Always Be Testing Podcast Episode #59: "The Art and Science of Performance Marketing" Featuring Richie Carreon, VP of Marketing at Levanta
Release Date: October 14, 2024
Introduction
In episode #59 of the Always Be Testing podcast, host Ty DeGrange welcomes Richie Carreon, the Vice President of Marketing at Levanta. This episode delves deep into the complexities and nuances of performance marketing, specifically focusing on affiliate marketing within the Amazon ecosystem. Richie brings his extensive experience and insights, making this a must-listen for anyone involved in growth, performance marketing, customer acquisition, paid media, or affiliate marketing.
Overview of Levanta and Affiliate Marketing for Amazon Sellers
Richie begins by providing a comprehensive overview of Levanta, positioning it as an innovative affiliate marketing platform tailored for brands that sell on Amazon. He explains how Levanta enables Amazon sellers to unlock new revenue streams through affiliate marketing, which was previously challenging. The platform offers three primary benefits:
- Access to a Vast Network of Creators: Levanta connects brands with over 6,000 vetted creators, including publishers, influencers, traditional affiliates, media buyers, and deal sites. (02:00)
- Full Control Over Commissions: Brands can customize their commission structures, whether it's cost-per-sale (CPS) or cost-per-click (CPC), allowing for tailored partnerships.
- Enhanced Organic Search Rankings: By driving external traffic to Amazon listings, brands can improve their organic search rankings and Best Seller Rankings (BSR). Additionally, brands benefit from Amazon's Brand Refer Bonus, receiving approximately a 10% kickback on sales from off-Amazon traffic.
Comparison with Amazon Associates
The conversation shifts to comparing Levanta with the traditional Amazon Associates program. Ty highlights Levanta’s advanced features, such as the ability to direct affiliate traffic straight to ASINs or seller URLs, offering higher payoffs. Richie acknowledges the strengths of both platforms, emphasizing that Levanta provides extended attribution windows (14 days compared to Associates' 24 hours) and encourages brands to use both systems where appropriate. (04:48)
Richie's Journey to Levanta
Richie shares his professional journey, detailing his transition from the broader affiliate marketing space into the Amazon-specific realm with Levanta. His background includes leading marketing at Refersion and working with Grovia Partners before joining Levanta. Richie emphasizes the importance of core values and culture in his decision to join Levanta, highlighting the company’s mission to innovate within the Amazon ecosystem and leverage creator partnerships for sustainable growth. (06:17)
Creator Economy and Affiliate Marketing Trends
The discussion moves to the burgeoning creator economy, with both Ty and Richie recognizing the increasing necessity for brands to collaborate with third-party creators. Richie underscores that Levanta has been capitalizing on this trend by formalizing referrals into monetizable channels, enhancing trust and authenticity in marketing efforts. (09:01)
Excitement about Prime Big Deal Days and Global Expansion
Richie expresses excitement about Amazon’s Prime Big Deal Days, an event analogous to Amazon's Prime Day, scheduled for October 8th. He shares promising data from the previous Prime Day, including a 10x sales increase, a 4x conversion rate, and impressive category-specific performance, such as a 180% conversion rate lift in clothing, shoes, and jewelry. Additionally, Levanta has expanded its support to French and German Amazon stores, with plans to include five more geographies later in the year, tapping into significant markets like Germany and France. (09:33, 11:48)
Data Insights on Prime Day Performance
Richie provides detailed insights into Levanta’s performance during Prime Day, leveraging data from the Amazon Attribution API. Key findings include:
- 10x Sales Increase: Sellers experienced a tenfold increase in sales through affiliate marketing during Prime Day.
- 4x Conversion Rate: Creators on Levanta demonstrated high engagement, leading to a 4x boost in conversion rates.
- Average Conversion Rate of 11.29%: Across the entire Amazon product catalog, this rate is notably high compared to other paid channels.
- Top Brands’ Conversion Rate: Leading brands saw conversion rates as high as 20%, nearly double the average.
