David Rodnitzky

1. DAVID RODNITZKY Performance Marketing

2. <ul><li>WHAT IS PERFORMANCE MARKETING? </li></ul><ul><li>MONETIZING CONTENT </li></ul><ul><li>MONETIZING RETAIL </li></ul><ul><li>PUTTING IT ALL TOGETHER </li></ul>Agenda

3. In The Beginning (Offline). . .

4. Evolution of Online Marketing 1994 1998 2002 2005 2008 2010 Cost per Acquisition Revenue Share?

5. Definition of Performance Marketing <ul><li>Any form of advertising where the advertiser only pays if and when a specific event occurs, which is usually defined as either a click, lead or sale. </li></ul>

7. What Type of Site Do You Have? Brand is Important Money is Important

8. Performance Marketing for Content Sites <ul><li>Five Common Ways to Monetize Content </li></ul><ul><li>CPC Text Ads </li></ul><ul><li>Affiliate or Lead Generation Offers </li></ul><ul><li>Co-Registration </li></ul><ul><li>Incentivized Premium Content </li></ul><ul><li>Email Newsletter </li></ul>

9. CPC Text Ads <ul><li>What Is It? </li></ul><ul><li>Publisher paid when someone clicks on an ad </li></ul><ul><li>Advertisers target specific sites or target by topic </li></ul><ul><li>Leading CPC networks: Google AdSense, Quigo, IndustryBrains </li></ul><ul><li>Pros </li></ul><ul><li>Easy to set up </li></ul><ul><li>No sales! </li></ul><ul><li>Non-obtrusive </li></ul><ul><li>Cons: </li></ul><ul><li>Watering down </li></ul><ul><li>CPMs very low </li></ul><ul><li>Potential brand issues </li></ul>

10. Affiliate Banner Ads <ul><li>What Is It? </li></ul><ul><li>Paid on CPL (form submit) or CPA (item purchased) </li></ul><ul><li>You choose the offer and the banner to promote </li></ul><ul><li>Leading affiliate networks: Commission Junction, LinkShare, Google Affiliate Network </li></ul><ul><li>Pros </li></ul><ul><li>Payments up to $100 </li></ul><ul><li>You are in control </li></ul><ul><li>1000s of offers to select </li></ul><ul><li>Cons: </li></ul><ul><li>Requires HTML/design knowledge </li></ul><ul><li>CPAs/CPLs watered down </li></ul><ul><li>Difficult to get into some programs </li></ul>

11. Lead Generation Offers <ul><li>What Is It? </li></ul><ul><li>Paid on CPL (form submit) or CPA (item purchased) </li></ul><ul><li>Promote offer by banner, text, or hosted form </li></ul><ul><li>Leading lead generation networks: Hydra, Azoogle, ClickBooth </li></ul><ul><li>Pros </li></ul><ul><li>Payments higher than affiliate offers </li></ul><ul><li>You can negotiate special rates </li></ul><ul><li>Cons: </li></ul><ul><li>May require programming knowledge </li></ul><ul><li>Very difficult to develop relationships </li></ul>

12. Co-Registration <ul><li>What Is It? </li></ul><ul><li>Additional offers presented during the registration process </li></ul><ul><li>Usually related products or services </li></ul><ul><li>Pros </li></ul><ul><li>Increase revenue through cross-selling similar companies </li></ul><ul><li>Cons: </li></ul><ul><li>Can create bad user experience </li></ul>

13. Incentivized Premium Content <ul><li>What Is It? </li></ul><ul><li>User signs up for offer, gets access to content </li></ul><ul><li>Leading companies: TrialPay, WebLoyalty, ARPU </li></ul><ul><li>Pros </li></ul><ul><li>Increases conversion to paid content </li></ul><ul><li>User gets something free, you get paid </li></ul><ul><li>Cons: </li></ul><ul><li>Lower payment due to “incentivized nature” </li></ul><ul><li>Significant integration work </li></ul><ul><li>Some programs can create negative consumer experience </li></ul>

14. Email Newsletters <ul><li>What Is It? </li></ul><ul><li>User signs up for newsletter, performance ads are sent to user </li></ul><ul><li>User can also opt-in for permission to receive special offers </li></ul><ul><li>Pros </li></ul><ul><li>Monetization without site visit </li></ul><ul><li>Some email offers are very effective </li></ul><ul><li>Cons: </li></ul><ul><li>CAN-SPAM compliance </li></ul><ul><li>Branding issues </li></ul>

16. Performance Marketing for Retail <ul><li>Five Common Ways to Monetize Retail Sites </li></ul><ul><li>Cross-sell </li></ul><ul><li>Post-Transactional Upsell </li></ul><ul><li>CPC Text Ads </li></ul><ul><li>Co-Registration </li></ul><ul><li>Email Newsletter </li></ul>

