Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

David Rodnitzky


Published on

Performance Advertising & Affiliate Marketing
This hands-on workshop will teach you how to generate revenue using affiliate networks and other performance oriented advertising including cost per click and cost per action models. You will learn how the same set of advertisements on the page can generate 250% more revenues by optimizing your advertising mix.
Led by David Rodnitzky - Principal,; VP Advertising, Mercantalia; Director of Marketing, Adteractive

Published in: Technology, Business
  • Login to see the comments

  • Be the first to like this

David Rodnitzky

  1. 1. DAVID RODNITZKY Performance Marketing
  2. 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. 3. In The Beginning (Offline). . .
  4. 4. Evolution of Online Marketing 1994 1998 2002 2005 2008 2010 Cost per Acquisition Revenue Share?
  5. 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>
  6. 6. <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
  7. 7. What Type of Site Do You Have? Brand is Important Money is Important
  8. 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. 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. 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. 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. 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. 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. 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>
  15. 15. <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
  16. 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. 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. 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. 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>
  20. 20. <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
  21. 21. Case Study: <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. 22. Monetization Step One: Find Offers <ul><li>Researched more than 50 wrinkle cream affiliate offers on sites like, 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. 23. Monetization Step One: CJ Example
  24. 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. 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. 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. 27. Monetization Step Three: Track Data <ul><li>Track geography, time of day, referral source, etc! </li></ul>
  28. 28. Monetization Step Three: Track Data <ul><li>Track PROFIT! </li></ul>
  29. 29. Case Study Results: <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. 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. 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. 32. Want to Learn More? <ul><li>11/5 in NYC </li></ul><ul><li> </li></ul><ul><li>“ CRSNY99” saves you $100 </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  33. 33. Thank You! <ul><li>Contact Info: </li></ul><ul><ul><li>David Rodnitzky, [email_address] </li></ul></ul><ul><ul><li>My company: </li></ul></ul><ul><ul><li>My blog: </li></ul></ul><ul><ul><li>Conference: </li></ul></ul>