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Top Media Performance Base 2007 Ggrt

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Top Media Performance Base 2007 Ggrt

  1. 1. TM Performance Based Advertising <ul><li>TopMedia is a performance based advertising company that develop and employ </li></ul><ul><li>acceleration tactics to promote Search Engine Ranking. </li></ul><ul><li>Automatic Ad Serving and Conversion Optimization </li></ul>
  2. 2. TM in Figures <ul><li>Company info </li></ul><ul><li>Founded 2006, October </li></ul><ul><li>Employees 5, Tel Aviv. </li></ul><ul><li>Reach US, UK, ROW </li></ul><ul><li>Network data </li></ul><ul><li>Clients 3 </li></ul><ul><li>Brands We promote 12 </li></ul><ul><li>Transactions statistics </li></ul><ul><li>Average Monthly Impressions (imps) </li></ul><ul><li>Average Monthly Clicks </li></ul><ul><li>Average Actual Sales Generated by TM </li></ul><ul><li>Financial data </li></ul><ul><li>Revenues ~$50K / Month </li></ul><ul><li>Cash flow positive Burn Rate ~ $15 / Month </li></ul><ul><li>This are approximate values </li></ul>
  3. 3. The Concept Publisher Advertiser Visitor TM invoices advertisers TM pay out to publishers and Creats Publishing Legend: Visitor Cash payments TM tracks impressions, Clicks, Visits and actual castomer acquisition The publisher is being rewarded (straight payment/commission) through the visitors’ usage of unique clicks, leads and sales - Tracking technology - Optimization Knowledge - Administration - Billing
  4. 4. Hundreds of Media Relationships in the US and ROW Advertiser
  5. 5. Companies That Use Performance Based Advertising Services Advertiser
  6. 6. Solution Highlights Ad-Serving Module Merchants Publishers TopMedia Sophisticated Tracking Engine Powerful Relationship Manager Advanced Finance Manager K NO w L EDGE Acceleration of Publishers through Search engine optimization proprietary techniques Optimization Module Best-Converting Traffic Hand-Picked to Maximize Marketing ROI Campaign Types: Pay-per-Sale, Pay-per-Lead, Pay-per-Click Report Types: Publisher Performance, Campaign Performance, Creative Performance, and more
  7. 7. Increasing Demand Adoption Of Channels By Multi Channel Marketers
  8. 8. What Creates Results? Knowledge: What Works For Who m And The Margins Trafficking 24/7 communications with publishers Clear strategy and resource allocation Timely payments Creatives and Landing pages methods SEO Axceleration Use reports - analyse conversions, products sold, etc Research and negotiations with publishers
  9. 9. TM Strengths
  10. 10. Case Studies - Advertisers Titan Poker Vegas Red
  11. 11. &quot;The U.S. online ad market is surging. Online ad spending has increased from $3.5 billion in 1999 to $8.4 billion in 2004, and is projected to grow to $16.1 billion in 2009.
