Performance Marketing
A Natural Choice for Marketers in an
Economic Downturn
Nicky Iapino – Online Marketing
Consultant

Introduction
 Over 10 yrs in Online
 Commission Junction
 DGM
 AdLINK Group (affilinet)
 Affiliate champion
 Performance Marketing in my blood!

Agenda
 History of Online Performance Marketing
 Current Market Status
 Trends
 What should Advertisers focus on?
 Total Advertising spend Online v Offline
 How could Performance work Offline?

History of Online Performance Marketing
 Started in the US by Jeff Bezos – Amazon
 Affiliate Marketing entered the UK in 1999
 Affiliate Networks exploded 2001-04
 By 2004, market was worth £600m
 Lead Generation business started to emerge
 Performance Networks and Arbitrage
 Quality over Quantity

Current Market Status
UK online retail sales generated by affiliate
marketing: 2004-08
£4,500
£4,000
£3,820m
£3,500
£3,130m
£3,000
GBP Millions
£2,500
£2,160m
£2,000
£1,500
£1,350m
£1,000
£600m
£500
£0
2004 2005 2006 2007 2008
2009

What’s happening out there?

Trends in Performance Marketing
 Reliance on SEM Publishers – brand bidding
restrictions
 Incremental sales value – how do Incentive
Publishers fit in?
 Voucher Code debate!
 Measuring against other Online activity – how
far do you go?
 Attributing multi-commission payments on a
sale

What should Advertisers focus on?
 Quality over Quantity
 Servicing top relationships correctly – more
face-to-face contact
 Don’t try & grow in a direction that competes
with your top relationships
 There is still growth in Online…particularly in
Performance!

Total Advertising Spend : Online v Offline
Total Spend is worth £17.5bn

Online Spend
Online
 UK Internet Advertising worth £3,3bn in 2008
- the only medium to experience growth
 20% of all advertising budgets now spent
online
 Level pegging with Press Display

Offline Growth Trends: 2008
Offline
 Cinema only other medium to show positive
growth; 1% of market
 The spotlight is now on accountability
 Media rationing in place
 Commoditization of buying
 Prices for Offline real estate have plummeted
 ROI is now a given

Total Advertising Spend : Online v Offline
Cinema
1%
Cinema
Direct Mail
Directories
Direct Mail
12%
Television 5%
22%
Directories
Internet
Radio
3%
Outdoor
Internet
19%
Press Classified
Press Display
20%
Press Display
Outdoor
5%
Press Classified
Radio
13%
Total Adspend: £17.5 billion Television
Source: IAB/PriceWaterhouseCoopers, 2009

How could Performance work Offline?
 TVPRCO channels are still under utilising
Performance opportunities
 Remnant space and CPA
 Commonplace to see URLs in Print and
Broadcast format but…
 These are regularly generic, and not dedicated
to a particular offer, or call to action

Radio Advertising
 Volkswagen
 British Airways

Adding in Performance
 Both adverts push the product’s brand
message
 Slight amendments to the script would allow
you to build in
 A product-specific call to action
 A unique telephone number and/or URL
 A trackable action, and an attribution value (CPA)

TV Advertising
 Vodafone ‘Freedom Packs’
 Limited customer engagement
 Generic contact point
 No specific call to action
 Could use Performance to help re-establish
brand within busy sector

Press Advertising
Indesit Washing Machine Philips AUREA Television

Adding in Performance
 Ads appeared in Stuff magazine (UK ‘gadget’
magazine, Feb edition)
 Neither advert had a specific offer for the model
 Adding a unique offer URL or phone number enables
clients to track through to order…
 And pay Media Partner on a cost per order?

To Summarise
 Online has a proven track record in Performance and
there is still growth to come this year
 Performance is emerging in Offline. It’s always been
there, but there but tracking conversion has been
manual
 Clients looking for more customer engagement
across all media

Interesting?
Talk to us…. get in touch
Nicky Iapino
+44 7841 143243
niapino@gmail.com