PubCamp 08 - Matt Bateman - Performance Based Advertising


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"Where is the money in online advertising in Australia?" - Matt Bateman (Viva9 / BlueFreeway Group)
Performance-Marketing models - Australian Trends in Performance and Affiliate Marketing – where is the money in online advertising in Australia?

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PubCamp 08 - Matt Bateman - Performance Based Advertising

  1. 1. Performance-based Advertising Matt Bateman viva9
  2. 2. PubCamp 2008 Matt Bateman
  3. 3. Performance-based advertising How to make it work for you
  4. 4. US Online market turns to performance <ul><li>US Online advertising grew to $21.7 B in 2007 – 26% up vs 2006 </li></ul><ul><li>Lead Generation = approx 7% ($1.5B) </li></ul><ul><li>Performance deals account for 51% of total online advertising spend! </li></ul>Source – IAB Internet advertising revenue report May 2008 Category 2008 2007 CPM or Impression 45% ($9,492) 48%($8,102) Performance Deals 51% ($10,817) 47% ($7,933) Hybrid 4% ($897) 5% ($844)
  5. 5. Market Changes in Australia <ul><li>Natural decentralization of Ad Spend online </li></ul><ul><li>Increasing number of Ad $s going to Search, Ad Networks, and Performance/Affiliate </li></ul><ul><li>Search spend is often a downstream spend supporting other ad campaigns </li></ul><ul><li>‘ Portal’ strategies now being replaced by: </li></ul><ul><ul><li>Ad Networks (Yahoo7) </li></ul></ul><ul><ul><li>Ad Exchanges </li></ul></ul><ul><ul><li>Diversified Performance strategies </li></ul></ul><ul><li>Increasing sophistication in ad-serving and tracking is enabling agencies and clients to work with multiple networks, smaller publishers </li></ul>
  6. 6. First things first – what the hell am I talking about? <ul><li>CPC – Cost Per Click </li></ul><ul><li>CPL – Cost Per Lead </li></ul><ul><li>CPA – Cost Per Acquisition </li></ul><ul><li>CPS – Cost Per Sale </li></ul><ul><li>CPR – Cost Per Response (or Cardio-Pulmonary Resuscitation) </li></ul><ul><li>CPM – Cost Per Thousand </li></ul><ul><li>It really is CPW </li></ul><ul><li>In the Performance Marketing Space, Results count, and the actual tools are irrelevant </li></ul>
  7. 7. Performance Marketing Tracking – how it works
  8. 8. Publisher Perspective <ul><li>Concerns over cannibilisation </li></ul><ul><li>Are you really maximising your inventory in terms of ad spend? </li></ul><ul><li>House ads should be almost non-existent now </li></ul><ul><li>Databases and Profiling – how to make the most out of these </li></ul><ul><li>What’s next? </li></ul><ul><ul><li>Behavioural Targeting (Valueclick have just announced their first efforts in this space) </li></ul></ul><ul><ul><li>Consolidation across verticals </li></ul></ul>
  9. 9. Key Principles <ul><li>- Pay only when the objective of the campaign has been achieved; </li></ul><ul><li>- Obtain centralised reporting, tracking and billing across all participating publishers without the need to pay for expensive third party tracking; </li></ul><ul><li>- Full approval of publishers/websites running the campaign. No Blind Buys. </li></ul>
  10. 10. Affiliate Network
  11. 11. Case Studies
  12. 12. ANZ Cards– Lead Generation Open ended lead generation campaigns for the whole ANZ Credit Card range. Campaigns employ a c ombination of targeted eDM, using quality opt- in databases, and banner placement, through s elected affiliates. Campaign Examples
  13. 13. 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
  14. 14. Coke Database build
  15. 15. <ul><li>THE END </li></ul>