  Advertisers are responsible for collecting sales tax generated by any qualifying affiliate that is located in a state with affiliate nexus.
• Advertisers should do their due diligence and follow up with affiliates to ensure they are telling the truth about their residency.
• While many states have yet to address subaffiliates directly, advertisers still need to be aware of them because they can create nexus.

How can advertisers help protect themselves?
• Advertisers could help protect themselves by incorporating language into their affiliate agreement that requires accurate information and transfers liability if affiliates are deceitful.
• Advertisers can include similar language in their network agreements, holding the affiliate network responsible for verifying the location of affiliates.
• One way advertisers can try to control subaffiliate relationships is by including language in the affiliate agreement that prohibits working with subaffiliates in nexus states without prior approval.

What affiliates can cause advertisers to be obligated to collect sales tax?
• Affiliates that operate in a state with nexus tax.
• Working with affiliates who have multiple offices, one of which is in a state with nexus tax, is an undefined area.
• Even though this hasn’t been directly addressed by the courts, advertisers can still put themselves at risk by working with affiliates that have offices in a state with a nexus tax.

Are there ways advertisers can still work with affiliates in nexus states?
• In an effort to work with affiliates that are located in a nexus state, advertisers are turning to click based agreements.
• The state of New York is the only state with nexus tax that has clearly deemed click based agreements acceptable because a click based agreement isn’t based on a sales type transaction.
• Other states are beginning to use New York as a guide to establish their own regulations for click based agreements.
• Advertisers can collect the sales tax due.

What if my company doesn’t deal with physical goods?
• Companies that strictly deal with a digital good or service remain unchanged by the nexus tax.
• If a state that doesn’t require you to collect sales tax on your digital good or service passes an affiliate nexus tax, it does not become your responsibility to begin collecting sales tax.

How is the law going to be enforced?
• Given the relative newness of the laws, there have not been any public enforcement actions from which to draw conclusions.
• Sates may audit companies and request to see a list of all their partners and relationships on a state by state basis or they may work through the affiliate networks to target advertisers and their affiliates.
• While advertisers may not know how the law is going to be enforced they should definitely be aware that they will be held responsible.

What is the outlook for affiliate nexus taxes?
• Nexus laws continue to pop up on a state by state basis and should be addressed as early as possible.
• The federal government hasn’t directly addressed the issue and there’s no telling when they will.
• The best way for an advertiser to ensure they are operating within the law is to seek legal counsel and address new laws as they arise.

It is strongly recommended that anyone dealing with the affiliate nexus tax issue seek their own independent legal and tax counsel.

Filed in Affiliate Marketing, Online Marketing | Tagged |

Catch The Latest Headlines In This Week’s Industry News Update!

Tuesday, August 16, 2011

With e-commerce spending continuing to grow and the Microsoft adCenter rolling out new features, you won’t want to miss this week’s Netx industry news update!

Participate In The 2011 AffiliateBenchmarks Survey!
Time is running out and the 2011 AffiliateBenchmarks survey needs your opinions now!  The survey, which is open to advertisers, publishers and anyone else in the affiliate community, is designed to help develop and reinforce best practices and strengthen the relationships between affiliates, advertisers, and agencies.  Everyone who participates in the survey will get the full study sent to them for free (a $3,000 value) within two weeks of the results being published.

U.S. Retail E-Commerce Spending Reaches $37.5 in Q2
comScore.com
According to comScore, total online retail spending reached $37.5 billion this past quarter, this was an increase of 14% from Q2 2010.  This growth rate represented the seventh consecutive quarter of positive year-over-year growth and the third consecutive quarter of double-digit growth rates.

Microsoft adCenter Begins Rolling Out Improvements
MediaPost.com
Microsoft is working to implement adCenter features aimed at increasing revenue per search in paid-search campaigns.  Between now and the end of October, adCenter will roll out a new user interface, reporting features, targeting, and enhancements to core algorithms for improved matching.  This past week adCenter rolled out upgrades to broad and phrase-match type feature, but the advertising platform also supports exact match and negative match keywords.

Web Analytics Boost E-Commerce Sites
DMNews.com
Multichannel retailers are measuring Web analytics to improve conversion rates among e-commerce shoppers, in addition to pursuing emerging opportunities in mobile and social commerce.  Retailers are finding they can enhance the online shopping experience based on Web analytics data made available by constantly evolving tools.

87% of Brands Plan to Run Twitter Ads
Clickz.com
As social media continues to grow, 87% of recently surveyed brand managers plan on running a Twitter campaign in the next 12 months.  The survey, which was conducted by Pivot Conference, also found that a staggering 98% of respondents said they’d run Facebook ads in the coming year while 81% plan to advertise on YouTube and 65% will buy ads on LinkedIn.

