Customer Journey –
a Trip to the Future of CPA

a4u Europe, Munich, May 18th 2010
Thomas Eisinger, explido WebMarketing
Sabine Haase, affilinet GmbH
Alexander Hall, Tipp24 Entertainment GmbH

                         successful together
Agenda



 • About us

 • Background Customer Journey

 • Tipp24 Case
     • Set-up
     • Findings
     • Outlook

 • The way forward

 • Q&As




                                 Page 2
Tipp24Games – Your Partner for Casual Games




                 Company                              Business Model
             Founded in Feb 2008             Users play against each other
         100% subsidiary of Tipp24 SE         Stake between 50 ct. & 10 €
           Casual-based Skillgames          Winner 80%, Tipp24Games 20%




      Gamedesign             Design of Characters              eCommerce
  We design high-quality        We design high-                We have high
    games in terms of        quality and individual           compentence in
    layout & gameplay           game characters              mass transactions



                                                                                 Page 3
explido is an international performance marketing agency


Founded in 1999, explido are now a team of 85 in Augsburg, Frankfurt, Hamburg



      SEM/SEO
  Affiliate Marketing             explido
                                Performance
                                  Tool-Box
  Social Media Marketing
                                     Adtraxx
    Product Portals            Action Allocator
                                     Adfeed
                               Affiliate Tool-Box
  Performance Ads (Display)
                                                       Conversion Optimization
                                                         Usability Optimization
                                                         Landingpage Optimization
                                                         Web Analytics




                                                                                    Page 4
affilinet is the No.1 in Performance Marketing in Germany




  Effective Partnership-                                    Innovative Software
                             Performance based Media
       Management                                                Solutions


• Major European player      • Campaign management       • Marketing tracking
                               for sales, leads and        solution Media Essentials
• 1.600 programs & 450.000     clicks
  publishers                                             • Huge application store
                             • eReach for media
• Innovative products &        performance               • Innovative developer
  platform                                                 portal
                             • Branding performance
• High transparency,           with affilinet security   • Bid management via the
  quality and security         guarantee                   search manager




                                                                                       Page 5
Agenda



 • About us

 • Background Customer Journey

 • Tipp24 Case
     • Set-up
     • Findings
     • Outlook

 • The way forward

 • Q&As




                                 Page 6
Which cookie wins?




                          Is last cookie still state-of-the-art?




How does the                                                       Do I win or do I lose?
journey look like?




                                                                                            Page 7
The journey begins – I want to play Knobel Jack ☺




                                                    Page 8
Usually search is first – Keyword search or even brand search




                                                                Page 9
Maybe a publisher site is next …




                                   Page 10
…plus many other sites…




                          Page 11
And then…YOU GET THERE!




                          Page 12
The Tipp24 case: customer journey example

Lead/sale probablity




                                                                      Affiliate
                                                                      Banner 3      Lead/Sale
                                                      Display        Visual
                                                     Banner 2        penetration

                                                    Click-Cookie
                                       Search

                                     Click-Cookie
                                                                   Decision Phase
                        Display
                       Banner 1
                       View-Cookie

                                                          Time

                                                                                          Page 13
The sales impulse is driven by different channels throughout the journey




              Product         Product           Product           Product
              Branding        Interest           Desire          Purchase



Display

eMail

Search


Affiliate Marketing




                                                                       Page 14
Agenda



 • About us

 • Background Customer Journey

 • Tipp24 Case
     • Set-up
     • Findings
     • Outlook

 • The way forward

 • Q&As




                                 Page 15
Main goal of the analysis for Tipp24




 How does the customer journey look like and how many touchpoints do exist?
       And – how can I use this information to become more effective?




                                                                          Page 16
Assumptions when starting the analysis



• Customer journey lengthy, difficult to analyse

• SEM only „enabler“ of transaction, stands at the end of the chain

• Display will profit from a journey analysis

• Affiliate marketing positioned towards the end of the journey




                                                                      Page 17
The following channels have been looked at




          SEM                  Affiliate     Display
    Non Brand Search          Postview        View




          SEM                  Affiliate     Display
      Brand Search              Click         Click




                                                       Page 18
Technical set-up, tracking requirements, rules applied



• Collecting all clicks and banner views using
  the explido ‚ActionAllocator‘

• Possibility of measuring all different
  touchpoints

• SEM: campaign structured in ‚brand‘ and
  ‚non-brand‘ keywords

• ActionAllocator decides at the point of sale
  which tracking pixels should be activated




                                                         Page 19
The initial results….




