Introducing myself Ulrich Bartholomäus Managing Director affilinet Germany, Austria & Switzerland In the Affiliate Business since 2005 firstname.lastname@example.org www.xing.com/profile/Ulrich_Bartholomaeus twitter.com/Ubartholomaeus http://de.linkedin.com/in/bartholomaus
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
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
High potential to improve Click-Through-Rates and Conversion Rates 34% Xy%
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!
How to increase traffic and increase sales with Performance Display Marketing: Vodafone case Sales were doubled within one quarter.
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
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
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
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
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
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!
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.
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
Management of Publisher CommissionsIndividual commissionscanbedefinedforeReach.
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
EfficientReachas a strategicinstrumentforrevenueincrease Case Study by Pilot on thesubjectofeffectivityof Display-Ads (SMX, 23.04.09)
Ifthetransactionsarereallymainlybased on coincidence, thetransactionsshouldbespreadmoreorlessregularlythroughoutthecookie-liftetime. But ifthetransactionsresultfrom Display contactstheywould happen shortly after thecontact.
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
CostadvantagesofeReach in comparisontoconventional CPM campaigns Conventionaldisplay- campaigns optimizedeReachcampaign Costpools: Costpools: CPM Reach(e.g. 500T PIs) Performance-basedcommissionduringcookielife time Earnings:
deliveryof PIs ascontracted on premiumpublishersites (closedgroups), thereforelesswastecirculation
additional visitorsthrough SEM, whoare not beencannibalizedbytheeReachcampaign
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.
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.
Simple and quick buying process or call to action
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)
An increasingsophisticationof online audienceshasledfewerconsumerstoclick on ads. Clickrateshave fallen to 0,14 % in Spain.
*ComScore: ComScoreis a US-american, international acting, influential Internet-Research company, whoregularlypublishesthe „World-Metrix-Report“, analysingtheusageofinternet.
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.
The importanceof Display Ad campaignsremainsunquestioneddespiteoflowclickrates. Manystudiesrevealthat Display adscanhave a significantimpact on consumerbehaviour, creatingbrandawarenessandpositivelyinfluencingthe offline purchasebehaviour.
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!
EfficientReachas a strategicinstrumentforrevenueincrease Comparisonof all channels Significantincreasein Sales througheReach Sales per Day Overall Sales 15% Sales Sales
eReachcampaignpushes AM and SEM andotherchannels, whereapplicable
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/
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%
The current affiliate distribution explains the strong focus on the last step within in the journey