Affiliate Summit – The Review

Those who visited Las Vegas this week for Affiliate Summit probably noticed, as is usually the case with a trip to Las Vegas during convention season, a line out of X-Files, "We are not alone." Despite our often feeling like the center of the universe, other tradeshows also took place while we descended on Vegas. Of the four different overlapping events, three stood out – one, the Mecca for consumer electronics, another the Mecca for a very different type of consumer behavior, and a third featuring quite a few affiliate marketers plus Internet advertising companies. Companies attending the last one, while playing in the online performance marketing space, they both wouldn’t have been allowed to purchase booths at Affiliate Summit or, given their distinct style would have much inclination to do so. Incidentally, could the two halves find a way to learn from each other, it would produce some interesting results.

Where Affiliate Summit and this show have much in common is that expo halls provide the de facto meeting of members in the space, but unlike the major consumer show, they don’t serve to showcase the products of the future. As such, the takeaways, include understanding that the current environment to trends assessments, are less tangible, and primarily inferred. Entering Affiliate Summit, we always wonder what we might learn, and fortunately, this year’s show did not leave us without any shortage of points to digest. We can’t say it is all positive or encouraging, but that at least can make for more interesting stories.

• Have / Have Not Divide – one of the most impressionable memories we did not get to experience first-hand, but it involved an event (and it can only be described as an event) that happened on at least two occasions. One of the largest advertisers in the performance-marketing space has not only roots in one of the other tradeshows (not CES), the advertiser also happens to have some significant clout in Las Vegas. Those working with him and the few lucky rebel marketing stragglers had the opportunity to witness the level of influence first hand. It involved the generally male unfriendly world of night clubs, but on this occasion, twenty or so guys entered behind the advertiser. That alone makes it an interesting feat, especially when you consider the venue. The next part, though, in addition to bypassing the line, can only be referred to as “Pulling a D,” i.e. as you enter a club, the music stops, hostesses line up on both sides with Crystal and sparklers forming a 21-bottle salute of sorts, a custom beat starts, and like a royal wedding, the group proceeds through with the bottles, women, and sparklers falling in behind the procession to the table. Fun times and strange looks from others whose table service didn’t include custom door service. And, no better anecdote highlights one of the bigger trends, the divide between those doing well, and those trying to make it – large and growing fast.
• “What’s a CPA” – another divide that came to light happened on an unlikely run in while visiting the Palms. Noticing our badges but thinking us part of a different type of Internet advertising conference, what turned about to be an all too stereotypical, owner of a certain type of ad network asked what we did. When we replied that we do CPA-based advertising, the question we got back became the heading of this bullet point. Despite our both being in performance-based marketing and a rather lengthy explanation that felt like trying to get a dog to stay when eying a treat, we still had a chasm to cross. Perhaps they thought it meant Cost per Affliction, whose brand of clothing couldn’t have been better represented than at this show.
• Crossing The Chasm – not just the name of a book by the highly regarded partner in the venerable Silicon Valley VC firm MDV, it also illustrates what we witnessed first hand when talking to a company that no doubt made more than enough money and had more than enough experience to know what CPA should be. But, as we witnessed from the Have / Have Not Divide, those who can make the jump, have a distinct competitive advantage not to different than one versed in Tae Kwan Do thinking they stand a chance against a comparable student in Gracie Jujitsu. To the former, the fighting style of the latter is dirty, but in the real world, especially in the world of highest eCPC takes all, that unfairness means success to an audience that doesn’t always judge from a framework of honor. Even if they did, they still want to run the higher converting offer. People aren’t playing as nice as they did before, and perhaps due to the economy, youthful invulnerability, or something else, expect a more ruthless environment.
• What Recession – The crowds at the shows, the lavishness of the parties including the “standard” parties, and the lines for the clubs, all would suggest a strengthening economy, but much like Google, success in the financial numbers doesn’t tell the whole story. If you look closely at the crowd, most notably the people at the otherwise exclusive clubs, you see some people that just don’t belong, who in an otherwise healthy economy would not have gained entrance without some large fee. Relying again on anecdotes, we will deny our hearing it first-hand, but a sign of the weakening economy certainly comes from what one less than fully clothed dancer lamented, “I just can’t find a good Sugar Daddy right now.” The money just isn’t flowing as freely, and to keep it coming more than a few have to do things they don’t prefer and would like to think they are too good to do.
• The Race to The Bottom – tough times result in a lot of things. Whether related to the tough times, but certainly aided by it, the performance marketing industry has in many ways abandoned good taste; it’s not just recklessness but a shift towards barbarianism. Among other things, the combination of the allure of money, the perception of the ease with which some have made it, and the less than FTC abiding style with which it is made doesn’t give us much hope of either a litigation free year or the perception of performance marketing improving in the eyes of the broader advertising community. Yet, who can blame a person that opts not to take the high road. Trying to create a valuable service is an expensive and too frequently unsuccessful enterprise, whereas becoming one of the sharks is intoxicating in the power and money. Would you not grow opium in a country without many legitimate options? Unfortunately, doing so for us means closing the doors to more legitimate and long-terms choices. It’s one reason why we are glad that we aren’t in “the game,” because I’m not sure we’d have the will power to refrain from doing whatever it took to earn a piece of the insane money being made right now.