Google Android Nears 50% Market Share, iOS Reaches Second Place
SearchEngineWatch.com
According to the latest report from the technology-focused analysis group Canalys, Google’s Android platform now holds 48% of the global market share, while the iPhone has reached second place with 19%.  The Android has recently exploded growing its market share by 44% over the last 6 months.

Google+ Poised to Become Number Two Network in 12 Months
SearchEngineLand.com
A Bloomberg-YouGov study recently found that Google+ is on a trajectory to surpass other social networks, including Twitter, LinkedIn and MySpace.  YouGov projects that Google+ will become the number two network, after Facebook, within the next year.

Filed in Affiliate Marketing, Online Marketing, Search Marketing | |

2011 AffiliateBenchmarks Survey Now Open

Friday, July 29, 2011

Summer is in full swing, as is the 2011 AffiliateBenchmarks Research Study! On July 1st, 2011,the Netx and AffiliateBenchmarks team proudly launched a new and improved affiliate research survey, with plans to make the largest global research effort in affiliate marketing history better than ever. We can only make it happen with the help of publishers, advertisers, agencies, etc., and there’s only 1 month left to participate!

Here are some key reasons to participate in this affiliate research effort.

  • Convenience. We know you’re busy, and don’t have time to click answer bubbles for 30minutes. Not to worry, because participating in this year’s study only takes 5 minutes.Seriously. Participants can finish the survey in less time than it takes to boil pasta. Convenient!
  • New Topics. The 2011 survey touches on the topic of tax nexus, which has had an enormous effect on the affiliate industry this year and thus a vital subject to study.
  • Get $3000!…worth of affiliate knowledge! Once the data is gathered, we’ll put together analysis in webinar format, available to purchase for $3,000. However, participants that answer every survey questions will get a free copy of the analysis. That’s right- we think 5 minutes of your time is worth $3k! Isn’t that nice? Participants who only answer the required questions will receive a copy of the raw data, as a token of our gratitude. All participants will receive their results within 2 weeks after the survey closes.
  • Everyone is doing it! Check out these big names in the affiliate industry that support our research efforts. We greatly appreciate the support of these networks and advertisers and hope you join in, too.
    • eBay
    • Amazon.com
    • Commission Junction
    • LinkShare
    • Google
    • Pepperjam
    • Revenews
    • Affiliate Summit
    • Media Trust
    • Share A Sale
    • Performance Marketing Association.
  • Internationally-friendly. Publishers, advertisers and agencies based outside the US are strongly encouraged to participate. We’ll be releasing 2 reports–one for US and one for International – in order to provide you with the most relevant data possible.
  • 360° Perspective. Even though publishers, advertisers and agencies will answer different surveys, the data from all three will be merged in the end. This way, the results will provide awell-rounded look into the affiliate industry.
  • Improve your business. Last year, over 10,000 participants used our research data to guide and strengthen their affiliate marketing strategies. The secret’s out that our research is a vitalbusiness tool in this industry. Reap the benefits yourself by taking our survey today!

So, to my friends in the affiliate world reading this blog post: this is a call to action! Do the right thing for your business and your industry. Click here and spend just a few more minutes online sharing your thoughts. I promise you won’t regret it.

Filed in Affiliate Marketing, Research | |

Don’t Miss The Latest Headlines From This Week’s Netx Industry News Update!

Thursday, July 28, 2011

Google dethrones Yahoo as the most visited web property while California affiliates make progress in their fight against the nexus tax.  All of this and plenty more in the Netx industry news update!

Netx Selected by Red Roof to Launch and Manage Affiliate Marketing Program
Red Roof, a leader in the economy hotel segment, has selected Netx to create and manage their new affiliate marketing program.  Red Roof opened their first hotel in Columbus, Ohio in 1973 and was founded on the philosophy of providing guests the greatest value without giving up quality.  They are at the top of the economy hotel segment and Netx looks forward to helping them achieve this distinction in the affiliate space as well.

Vayama Selects Netx to Manage Affiliate Program
Netx has been selected by the international travel site Vayama.com to manage their affiliate program.  Vayama.com is a first-of-its kind travel web site that gives travelers a whole new world of choice in international air travel. Using the latest in web technologies, Vayama offers a massive selection of airlines, flights and fares, many of which were never previously available online.

Legislative Progress for Affiliates in California and Minnesota
PerformanceMarketingAssociation.com
The referendum to reverse the affiliate nexus tax in California has been approved by the Attorney General and Secretary of State.  The campaign to gather 504,000 signatures by September 27th can now begin!  In addition, Minnesota’s Special Session Tax bill has been released and the Affiliate Nexus Tax is not in it nor can it be added now.

