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How can CPA based business models survive in the future? ,[object Object],[object Object]
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Online Marketing Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Each channel has its strengths and weaknesses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Budgets are shifted to performance – display advertising increasingly measured on performance 2.907 Mio . 3.648 Mio. (+25%) 4.026 Mio. (+10%) (+25%) (+15%) (+10%) (+10%) (+27%) (+24%) (+15%) (+10%) (+10%) (+25%) Growth of Affiliate Marketing in Europe Online Marketing Spendings in Germany Gross!
But successful online marketing requires the right combination of channels  Display eMail Search Affiliate Marketing
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object]
We need to understand the consumer journey before the purchase
During the journey the user has multiple adcontacts each contributing to the sale Source: doubleclick case study Clicks on an affiliate ad (pricecomparison) Clicks on a display ad  Click on paid search term in Google Books a 3 night short break for 12 August Click on an display ad Click on a affiliate ad Search on Google Sale 1st June 11th June 18th June 18th June User Conversion: 2% CPA: 20 GBP Conversion: 0.5% CPA: 60 GBP
Why is a detailed analysis and a holistic tracking so important? ,[object Object],[object Object],[object Object],[object Object],Source: doubleclick case study Measure the path to purchase and map out purchase funnels
purchase funnel: the steps interact with each other Source: doubleclick case study 10,000 visitors 100 sales Brand awareness Convert to sales 1%  Conversion Initial brand awareness Brand engagement Product discovery Consideration Product  selection 10,000 1,000 100 5,000 250 View  banner ad Search Read email Click affiliate ad
Display ads influence consumer behaviour and have latency effects:  ,[object Object],[object Object],Source: comscore, 12, 2008,  HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?
Display ads trigger search queries on advertiser´s brand and generic terms  Source: comscore, 12, 2008,  HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?
Display ads also influence buying behaviour – online and offline ,[object Object],[object Object],[object Object],Source: comscore, 12, 2008,  HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?
A combination of all online marketing activities brings  a lift in sales of 173% ,[object Object],[object Object],[object Object],[object Object],Source: comscore, 12, 2008,  HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object]
Lessons learned for Advertisers:  An integrated approach is key to success ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CPA based budget allocation Deduplication
Lessons learned for publishers:  Decide on the channel you want to earn money with ,[object Object],[object Object],[object Object],Yield Management Targeted  content
Affiliate network technologies will help advertisers and publishers to improve their returns Postview Integrate postview tracking for measuring the efficiency of publisher reach and remunerate for it Cookie Hierarchies & Split Commissions Search Manager Campaigns Use display campaigns to leverage inventory for short term goals Complement direct SEM with SEM via affiliates  Remunerate branding effects and second cookie, allow for hierarchical commission structures
Any questions?  We are happy to discuss the future of affiliate marketing with you.
Warner Case Study: How to set-up a multi channel campaign Affiliate Networks Website Sale Paid Search Display eMail Behavioural CPM CPA Source: doubleclick case study

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How Can CPA Based Business Models Survive In The Future

  • 1.
  • 2.
  • 3.
  • 4.
  • 5. Budgets are shifted to performance – display advertising increasingly measured on performance 2.907 Mio . 3.648 Mio. (+25%) 4.026 Mio. (+10%) (+25%) (+15%) (+10%) (+10%) (+27%) (+24%) (+15%) (+10%) (+10%) (+25%) Growth of Affiliate Marketing in Europe Online Marketing Spendings in Germany Gross!
  • 6. But successful online marketing requires the right combination of channels Display eMail Search Affiliate Marketing
  • 7.
  • 8. We need to understand the consumer journey before the purchase
  • 9. During the journey the user has multiple adcontacts each contributing to the sale Source: doubleclick case study Clicks on an affiliate ad (pricecomparison) Clicks on a display ad Click on paid search term in Google Books a 3 night short break for 12 August Click on an display ad Click on a affiliate ad Search on Google Sale 1st June 11th June 18th June 18th June User Conversion: 2% CPA: 20 GBP Conversion: 0.5% CPA: 60 GBP
  • 10.
  • 11. purchase funnel: the steps interact with each other Source: doubleclick case study 10,000 visitors 100 sales Brand awareness Convert to sales 1% Conversion Initial brand awareness Brand engagement Product discovery Consideration Product selection 10,000 1,000 100 5,000 250 View banner ad Search Read email Click affiliate ad
  • 12.
  • 13. Display ads trigger search queries on advertiser´s brand and generic terms Source: comscore, 12, 2008, HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. Affiliate network technologies will help advertisers and publishers to improve their returns Postview Integrate postview tracking for measuring the efficiency of publisher reach and remunerate for it Cookie Hierarchies & Split Commissions Search Manager Campaigns Use display campaigns to leverage inventory for short term goals Complement direct SEM with SEM via affiliates Remunerate branding effects and second cookie, allow for hierarchical commission structures
  • 20. Any questions? We are happy to discuss the future of affiliate marketing with you.
  • 21. Warner Case Study: How to set-up a multi channel campaign Affiliate Networks Website Sale Paid Search Display eMail Behavioural CPM CPA Source: doubleclick case study