                        Page 20
The amount of touchpoints across all measured journeys is 4, the majority
of leads is generated with only 2 touchpoints




                                                                    Page 21
The Top 10 combination models of touchpoints are…




              SEM
              Banner Click -> Banner View -> Banner View
              SEM -> SEM
              Banner Click
              Affiliate Click
              Banner Click -> Banner View
              SEM -> SEM -> SEM
              Affiliate Click -> Affiliate Click
              SEM -> SEM -> SEM -> SEM
              Banner Click -> Banner Click




                                                           Page 22
Which commission attribution model is right?



                        Last cookie wins




  First cookie wins                            Weighed model



                                                           Page 23
Current method: Last Cookie wins



This is the standard method which         Touchpoint_1 Touchpoint_2 Touchpoint_3 Touchpoint_4
assumes that the last touchpoint of the      100 %
                                              0%          100 %
user is responsible for the final
                                              0%           0%          100 %
lead/sale.
                                              0%           0%           0%          100 %




                                                                                   Page 24
First cookie wins leads to an extreme win for display view and brand, since
they are at the start of the journey

                                               Touchpoint_1      Touchpoint_2    Touchpoint_3   Touchpoint_4
First cookie wins assumes that the first          100 %
contact is responsible the generating             100 %              0%
                                                  100 %              0%               0%
interest.                                         100 %              0%               0%            0%




                   + 25.660,00%                               + 29,49%



                                                                                - 7,04%




        - 41,05%




                                                                     - 15,49%
                                           - 96,30%




                                                                                                  Page 25
The weighed attribution leads to an increase for Display view, Affiliate loses
less than in the „first cookie wins“-model

 In this case, the weighed                Touchpoint_1   Touchpoint_2   Touchpoint_3   Touchpoint_4

 attribution assumes that the first              100 %

 and last contact have the highest               50 %        50 %

 value for the advertiser.                       40 %        20 %           40 %
                                                 35 %        15 %           15 %          35 %

                    + 12.577,00%                         + 13,47%




                                                                        - 4,32%




         - 19,69%




                                                           - 7,82%
                                      - 38,22%




                                                                                         Page 26
The current affiliate distribution explains the strong focus on the last step
within in the journey



                                       Coupon
                                Banner
                              community
                                                Cash back
                                                  sites
             Topic Website
               (incl. PV)




                         Email                     Other
                       Distributor




                                                                        Page 27
Initial learnings out of the analysis



• The measurement of all marketing channels brings valuable insights for the
  marketing strategy

• Customer Journey analysis is a process rather than a project

• The journey is specific to a certain industry and to its type of product. In other
  words: each business – even each company – needs its own learnings

• The impact on affiliate marketing strongly depends on the set-up of the affiliate
  base




                                                                                  Page 28
Detailed findings Tipp24 Games:
In a new attribution model affiliates would lose


• The journey consists of only 4 touchpoints

• Display and Brand Search have an impact on sales and leads

• Postview impact is still too low, but could have the same impact as Display View

• Affiliate Marketing is heavily transaction focused and will lose if commission
  attribution is changed

• Current Bid Management strategy has a high impact on the journey (i.e. Brand
  Search)




                                                                               Page 29
Tipp24 Games Outlook:
More insights and a new attribution of investments


• Include the SEO traffic into the game

• Analyse timestamps, i.e. regular lengths of the journey and timings during the
  day

• Increase Postview Affiliate Marketing

• Play with differing commission models for affiliates (also based on business
  models)




                                                                                 Page 30
Agenda



 • About us

 • Background Customer Journey

 • Tipp24 Case
     • Set-up
     • Findings
     • Outlook

 • The way forward

 • Q&As




                                 Page 31
We believe that a successful online advertiser needs to analyse the journey
specific to his industry segment and product



                  •   Cross-channel data analysis will have an increased
                      importance
                  •   The definition of the journey and related touchpoints can
                      change the game


                  •   The optimal marketing mix does not exist as
                      such, it stems from continuous optimisation
                  •   Analysis is only the first step, next is to
                      optimise the channel mix, measure the effects,
                      analyse the results, optimise the mix…..

                  •   The marketing organisation will become more holistic
                  •   All channels and their interaction need to be looked at




                                                                            Page 32
The impact on affiliate marketing – the business model of the affiliate is the
decisive factor for commissions


• Affiliates are heavily transaction focused and will therefore lose, if the
  commissions are simply attributed in a different way

• Postview is a valid option to increase impact of affiliate marketing at the start
  of a journey

• The journey analysis can reveal business models that support transactions, but
  are currently not affordable for affiliates. This could lead to new business
  coming into play.

