MediaTrust's CEO, Peter Bordes' Affiliate Convention Keynote 06.19.09

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+ MediaTrust 4 months ago
love to get people feed back on the @affconvention Key Note presentation.

+ We are all a part of most incredible times as the world experience a game changing shift and evolution + Entire industries are experiencing quantum shifts and are changing forever as we move from industrial age to digital age + Giants of traditional media are reeling and teetering as we make a quantum shift from mass media to me media as we knew it is changing forever as it is decentralized and smashed into a million pieces and moving parts! + Technology and the digital age are accelerating business cycles. + Online media and marketing's growing and evolving at an incredible pace. + as long as our industry is driven by algorithms it is going to keep going. This is what gets me so excites about our industry. Online media and marketing is the “infinite realm of possibility” + new channels, methodologies and mechanisms are created every day. + Industry has shifted from the CPM to the CPC which is the beginning of performance based marketing. + Now fuelled by the economy affiliate performance marketing has

+ We are all a part of most incredible times as the world experience a game changing shift and evolution + Entire industries are experiencing quantum shifts and are changing forever as we move from industrial age to digital age + Giants of traditional media are reeling and teetering as we make a quantum shift from mass media to me media. as we knew it is changing forever as it is decentralized and smashed into a million pieces and moving parts! + Technology and the digital age are accelerating business cycles. + Online media and marketing's growing and evolving at an incredible pace. + as long as our industry is driven by algorithms it is going to keep going. This is what gets me so excites about our industry. Online media and marketing is the “infinite realm of possibility” + new channels, methodologies and mechanisms are created every day.

+ Now fuelled by the economy affiliate performance marketing has become the fastest growing segment of the industry. Industry has shifted from the CPM to the CPC which is the beginning of performance based marketing to the need for 100% performance based marketing. We are also the fastest growing, most misunderstood, acknowledged and measured online marketing channel due to our lack of organization and legacy of being fragmented, siloed and a black box We don not have any idea ourselves how big, vibrant and important we are to the entire online marketing industry. I learned this while fighting the affiliate tax issue. Both the gov side and our side did not have any data. People in affiliate marketing were saying what's the big deal? How big is affiliate marketing anyway in the US or my state. So we created a data visualization smashup to show what the affiliate marketing universe looked like

And here it is…. This is what affiliate marketing looks like. People had an aha moment and “holy shit I had no idea” how big we were. This is only 25% of Linshare’s affiliate database. We could not fit everyone on a map with out turning the US into a big red blob! We are enormous, significant and growing. We touch every aspect of online media and marketing

Affiliate performance marketing is at a wide open door and can be the next industry segment to experience hyper growth We are at an important time when and need to understand how affiliate marketing fits into the entire online marketing universe so we can mature and become an industry Its time to grow up and we are like that pimply faced teenager about to go to prom! In order to make this happen and become great we need to understand our past of being a fragmented and siloed block box And embrace the future of innovation, collaboration, education and transparency This way we all win and we all have a piece of creating our future

This is a visual of what we look like today. Everything is relevant to each other but not connected. All these siloes are driven by and drive performance marketing and also keep us from becoming an aggregate organized industry force to contend with! We to become an industry we need to move towards open, transparent, build collaborative and proactive partnerships. This will allow us to create a composite view and understanding of who we are and what we do

This is our future and what we become by working together This is what gets me so excited and why I am so passionate about our industry We are huge on an aggregate basis. This is the infinite realm of possibility. We touch every form of media at the front end of the funnel, and connect and them and cpm’s and cpc’s to 100% performance driven results And this is what the the future of online marketing looks like and is the enormous opportunity that affiliate performance marketing drives. But enough about me standing hear talking about it. Lets talk about you and everyone that makes up the industry. I want to start practicing open transparency by right here right now by having a conversation with leaders in our industry which we will then open the conversation to include everyone via twitter……. Everyone introduce yourselves

What are greatest challenges and how do we improve? Research, Data and Information: How do we better measure and delineate our effectiveness in the industry?

What's your viewpoint on the consumer experience in relationship to Affiliate Marketing Channel? How does your affiliate channel compare with your other affiliate channels? Advertisers don’t trust affiliates and affiliates don’t trust advertisers. The give and take, the transparency, what is needed? (this would be of value to engage the audience on as well. Long term, strategically, this kind of debate needs to be out in the open. It will take a while to get agreement, so I think it needs to be a frequent topic.)

What are affiliates asking for (data, transparency, tools?) How do you define performance marketing and delineate CPC, Search, from Affiliate Marketing and why it's important to delineate these channels.

What is transparency and what does it mean to performance marketing? How important is Brand in relationship to Affiliate Marketing (both from Publisher and Advertiser perspective) Why is eBay taking an open approach to getting active in the industry? How big is affiliate Channel? And where do you see it going?

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MediaTrust's CEO, Peter Bordes' Affiliate Convention Keynote 06.19.09 - Presentation Transcript

- Online media is more cost-effective, more measurable, more agile
- Consumers spend 20% of media consumption time online
- Marketer budgets to increase above ~7% of overall media spend
Online Ad Industry is Exploding 7.6% $21.2 8.7% 9.9% 11.2% 12.3% 13.8% 15.2% $23.4 $24.5 $26.8 $29.7 $33.7 $37.2 Source: eMarketer April 2009
Affiliate Marketing Spending Increasing
- Economy is accelerating brands, agencies and advertisers to demand for pay-for-results solutions
- Affiliate Performance Marketing is growing with shift from CPM to CPC to pay-for-results model
Source: Jupiter Research 2008 $1.3 $1.6 $1.8 $2.1 $2.3 $2.6 $2.9 $3.3
US Affiliate Marketer Snapshot
- Image:25% of one network’s (LinkShare) affiliate universe!
- Huge growth in the number of Affiliate Marketers in all channels
- Today this channel is misunderstood & mistrusted
Text
- In order to realize the true potential of performance marketing, we need to understand our past…
The Door of Opportunity is Open for Performance Marketing
What can we learn from the past? Click Lead Form Transaction Cost Per Click, (CPC) Cost Per Lead (CPL) Cost Per Sale or Cost Per Action (CPS, CPA) Impression Cost / Thousand (CPM)
- Historically, performance marketing has been ‘blackbox’, fragmented, and siloed
- Marketers forced to buy from these silos and back in to their effective costs across their spend
- Marketer: “There’s no composite picture of the way I want to buy.”
Display Ads Video Ads Social Media Ads Search email Cost-Per-Click Cost-Per-Lead Affiliate Marketing Cost-Per-Sale Cost-Per-Thousand Contextual Ads Text Ads
Composite view of Performance Marketing Ecosystem Traffic Creation Lead Generation Sales Click Lead Form Transaction Marketer Activity Metric Cost Per Click, (CPC) Cost Per Lead (CPL) Cost Per Sale or Cost Per Action (CPS, CPA) Brand Awareness Impression Cost / Thousand (CPM)
- Connect and drive all media formats and pricing models to performance results
- Create quality lifetime value between brands and consumers
Banner Ads Video Ads Text Ads email Search Ads Contextual Ads Social Media Call Center
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