Top 50 U.S. Web Properties for June 2011
comScore.com
According to comScore, Yahoo yielded the No. 1 spot to Google in June for the first time in eight months. The search giant drew 182.5 million unique visitors last month, compared to 178.3 million for Yahoo, whose traffic slipped about 6% from May. Google’s audience increased slightly from 180 million.  An all-time high of 116 million people visited the Travel category in June while 32 million people visited sports/outdoor retail sites.

Ad Effectiveness: Above-the-Fold, Repetition Clicks with Users
MediaPost.com
According to Casale Media, above-the-fold ad placements displayed within the first screen of a user’s browser window were found to be the most effective. In fact, they are almost seven times more effective at generating a click-through than ads delivered below the fold.  Casale also found that users were three to four time more likely to act on an ad if it was the first or second one they saw during their session.  From there, ad effectiveness plummeted as the user progressed through their online viewing.

Will Mobile Ad Spend Overtake TV?
AdWeek.com
There’s no question TV is beating digital in the fight for ad dollars but digital ad execs don’t expect that to last long.  According to Paul Gelb, Mobile Practice Lead of Razorfish, mobile is the first true form of mass media noting that there is over three times the number of mobile subscribers as there are TV subscribers.  With higher engagement rates and unmatched inventory Gelb believes the shift may not take as long as most expect.

Web Users Uneasy with Behavioral Targeting
TRUSTe.com
New research from privacy company TRUSTe indicates that a sizable proportion of U.S. Web users are uncomfortable with online tracking by advertisers.  For the report researchers asked 1,004 Web users whether they would voluntarily consent to share their online browsing behavior with advertisers in order to receive targeted ads. Only 15% said they would “definitely” or “probably” consent.  When asked in a separate question whether they were comfortable with online behavioral advertising, just 11% said they were.

Email Marketers Expect 2011 Holiday Season to Top Last Year
DMNews.com
With this year’s email click and open rates outperforming 2010′s numbers by 23% and 11%, respectively, marketers should prepare for a stronger holiday season than last year, said Chad White, research director at email service provider Responsys. Given those expectations, brands should begin to plan their holiday email campaigns now.

Filed in Affiliate Marketing, Online Marketing, Search Marketing | |

Catch the Latest Headlines in the Netx Industry News Update!

Friday, July 22, 2011

Taking the headlines in this week’s Netx industry news update are back-to-school shoppers eager for savings and Google’s improved AdWords reporting!

More Back-To-School Shoppers are Looking for Bargains Online
InternetRetailer.com
Nearly 70% of shoppers say they will use online comparison shopping sites for back-to-school shopping, a major jump from 2010 when only 23% of consumers said the same.  Additionally, 41% of shoppers said they will seek out back-to-school coupons from retailer web sites, up 33% from last year.

Participate in the 2011 AffiliateBenchmarks Survey!
The 2011 AffiliateBenchmarks survey is underway so don’t miss your opportunity to participate in the industry’s largest research study of affiliate marketing trends and best practices! Everyone who participates in the survey will get the full study sent to them for free (a $3,000 value) within two weeks of the results being published.  Please note that all surveys must be submitted by September 1st.

AdWords Adds Top vs. Side Reporting
SearchEngineWatch.com
To help AdWords users get more accurate feedback on how their ads are performing, Google is adding a new data table option that contrasts the statistics for ads appearing on the top of search with those appearing on the side.  Previously there was no way to tell how top and side reporting impacted the success of an ad but the new reporting feature will now allow users to view the figures separately.

U.S. Mobile Advertising to Hit $1.2 Billion in 2011
MediaPost.com
A new report by J.P. Morgan predicts U.S. mobile ad spending to grow to $1.2 billion this year.  Despite rapid mobile growth, the report points out that global penetration will only approach 30% this year, indicating there is still plenty of room for expansion.

Brand Campaigns on Facebook Up 104%
Clickz.com
According to research released by TBG Digital, the number of paid brand advertising campaigns on Facebook rose 104% in Q2 when compared to Q1.  The Q2 study found retailers to be the fastest-growing marketing sector in Facebook advertising, accumulating 36% of all impressions.

Subject Line Personalization Doesn’t Impact Click Rates
DMNews.com
Emails that are not personalized with a consumer’s name in the subject line generate a 3% click rate, equal to that of personalized emails, according to a study released by email service provider MailerMailer.  Non-personalized emails outperformed messages with personalized subject lines with an open rate of 11% compared to the latter’s 4%, while emails with personalized body content generated a 13% open rate.

Filed in Affiliate Marketing, Online Marketing, Search Marketing | |

The Weekly Netx Industry News Update!

Friday, July 15, 2011

Amazon prepares to take on the state of California while the IAB releases a set of best practices for online ad research.  These headlines and more in this week’s Netx industry news update!

Amazon’s Sales Tax Counter-Attack
InternetRetailer.com
Amazon says it will ask California voters to overturn the state’s new affiliate tax law in a February referendum.  In order for Amazon to get the appeal on the ballot, they will have to submit 504,760 signatures by September 29th.

