The Future of Performance Marketing by Matt Bailey

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Presentation delivered at the Digital Marketing Show 2013 (www.digitalmarketingshow.co.uk)

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The Future of Performance Marketing by Matt Bailey

  1. 1. The Future of Performance Marketing Digital Marketing Show, 26th November 2013
  2. 2. About Me Subtitle as necessary • Have worked in performance marketing for 8 years • Head of Client Services – affiliate network • Head of Performance – i-level • Chair of IAB Affiliate Marketing Council 2010 • Co-founder and Head of Product – Performance Horizon Group www.PerformanceHorizon.com @mattb811
  3. 3. Putting Performance Marketing in Context IAB UK Online Performance Marketing Study 2012 • In the UK, advertisers spent over £800m on online performance marketing activities • This generated over £9 billion in sales • ROI of £11 for every £1 spent • Advertisers estimate they will spend 5 – 10% more in 2013 www.PerformanceHorizon.com
  4. 4. Where is affiliate marketing? • 3 days • Over 200 sessions • Some of the biggest names in digital marketing • 1 session from a performance marketing company www.PerformanceHorizon.com
  5. 5. Why is this?? Why is Performance Marketing still viewed as the unwanted ginger step child of digital marketing? www.PerformanceHorizon.com
  6. 6. What I’ll talk about today • What’s the difference between affiliate and performance? • Where do Performance Horizon Group fit in? • Why performance marketing is growing. • How will it continue to grow? Powering digital innovation • What we need to do to encourage this. www.PerformanceHorizon.com
  7. 7. Affiliate vs Performance Affiliates Affiliate Network Brand Agency www.PerformanceHorizon.com
  8. 8. How has affiliate evolved? Top Affiliates Brand / Agency Long Tail Affiliate Network www.PerformanceHorizon.com
  9. 9. Big affiliates get bigger www.PerformanceHorizon.com
  10. 10. What is performance marketing? • Performance-based advertising is a form of advertising in  which the purchaser pays only when there are measurable  results. (Wikipedia) • Affiliate marketing is a sub-set of performance marketing. • Plenty of performance marketing activity has always taken  place outside of affiliate networks www.PerformanceHorizon.com
  11. 11. Performance marketing examples Travel Finance www.PerformanceHorizon.com
  12. 12. New models monetising through performance Call Tracking Content Retargeting Cart Abandonment Mobile On Site Abandonment www.PerformanceHorizon.com
  13. 13. Where do Performance Horizon fit in? Cart Abandonment Direct Partners Direct Affiliates Affiliate Networks Retargeting Content Mobile Performance Marketing Hub Call Tracking Brand www.PerformanceHorizon.com On Site Abandonment
  14. 14. Performance Horizon www.PerformanceHorizon.com
  15. 15. Why will performance continue to grow? Paying on performance is a very attractive proposition to advertisers Provides a channel for innovative new ideas to flourish www.PerformanceHorizon.com
  16. 16. Innovation in performance marketing Content monetisation tool turning traditional publishers into affiliates www.PerformanceHorizon.com
  17. 17. Innovation in performance marketing On site abandonment technology www.PerformanceHorizon.com
  18. 18. Innovation in Performance Marketing Created an online version of the traditional freshers fair • To reach 100k students in person would cost £70k • 2013 they saw 200,000 conversions on site • All rewarded solely on a performance basis www.PerformanceHorizon.com
  19. 19. Innovation in performance marketing Crossing the divide between online and offline www.PerformanceHorizon.com
  20. 20. But… need to understand data • Performance marketing is an umbrella term that covers many different marketing models. • All the risk is on the partner as they don’t get paid unless the pre agreed action takes place, and last click wins. • But… you need to understand how they interact with each other and with other channels. www.PerformanceHorizon.com
  21. 21. Drilling down into your data What impact does each partner have on the path to sale? • Some partners have become very good at grabbing the last click • Others may not be rewarded properly as they are not the last click What is the value of customers being driven by each partner? • Do some partners drive a better type of customer than others? • Are you taking vouchers and discounts into consideration? • Can you factor in lifetime customer value? www.PerformanceHorizon.com
  22. 22. Key takeaways • Performance marketing needs to be taken seriously within your organisation • Provides sales and a framework for innovation • Closely analysing and understanding the data is vital www.PerformanceHorizon.com
  23. 23. Matt Bailey Head of Product, PHG matt.bailey@performancehorizon.com @mattb811 www.PerformanceHorizon.com

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