• To be fair, commissions in affiliate marketing could in future be measured on
  the basis of affiliates business models.




                                                                                Page 33
Thanks for your interest ☺

Q&A‘s please!


Thomas Eisinger, thomas.eisinger@explido.de
Alexander Hall, alexander.hall@t24e.de
Sabine Haase, shaase@affili.net

                                     successful together

explido WebMarketing Customer Journey

  • 1.
    Customer Journey – aTrip to the Future of CPA a4u Europe, Munich, May 18th 2010 Thomas Eisinger, explido WebMarketing Sabine Haase, affilinet GmbH Alexander Hall, Tipp24 Entertainment GmbH successful together
  • 2.
    Agenda • Aboutus • Background Customer Journey • Tipp24 Case • Set-up • Findings • Outlook • The way forward • Q&As Page 2
  • 3.
    Tipp24Games – YourPartner for Casual Games Company Business Model Founded in Feb 2008 Users play against each other 100% subsidiary of Tipp24 SE Stake between 50 ct. & 10 € Casual-based Skillgames Winner 80%, Tipp24Games 20% Gamedesign Design of Characters eCommerce We design high-quality We design high- We have high games in terms of quality and individual compentence in layout & gameplay game characters mass transactions Page 3
  • 4.
    explido is aninternational performance marketing agency Founded in 1999, explido are now a team of 85 in Augsburg, Frankfurt, Hamburg SEM/SEO Affiliate Marketing explido Performance Tool-Box Social Media Marketing Adtraxx Product Portals Action Allocator Adfeed Affiliate Tool-Box Performance Ads (Display) Conversion Optimization Usability Optimization Landingpage Optimization Web Analytics Page 4
  • 5.
    affilinet is theNo.1 in Performance Marketing in Germany Effective Partnership- Innovative Software Performance based Media Management Solutions • Major European player • Campaign management • Marketing tracking for sales, leads and solution Media Essentials • 1.600 programs & 450.000 clicks publishers • Huge application store • eReach for media • Innovative products & performance • Innovative developer platform portal • Branding performance • High transparency, with affilinet security • Bid management via the quality and security guarantee search manager Page 5
  • 6.
    Agenda • Aboutus • Background Customer Journey • Tipp24 Case • Set-up • Findings • Outlook • The way forward • Q&As Page 6
  • 7.
    Which cookie wins? Is last cookie still state-of-the-art? How does the Do I win or do I lose? journey look like? Page 7
  • 8.
    The journey begins– I want to play Knobel Jack ☺ Page 8
  • 9.
    Usually search isfirst – Keyword search or even brand search Page 9
  • 10.
    Maybe a publishersite is next … Page 10
  • 11.
    …plus many othersites… Page 11
  • 12.
    And then…YOU GETTHERE! Page 12
  • 13.
    The Tipp24 case:customer journey example Lead/sale probablity Affiliate Banner 3 Lead/Sale Display Visual Banner 2 penetration Click-Cookie Search Click-Cookie Decision Phase Display Banner 1 View-Cookie Time Page 13
  • 14.
    The sales impulseis driven by different channels throughout the journey Product Product Product Product Branding Interest Desire Purchase Display eMail Search Affiliate Marketing Page 14
  • 15.
    Agenda • Aboutus • Background Customer Journey • Tipp24 Case • Set-up • Findings • Outlook • The way forward • Q&As Page 15
  • 16.
    Main goal ofthe analysis for Tipp24 How does the customer journey look like and how many touchpoints do exist? And – how can I use this information to become more effective? Page 16
  • 17.
    Assumptions when startingthe analysis • Customer journey lengthy, difficult to analyse • SEM only „enabler“ of transaction, stands at the end of the chain • Display will profit from a journey analysis • Affiliate marketing positioned towards the end of the journey Page 17
  • 18.
    The following channelshave been looked at SEM Affiliate Display Non Brand Search Postview View SEM Affiliate Display Brand Search Click Click Page 18
  • 19.
    Technical set-up, trackingrequirements, rules applied • Collecting all clicks and banner views using the explido ‚ActionAllocator‘ • Possibility of measuring all different touchpoints • SEM: campaign structured in ‚brand‘ and ‚non-brand‘ keywords • ActionAllocator decides at the point of sale which tracking pixels should be activated Page 19
  • 20.
  • 21.
    The amount oftouchpoints across all measured journeys is 4, the majority of leads is generated with only 2 touchpoints Page 21
  • 22.
