Home Depot: Driving Affiliate Revenue Growth with a Flat Budget
68%
Increase in revenue YoY
69%
Reduction in cost YoY
45%
ROAS increase YoY
The Challenge
Home Depot came to Gen3 with a simple, yet difficult, challenge — Develop a program that could support revenue growth with 0% budget growth YoY.
The Gen3 Approach
Gen3 developed a 4-pronged approach to cost-savings:
- Restructured the baseline, moving to a tiered commission strategy by publisher type, while customizing individual publisher commission based on their value proposition.
- Moved to a SaaS fee network, migrating from CJ (% of sales/commission) to impact (fixed yearly fee).
- Creatively leveraged CPA in multiple ways:
- Secured high-impact placements by reinvesting commission cost savings.
- Successfully negotiated high impact CPA-based exposures with a top loyalty publisher.
- Leveraged short-term, attractive cashback on seasonally relevant categories.
- Integrated SKU-based tracking to support category cashback.
- Removed the #2 revenue-driving publisher (coupon browser extension) from the program:
- Coupons are never available for customers.
- Sales were being misattributed.
- Commissions were being wasted.
The Results
- 68% Increase in revenue YoY
- 69% Reduction in cost YoY
- 45% ROAS increase YoY
- 0% Increase in publisher commission costs
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