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What does the future hold for perfomance advertising in general?

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What does the future hold for perfomance advertising in general?

  1. 1. Performance Marketing A Natural Choice for Marketers in an Economic Downturn Nicky Iapino – Online Marketing Consultant
  2. 2. Introduction  Over 10 yrs in Online  Commission Junction  DGM  AdLINK Group (affilinet)  Affiliate champion  Performance Marketing in my blood!
  3. 3. Agenda  History of Online Performance Marketing  Current Market Status  Trends  What should Advertisers focus on?  Total Advertising spend Online v Offline  How could Performance work Offline?
  4. 4. History of Online Performance Marketing  Started in the US by Jeff Bezos – Amazon  Affiliate Marketing entered the UK in 1999  Affiliate Networks exploded 2001-04  By 2004, market was worth £600m  Lead Generation business started to emerge  Performance Networks and Arbitrage  Quality over Quantity
  5. 5. Current Market Status UK online retail sales generated by affiliate marketing: 2004-08 £4,500 £4,000 £3,820m £3,500 £3,130m £3,000 GBP Millions £2,500 £2,160m £2,000 £1,500 £1,350m £1,000 £600m £500 £0 2004 2005 2006 2007 2008 2009
  6. 6. What’s happening out there?
  7. 7. Trends in Performance Marketing  Reliance on SEM Publishers – brand bidding restrictions  Incremental sales value – how do Incentive Publishers fit in?  Voucher Code debate!  Measuring against other Online activity – how far do you go?  Attributing multi-commission payments on a sale
  8. 8. What should Advertisers focus on?  Quality over Quantity  Servicing top relationships correctly – more face-to-face contact  Don’t try & grow in a direction that competes with your top relationships  There is still growth in Online…particularly in Performance!
  9. 9. Total Advertising Spend : Online v Offline Total Spend is worth £17.5bn
  10. 10. Online Spend Online  UK Internet Advertising worth £3,3bn in 2008 - the only medium to experience growth  20% of all advertising budgets now spent online  Level pegging with Press Display
  11. 11. Offline Growth Trends: 2008 Offline  Cinema only other medium to show positive growth; 1% of market  The spotlight is now on accountability  Media rationing in place  Commoditization of buying  Prices for Offline real estate have plummeted  ROI is now a given
  12. 12. Total Advertising Spend : Online v Offline Cinema 1% Cinema Direct Mail Directories Direct Mail 12% Television 5% 22% Directories Internet Radio 3% Outdoor Internet 19% Press Classified Press Display 20% Press Display Outdoor 5% Press Classified Radio 13% Total Adspend: £17.5 billion Television Source: IAB/PriceWaterhouseCoopers, 2009
  13. 13. How could Performance work Offline?  TVPRCO channels are still under utilising Performance opportunities  Remnant space and CPA  Commonplace to see URLs in Print and Broadcast format but…  These are regularly generic, and not dedicated to a particular offer, or call to action
  14. 14. Radio Advertising  Volkswagen  British Airways
  15. 15. Adding in Performance  Both adverts push the product’s brand message  Slight amendments to the script would allow you to build in  A product-specific call to action  A unique telephone number and/or URL  A trackable action, and an attribution value (CPA)
  16. 16. TV Advertising  Vodafone ‘Freedom Packs’  Limited customer engagement  Generic contact point  No specific call to action  Could use Performance to help re-establish brand within busy sector
  17. 17. Press Advertising Indesit Washing Machine Philips AUREA Television
  18. 18. Adding in Performance  Ads appeared in Stuff magazine (UK ‘gadget’ magazine, Feb edition)  Neither advert had a specific offer for the model  Adding a unique offer URL or phone number enables clients to track through to order…  And pay Media Partner on a cost per order?
  19. 19. To Summarise  Online has a proven track record in Performance and there is still growth to come this year  Performance is emerging in Offline. It’s always been there, but there but tracking conversion has been manual  Clients looking for more customer engagement across all media
  20. 20. Interesting? Talk to us…. get in touch Nicky Iapino +44 7841 143243 niapino@gmail.com

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