PubCamp 08 - Matt Bateman - Performance Based Advertising

Performance-based Advertising Matt Bateman viva9

PubCamp 2008 Matt Bateman

Performance-based advertising How to make it work for you

US Online market turns to performance

US Online advertising grew to $21.7 B in 2007 – 26% up vs 2006

Lead Generation = approx 7% ($1.5B)

Performance deals account for 51% of total online advertising spend!

Source – IAB Internet advertising revenue report May 2008 Category 2008 2007 CPM or Impression 45% ($9,492) 48%($8,102) Performance Deals 51% ($10,817) 47% ($7,933) Hybrid 4% ($897) 5% ($844)

Market Changes in Australia

Natural decentralization of Ad Spend online

Increasing number of Ad $s going to Search, Ad Networks, and Performance/Affiliate

Search spend is often a downstream spend supporting other ad campaigns

‘ Portal’ strategies now being replaced by:

Ad Networks (Yahoo7)

Ad Exchanges

Diversified Performance strategies

Increasing sophistication in ad-serving and tracking is enabling agencies and clients to work with multiple networks, smaller publishers

First things first – what the hell am I talking about?

CPC – Cost Per Click

CPL – Cost Per Lead

CPA – Cost Per Acquisition

CPS – Cost Per Sale

CPR – Cost Per Response (or Cardio-Pulmonary Resuscitation)

CPM – Cost Per Thousand

It really is CPW

In the Performance Marketing Space, Results count, and the actual tools are irrelevant

Performance Marketing Tracking – how it works

Publisher Perspective

Concerns over cannibilisation

Are you really maximising your inventory in terms of ad spend?

House ads should be almost non-existent now

Databases and Profiling – how to make the most out of these

What’s next?

Behavioural Targeting (Valueclick have just announced their first efforts in this space)

Consolidation across verticals

Key Principles

- Pay only when the objective of the campaign has been achieved;

- Obtain centralised reporting, tracking and billing across all participating publishers without the need to pay for expensive third party tracking;

- Full approval of publishers/websites running the campaign. No Blind Buys.

Affiliate Network

Case Studies

ANZ Cards– Lead Generation Open ended lead generation campaigns for the whole ANZ Credit Card range. Campaigns employ a c ombination of targeted eDM, using quality opt- in databases, and banner placement, through s elected affiliates. Campaign Examples

Strawberrynet – Sales Campaign Objective – To drive sales of women’s cosmetics and men’s grooming products Delivery Channel – C ombination of targeted eDM, banner placement and search, through s elected affiliates within the Viva9 network. Affiliates were paid on a Commission basis based on sales. Results – Achieved in excess of $1 million in sales on a monthly basis Campaign Examples

Coke Database build