Presentation given at Digicon in Brisbane, Feb 2011

1. Performance & Affiliate Marketing Explained February 2011 Matt Bateman : MD Gavin Hudson : Key Accounts Manager Viva9 Pty Ltd www.vivanine.com www.commissionmonster.com.au

2. Agenda Introductions Risk and Reward in Online Media Affiliate marketing Explained Traditional Cost Per Sale model Utilising affiliates for non-eCommerce clients - CPL Building a deep-profiled email database. Use email and online performance marketing to target key influencers and target demographics The Model 4 Rules How is this relevant to you? Using Social Media in conjunction with affiliate

3. eCommerce in Australia What was the last product you purchased online?

4. The Company: Viva9 Australia’s Leading performance marketing network Part of IPMG http://www.ipmg.com.au/businesses/interactive/businesses/viva9 Digicon, PEP Central, Offset Alpine, Holler, MassMedia, Traction, Campaign Master, Response Directive, Blackglass Since 2001 Offices - Sydney, Melbourne, Auckland What we do: Drive Sales, leads, outcomes Affiliate Marketing: Commission Monster www.commissionmonster.com.au Database Marketing: Rewards Palace & Survey Choice

5. Risk and reward in online media What buys do you do? Cost per…

6. Risk

7. Reward

8. Results

9. Affiliate Marketing An introduction

10. Performance Marketing Model

11. What we can do Drive outcomes CPM, CPC, CPL, CPA, CPS, CPNAA, Cost Per… Volume Take online offline We can drive offline customers too! Vouchers Coupons “Free” brand-building Cost effective database generation Sales Incremental volume

12. Benefits Viva9 give advertisers the ability to conduct pure pay per performance campaigns Full approval of publishers/websites running the campaign. No Blind Buys Email affiliates are an excellent ‘push’ channel Approval of valid leads Work with client to ensure long term profitability and sustainability of channel Viva9 can moneitse an effective online channel for non pure eCommerce clients

13. Early Performance Models Focused on eCommerce

14. Traditional Cost Per Sale Model CONS PROS Lower Margin Lack of sophisticated publishers Traffic becoming commoditised Sometimes hard to drive volume Less good for high-value products Market Being driven bottom-up Guaranteed ‘can’t lose’ model for clients End Consumer pays no more – commission included in sale price Easy to explain and sell ‘Environment’ less of a concern

15. Building A Database Cost Per Lead (CPL)

16. Building a Database Build a relationship with someone Communicate more effectively Get over that awkward ‘getting to know you’ phase Once someone has opted-in, then you can communicate with them and their peers for a relatively low cost ‘Media’ cost is: One upfront cost

17. How do you build an effective database? Quickest way to build a database? An integrated promotion using TV and ATL media as well as online Minimum cost-per-record? $20+

18. Lifecycle of an eDM customer Initial Offer ‘Download Information’ ‘Register for free’ $3 CPL un-targeted Profile Customer Commercial Rel’ship Continue conversation via Targeted eDM Build audiences Market to them Achieve end result – customer that buys

19. $3 per Customer Signed up On Your Site How does this compare with your average cost from other marketing sources? Cost Per Click? Cost Per Listener? Cost Per Walk-In Customer?

20. Meet Sandy Lives: Adelaide, SA - Married, Two Children Age: 40s MGB for the household Household Income: $150k p.a Medium to Heavy Internet User Worries about: Mortgage Car Insurance Health Insurance Cares about: The Environment Education

21. Sandy’s Journey

22. Australia Post – Australian Lifestyle Survey 35,000 signups in a six-week period across all demos in Australia Hi Sandy,

23. Meet Rob Age: 23 Bachelors Degree Lives: Country NSW Huge online social network – 500+ connections Likes to research best deals on line Heavy Internet user Infrequent consumer of network TV, radio or newspapers Interested in – Deals, cool stuff

24. Survey Choice Landing Page

25. 4 Rules for generating an email database

26. Rule No.1 – Understand your target audience & aims Who are you trying to talk to? How prepared are you for ongoing dialogue? What does success look like? Online metrics Offline metrics Brand Interaction or a visit to a store

27. Rule no. 2 - 3T’s and an A Trust Transparency Truth Accountability Source: Lee Hopkins 2009 – Better Communication Results

28. Rule 3 Optimisation and Creative Continue to test: Messaging Creative (KISS works) Landing pages and information flows Send users directly to the information they are after – not to a home page Make email creative and banners effective and easy to use Listen to the Experts

29. Rule 4 – Once you’ve got them, don’t forget them Have database acquisition built in as part of your overall communications strategy Ensure that you have a frequency in mind 5 x a day is probably too much, but monthly may not be enough Work out how email ties in with other strategic imperatives If you have something of value to communicate, weekly or fortnightly works well

31. Sidchrome - Truckloads of Tools Approached by agency through referral as existing channels (search, display, email) failing to deliver volume and within acceptable CPA From briefing to launch within 2 days Achieved initial budget within 3 days of launch Viva9 were best performing channel across all media. Display, email, search Low cost per acquisition and high volumes

32. Some examples

33. Some Current clients Finance: American Express Westpac HSBC CBA Virgin Money CPL Dell Ingham's Audi Nivea Sales Strawberry Net Guthy Renker, Online Brands Exclusive Spreets JumpOnIt Telco Foxtel Dodo Engin BigPond/Telstra Fonality, Foxtel Australia Post, Sydney Airport, UNICEF Nike

34. Australia Post /FDS – Database build Objective - To build an annual survey panel for the last 4 years. Campaign was broken into 2 x 3 month surveys. Delivery Channel – Combination of targeted eDM, using quality opt- in databases, and banner placement, through selected affiliates within the Viva9 network. Results – Both surveys were completed well ahead of schedule.

36. Principal method of recruitment – performance-based email

37. Cost under $3 per confirmed new member of the Ingham database

38. Continued communication to the database delivering good results

39. New promotion kicked off July 2010

41. Fonality offer a niche VOIP solution for businesses

42. Developed an effective cost per lead model with good landing page

43. Over 1000 b2b leads delivered in 3 months = 5,000 handset leads in Jul – Sep 10http://www.fonality.com.au/campaigns/viva_nine/#

44. Current Advertisers

45. Current Advertisers/Group Buying

46. Current Advertisers on Survey Choice

47. Social Media Affiliates are active in social media Use social media as a traffic source where permitted We also buy traffic from social media sources for our clients where requested Social Media strategy vs. Social Media as a traffic source Blackglass 

48. Conclusions

49. Contact Details Matt Bateman Gavin Hudson Viva9 Digital Village Level 1, Building 1, 85 O’Riordan street Alexandria NSW 2015 Phone: 61 2 9368 6899 Email: matt@vivanine.com Twitter: @viva9australia @matthieub

50. Case Studies/Examples Appendix

51. Avon: Sales Representative Campaign We have helped Avon build up their network of representatives Over 7,000 qualified leads delivered in 2010 alone via performance-based eDM's

52. Maybelline: database build 30,000 database generated over 3 week of recruitment Purpose to join ‘My Maybelline’ and create a community around the product Successful ongoing program for Maybelline

53. other examples

54. Coca Cola CPL Program Driving a DB for coke Focus on families interested in holidays Over 30,000 names in database in 2 weeks