Performance marketing: Display matters - Ulrich Bartholomaus


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Performance marketing: Display matters - Ulrich Bartholomaus

  1. 1. Performance Marketing: Display Matters<br />
  2. 2. Agenda<br />1) Introduction<br />2) Why Display Matters<br />3) How to increase and optimse Display Traffic<br />
  3. 3. Introduction<br />
  4. 4. Introducing myself<br />Ulrich Bartholomäus<br />Managing Director affilinet Germany, Austria & Switzerland<br />In the Affiliate Business since 2005<br /><br /><br /><br /><br />
  5. 5. affilinet – the facts<br /><ul><li>Established in Germany in 1997
  6. 6. Operating in 7 countries across Europe
  7. 7. Over 120 staff
  8. 8. 1,600 active affiliate programs
  9. 9. 500,000 affiliate websites
  10. 10. 14 years experience in managing CPA, </li></ul> CPL and CPC campaigns<br />
  11. 11. The Affiliate Marketplace Idea<br />- Grow Marketplace<br />- Increase Service Quality<br />- Continue to offer innovative solutions<br />More Sales & Leads<br />
  12. 12. Why Display Matters<br />
  13. 13. Insights into the affilinet Marketplace – how relevant are display ads in Performance Marketing?<br />What are we looking at?<br /><ul><li> January 2011 figures
  14. 14. Publisher Business Models that use gif banners as primary creative for driving the traffic to the Advertiser‘s sites
  15. 15. Impressions
  16. 16. Unique Users
  17. 17. Click-Through Rates and Conversion Rates</li></li></ul><li>Specific Publisher Business Models use banners as primary creative at very high volumes<br />96%<br />1%<br />0,5%<br />0.21€<br />72%<br />3%<br />0.76%<br />0.40€<br />85%<br />9%<br />0.93%<br />1.45€<br />74%<br />3%<br />1%<br />1.75€<br />Overall 86% of these use Gif Banners (impressions)<br />These models account for 75% of all impressions<br />We reach 24 Mio Unique Users per day with these models in Germany<br />
  18. 18. Display matters!<br />
  19. 19. An Affiliate Network has the power to reach half of all users within a country and one day using gif banners<br />affilinet reach:<br />24 Million Unique Users per day<br />Germany:<br />51,78 Million Internet Users*<br />AGOF Internet Facts 2011-02<br />
  20. 20. The largest Marketing Agencies in Germany<br />
  21. 21. High potential to improve Click-Through-Rates and Conversion Rates<br />34%<br />Xy%<br />
  22. 22. Small improvements in Click-Through-Rates and Conversion Rates have a big impact on increasing Sales<br />25 Mio Unique Users<br />CR of 0.5% (performance media bus model)<br />= 125K Sales<br />Lift CR by 20% to 0.6%<br />= 150K Sales<br />= 20% more Sales<br />20% more Sales!<br />
  23. 23. How to increase traffic and increase sales with Performance Display Marketing: Vodafone case<br />Sales were doubled within one quarter.<br />
  24. 24. How to increase traffic and sales with Retargeting –<br />Online Retail case <br />Revenue increase with Retargeting: affilinet Online Retail Advertiser<br />+ 153%<br />Revenue Retargeting<br />Revenue other business models<br />
  25. 25. High uplift in Click-Through-Rates with Retargeting<br />Retargeting ads increase reach and awareness and in turn increase Click-Through-Rates*<br />0.10%<br />+ 1.240%<br />Standard Click-Through-Rate<br />1.24%<br />Click-Through-Rate Retargeting<br />* Click-Through-Rate affilinet Online Retail Advertiser<br />
