This document provides an overview of performance and affiliate marketing. It discusses how affiliate marketing works on a cost-per-sale model and how affiliates can be used for non-eCommerce clients through cost-per-lead models. The document outlines four rules for building an effective email database: understand your audience, focus on trust, transparency and accountability, optimize creative testing, and maintain communication frequency. Several case studies are presented showing how affiliate marketing has been used to generate sales, leads and build databases for clients in various industries.

1. Performance & Affiliate Marketing ExplainedFebruary 2011Matt Bateman : MDGavin Hudson : Key Accounts ManagerViva9 Pty Ltdwww.vivanine.comwww.commissionmonster.com.au

2. AgendaIntroductionsRisk and Reward in Online MediaAffiliate marketing Explained Traditional Cost Per Sale modelUtilising affiliates for non-eCommerce clients - CPLBuilding a deep-profiled email database. Use email and online performance marketing to target key influencers and target demographics The Model 4 Rules How is this relevant to you? Using Social Media in conjunction with affiliate

3. eCommerce in AustraliaWhat was the last product you purchased online?

4. The Company: Viva9Australia’s Leading performance marketing network Part of IPMG http://www.ipmg.com.au/businesses/interactive/businesses/viva9Digicon, PEP Central, Offset Alpine, Holler, MassMedia, Traction, Campaign Master, Response Directive, BlackglassSince 2001Offices - Sydney, Melbourne, AucklandWhat we do: Drive Sales, leads, outcomesAffiliate Marketing: Commission Monster www.commissionmonster.com.auDatabase Marketing: Rewards Palace & Survey Choice

5. Risk and reward in online mediaWhat buys do you do?Cost per…

6. Risk

7. Reward

8. Results

9. Affiliate MarketingAn introduction

10. Performance Marketing Model

11. What we can doDrive outcomesCPM, CPC, CPL, CPA, CPS, CPNAA, Cost Per…VolumeTake online offlineWe can drive offline customers too!VouchersCoupons“Free” brand-buildingCost effective database generationSalesIncremental volume

12. BenefitsViva9 give advertisers the ability to conduct pure pay per performance campaignsFull approval of publishers/websites running the campaign. No Blind BuysEmail affiliates are an excellent ‘push’ channelApproval of valid leadsWork with client to ensure long term profitability and sustainability of channelViva9 can moneitse an effective online channel for non pure eCommerce clients

13. Early Performance Models Focused on eCommerce

14. Traditional Cost Per Sale Model CONS PROS Lower MarginLack of sophisticated publishers Traffic becoming commoditisedSometimes hard to drive volumeLess good for high-value productsMarket Being driven bottom-upGuaranteed ‘can’t lose’ model for clients End Consumer pays no more – commission included in sale priceEasy to explain and sell ‘Environment’ less of a concern

15. Building A DatabaseCost Per Lead (CPL)

16. Building a Database Build a relationship with someone Communicate more effectively Get over that awkward ‘getting to know you’ phaseOnce someone has opted-in, then you can communicate with them and their peers for a relatively low cost ‘Media’ cost is: One upfront cost

17. How do you build an effective database? Quickest way to build a database? An integrated promotion using TV and ATL media as well as onlineMinimum cost-per-record? $20+

18. Lifecycle of an eDM customerInitial Offer ‘Download Information’ ‘Register for free’$3 CPL un-targeted Profile Customer Commercial Rel’shipContinue conversation via Targeted eDM Build audiences Market to them Achieve end result – customer that buys

19. $3 per Customer Signed up On Your SiteHow does this compare with your average cost from other marketing sources?Cost Per Click?Cost Per Listener?Cost Per Walk-In Customer?

