Valuing Partner Traffic through the evolution of Ecommerce
Valuing Partner TrafficThrough the Evolution ofeCommerceChristian ErhardHead of Partner Management EuropeeBay International Marketing GmbH
The marketing landscape is rapidly shifting New formats creating new ad opportunities • Local commerce rejuvenated by mobile • New experiences driven by phone and tablet adoption • Online and offline blur Your advertising spend • Ad formats and behavioral data converging • Search / Social • Display / Search • Shopping Comparison / Affiliates • TV / Internet New consumer behaviours • Personalization • Social commerce • Mobile
In the world ofUNLIMITEDOPPORTUNITIEShow do youDETERMINE VALUEto make theright investment?
Every investment is different. Reward it accordingly. INVESTMENT DEFINE ASSESS ESTABLISH OPPORTUNITY VALUE QUALITY PAYMENT STRUCTURE
What does value in internet marketing mean? Define measurable indicators for each traffic source / campaign Strategic ROI Value - Brand awareness - Visits - Pre-post analysis ROI positive — cost vs spend ROI positive / neutral / negative
Traffic quality - true value Incrementality Would this sale have happened anyway? of sales • Lifetime value of customers Other quality • User onsite behaviour factors • Legitimate traffic
Quick eBay Partner Network background eBay has had an affiliate program since 2001 eBay Partner Network was launched in April 2008 In-house platform has improved availability of data and ability to innovate We’re the merchant (12 eBay sites + Half.com) and the network
Quick eBay Partner Network background Over 100K affiliates in 27 countries Many business models are supported, including portals, niche content sites, blogs, deals/loyalty sites, and more
Why we love affiliate marketing Measurable, ROI Performance- Positive based Rewards Rapid Growth, Huge Entrepreneurs Opportunities
Why did we launch Quality Click Pricing? We began asking ourselves these questions.... ―Did the affiliate’s efforts ―Are the affiliate’s leads generate the lead/sale?‖ worth what we pay for them?‖ ―How do we incentivise ―How do we incentivise our best publishers to publishers driving lower send us more traffic?‖ quality traffic to improve?‖
Quality Click Pricing Drive quality Quality of traffic EPC Amount traffic to eBay evaluated posted INVESTMENT DEFINE ASSESS ESTABLISH OPPORTUNITY VALUE QUALITY PAYMENT STRUCTURE
What is the incremental value affiliates add to my business? • Purchases Would the What is • Bids event have each event • New user taken place • Ad Revenue worth? without ad • Mobile interaction? USER EVENTS VALUE INCREMENTALITY
Quality Click Pricing – short and long term incremental value When traffic is delivered to an eBay site, we assess its quality by looking at the short term and long term incremental value that the traffic brings to eBay. SHORT TERM VALUE LONG TERM VALUE incremental revenue: revenue that new users purchases, PayPal and advertising (ACRUs) generate on eBay + beyond the first few days Engagement after a click = = direct result of the life-time of value to eBay of the publisher’s marketing efforts new customers you drive to our site
Quality Click Pricing Incremental purchase revenue Historical Rolling Long term value of new users Average Additional sources of value TOTAL REVENUE
Mobile Commerce | eCommerceSource: http://techcrunch.com/2012/05/30/heres-kleiner-partner-mary-meekers-latest-data-dump-mind-the-mobile-monetization-gap/
Mobile users have everyday predictable patterns Mobile serves as an alarm Social is checked The mobile is becoming a clock. throughout the day due to new way to ‘count sheep‘ the fresh content and as many browse to relax / desire to stay connected. decompress. “The first time I come “Thanks to my “Late at night, I‘ll have the into contact with my Smartphone I can be iPad out just browsing. phone is early morning. connected all day long I usually check eBay to see I wake up to the alarm with my friends via what auctions are ending on my phone, I roll over Facebook and I know or what‘s new. It‘s and check email.“ what they are up to.“ relaxing.“ Brandon S., 20 Sarah P., 31 Steve G., 45
Using mobile, the WHERE and WHEN become less important – shopping can happen anywhere, anytime Whilst travelling/ Whilst waiting around, ‘Skiving’ at work commuting – trains, e.g. at the school gates buses airports etc In the supermarket Downtime at home In bed at night/upon wakingSource: eBay Mobile Research, m-Commerce users (2765), e-Commerce users (1935)
Characteristics of today’s mCommerce consumers % agreeing with “love online shopping” M purchasers – 81% E only purchasers – 65% % agreeing with “regular shopping sprees” M purchasers – 49% / E only purchasers – 30% % agreeing with “first one to try new things” M purchasers – 50% / E only purchasers – 20% % agreeing with “love discover apps on phone” M purchasers – 45% / E only purchasers – 10%Source: eBay Mobile Research, m-Commerce users (2765), e-Commerce users (1935)
Characteristics of today’s mCommerce consumers Global eBay transactions volume via M--‐commerce was a $3.4 billion market in the U.S. in 2010; expected to grow to $119 billion by 2015 mobile in $ billion across the globe Number of eBay downloads to date: 80,000,000 Expensive items purchased: 8 ebay.com: $ 249,999 Lamborghini Gallardo 5 $ 52,999 Hermes Birkin Crocodile Bag 2 ebay.co.uk: £ 87,896 Maybach Automobile £ 19,595 Vintage Rare Red Sea-Dweller Rolex 2010 2011 2012 ForecastSource: eBay and ABI Research
eBay Partner Network Mobile | Web-to-Web Mobile Traffic vs. classic Web Traffic • Transparency: Partners learn even more about what their customers buy • Efficiency: Activities can be better adapted and optimised to customers shopping behaviour ? • Earnings: All traffic to international eBay mobile sites is taken into account and reported on
A few parting thoughts. Ask yourself: Are you making the most of the data you have? Are you capturing all user events that create value? Is your current payment structure flexible enough to account for future events? Are you ready for what is coming next?
Questions? Christian ErhardHead of Partner Management Europe eBay International Marketing GmbH firstname.lastname@example.org eBay Partner Network Blog: www.ebaypartnernetworkblog.com
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