  26. 26. High uplift in Conversion-Rates with Retargeting<br />Retargeting increases Conversion-Rate and Sales*<br />+ 650 %<br />2,60 %<br />0,40 %<br />Standard CR<br />CR Retargeting<br />* Conversion-Rate affilinet Online Retail Advertiser<br />
  27. 27. Higher Click-Through-Rate with Retargeting<br />Retargeting ads increase reach and awareness and in turn increase Click-Through-Rates*<br />+ 1.900 %<br />0,02 %<br />0,38 %<br />Standard Click-Through-Rate<br />Click-Through-Rate Retargeting<br />* Click-Through-Rate affilinet Online Retail Advertiser<br />
  28. 28. Conclusions: Driving high volumes in impressions results in higher sales<br />Increased Display Activities =<br />Higher Impressions =<br />More Sales =<br />Even more sales with efficient solutions<br />Improve CTR and CR<br />High volumes in impressions drive branding effects.<br />High volumes in impressions drive sales in other online and offline channels<br />
  29. 29. How to increase and optimise <br />display traffic<br />
  30. 30. How to increase reach and optimise Click-Through-Rates and Conversion Rates<br />Increase Reach with eReach / Post-View Tracking<br />Be more efficient with Retargeting<br />Be more efficient with Mobile Marketing<br />Measure effects and investments with Customer Journey Tracking<br />More Sales!<br />
  31. 31. Customer Surveys: Publisher<br />70% of Publishers think current creatives to be one of the three aspects for an attractive Affiliate Program.<br />Mobile Marketing<br />75% of Publishers see future potentials in Mobile Marketing<br />2010: 55% of Publishers gain users from mobile devices; 2011: 74% of Publisher expect to have users from mobile devices.<br />Customer Journey<br />43% of Publishers would like to earn commissions based on customer journey tracking and think to earn higher commissions this way.<br />
  32. 32. Customer Surveys: Advertiser<br />Retargeting<br />85% know about Retargeting and 36% of those use Retargeting.<br />Over half of the Advertiser who don‘t do Retargeting can imagine to retarget users in 2011.<br />Mobile Marketing<br />19% of Advertisers invest in Mobile Marketing.<br />Customer Journey<br />37 of Advertisers track the customer journey<br />41% think that paying commissions based on customer journey makes most sense in 2011<br />
  33. 33. eReach / Post View Marketing<br />
  34. 34. That‘sEfficientReach<br />Whatis an EfficientReachSale?<br />affilinet cantrack a Sale/Lead, after a Clickor aView (=Impression)hasbeengenerated.<br /><ul><li>EfficientReach (eReach) Sales are Sales/Leads thatarebeinggeneratedthroughcontactwith</li></ul>thecreative (=View)<br /><ul><li> The userhasbecomeawareoftheadvertiser‘screative but hasnot clickedon it
  35. 35. The publisherreceivescommission in casetheusereffectuates a sale/leadattheadvertiser</li></ul> after hiscontactwiththecreative<br />Click Sale = classicalSale<br />View Sale = eReachSale<br />
  36. 36. That‘sEfficientReach<br />Flexible settingoptionsofEfficientReach Tracking<br /><ul><li>Determination of Cookie life time The Cookie life time foreReach Sales canbedeterminedandevenindividuallydefined on publisherlevel.
  37. 37. Management on Publisher LeveleReachcanbesetupacrossthewholeaffiliateprogramas well asfor individual publishers. </li></ul>Therefore affilinet acquiresexperiencedeReachpublishers.<br /><ul><li>Management of Publisher CommissionsIndividual commissionscanbedefinedforeReach.
