Digital Cadet Presentation



Affiliate Marketing – An Australian
            Perspective




            Matt Bateman
   ...
• Affiliate Marketing explained
• Performance Marketing Explained
• The numbers
  – Market Size
  – Growth Expectations
  ...
Affiliate Marketing Explained

    – Key Metrics and terminology used
    – A brief History of Affiliate in Australia, inc...
Let’s start with a definition


 • Affiliate Marketing is:

          Revenue sharing between online
     advertisers/merc...
Affiliate Network
In the beginning...
Amazon Affiliate Program
First things first – what the hell am I talking
about?

• CPC – Cost Per Click
• CPL – Cost Per Lead
• CPA – Cost Per Acqu...
Affiliate Landscape in Australia
• Fastest-growing sector of online advertising in the
  Australian market
• By our estima...
Performance Marketing Tracking
– how it works
                                        Tracking pixel



                  ...
Key Principles

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

       - Obtain centralised ...
Advertising that
worked…then

Majority of
advertising via text
and banners as well
as XML feeds

All sold on a Cost
Per Sa...
What does an affiliate publisher
look like?
Publisher Perspective
• Concerns over cannibilisation
• Are you really maximising your inventory in terms
  of ad spend?
•...
A comment on E-Commerce in
Australia

 • Where are the major retailers online?

 • How do we get them to engage online?

 ...
Affiliate marketing in Australia
                              Quality
     CPC/CPL                        1
             ...
Performance Marketing
• Natural decentralization of Ad Spend online
• Increasing number of Ad $s going to Search, Ad
  Net...
Pricing Models – US IAB



                      FH 2007    FH 2008

  Performance Deals   50%($4,997) 52%($6,007)


  CPM...
Performance Marketing Landscape in
Australia
The power of email
How not to do it....


 • Scott Richter – Mass Email Deployer
New revenue streams – Facebook
Advertising as a traffic driver
                                  • 200 apps
              ...
Twitter Feeds – Commission Monster and Viva9


 • We are currently using twitter as a general
   feedback and information ...
CASE STUDIES
Australia Post /FDS – Database build
Objective - To build an annual survey panel
of approximately 150,000 unique members.
...
Campaign Examples

Strawberrynet – Sales Campaign
Objective – To drive sales of women’s
cosmetics and men’s grooming produ...
Case Study – Coca Cola
• CPL Program
• Driving a DB for
  coke
• Focus on families
  interested in
  holidays
Campaign Examples
ANZ Cards– Lead Generation

  Open ended lead generation
  campaigns for the whole ANZ Credit
  Card ran...
Case Study – Finance – CBA
affiliate program
•Market-leading brand
•Regular promotions to publishers
•Focus on comparison-...
Job Types in Affiliate/Performance


 •   Account Management
 •   Campaign Management/Trafficking
 •   Affiliate Manager
 ...
WHAT’S NEXT?
Social Media and Performance
Advertising

 • At this stage, affiliates/publishers are driving
   acquisition in social med...
QUESTIONS?
Contact:
Matt Bateman
MD – Viva9
Level 2, 62-64 Riley Street
East Sydney
Ph: (02) 9368 6850
Email: matt@viva9.com
Twitter:...
Resources


 • www.affiliatetip.com
 • www.affiliates4u.com
 • www.emarketer.com
Mobile?
• Mobile advertising is estimated to be a A$5m
  market in 2009
• Even in the US, mobile affiliate is still very s...
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Digital Cadet Presentation

