The document discusses performance-based marketing and provides steps to implement it. Performance-based marketing focuses on paying only for measurable results rather than large ineffective advertisements. It outlines 7 steps: 1) Define goals and objectives, 2) Target audiences, 3) Choose metrics, 4) Set up analytics and attribution models, 5) Select channels, 6) Perform reviews, and 7) Scale strategies. It also provides an example of using affiliate marketing, a common performance-based channel where advertisers pay for leads or sales.

1. Performance Based Marketing 101
by Bachtiar Rifai

2. Bachtiar Rifai
 Now > Head of Marketing at blanja.com (JV eBay.com & Telkom Indonesia)
 2012 – 2014 > Head of Digital Marketing at Lazada Group
 2008 – 2012 > Founder of WireHub Indonesia
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
about me

3. 1. What?
2. Cost & Benefit
3. Getting started
 Goal & Objective
 Target Audiences
 Metric
 Measurement, Analytics & Attribution Model
 Channel & Cost component
 Performance Review
 Scale
4. Case study: Affiliate Marketing
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
table of content

4. Performance based marketing is type of marketing activities that focus on result.
Many advertisers have limited budgets and may not understand the most effective
method of advertising. With performance-based advertising plans, they avoid the risk
of paying large amounts for advertisements that are ineffective. They pay only for
results.
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
what is performance based marketing?

5. 7 step to start performance based marketing
Goal
Target
Metric
Analytics
Channels
Reviews
Scale
Define specific & high impact business objective
Define your main target audience/customers
Knowing what important and what to measure
Setting up performance tracker & attribution model
Knowing the right channel that most profitable for you
After campaign performance review
Scale and grow your strategy
1
2
3
4
5
6
7
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101

6. 7 step to start performance based marketing
Goal Define specific & high impact business objective
1
In order to get maximum impact for your performance based marketing strategy, you
need to know your business goal & objective. This goal need to be SPECIFIC & HIGH
IMPACT.
Simple example: you are an Fashion Ecommerce. What you should do to increase your
overall net profit using performance based marketing?
1. You need to identify which category on your site is having biggest margin
2. Calculate category that currently having highest profit contribution
3. Calculate your average-selling-price (ASP) per category
4. Based on market trends, which category have better trend in term of demand
From that picture, you can see which category need to be pushed based on all
condition above
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101

7. 7 step to start performance based marketing
Goal Define specific & high impact business objective
1
Category % Margin % Profit Share ASP Trends
Watches 10% 10% Rp. 500,000 +20%
Shoes 15% 10% Rp. 250,000 +30%
Blazers 7% 20% Rp. 750,000 -12%
Hijab 35% 50% Rp. 150,000 +55%
Jeans 12% 10% Rp. 170,000 -18%
Example format:
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101

8. 7 step to start performance based marketing
Target Define your main target audience/customers
2
After knowing the specific and high impact goal. Now you need to know your target
audiences/customers. There are several way to get the data (depend on your business
model) but generally you can get the data from:
 Internal customers database data (purchase history, age, gender, location etc)
 Customers survey
 External survey or statistics
 Channel data (Google trends, Google keywords planner, Analytics data)
Dividing audience is very important to the campaign performance because each
audience have unique behavior. Some example of audience targeting:
 New or returning customers
 Mobile or PC users
 ASP range
 Customer lifetime value
 Etc.
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101

9. 7 step to start performance based marketing
Metrics Knowing what important and what to measure
3
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101

10. 7 step to start performance based marketing
Metrics Knowing what important and what to measure
3
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
Important Metric by Business Model:
 Impression  brand awareness
 Visitors  brand awareness, engagement, read, views
 Transaction  orders, subscribe, click ads, upload videos, join a quiz, etc.
 Active users  become a valid members, paying customers, validated database etc.
 Loyal Customers  do multiple transaction within period of time
Metric Formula:
 CTR = total clicks/total impression
 CR = total transaction/total clicks
 NCR = total unique users from transaction/total transaction
 CLV = sum of “money” or worth from user in certain period of time

11. 7 step to start performance based marketing
Analytics Setting up performance tracker & attribution model
4
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What is website tracking and how it work?
Web tracking make use of cookies “small file with information that stored in your browser” to
collect information/data about you and your browsing behavior, history and action on the web
pages. This information then collected by tracking server to be analyzed. The most popular
tracking is UTM tracking by Google (originally come from Urchin Tracking Module)
Simple schematic figure
how web tracking work

