MediaTrust Affiliate Convention Denver Keynote

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: 10% of one network’s (LinkShare) affiliate universe!

Huge growth in the number of Affiliate Marketers in all channels

Today this channel is misunderstood & mistrusted

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In order to realize the true potential of performance marketing, we need to understand our past…

Fragmented

Siloed

“ Black Box”

And embrace the future by committing to:

Innovate

Collaborate

Educate

Provide more transparency

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)