  12. 12. “… more CPA ad networks cropping up, with the top producer reaping $10-20 million per month in revenues… Networks such as DirectLeads , Affiliate Fuel , CPA Empire , and PrimaryAds . The Rise of CPA Ad Networks Advice & Opinions. By & for Marketers September 13, 2005                                                 
  13. 13. <ul><li>In April, Think Partnership [Market Cap: 83.45M] acquired all of the stock of PrimaryAds [Earnings was $1,666,102 for the third quarter of 2005] in exchange for approximately $26 million in cash. </li></ul><ul><li>November 2005, ValueClick bought Web Clients for $141M. </li></ul><ul><li>Web Clients runs Web sites focused primarily on generating leads for advertisers, charging on a cost-per-acquisition (CPA) or cost-per-lead basis. Web Clients also operates a 1,500-strong affiliate network. Last year, it generated approximately $59 million in revenue and was profitable. </li></ul>
  14. 14. <ul><li>ValueClick, Inc. (NASDAQ:VCLK) For the quarter ended June 30, 2005, ValueClick reported revenue of $54.6 million, </li></ul><ul><li>an increase of $20.0 million, or 58 percent, from revenue of $34.6 million for the second quarter of 2004. </li></ul><ul><li>Second quarter 2005 income before taxes was $12.1 million compared to $6.7 million for the second quarter of 2004. </li></ul><ul><li>Net income for the second quarter of 2005 was $8.1 million </li></ul><ul><li>Second quarter 2005 net income before interest, taxes, depreciation, and amortization was $13.7 million, or 25.1 percent of revenue, </li></ul><ul><li>compared to $8.3 million, or 23.8 percent of revenue, for the second quarter of 2004. </li></ul><ul><li>For the third quarter of 2005, ValueClick anticipates revenue in the range of $78.0 million to $79.0 million, </li></ul>
  15. 15. <ul><li>First Advantage Corporation and The First American Corporation jointly acquire a 75 percent ownership interest in LeadClick Media for $150 million. </li></ul><ul><li>September 2005 - Japan's largest online </li></ul><ul><li>shopping mall Rakuten Inc –Rakuten </li></ul><ul><li>buys LinkShare for $425M </li></ul>
  16. 16. <ul><li>&quot;Paid search will continue to grow … increasing from $2.6 billion in 2004 to $5.5 billion in 2009,&quot; </li></ul><ul><li>The cost per click was $0.29 in 2003 and $0.36 in 2004. It is forecast to reach $0.40 in 2005 and $0.42 in 2006. </li></ul><ul><li>According to a recent report from Majestic, based on proprietary Comscore data, the average cost per click for Google AdWords is already $0.54. This indicates that the JupiterResearch model is very conservative. </li></ul>
  17. 17. <ul><li>“ affiliate programs generally attain between 10 to 30 percent of a brand’s total online transactions over time. According to the 2003 Affstat Report, of active affiliate programs, 18 percent are driving 30 percent or more of total site transactions. </li></ul>Commission Junction claims approximately 70,000 “active publishers” and Linkshare reports approximately ten million “partnerships.” In return for approximately 2 to 3 percent of sale, not including set up fees, these public networks will provide a merchant access to the network and tracking. And for the last several years, merchants gladly paid the fees for access. Nine out of the ten leading online retailers work with the “Big Three” -- Commission Junction/ BeFree   (combined under Valueclick), Linkshare or Performics .  [ A Forrester Research study ]
  18. 18. <ul><li>As the SEM market becomes more vertical and less Google-dependent, Shkedi believes, the time will come when advertisers will be forced to take contextual search more seriously. &quot;Search is the best demonstration of a person's intent to purchase something,&quot; he says. &quot;So go after the direct marketers. Those are the ones interested in reaching people, which is the basis of paid search. We believe that at this point in the marketing revolution, it's easier to go after the direct marketers because the demand is so [much] overwhelmingly larger than the supply. We're buying media, we're buying ad space, low-volume inventory from websites, and we're turning it into a high-volume inventory ad space by showing targeted ads to people.“ </li></ul><ul><li>“ Roy Shkedi Finds Joy in AlmondNet's Behavioral Targeting” | NewMedia Spotlight </li></ul><ul><li>http://www.adbumb.com/archives/2005/12/roy_shkedi_find.php </li></ul>
  19. 19. <ul><li>Advertising.com </li></ul><ul><li>Advertising.com offers proprietary technology including a unique yield management system that dynamically allocates individual ads to individual affiliates based on expected revenues rather than more conventional criteria. The goal is to maximize each advertiser's affiliate marketing income across the network of affiliates. Its email management system enables easy maintenance and tracking of multiple lists and multiple mailings. The system also integrates easily with popular merchant lead capture and email systems. In addition, the company's proprietary ad-serving technology reliably and cost-effectively delivers more than 10 billion impressions each month. Merchants need no infrastructure of their own and are not required to pay any up-front costs. Advertising.com is owned by AOL. </li></ul>
