Search Engine Room Presentation Viva9
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Search Engine Room Presentation Viva9

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Matt Bateman speaking at Search Engine room November 18th 2009

Matt Bateman speaking at Search Engine room November 18th 2009

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  • 1. Performance Marketing Sydney 2009 Matt Bateman MD Viva9
  • 2. Performance/Affiliate Marketing in Australia
    • In the beginning
    • How does it work?
    • Different models
    • 6 Simple rules of Performance marketing
    • Relationship with search
    • Arbitrage
    • Looking into the crystal ball
  • 3. In the beginning...
  • 4. Performance Marketing Model
  • 5. Early Performance Models Focused on eCommerce
  • 6. Traditional Cost Per Sale Model
    • PROS
    • 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
    • CONS
    • 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
  • 7. Financial Model
  • 8. Cost Per Lead/Cost Per Acquisition Models
    • Cost Per Lead:
    • Qualified Lead into a database
      • Phone leads
      • Direct email leads
    • Can be as simple as First Name, Last Name, Email Address
    • Or as complex as ’25+ men in Rural NSW who don’t have Austar’
    • One is obviously going to cost more than the other, as there is less incidence in the population and it’s harder to find them
    • Cost Per Acquisition - usually higher value – Credit Cards, Insurance customers, telco customers
  • 9. Performance-Marketing
  • 10. Performance Marketing Growth
    • Natural decentralization of Ad Spend online
    • Increasing number of Ad spend going to Search, Ad Networks, and Performance/Affiliate
    • ‘ Portal’ strategies now being replaced by:
      • Ad Networks (AdConion, Drive PM, 3Di)
      • Ad Exchanges
      • Affiliate networks
      • Diversified Performance strategies driven by Search
    • Lower barrier to entry to the market
    • More choice for advertisers, but also more confusion
  • 11. Market by Segment in Australia – Affiliate in 2008
  • 12. 2009 Affiliate Market Defined
  • 13. IAB Report – Total Online Advertising
  • 14. The Tail is no longer the tail – ‘affiliates’ are becoming sophisticated
  • 15. The Cosmetics Club
  • 16. Finance
  • 17. 6 Rules for performance marketing
  • 18. 1. WIN-WIN-WIN
    • Publishers Care about EPC and ECPM
      • In general categories, anything under $0.40c EPC is marginal
      • In Credit Cards, the benchmark EPC $3.50 up to $10
    • Networks and aggregators need volume and consistency
    • Clients want the performance marketing promise – ‘only pay if it works’
    • It only works if it is genuinely a partnership between publisher/network/advertiser
  • 19. Rule no. 2 - 3Ts and an A
    • Trust
    • Transparency
    • Truth
    • Accountability
    Source: Lee Hopkins 2009 – Better Communication Results
  • 20. Rule 3 - Remember the 4 Ps
    • Price
      • Test, niche, less than offline
    • Place
      • Where are your customers? - Search, affiliates, newsletters, social
    • Promotion
      • FREE works
      • WIN works
      • Recommendations work
      • Special offers work – with clients and affiliates
    • Product
      • Is it right for the performance channel
  • 21. Rule 4 Optimisation
    • Landing pages
    • Test, Test and Test
    • Good usability principles
    • Continue to test
    • Easy ordering process and follow up
    • Reviews
    • Change creative regularly
    • Datafeeds
    • IF IT WORKS IN SEARCH, IT WORKS
  • 22. Rule 5 Work with genuine partners
    • Never work with someone who can’t tell you where the traffic is coming from
    • Get educated
    • Get references
    • Affiliate/Performance Marketing is about doing lots of little things right
    • It is not easy, but can be very rewarding
  • 23. 6 – Ensure you have rules around Search
    • Understand what you’re buying in Search
    • Search is crucially important to any performance campaign, but you need to understand what you’re buying
    • Does last click win?
    • Are you optimising properly?
    • Work with large publishers and have rules around what they can search on – closed networks
  • 24. Dos and Don’ts of working with networks
    • DON’Ts
    • DON’T let your search provider run your affiliate program
    • DON’T ‘set and forget’
    • DON’T work with a network that isn’t transparent and won’t return calls
    • DOs
    • Do trial different networks
      • But, have clear rules in place
    • DO Have clear metrics in place – understand what success looks like
    • DO Establish a relationship with large publishers
    • DO Work with a transparent network
  • 25. Everybody Wants CPS
    • Wouldn’t it be great if you could reduce everything to a cost-per-sale?
    • Key Question: ‘How well do my members know your brand/product?’
    • Experience shows that the 3 RD COMMUNICATION has huge payout on eDM
    • WORK TOWARDS ECPS
  • 26. Lifecycle of an eDM customer Initial Offer ‘ Chance to win’ ‘ 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
  • 27. Nightmares for a performance marketer
    • The campaign does not convert
    • There is limitless budget, but we can’t fill it
    • We simply cannot find the audience the customer is after (often because it has been over-complicated)
  • 28. Models are changing
    • Arbitrage on its own doesn’t work
    • Most networks are surviving by re-selling clicks and/or impressions
    • You need:
      • Technology – eg Behavioural
      • Profiled Audiences and ways to reach them
      • Control over your own inventory
      • Add value on the strategy and planning side of things and are acting as virtual agencies
    • Agencies need to be careful that if they don’t understand performance models, they might find themselves out of the conversation
  • 29. A comment on E-Commerce in Australia
  • 30. A comment on E-Commerce in Australia
    • Major Retailers are beginning to migrate online
      • Harveys
      • Bing Lee
      • Myer
      • David Jones
        • Have all made some announcement about E-Commerce in the last 6 months
    • So far it has been a bottom-up push to E-Commerce and online sales
    • The traditional advertising models won’t work
    • Are large retailers ready to adapt?
  • 31. 2010?
    • Expect continued growth in the performance sector
    • There will be consolidation/changed business models
    • The year E-Commerce grows up in Oz?
    • What impact social?
    • Jury still out on mobile advertising
  • 32.
    • Matt Bateman
    • MD – Viva9
    • Email: [email_address]
    • Twitter: viva9australia;
    • @matthieub
    • Please don’t forget www.movember.com.au
    • And if you get a chance, check out @kurtfearnley
    Contact:
  • 33. CASE STUDIES
  • 34. 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
  • 35.  
  • 36. The power of email
  • 37. Crazy Sales
  • 38. Don’t underestimate the power of email
    • Pareto Principle – don’t always hunt new customers
    • Relevant email communications work – newletters, special offers
    • Test building an external database on a Cost-Per-Lead basis
    • Use professional email tools like Campaign Master – www.campaignmaster.com.au
    • Any money spent will be a huge saving downstream
  • 39. Resources
    • www.affiliatetip.com
    • www.affiliatesummit.com.au
    • http://www.affiliateforum.com.au/
  • 40. 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’
  • 41. Performance Marketing Landscape in Australia Affiliate Email Publishers & Networks SEARCH – SEO AND PPC
  • 42. The Ripple Effect in Social Networks Laurel Papworth Presentation – affili@syd 2009
  • 43. New revenue streams – Facebook Advertising as a traffic driver
    • 200 apps
    • In 1 weekend
    • 18 Apps for
    • platinum cards in one week