Participate in the 2011 AffiliateBenchmarks Survey!
Don’t miss your opportunity to participate in the industry’s largest research study of affiliate marketing trends and best practices.  The 2011 AffiliateBenchmarks survey has officially begun and we hope you’ll join us in making it the biggest one yet!  Everyone who participates in the survey will get the full study sent to them for free (a $3,000 value) within two weeks of the results being published.  Please note that all surveys must be submitted by September 1st.

IAB Sets Rules for Online Ad Research
AdWeek.com
The Interactive Advertising Bureau has introduced a set of best practices for conducting online ad effectiveness research.  The guidelines are intended to provide the online ad market with a practical set of recommendations for standard operating procedures with respect to using ad effectiveness studies.

June 2011 U.S. Search Engine Rankings
comScore.com
Google Sites remained atop the U.S. search engine rankings in June with 65.5% market share.  Yahoo! Sites and Microsoft Sites rounded out the top three with 15.9% and 14.4% market share, respectively.  In total, there were over 16.7 billion explicit core searches conducted in June.

Smartphone Adoption and Usage
PewInternet.org
In its first standalone measure of smartphone ownership, the Pew Internet Project found that one third of American adults – 35% – own smartphones. The Project’s May survey found that 83% of US adults have a cell phone of some kind, and that 42% of them own a smartphone.  Approximately 87% of smartphone owners access the internet or email on their handheld, including two-thirds who do so on a typical day.

Paid Search Budgets Rise, Gain Efficiencies at Lower Costs
MediaPost.com
Advertisers spent 20% more on paid search campaigns in Q2 2011, compared with the year-ago quarter, but also increased efficiencies.  Click-through rates rose 12%, while overall cost per click remained the same.  The Paid Search Quarterly Benchmarking Report by Marin Software also found that despite a 15% drop in impressions, the average marketer saw an 8% increase in click volume.

Filed in Affiliate Marketing, Online Marketing, Search Marketing | |

The Latest Netx Industry News Update!

Monday, July 11, 2011

Google and Twitter’s search agreement expires while the Android operating system is continuously challenged by Apple, where else but the Netx industry news update!

May 2011 U.S. Mobile Subscriber Market Share
comScore.com
According to comScore, the Google Android ranked as the top mobile operating system over the last three months with 38.1% of U.S. smartphone subscribers.  Apple strengthened its #2 position with 26.6% of the smarthphone market while RIM ranked third with 24.5%.  The study also found that 39.8% of mobile subscribers used their devices to browse the web while 28.6% of users accessed a social networking site or blog.

Why Marketers Must Care About Site Speed
SearchEngineWatch.com
The speed of a website is commonly one of the most overlooked factors in online marketing.  A slow website can quickly begin building the impression that your site may not be easy to buy from or interact with.  Slow sites can also create frustration or establish a lack of trust in your messaging.  In addition, a 2010 study conducted by Forrester Research found that users remember slow sites and consciously remember not to return to them.

Google, Twitter Search Agreement Expires
Engadget.com
While the implications remain unclear, Google and Twitter appear to have let their real-time search agreement expire.  Google has said that it needs time to integrate Google+ within its social network-based search tool but has not offered a time frame for doing so.  Google Real Time Search started with Twitter search results and has quickly expanded to Yahoo Answers, news articles, MySpace updates and public Facebook Page updates.

Amazon.com, O.co Terminate Affiliate Ad Contracts In California
DMNews.com
Amazon.com and O.co have officially canceled their California affiliate advertising contracts as a direct result of the state’s recently enacted affiliate nexus law.  Both sites acted quickly as they terminated their partnerships on the same day that Governor Jerry Brown signed the state’s budget.

Dialing For Dollars: iPhone Leads Mobile Ad Results
MediaPost.com
A recent study by MediaMind has found that devices based on Apple’s iOS operating system achieved twice the performance of phones based on Google’s Android operating system, and five times the performance of BlackBerry phones.  In addition, mobile ads achieved a click-through rate of 0.61%, while standard display banners for PCs recorded at CTR of just 0.07%.  The study also found that while PC browsing peaks during business hours, mobile browsing soars during the evenings and maintains a higher CTR than PCs do at any time of the day.

Participate In The 2011 AffiliateBenchmarks Survey!
Don’t miss your opportunity to participate in the industry’s largest research study of affiliate marketing trends and best practices.  The 2011 AffiliateBenchmarks survey has officially begun and we hope you’ll join us in making it the biggest one yet!  Everyone who participates in the survey will get the full study sent to them for free (a $3,000 value) within two weeks of the results being published.  Please note that all surveys must be submitted by September 1st.

Filed in Affiliate Marketing, Online Marketing, Search Marketing | |