  1. 1. Digital Cadet Presentation Affiliate Marketing – An Australian Perspective Matt Bateman MD Viva9
  2. 2. • Affiliate Marketing explained • Performance Marketing Explained • The numbers – Market Size – Growth Expectations – How it fits into the overall marketing mix • Real World Examples and Case studies • Job types in performance marketing
  3. 3. Affiliate Marketing Explained – Key Metrics and terminology used – A brief History of Affiliate in Australia, including a brief market overview – How it fits into the wider performance mix – Banners, text links – effectiveness and metrics – eDM – how email is used in affiliate marketing to great effect
  4. 4. Let’s start with a definition • Affiliate Marketing is: Revenue sharing between online advertisers/merchants and online publishers/ salespeople, whereby compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model.
  5. 5. Affiliate Network
  6. 6. In the beginning... Amazon Affiliate Program
  7. 7. 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
  8. 8. Affiliate Landscape in Australia • Fastest-growing sector of online advertising in the Australian market • By our estimates, the affiliate market will be worth approx A$40-50M in 2009 • The total performance-advertising part of the market is going to be worth $100-120M+ in 2009 • Estimates have the ‘performance’ part of the market growing at 20-30% year-on-year
  9. 9. Performance Marketing Tracking – how it works Tracking pixel Landing pages Landing pages $ Leads Sales Analytics Layer Consumers Publishers Multiple entry points Central DB Remarketing opportunity
  10. 10. 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.
  11. 11. Advertising that worked…then Majority of advertising via text and banners as well as XML feeds All sold on a Cost Per Sale basis
  12. 12. What does an affiliate publisher look like?
  13. 13. 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
  14. 14. A comment on E-Commerce in Australia • Where are the major retailers online? • How do we get them to engage online? • The Avis model...
  15. 15. Affiliate marketing in Australia Quality CPC/CPL 1 CPA 0 Volume 1 1 0 0 SEARCH – SEO AND PPC 1 RETAIL/CPS
  16. 16. Performance Marketing • Natural decentralization of Ad Spend online • Increasing number of Ad $s going to Search, Ad Networks, and Performance/Affiliate • ‘Portal’ strategies now being replaced by: – Ad Networks (AdConion, Drive PM, 3Di) – Ad Exchanges – Diversified Performance strategies • Sophistication in ad-serving and tracking is enabling agencies and clients to work with multiple networks
  17. 17. Pricing Models – US IAB   FH 2007 FH 2008 Performance Deals 50%($4,997) 52%($6,007) CPM 45%($4,497) 44%($5,026) Hybrid 5%($499) 4% ($477)
  18. 18. Performance Marketing Landscape in Australia
  19. 19. The power of email
  20. 20. How not to do it.... • Scott Richter – Mass Email Deployer
  21. 21. New revenue streams – Facebook Advertising as a traffic driver • 200 apps In 1 weekend • 18 Apps for platinum cards in one week
  22. 22. Twitter Feeds – Commission Monster and Viva9 • We are currently using twitter as a general feedback and information tool on Viva9 • Commission Monster is updating campaigns and campaign changes on the fly as we do new things • Viva9australia • Promotional medium at this early stage
  23. 23. CASE STUDIES
  24. 24. Australia Post /FDS – Database build Objective - To build an annual survey panel of approximately 150,000 unique members. 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.
  25. 25. Campaign Examples Strawberrynet – Sales Campaign Objective – To drive sales of women’s cosmetics and men’s grooming products Delivery Channel – Combination of targeted eDM, banner placement and search, through selected 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
  26. 26. Case Study – Coca Cola • CPL Program • Driving a DB for coke • Focus on families interested in holidays
  27. 27. Campaign Examples ANZ Cards– Lead Generation Open ended lead generation campaigns for the whole ANZ Credit Card range. Campaigns employ a combination of targeted eDM, using quality opt- in databases, and banner placement, through selected affiliates.
  28. 28. Case Study – Finance – CBA affiliate program •Market-leading brand •Regular promotions to publishers •Focus on comparison-based sites Apply today for an everyday Low Rate credit card with Commonwealth Bank
  29. 29. Job Types in Affiliate/Performance • Account Management • Campaign Management/Trafficking • Affiliate Manager • Sales Support • Marketing • BDMs
  30. 30. WHAT’S NEXT?
  31. 31. Social Media and Performance Advertising • At this stage, affiliates/publishers are driving acquisition in social media • Facebook already has profiling and targeting capability • My Space new tools announcement will be interesting • Social media looks more attractive, as search becomes more expensive • Is information-gathering changing? • Twitter and Search combination could be a game-changer
  32. 32. QUESTIONS?
  33. 33. Contact: Matt Bateman MD – Viva9 Level 2, 62-64 Riley Street East Sydney Ph: (02) 9368 6850 Email: matt@viva9.com Twitter: viva9australia;matthieub
  34. 34. Resources • www.affiliatetip.com • www.affiliates4u.com • www.emarketer.com
  35. 35. Mobile? • Mobile advertising is estimated to be a A$5m market in 2009 • Even in the US, mobile affiliate is still very slow in getting off the ground • Some interesting companies in the space: – ADMob – Pudding Media – behavioural targetting and advertising • Drew Ianni (chairman of Ad-Tech) ‘2009 is not the year for mobile advertising’
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