These metrics highlight the efficacy and potential of affiliate marketing within the Amazon platform. (12:04)
Addressing Skepticism and Success Stories
Ty introduces a critical perspective by acknowledging potential skepticism towards new marketing channels. Richie responds by affirming Levanta’s value proposition, especially for sophisticated brands adopting a land and expand approach. He shares that brands often start with a CPS model, gradually scaling their affiliate efforts as they witness tangible results. Successful brands tweak and optimize their strategies, sometimes extending into CPC models to drive even more traffic and sales. Richie emphasizes that Levanta’s flexible and performance-based models mitigate financial risks, making it an attractive option for rigorous marketers. (15:05, 16:34)
Challenges: Educating Amazon Sellers on Affiliate Marketing
Richie identifies education as a primary challenge for Levanta. Amazon sellers often fall into three categories:
- Solopreneurs: Managing everything from sourcing to marketing, often without deep marketing expertise.
- Direct-to-Consumer (D2C) Brands: Skilled in digital performance but less familiar with the nuances of Amazon’s marketplace.
- Traditional Brands: Established in retail or other channels, now venturing into Amazon to meet buyers where they are.
Richie underscores the need to educate these diverse groups about the breadth and depth of affiliate marketing, illustrating how different types of creators—from TikTok influencers to traditional publishers—can drive significant performance improvements. (16:49, 19:34)
Experiments and Learnings: Direct Mail Example
Richie shares Levanta’s experiment with direct mail as part of their B2B marketing strategy. By sending handwritten postcards with QR codes to leads who had shown interest but hadn't converted, Levanta aimed to create a more personal touch. While the initial results were underwhelming, the experiment provided valuable insights into integrating analog and digital channels, tracking QR code scans to measure engagement effectively. This approach reflects Levanta’s commitment to continuous testing and learning. (27:51, 29:19)
Importance of Community and Conferences
The role of community engagement and participation in conferences emerges as a significant pillar of Levanta’s marketing strategy. Richie recounts their experience at Amazon Accelerate in Seattle, where despite being relatively new, Levanta made meaningful connections and increased brand awareness through sponsorships and direct interactions with sellers. This grassroots approach has been instrumental in building trust and fostering word-of-mouth referrals. Richie anticipates even greater ROI from conferences as Levanta continues to expand globally. (30:43)
Career Turning Points of Richie
In a personal anecdote, Richie reflects on a pivotal moment early in his career when he transitioned from a soul-sucking marketing job to a fulfilling role at Yumi, an ad tech company. This “sliding door moment” underscores the importance of seizing opportunities and building relationships, which ultimately led him to his current role at Levanta. Richie’s journey highlights the value of adaptability and perseverance in the marketing industry. (32:00)
Fun Segment: Personal Interests and Hobbies of Richie
The episode takes a lighter turn as Richie shares some personal interests and hobbies:
- Tech Enthusiasm: Richie recently purchased a Sony Aibo, an autonomous robot dog, blending his love for technology with his busy urban lifestyle. The Aibo can recognize faces, build its own personality, and interact dynamically within the home. (35:15, 36:27)
- DJing: Richie is also a passionate DJ, performing house and deep house music at well-known venues in New York. This creative outlet complements his professional life and showcases his multifaceted personality. (37:15, 37:35)
Conclusion and How to Connect
As the episode wraps up, Ty and Richie exchange final thoughts, highlighting the depth of their conversation on performance marketing. Richie shares his LinkedIn profile for listeners to connect with him, encouraging continued dialogue and networking within the affiliate marketing community. (38:26)
Notable Quotes:
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Richie Carreon:
- "Levanta is an affiliate marketing platform for brands that sell on Amazon, unlocking new revenue streams that were previously hard to tap into." (01:39)
- "We've been doing this since the beginning of mankind—formalizing referrals into monetizable channels that enhance trust and authenticity." (09:01)
- "Marketing is both an art and a science. Striking the right balance is challenging but essential for success." (27:03)
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Ty DeGrange:
- "There's something magical about being willing to embrace the uncomfortable learning curve with a beginner’s mindset." (08:10)
This episode of Always Be Testing offers a treasure trove of insights into the evolving landscape of performance marketing and affiliate strategies within the Amazon ecosystem. Richie Carreon’s expertise and Levanta’s innovative solutions provide valuable takeaways for marketers looking to harness the full potential of affiliate marketing in driving growth and engagement.
For more information and to connect with Richie Carreon, visit his LinkedIn profile: linkedin.com/in/forwardin.