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B2B CouponAffiliatesAffiliate Summit West 2013January 14, 2013 1#19468806, iStockphoto

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Worldwide leader in digital contentGetty ImagesLeading provider of digitalmedia content worldwide B2B Coupon Affiliates - Affliate Summit West 2013 2 #83987151, Maarten Wouters/Stone+

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Why are we here? Understand incremental value 3#16933741, iStockphoto

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True incremental growth? 81% 73%B2B Coupon Affiliates - Affliate Summit West 2013 4

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Maybe you’ve heard one of these before… • Customers spend less with a coupon • Coupon customers are less profitable • Coupons cheapen the brand perception • Customers would buy anyways without a coupon • “Last click” coupon affiliates steal salesB2B Coupon Affiliates - Affliate Summit West 2013 5

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The Direct and Indirect Value that Affiliates Deliver to Advertisers Research reported conducted by Forrester Consulting on behalf of Rakuten LinkShare 6

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Key Findings • Generates incremental new customer acquisition • Online buyers are deal-driven and more likely to buy a product they find merchandised or advertised on multiple websites • Attracts consumers who spend more than the average online shopper and are profitable for advertisers. • Affiliate marketing helps trigger brand reconsideration, often closes the sale • Promotions offered in the affiliate channel have a positive impact on an advertiser’s brand reputation and loyaltySource: Forrester Consulting on behalf of Rakuten LinkShareB2B Coupon Affiliates - Affliate Summit West 2013 7

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MYTHCustomers spend less with a coupon 8 #6442730, iStockphoto

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Customers spend more with a coupon 2.6x spend 3.1x spendB2B Coupon Affiliates - Affliate Summit West 2013 9

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Deeper discount ≠ Higher spendingB2B Coupon Affiliates - Affliate Summit West 2013 10

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MYTHCoupon customers are less profitable 11 #3637662, iStockphoto

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Coupons deliver immediate returns 3.1x ROIB2B Coupon Affiliates - Affliate Summit West 2013 12

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Year Time Value Cohort Analysis 13 # 7465953, iStockphoto

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What is a Cohort? • A population of customers sharing common attributes – 1st purchase with a coupon – 1st purchase without a coupon • Follow activity across a period of time to understand customer behavior – Q1 2011 to Q3 2012 – Normalize over 12 months to measure year-time value (YTV) #200516675-001, James Lauritz / Digital VisionB2B Coupon Affiliates - Affliate Summit West 2013 14

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Average Revenue per User (ARPU) Total Revenue over X period Average Revenue = per User Total Cohort PopulationB2B Coupon Affiliates - Affliate Summit West 2013 15

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Customer profitability grows over time 1.5x lift 1.8x profitable 2.0x liftB2B Coupon Affiliates - Affliate Summit West 2013 16

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Retention– long tail of loyal customers long tailB2B Coupon Affiliates - Affliate Summit West 2013 17

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Order Value – customers increase spend 1.12x liftB2B Coupon Affiliates - Affliate Summit West 2013 18

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Frequency – customers spend more often 1.05x liftB2B Coupon Affiliates - Affliate Summit West 2013 19

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Customer profitability grows over time 1.5x lift 1.8x profitable 2.0x liftB2B Coupon Affiliates - Affliate Summit West 2013 20

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MYTHCoupons cheapen thebrand perception 21#6592931, iStockphoto

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Customer Value Tiers Gold Silver Bronze • Agency • Business User • Blogger • In-house • Freelance • Contributor Creative Graphic • Personal Use Enterprise Designer • Sole Proprietor • Media/Publishing • In-house • Student Creative SMB • In-house non- CreativeB2B Coupon Affiliates - Affliate Summit West 2013 22

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Largest contribution from smallest populationB2B Coupon Affiliates - Affliate Summit West 2013 23

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Gold customers are most valuable 1.5x lift 1.4x lift 1.3x liftB2B Coupon Affiliates - Affliate Summit West 2013 24

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MYTH Customers would buy anyways, without a coupon 25#174759, iStockphoto

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Coupon usage on the rise 0% 17% 20%B2B Coupon Affiliates - Affliate Summit West 2013 26

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Google “istock promo code”B2B Coupon Affiliates - Affliate Summit West 2013 27

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Why leave it to chance?B2B Coupon Affiliates - Affliate Summit West 2013 28

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MYTH “Last Click” Coupon Affiliates steal sales 29#739213, iStockphoto

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Short sales cycle to make a purchase Average = 2.04 daysB2B Coupon Affiliates - Affliate Summit West 2013 30

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Conversion rates by affiliate type Average 2.1%B2B Coupon Affiliates - Affliate Summit West 2013 31

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Minimal clicks and overlap amongst affiliates Less than 6% overlapB2B Coupon Affiliates - Affliate Summit West 2013 32

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Key Takeaways Myth Truth Customers spend less with a coupon Customers spend 2-3x more with a coupon Deeper discount ≠ higher spending Coupon customers are less profitable Coupon customers are more profitable both in the short and long term Coupons cheapen the brand perception Most valuable and loyal customers use coupons Customers would buy anyways without a Coupons part of everyday shopping coupon Coupons retain loyal customers “Last click” coupon affiliates steal sales While each affiliate type has a role to play, minimal overlap between affiliatesB2B Coupon Affiliates - Affliate Summit West 2013 33

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Questions?blair.dejong@gettyimages.comwww.gettyimagesaffiliates.com 34 #15376953, iStockphoto