The document discusses the evolution of affiliate marketing, highlighting the shift from traditional advertising methods to more interactive and consumer-driven strategies, including mobile and call performance marketing. It emphasizes the importance of consumer engagement, the adaptation of marketers to new technologies, and the need for relevant content across different platforms. The presentation also includes case studies showcasing successful campaigns and the impact of trends like video marketing on affiliate sales.

1. Evolution of Affiliate Marketing January 12, 2011

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3. SPEAKERS Panelists Eric Collins, COO, MobilePosse Rob Duva, Co-Founder and CMO, RingRevenue.com Mark Silliman, founder and CEO, Spadout.com Moderator Carolyn Kmet Director of Affiliate Marketing, Groupon.com

4. AGENDA Origin of the Affiliate Marketing Species Consumer Evolution Merchant Evolution Affiliate Evolution Call Performance Marketing Mobile/Video Marketing Consequences Conclusion

5. Definition: Affiliate marketers are compensated for driving traffic and sales to retailers From Avon to online, 1886 vs. 1990 Straight text and banner ads Passive, billboard style advertising ORIGINS

6. In 1994, HotWired launched one of the very first paid banner ads Messner Vetere Berger McNamee Schmetterer Ask for forgiveness rather than permission “ Oh wait, it’s clickable?” ORIGINS Source: http://www.wired.com/thisdayintech/2010/10/1027hotwired-banner-ads/

7. Consumers explore their new playground Responsive to free and discounted offers Approving of smileys and animation CONSUMER EVOLUTION Sources: http://www.addemoticons.com/emoticons.html , http://thelongestlistofthelongeststuffatthelongestdomainnameatlonglast.com/banner42.html , http://web.archive.org/web/*/http://www.mypoints.com

8. Consumers lose interest in flashing marquees, marketers adapt CONSUMER EVOLUTION

9. Consumers backfire: interference with browsing experience, privacy invasion CONSUMER EVOLUTION Sources: http://www.longtail.com/about.html

10. The key is delivering content that is relevant to the individual consumer Groupon: dynamic landing page, daily deal widget Amazon: Omakase Best Buy remix MERCHANT EVOLUTION

11. Affiliate marketing becomes device agnostic “ There is no spoon…” AFFILIATE EVOLUTION

12. Rob Duva, RingRevenue.com CALL PERFORMANCE MARKETING

13. CALL PERFORMANCE MARKETING HELP! I have QUESTIONS! Why can’t I find a phone number?! want human interaction before making big-ticket purchases. want live assistance when making online purchases. abandon their shopping carts due to lack of human interaction. Source: Harris Interactive poll – August 2009 54% 77% 53% Not including phone numbers on landing pages or lead forms is bad for customers #FAIL

14. CALL PERFORMANCE MARKETING “ Consumers are increasingly using their mobile phones to engage with advertisers. But when it comes to making a purchase, they’re still hitting the call button” - Jason Cianchetti, Liquid Wireless Mobile: Affiliates not including phone numbers in mobile ads = #FAIL

15. CALL PERFORMANCE MARKETING Local: Affiliates don’t have access to local merchant offers #FAIL

16. CALL PERFORMANCE MARKETING Offline Publishers: Advertisers spend about 90% of their budgets offline RADIO TV PRINT Outdoor For the past 10 years, offline publishers haven't participated in affiliate marketing #FAIL

17. CALL PERFORMANCE MARKETING Track Calls Like Clicks = 800-555-1234 Affiliate marketers can now track calls like clicks. Including phone numbers in ads = #WIN

18. CALL PERFORMANCE MARKETING 2010 Results Adopted by nearly all leading affiliate networks Over 25,000 publishers signed up Advertisers launched hundreds of campaigns Millions in sales and commissions Calls converting at 30-50% Average order values 1.5 to 2x online Improved CTR’s by 5-30% Mobile users placing phone calls Call performance marketing increases ROI across every marketing channel #WIN

19. CALL PERFORMANCE MARKETING What does call performance marketing mean for the continued evolution of affiliate marketing? More advertisers More offers More budget More publishers For Affiliate Networks, Advertisers, and Publishers, More Calls = More Money #WIN

20. Eric Collins, Mobile Posse MOBILE MARKETING

21. Case Study: Ford Taurus Ford Taurus Branding/informational campaign promoting the new 2010 Taurus Educates, informs users about the model on Banner, Offer Screen Lifts brand awareness Drives users to dealer locator Success Factors Timely message Variety in messaging Click-to-WAP functionality Results 20% CTR from banner Over course of campaign 50% of target audience interacted with creative Delivered 270,000 consumers to Ford’s dealer locator site in the month of June Additional Industry Coverage: eMarketer MOBILE MARKETING

22. Case Study: Ford Taurus Industry Coverage “ Across the board…we saw lifts in brand awareness, intent to visit the mobile site and purchase consideration … Specifically, we had a 20% click-through rate on it. So one in five people who saw the ad clicked through it.” - Alex Hultgren , Ford Digital Team 6/11/10 eMarketer Added Value Surveys In conjunction with SafeCount, Mobile Posse facilitated the pre, mid, and post-campaign audience surveys. Users “Clicked-to-Web” to complete and submit the surveys. 01/05/11 - Confidential - MOBILE MARKETING

23. Jack in the Box (Restaurants) Educates, informs users about special offer on Banner, Offer Screen Prompts users to display and redeem coupon from Offer Detail and Coupon Code screens Success Factors Significant in store coupon redemption Redemption likely under-reported by stores (training, new coupon medium, low dollar offers, minimal coupons per store) Case Study: Couponing 01/05/11 Results  Reported Redemption was almost 5% of consumers who clicked from banner 01/05/11 Confidential MOBILE MARKETING

24. Case Study: Retail Ace Hardware Branding/informational campaign promoting Memorial Day Sale event Educates, informs users about Ace Memorial Day Sale on Banner, Offer Screen Summarizes selected sale offer on seasonal item on Offer Screen Success Factors Timely message (sales event) Variety in promoted items/messaging Special pricing encourages near-term purchase Results Post campaign user survey discovered a 30% lift in store visits among exposed users Survey also discovered a 40% lift in store visits among users exposed to both Ace Hardware creative units 01/05/11 Confidential Additional Industry Coverage: MobileMarketer.com MOBILE MARKETING

25. Mark Silliman, Spadout.com VIDEO MARKETING

26. Youtube's Solution … Wac-A-Mole Ads Sooner or later you'll miss the X. $0.001 earning per view | 0.005 click through rate (296,910 page views. 1,412 clicks. $541.20 revenue.) VIDEO MARKETING

27. Spadout’s solution – Value adding ads. Offer solutions. $0.114 earning per view (114x) | 0.24 click through rate (48x) (142,010 page views. 34,239 clicks. $16,211.92 revenue.) VIDEO MARKETING

28. Is mobile the new internet? FTC policy Opt-in and privacy issues Viral deals Tax issues CONSEQUENCES

29. CONCLUSION Questions, comments, kindly worded concerns?

30. CONCLUSION Carolyn Kmet Eric Collins Rob Duva

31. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.