12. 7 step to start performance based marketing
Analytics Setting up performance tracker & attribution model
4
“Half the money I spend on advertising is wasted. The problem is that I don’t know which half it is.”
Lord Lever
“(Web marketing) is accountable and measurable—the perfect direct-response medium. If 50
percent of advertising isn’t working, with the Web you know which 50 percent.”
Michael Kubin
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
To get conversion data from Analytics we need to choose and setup Analytics based on
our goal & metric. The ability to accurately track our metric is paramount. Some of the
leading Analytics platform:
 Google Analytics
 Adobe Analytics
 WebTrekk

13. 7 step to start performance based marketing
Analytics Setting up performance tracker & attribution model
4
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
An attribution model is the rule, or set of rules, that determines how credit for sales
and conversions is assigned to touch points in conversion paths. For example, the Last
Interaction model in Google Analytics assigns 100% credit to the final touch points (i.e.,
clicks) that immediately precede sales or conversions. In contrast, the First Interaction
model assigns 100% credit to touch points that initiate conversion paths. – Google
Clicks chain example:
 Last clicks: count only for last click before conversion
 First clicks: count only first click (first interaction)
 Post clicks: count all channel before conversion
 Decay: Gradually assign greater value for channel path over time (exponential)
 Position based: users pick for position and assign weight to it
 Linear: flat or same value for all channel path

14. 7 step to start performance based marketing
Channel Knowing the right channel that most profitable for you
5
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
Some Performance based digital marketing channel:
1. Affiliate Marketing  Lead
2. PPC Marketing  Clicks
3. Real-Time-Bidding (RTB)
4. Remarketing
5. Email Direct Marketing (EDM)
6. Organic

15. 7 step to start performance based marketing
Channel Knowing the right channel that most profitable for you
5
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
Search Engine Marketing (SEM)
Contextual ads based
on search queries on
search engine with
Pay Per Click scheme
SEM
SEO

16. 7 step to start performance based marketing
Channel Knowing the right channel that most profitable for you
5
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
Real-time-Bidding (RTB)
images: go2mobi.com

17. 7 step to start performance based marketing
Review & Scale Performance review, scale & grow
6
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
In order to build sustainable performance based marketing constant performance
review is required. Performance review should cover:
1. All important business metric
2. Cost
3. ROI
4. Scalability
A/B testing and multivariate testing also needed in order to know which campaign,
adgroup, ads, channel, audiences, landing page, products & creative performing better
than others.
Constantly doing A/B testing and multivariate testing will help you to achieve your goal
efficiently, especially when you prepare to scale your performance based marketing with
larger marketing budget.

18. Case study
Affiliate Marketing
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
Affiliate marketing is a type of performance-based marketing in which a business
rewards one or more affiliates for each visitor or customer brought by the affiliate's own
marketing efforts.
There is several option to run affiliate marketing. Such as in-house, using affiliate
network or outsourced.
In-house: Amazon, eBay, Lazada Group
Affiliate Network: Commission Junction, ClickBank, ShareaSale, Neverblue etc.
In-house Network
- Own publishers - Publishers owned by network
- Self payment - Pay to network
- Self publishers recruitment - Ready to use pool of affiliate

19. Case study
Affiliate Marketing
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101

20. Case study
Affiliate Marketing
Bachtiar Rifai Click Z Live – Jakarta |Performance-Based Marketing 101
Affiliate marketing is form of performance based marketing in which we pay only for
result. Most common scheme used in affiliate marketing is
 Cost-per-Lead (CPL) or Cost-per-Action (CPAc)  Action/lead to do something
 Cost-per-Order (CPO)  Pay per valid order
 Cost-per-Acquisition (CPA)  Pay per new customer
Depending on the business model & type. For e-commerce typically use CPO or CPA
scheme. For brands usually using CPL. The lead is depend on the business and goal. If
the company need more subscribers then CPL defined for cost per subscribers.

21. Thank you…
Bachtiar Rifai
m : +62-812-1004-0847
e : admin@wastrox.com
ln : id.linkedin.com/in/bachtiarrifai