    The Top 10combination models of touchpoints are… SEM Banner Click -> Banner View -> Banner View SEM -> SEM Banner Click Affiliate Click Banner Click -> Banner View SEM -> SEM -> SEM Affiliate Click -> Affiliate Click SEM -> SEM -> SEM -> SEM Banner Click -> Banner Click Page 22
  • 23.
    Which commission attributionmodel is right? Last cookie wins First cookie wins Weighed model Page 23
  • 24.
    Current method: LastCookie wins This is the standard method which Touchpoint_1 Touchpoint_2 Touchpoint_3 Touchpoint_4 assumes that the last touchpoint of the 100 % 0% 100 % user is responsible for the final 0% 0% 100 % lead/sale. 0% 0% 0% 100 % Page 24
  • 25.
    First cookie winsleads to an extreme win for display view and brand, since they are at the start of the journey Touchpoint_1 Touchpoint_2 Touchpoint_3 Touchpoint_4 First cookie wins assumes that the first 100 % contact is responsible the generating 100 % 0% 100 % 0% 0% interest. 100 % 0% 0% 0% + 25.660,00% + 29,49% - 7,04% - 41,05% - 15,49% - 96,30% Page 25
  • 26.
    The weighed attributionleads to an increase for Display view, Affiliate loses less than in the „first cookie wins“-model In this case, the weighed Touchpoint_1 Touchpoint_2 Touchpoint_3 Touchpoint_4 attribution assumes that the first 100 % and last contact have the highest 50 % 50 % value for the advertiser. 40 % 20 % 40 % 35 % 15 % 15 % 35 % + 12.577,00% + 13,47% - 4,32% - 19,69% - 7,82% - 38,22% Page 26
  • 27.
    The current affiliatedistribution explains the strong focus on the last step within in the journey Coupon Banner community Cash back sites Topic Website (incl. PV) Email Other Distributor Page 27
  • 28.
    Initial learnings outof the analysis • The measurement of all marketing channels brings valuable insights for the marketing strategy • Customer Journey analysis is a process rather than a project • The journey is specific to a certain industry and to its type of product. In other words: each business – even each company – needs its own learnings • The impact on affiliate marketing strongly depends on the set-up of the affiliate base Page 28
  • 29.
    Detailed findings Tipp24Games: In a new attribution model affiliates would lose • The journey consists of only 4 touchpoints • Display and Brand Search have an impact on sales and leads • Postview impact is still too low, but could have the same impact as Display View • Affiliate Marketing is heavily transaction focused and will lose if commission attribution is changed • Current Bid Management strategy has a high impact on the journey (i.e. Brand Search) Page 29
  • 30.
    Tipp24 Games Outlook: Moreinsights and a new attribution of investments • Include the SEO traffic into the game • Analyse timestamps, i.e. regular lengths of the journey and timings during the day • Increase Postview Affiliate Marketing • Play with differing commission models for affiliates (also based on business models) Page 30
  • 31.
    Agenda • Aboutus • Background Customer Journey • Tipp24 Case • Set-up • Findings • Outlook • The way forward • Q&As Page 31
  • 32.
    We believe thata successful online advertiser needs to analyse the journey specific to his industry segment and product • Cross-channel data analysis will have an increased importance • The definition of the journey and related touchpoints can change the game • The optimal marketing mix does not exist as such, it stems from continuous optimisation • Analysis is only the first step, next is to optimise the channel mix, measure the effects, analyse the results, optimise the mix….. • The marketing organisation will become more holistic • All channels and their interaction need to be looked at Page 32
  • 33.
    The impact onaffiliate marketing – the business model of the affiliate is the decisive factor for commissions • Affiliates are heavily transaction focused and will therefore lose, if the commissions are simply attributed in a different way • Postview is a valid option to increase impact of affiliate marketing at the start of a journey • The journey analysis can reveal business models that support transactions, but are currently not affordable for affiliates. This could lead to new business coming into play. • To be fair, commissions in affiliate marketing could in future be measured on the basis of affiliates business models. Page 33
  • 34.
    Thanks for yourinterest ☺ Q&A‘s please! Thomas Eisinger, thomas.eisinger@explido.de Alexander Hall, alexander.hall@t24e.de Sabine Haase, shaase@affili.net successful together