  38. 38. Management on Creative LeveleReachcanevenbeindividuallyimplementedforspecificcreatives.</li></li></ul><li>EfficientReachas a strategicinstrumentforrevenueincrease<br />Development of a relationshipwith a customer (Customer Journey)<br />Search<br />Sale<br />Banner 2<br />Click-Cookie<br />eReach-creative generates additional visual penetration<br />TV<br />Banner 1<br />Decision phase<br />Click-Cookie<br />
  39. 39. EfficientReachas a strategicinstrumentforrevenueincrease<br />Case Study by Pilot on thesubjectofeffectivityof Display-Ads (SMX, 23.04.09)<br /><ul><li>The followinghypotheseshavebeenanalysed:</li></ul>Ifthetransactionsarereallymainlybased on coincidence, thetransactionsshouldbespreadmoreorlessregularlythroughoutthecookie-liftetime.<br />But ifthetransactionsresultfrom Display contactstheywould happen shortly after thecontact.<br /><ul><li>Result:</li></ul>62% ofthetransactionswererealisedwithin 2 days, 38% withinthefollowing<br />28 days.<br /><ul><li>Conclusion:
  40. 40. Strong correlationbetweenvisualcontactofthe ad andthetransaction
  41. 41. ProveseffectivityofeReach</li></li></ul><li>EfficientReachas a strategicinstrumentforrevenueincrease<br />TOTAL: 3.160 Sales<br />Revenue: 266.900 EUR<br />CPO: 8 EUR<br />witheReach<br />TOTAL: 2.750 Sales<br />Revenue: 233.750 EUR<br />CPO: 8 EUR<br />withouteReach<br />Source: Post View Tracking – Is Play Time Over?, Ronald Paul, CEO Quisma GmbH<br />Minordecrease in directsales (approx. 14%)<br />Increaseofovverallsalesandturnoverbyapprox. 15%<br />Development ofoverall CPO depends on eReachcommission<br />Thus: AdjustmentofpossibleeReachcommissiontomaximumoverall CPO possible<br />
  42. 42. CostadvantagesofeReach in comparisontoconventional CPM campaigns<br />Conventionaldisplay- campaigns<br />optimizedeReachcampaign<br />Costpools: <br />Costpools: <br />CPM Reach(e.g. 500T PIs)<br />Performance-basedcommissionduringcookielife time<br />Earnings: <br /><ul><li>brandstrengthening
  43. 43. deliveryof PIs ascontracted on premiumpublishersites (closedgroups), thereforelesswastecirculation
  44. 44. additional visitorsthrough SEM, whoare not beencannibalizedbytheeReachcampaign
  45. 45. highdisplayefficiency in thevisiblerange</li></ul>On Top:<br /><ul><li> top quality CPM inventory on a CPO base
  46. 46. Media planningandoptimization
  47. 47. visitorsandsalesthataregenerated after thecookielife time arefreeofcharge
  48. 48. additionallygeneratedsearchqueries (organicvisitors) arealreadycoveredwithineReach
  49. 49. preventionof double costs due tocookiepriorization</li></ul>SEM<br />Earnings: <br /><ul><li>brandstrengthening
  50. 50. deliveryof PIs ascontracted
  51. 51. strengtheningof SEM- channel (double costs)</li></li></ul><li> case: there is a high effect on sales from post-view Marketing<br />
  52. 52. Retargeting<br />
  53. 53. Retargeting explained<br />Users who visited the online shop but whodid not make a purchase or any transaction can be targeted at a later stage at any time during their internet surfing stage. Retargeting ads are shown in order to make them remember about the online shop and in order to get them back into the shop for a purchase.<br />
  54. 54. Retargeting in Affiliate Marketing<br />
  55. 55. There are severeal reasons why Retargeting makes sense.<br />Apply any kind of Retargeting solution and chose the ones you prefer.<br />Work with handselected publishers simultaneously.<br />Works for Retail, Finance, Travel, Telco and any other industry.<br />Pay per Sale, Lead or Click.<br />Track with Post-Click or Post-View or combination.<br />
  56. 56. Retargeting ads examples<br />
  57. 57. Mobile Marketing<br />
  58. 58. Mobile Marketing<br />Facts Mobile Marketing<br /><ul><li>Reach
  59. 59. 62,38 million mobile phone users in Germany (88,5% of German population)
  60. 60. Mobile internet usage: over 9 million UMU (Unique Mobile User), 14,6% of German population* </li></ul>* Source: AGOF mobile facts 2010<br />
  61. 61. There are different possibilites to gain mobile traffic<br /><ul><li>Reach-Model
  62. 62. Buy traffic from mobile sites on CPM or CPC
  63. 63. Serveral targeting options like geo, operating system, mobile phone type
  64. 64. Buy specific channels
  65. 65. Performance-Model
  66. 66. Click toCall campaigns as direct response for calls to a call centre
  67. 67. Cost per Lead-campaigns</li></li></ul><li>Mobile Marketing: „how to“ in Affiliate Marketing<br />Prerequisites for successful mobile campaigns<br /><ul><li>Mobile landing page
  68. 68. Integrate the Affiliate Network tracking pixels on the sign-out page
  69. 69. Offer mobile phone optimised banners
  70. 70. Simple and quick buying process or call to action</li></li></ul><li>Customer Journey<br />
  71. 71. EfficientReachas a strategicinstrumentforrevenueincrease<br />ComScore* Study "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“<br />These studyanalyseshow online displayadsaffect European Consumer Behaviour. <br />Results:<br /><ul><li>Online ad spendingincreasedtremendouslyandevensurpassedspendingsfor TV ads. Campaignbudgetismovedfrom CPM campaignsto CPC programs. (Online campaignsrepresent 23% of all mediaspending)
  72. 72. An increasingsophisticationof online audienceshasledfewerconsumerstoclick on ads. Clickrateshave fallen to 0,14 % in Spain.
