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Chapter 23. Managing Your Affiliates > The Amazing Success of Trademarks

The Amazing Success of Trademarks

Conversion rates for trademark terms are high—extremely high. In the direct response television (DRTV) advertising industry, for example, an estimated 20% of consumers who watch the commercial for an “As Seen on TV” product and type the product name into a search engine click the web site listing that appears. Then, an estimated 20% of those web site visitors buy the product. That's impressive! REVShare Corporation, a cost-per-acquisition TV media broker, achieved these conversion rates for their top DRTV product clients whose web sites REVShare managed. These conversion rates held true until the DRTV advertisers' wholesalers or affiliates jumped into the search engine space.

Almost instantly, per-click fees spiked and conversion rates plummeted for As Seen on TV product advertisers, once their affiliates or wholesalers bought the trademark terms. DRTV product manufacturers who sold products to only a handful of wholesalers suddenly found themselves competing with dozens of each wholesaler's affiliates who then promoted a lower retail price. Sales and valuable customer contact data were redirected to wholesalers instead of the parent company (see Figure 23.1 as an example of competition from wholesalers and affiliates).


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