MediaTrust Performance Affiliate Marketing Ant-Fraud Summit Overview

Performance Marketing Leadership Summit November 3rd 2009 Peter Bordes, CEO, MediaTrust

State of the Industry #1 problem in the industry is fraud. It hurts industry growth because: • It cripples existing business and hurts future growth • Brand advertisers don’t trust the channel, so big budgets are staying on sidelines • Existing advertisers hurt by chargebacks, losses of merchant accounts, lead fraud • Performance marketing segment is losing advertisers to other trusted direct response channels • Publishers have a di cult time nding campaigns with longevity

The Industry is Growing, But... US Online Affiliate Spending - 2005-2012 (Billions) $3.3 $2.9 $2.6 $2.3 $2.1 $1.8 $1.6 $1.3 2005 2006 2007 2008 2009 2010 2011 2012 Online A liate Marketing SpendingTitle Source: Jupiter Research 2008 Category

The reputation of the industry is being damaged ... the fraud issue needs to be addressed immediately!

Why is Fraud Prevalent? • Our Industry has a history of “siloed”, fragmented networks. • Data is “black-boxed” and there is a lack of transparency • Our industry is reactive vs being proactive/in front of issues • Fraud rings can move around due to lack of industry communication and sharing of data • Few industry associations exist to establish standards, best practices and self-regulation • Issue is swept under the rug because people are still making money and afraid to talk about it • It’s up to the networks and platforms to solve this problem

Fraud Example* • Fraud rings are openly buying and selling approved CPA network accounts so that others can login with them to defraud advertisers and end-users * unfortunately, this is one of MANY types of fraud we see every week

So what is MediaTrust doing? • Publisher on-boarding process re-architected to be much more rigorous • Publisher cross-referencing between partner networks • Publisher referencing from trusted publishers • Site and landing page review to examine for nefarious practices • Development of "trusted criteria" for existing network of publishers • Removal of 1000’s of untrusted and un-veri ed publishers • Real-time analysis of live campaigns via proprietary fraud detection software

MediaTrust Process Details

Results Come Fast • We have already earned a reputation as one of the most di cult platforms to get into • Fewer “bad publishers” are applying and our publisher conversion rates have increased with our more demanding sign up process

What should the Industry do? • Support our industry association -the PMA- to set standards/guidelines and create research • Industry leaders need to band together and develop self- regulation guidelines • Create transparency via shared data among providers to prevent fraud rings, nefarious a liates, etc • Generate industry publisher and advertiser whitelists to keep out dodgy players • Develop education and accreditation programs

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MediaTrust Performance Affiliate Marketing Ant-Fraud Summit Overview

by MediaTrust on Nov 11, 2009

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MediaTrust Performance Affiliate Marketing Ant-Fraud Summit Overview Presentation Transcript