17. Cross-Sell <ul><li>What Is It? </li></ul><ul><li>During a purchase, offer users an additional product to increase monetization </li></ul><ul><li>Top performance marketing cross-sell companies: WebLoyalty, ARPU </li></ul><ul><li>Pros </li></ul><ul><li>Adds revenue </li></ul><ul><li>Can be highly targeted offer with high conversion </li></ul><ul><li>Cons: </li></ul><ul><li>Risks losing sale </li></ul><ul><li>Risks bad customer experience </li></ul>

18. Post-Transactional Upsell <ul><li>What Is It? </li></ul><ul><li>After a purchase, offer users an additional product to increase monetization </li></ul><ul><li>Can be anything from affiliate banner to page with CPC ads </li></ul><ul><li>Pros </li></ul><ul><li>Adds revenue </li></ul><ul><li>Cons: </li></ul><ul><li>Risks losing sale </li></ul><ul><li>Risks bad customer experience </li></ul>

19. CPC Text Ads, Co-Reg, Email <ul><li>What Is It? </li></ul><ul><li>Same advertising mediums that content sites use </li></ul><ul><li>Pros </li></ul><ul><li>May drive revenue from consumers who decided not to purchase </li></ul><ul><li>Cons: </li></ul><ul><li>Can cannibalize sales </li></ul><ul><li>Risks bad customer experience </li></ul>

21. Case Study: WrinkleCream.pro <ul><li>Objective: Sell wrinkle cream online through affiliate offers </li></ul><ul><li>Concept: Build a review site that compares wrinkle creams available via affiliate program, market on AdWords </li></ul>

22. Monetization Step One: Find Offers <ul><li>Researched more than 50 wrinkle cream affiliate offers on sites like CJ.com, Linkshare, Hydra </li></ul><ul><li>Rated offers based on effectiveness, CPL, and likelihood of conversion </li></ul><ul><li>Sent rankings to designer </li></ul>

23. Monetization Step One: CJ Example

24. Monetization Step Two: Develop Site <ul><li>Looked at similar review sites on the Web </li></ul><ul><li>Wrote content </li></ul><ul><li>Tested multiple designs based on feedback loop of RPC (revenue per click) </li></ul>1 2 3

25. Monetization Step Two: Develop Site <ul><li>Consumers preferred star ratings over point system </li></ul><ul><li>Multiple places to click on offer increased conversion </li></ul><ul><li>Fewer products recommended increased sales </li></ul>

26. Monetization Step Three: Track Data <ul><li>Track revenue, profit, cost at a global level </li></ul><ul><li>Track individual products and individual advertising channels </li></ul><ul><li>Track changes as a result of testing </li></ul>

27. Monetization Step Three: Track Data <ul><li>Track geography, time of day, referral source, etc! </li></ul>

28. Monetization Step Three: Track Data <ul><li>Track PROFIT! </li></ul>

29. Case Study Results: WrinkleCream.pro <ul><li>Profitable in month two </li></ul><ul><li>Monthly growth rate of 50% MoM </li></ul><ul><li>Profit tanked after site was hacked and new competitors entered space </li></ul><ul><li>Recent shift from SEM to SEO! </li></ul>

30. Key Benefits of Performance Marketing <ul><li>Easy to Use – Limited Tech Work or Sales Needed </li></ul><ul><li>Lots of options </li></ul><ul><li>Payouts Can be Very High </li></ul><ul><li>Incremental Revenue for Your Business </li></ul>

31. Key Drawbacks of Performance Marketing <ul><li>Performance Based – No Guarantees of $$$ </li></ul><ul><li>Can Distract Consumers from Core Content/Product </li></ul><ul><li>You End Up Taking Heat from User for Bad Partners </li></ul><ul><li>Can Create Bad User Experience and Reduce Repeat Visits and Purchases </li></ul><ul><li>Requires Constant Maintenance and Iteration to be Successful over the Long Run </li></ul>

32. Want to Learn More? <ul><li>11/5 in NYC </li></ul><ul><li>www.CRSconference.com </li></ul><ul><li>“ CRSNY99” saves you $100 </li></ul><ul><li>www.leadscon.com </li></ul><ul><li>www.8020con.com </li></ul><ul><li>www.affiliatesummit.com </li></ul>

33. Thank You! <ul><li>Contact Info: </li></ul><ul><ul><li>David Rodnitzky, [email_address] </li></ul></ul><ul><ul><li>My company: www.ppcassociates.com </li></ul></ul><ul><ul><li>My blog: www.blogation.net </li></ul></ul><ul><ul><li>Conference: www.CRSconference.com </li></ul></ul>

David Rodnitzky

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David Rodnitzky