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Digital Cadet Presentation

Digital Cadet Presentation






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    Digital Cadet Presentation Digital Cadet Presentation Presentation Transcript

    • Digital Cadet Presentation Affiliate Marketing – An Australian Perspective Matt Bateman MD Viva9
    • • 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
    • 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
    • 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.
    • 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 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
    • 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
    • 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
    • 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.
    • Advertising that worked…then Majority of advertising via text and banners as well as XML feeds All sold on a Cost Per Sale basis
    • What does an affiliate publisher look like?
    • 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
    • A comment on E-Commerce in Australia • Where are the major retailers online? • How do we get them to engage online? • The Avis model...
    • Affiliate marketing in Australia Quality CPC/CPL 1 CPA 0 Volume 1 1 0 0 SEARCH – SEO AND PPC 1 RETAIL/CPS
    • 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
    • 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)
    • 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 In 1 weekend • 18 Apps for platinum cards in one week
    • 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
    • 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.
    • 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
    • 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 range. Campaigns employ a combination of targeted eDM, using quality opt- in databases, and banner placement, through selected affiliates.
    • 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
    • Job Types in Affiliate/Performance • Account Management • Campaign Management/Trafficking • Affiliate Manager • Sales Support • Marketing • BDMs
    • WHAT’S NEXT?
    • 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
    • Contact: Matt Bateman MD – Viva9 Level 2, 62-64 Riley Street East Sydney Ph: (02) 9368 6850 Email: matt@viva9.com Twitter: viva9australia;matthieub
    • 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 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’