  73. 73. 8% oftheinternetaudiencegeneratesappr. 85% ofclickvolume.</li></ul>*ComScore: ComScoreis a US-american, international acting, influential Internet-Research company, whoregularlypublishesthe „World-Metrix-Report“, analysingtheusageofinternet.<br />
  74. 74. EfficientReachas a strategicinstrumentforrevenueincrease<br />ComScoreStudie "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“<br />Resumee:<br />Linda Anderson (vicepresidentcomScore)<br /><ul><li>The affectivenessof Display campaignscan not beevaluated on theClickrateanymore, thererforelow CTR can not beseenas a negative indicationofthequalityof a campaignor ist audience.
  75. 75. The importanceof Display Ad campaignsremainsunquestioneddespiteoflowclickrates. Manystudiesrevealthat Display adscanhave a significantimpact on consumerbehaviour, creatingbrandawarenessandpositivelyinfluencingthe offline purchasebehaviour.
  76. 76. In order toevaluatethesuccessof a campaignithastobelookedbeyond ad clicks, a holistic post viewexaminationisnecessary. (didtheuserseethe ad before he acted?).</li></li></ul><li>EfficientReachas a strategicinstrumentforrevenueincrease<br />ComScoreStudie "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“<br />Conclusion:<br />John Lowell (Director Research & Analytics, Starcom USA) “A clickneithergeneratesrevenuenorincreasesthebrandvalue. The mainpurposeof Online-Advertising should not beseen in generatingclicks – but instead in increasingsalesorat least in creatingbrandawareness.”<br />eReachthereforeistheperfectinstrumenttocreate Brand-Awarenessandincreasesales!<br />
  77. 77. EfficientReachas a strategicinstrumentforrevenueincrease<br />Comparisonof all channels<br />Significantincreasein Sales througheReach<br />Sales per Day<br />Overall Sales<br />15%<br />Sales<br />Sales<br /><ul><li>eReachcampaignpushes AM and SEM andotherchannels, whereapplicable
  78. 78. Directsales will decrease
  79. 79. Overall sales will increase</li></li></ul><li>Retargeting has an impact on other online channels<br />Comscore study: Retargeting increases brand searches by 1,046% within 4 weeks.<br />Source: Valueclick media, Comscore, 2010<br />
  80. 80. First cookie wins leads to an extreme win for display view and brand, since they are at the start of the journey<br />First cookiewinsassumesthatthefirstcontactisresponsiblethegeneratinginterest.<br />+ 25.660,00%<br />+ 29,49%<br />- 7,04%<br />- 41,05%<br />- 15,49%<br />- 96,30%<br />
  81. 81. The current affiliate distribution explains the strong focus on the last step within in the journey<br />
  82. 82. Initial learnings out of the analysis<br /><ul><li>The measurement of all marketing channels brings valuable insights for the marketing strategy
  83. 83. Customer Journey analysis is a process rather than a project
  84. 84. The journey is specific to a certain industry and to its type of product. In other words: each business – even each company – needs its own learnings
  85. 85. The impact on affiliate marketing strongly depends on the set-up of the affiliate base</li></li></ul><li>Conclusions<br />
  86. 86. Conclusions<br />Increase your performance-based display spendings now!<br />Apply intelligent tracking solutions and optimise your ROI!<br />Conclusions<br />
  87. 87. affilinet GmbH<br />Uli Bartholomäus<br />Joseph-Wild-Str. 20<br />81829 München<br /><br /><br /><br /><br /><br />
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