  20. 20. <ul><li>ClickBank </li></ul><ul><li>ClickBank provides affiliate marketing support for more than 10,000 products and services delivered entirely over the Internet. Online publishers place a &quot;Buy It At ClickBank&quot; button on their Web site, enabling ClickBank to promote the item through its network of 100,000 affiliates. Affiliates use their own Web sites to send traffic to a publisher's site, which retains full responsibility for explaining the product and referring customers to ClickBank for a purchase. ClickBank then pays commissions to both the publisher and the affiliate. ClickBank asserts that this arrangement has significant advantages over any combination of stand-alone solutions for billing, marketing or affiliate management. It helps assure affiliates they will be paid for every sale, frees advertisers from fear of fraud or misrepresentation, and pays commissions only on a purchase. The latter is very good from the publisher's standpoint, since every dollar of cost is derived from a consummated sale. Payments are normally made within 15 days of the close of each accounting period. </li></ul>
  21. 21. <ul><li>Commission Junction </li></ul><ul><li>This is probably one of the most popular affiliate networks. Affiliates tend to like this network because they receive just one check no matter how many programs they are affiliated with. Commission Junction boasts real-time tracking and reporting for both affiliates and advertisers, as well as advanced tools that can help advertisers (that’s you) earn the most revenue possible. It publishes performance metrics on publishers, advertisers and their ads, and emphasizes service, education and promotion. The company ranks among the largest ad networks in the world. </li></ul>
  22. 22. <ul><li>Direct Leads Network </li></ul><ul><li>DirectLeads pays for both leads and click-throughs. The network has a wide variety of merchants signed up, and claims that most of its programs are very successful -- generally making money despite payouts as high as $0.50 per click, or even more. Founded in 1997, at the very start of the affiliate marketing boom, DirectLeads now claims some 19,000 affiliates working for more than 200 top-tier merchants. It offers participants creative consultations as well as campaign management and the usual portfolio of technology and information services. </li></ul>
  23. 23. <ul><li>LinkShare </li></ul><ul><li>LinkShare positions itself as a pioneer in the online affiliate marketing industry, and claims to run “the largest pay for performance affiliate marketing network on the Internet,” with some “10 million partnerships” in the network. Using patented technology, LinkShare reports on every ad or placement in the network, and prides itself on helping a merchant new to affiliate marketing set goals, define strategies and prioritize tactics en route to creating, managing and optimizing their affiliate marketing program. </li></ul>
  24. 24. <ul><li>Performics </li></ul><ul><li>Performics lets its clients develop a custom approach to affiliate marketing, search engine marketing and lead generation programs. The company's style of active account management is intended to help clients get the most from every one of its online customers. If you’re interested in Search Engine Optimization and/or Lead Generation, in addition to Affiliate Marketing, Performics is well suited to help you with any combination of these marketing methods. </li></ul>
  25. 25. <ul><li>Websponsors Network </li></ul><ul><li>Websponsors specializes in paying for user action, such as signing up for a newsletter or inquiring about a product. The network has a wide variety of merchants’ offers. According to its statistics, conversion rates (prospects becoming customers) tend to be quite high. Many affiliates say this is their most profitable network, and it has the added advantages of paying promptly. It offers merchants an international reach without the usual cross-border problems. </li></ul>
  26. 26. <ul><li>FineClicks </li></ul><ul><li>FineClicks can be set up to pay for clicks, leads, sales or pop ups. It pays within 20 days by either check or PayPal. The company focuses on helping advertisers get the best return on investment (ROI), and claims its affiliates are carefully screened and thoroughly reviewed. Merchants can also reject any affiliates they feel do not measure up, and can recruit their own affiliates and run them through the FineClicks network. Merchants can choose to pay their affiliates per sale, per lead, per click, per pop up or pop under, or any combination of these. </li></ul>

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