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Performance marketing: Display matters - Ulrich Bartholomaus
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Performance marketing: Display matters - Ulrich Bartholomaus

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