This document summarizes a presentation about email marketing campaigns using cost-per-acquisition (CPA) versus cost-per-mille (CPM) models. It notes that while CPM campaigns guarantee delivery dates, they carry more risk since payment is made upfront. CPA campaigns pose less risk since payment is only made for acquired leads, but delivery dates are not guaranteed. It recommends testing both models and consolidating marketing partners to improve performance. Mobile optimization, compliance monitoring, and managing data sources are also discussed as keys to success.

1. Battle of the Email Offer Types:
CPA vs. CPM Campaigns
Daryl Colwell
SVP, Matomy Media Group
Affiliate Management Days
San Francisco
April 1, 2015
www.Matomy.com | @dhcolwell

2. ABOUT ME
• Manage North American performance
marketing business for Matomy
• 15 years in digital
• Midwest native
• Forged partnerships with several
blue-chip advertisers
www.Matomy.com | @dhcolwell

3. 2007
LAUNCHED
430
EMPLOYEES
10
OFFICES
26,000
MEDIA PARTNERS
2,000
CUSTOMERS
2014
IPO
ABOUT MATOMY
www.Matomy.com | @dhcolwell

4. AGENDA
• State of email acquisition marketing
• Domain challenges – AOL, Yahoo, Hotmail
• Pros and Cons: CPM vs. CPA email
• How to manage your email marketing
program
www.Matomy.com | @dhcolwell

5. STATE OF THE
INDUSTRY
‘WILD WEST’ DAYS OF EMAIL ARE OVER;
EMAIL ACQUISITION MARKETING IS NOW A
PROFESSIONAL BUSINESS
• Massive shakeup across email industry
• Many mailers have gone out of business
• Data integrity & quality are paramount
• Past: Priced only on performance basis
• Present: Command CPM dollars from same
email drop
• Future: CPM email must be a consideration
for every advertiser
www.Matomy.com | @dhcolwell

6. 1 4AOL is a slow burn
2 5
3 6
Many mailers have gone out of
business
Hotmail now a
challenge in Europe
Less supply but demand is
growing
Yahoo is always tricky;
Gmail is a Unicorn
Don’t expect domain challenges
to ease up in 2015
2015 DOMAIN
CHALLENGES
www.Matomy.com | @dhcolwell

7. • Advertisers: CPM email must be a
part of your email marketing mix
• Guaranteed drop date
• Works great for time-sensitive
verticals
• Reach specific demographics
• Need a very good marketing
partner to make it all work
CPM EMAIL: PROS
www.Matomy.com | @dhcolwell

8. • Can be more expensive than CPA email
acquisition campaigns
• Advertiser has to take upfront risk
• More upfront work required
• Shop around and get multiple references
for CPM mailers
• Do the math and see if a small test makes
sense to determine if a larger-scale
campaign will be profitable
• Scheduling challenges around major holidays
CPM EMAIL: CONS
www.Matomy.com | @dhcolwell

9. • Buying email on CPA basis often ensures ROI-
positive campaign
• Less risk than CPM email buys — paying for
each lead (and each potential customer)
much further down marketing funnel
• Perfect for certain verticals
• Dating email acquisition campaigns perform
best on weekends when mailers are often
not able to sell a CPM
• Mailers can meet and/or exceed average
weekday eCPM by mailing dating offers on
weekends
CPA EMAIL: PROS
www.Matomy.com | @dhcolwell

10. • Require perfect lead flow, creative and landing page
• Optimization is key to backing out to desired eCPM
• Mailing a good offer with a bad landing page or email
creative will waste a lot of $$$ — and piss off your mailer
• Advertiser with poor lead follow up can lose tons of money
effectively buying useless leads
CPA EMAIL: CONS
• Not guaranteed a specific drop date
• Campaign can get trumped by a CPM or even CPC
email buy, which is preferred my many mailers
• Upfront resistance by mailers to test new CPA
campaigns
• The reality: Mailers demanding upfront payments;
affiliates have the power
www.Matomy.com | @dhcolwell

11. KEYS TO MAKING
IT WORK
• Consolidate marketing partner(s)
• Work with few to minimize pitfalls – creative,
suppression file, list duplication
• Ensure partners can also drive scale
• Remove under-performing partners/lists
• Shift budget towards performing partners/lists
www.Matomy.com | @dhcolwell

12. KEYS TO MAKING
IT WORK
• Mix it up – Include both CPM & CPL in your buys
• Be Flexible
• Certain partners on a CPM, Certain partners
on a CPL
• Within partners, Premium – CPL, Run of Mill
– CPL
• Don’t get Sticker Shock – Test, Test, Test.
www.Matomy.com | @dhcolwell

13. KEYS TO MAKING
IT WORK
• Proactively manage your sources
• Understand their data
• Get 3rd-party opinions
• Regular weekly check-ins
• Listen to your affiliates
• Timely/Seasonal creative
www.Matomy.com | @dhcolwell

14. KEYS TO MAKING
IT WORK
• Mobile Optimized Creative
• As many as 80% of recipients
are opening via mobile
• Offer a clean simple design
properly formatted
• Add click-to-call functionality
www.Matomy.com | @dhcolwell

15. KEYS TO MAKING IT
WORK
• Compliance Monitoring
• Partner with a compliance monitoring company to
make sure traffic is watched 24/7 (LashBack,
Omniangle, Performline)
• Draft partnership agreements with an eye on the
worst case scenario.
• Make sure your marketing partner has a
Compliance team looking out for your best interests
www.Matomy.com | @dhcolwell

16. QUESTIONS?

17. SVP, Sales & Business Development
dcolwell@Matomy.com | +1 646 442 5513
DARYL COLWELL
WWW.MATOMY.COM