20. Meet Sandy Lives: Adelaide, SA- Married, Two Children Age: 40s MGB for the householdHousehold Income: $150k p.a Medium to Heavy Internet UserWorries about: MortgageCar InsuranceHealth InsuranceCares about: The Environment Education

21. Sandy’s Journey

22. Australia Post – Australian Lifestyle Survey35,000 signups in a six-week period across all demos in AustraliaHi Sandy,

23. Meet Rob Age: 23Bachelors Degree Lives: Country NSW Huge online social network – 500+ connections Likes to research best deals on line Heavy Internet user Infrequent consumer of network TV, radio or newspapersInterested in – Deals, cool stuff

24. Survey Choice Landing Page

25. 4 Rules for generating an email database

26. Rule No.1 – Understand your target audience & aimsWho are you trying to talk to? How prepared are you for ongoing dialogue? What does success look like? Online metricsOffline metrics Brand Interaction or a visit to a store

27. Rule no. 2 - 3T’s and an ATrust Transparency TruthAccountabilitySource: Lee Hopkins 2009 – Better Communication Results

28. Rule 3 Optimisation and CreativeContinue to test: Messaging Creative (KISS works)Landing pages and information flows Send users directly to the information they are after – not to a home page Make email creative and banners effective and easy to useListen to the Experts

29. Rule 4 – Once you’ve got them, don’t forget them Have database acquisition built in as part of your overall communications strategy Ensure that you have a frequency in mind5 x a day is probably too much, but monthly may not be enough Work out how email ties in with other strategic imperativesIf you have something of value to communicate, weekly or fortnightly works well

30. Reaching Special Interest GroupsDrive outcomes: Answer a questionnaireFill in a request for information Download an information pack/white paper Register for an email newsletterAppropriate IncentiveViva9 Database Marketing: Rewards Palace, Household Surveys & Survey Choice Database Integrity and managementEither develop the expertise, or use the proper tools

31. Sidchrome - Truckloads of ToolsApproached by agency through referral as existing channels (search, display, email) failing to deliver volume and within acceptable CPA From briefing to launch within 2 daysAchieved initial budget within 3 days of launchViva9 were best performing channel across all media. Display, email, searchLow cost per acquisition and high volumes

32. Some examples

33. Some Current clientsFinance:American ExpressWestpacHSBCCBAVirgin MoneyCPLDellIngham'sAudiNiveaSalesStrawberry NetGuthy Renker, OnlineBrands ExclusiveSpreetsJumpOnItTelcoFoxtelDodoEnginBigPond/TelstraFonality,FoxtelAustralia Post, Sydney Airport,UNICEFNike

34. Australia Post /FDS – Database buildObjective - To build an annual survey panel for the last 4 years. Campaign was broken into 2 x 3 month surveys. Delivery Channel – Combination of targeted eDM, using quality opt- in databases, and banner placement, through selected affiliates within the Viva9 network. Results – Both surveys were completed well ahead of schedule.

35. Ingham's Database Build May 2010 30,000+ opted-in members into the Ingham’s email database over a four week period

36. Principal method of recruitment – performance-based email

37. Cost under $3 per confirmed new member of the Ingham database

38. Continued communication to the database delivering good results

39. New promotion kicked off July 2010

40. ...And Feb 2011 B2B: FonalityTraditionally B2B is a very hard market to push online and via affiliate

41. Fonality offer a niche VOIP solution for businesses

42. Developed an effective cost per lead model with good landing page

43. Over 1000 b2b leads delivered in 3 months = 5,000 handset leads in Jul – Sep 10http://www.fonality.com.au/campaigns/viva_nine/#

44. Current Advertisers

45. Current Advertisers/Group Buying

46. Current Advertisers on Survey Choice

47. Social Media Affiliates are active in social mediaUse social media as a traffic source where permittedWe also buy traffic from social media sources for our clients where requestedSocial Media strategy vs. Social Media as a traffic sourceBlackglass 

48. Conclusions

49. Contact DetailsMatt Bateman Gavin Hudson Viva9Digital VillageLevel 1, Building 1, 85 O’Riordan street Alexandria NSW 2015 Phone: 61 2 9368 6899Email: matt@vivanine.comTwitter: @viva9australia @matthieub

50. Case Studies/ExamplesAppendix

51. Avon: Sales Representative CampaignWe have helped Avon build up their network of representativesOver 7,000 qualified leads delivered in 2010 alone via performance-based eDM's

52. Maybelline: database build30,000 database generated over 3 week of recruitment Purpose to join ‘My Maybelline’ and create a community around the product Successful ongoing program for Maybelline

53. other examples

54. Coca ColaCPL ProgramDriving a DB for cokeFocus on families interested in holidaysOver 30,000 names in database in 2 weeks