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Performance Marketing: Display Matters
Agenda
1) Introduction
2) Why Display Matters
3) How to increase and optimse Display Traffic
Introduction
affilinet – the facts
• Established in Germany in 1997
• Operating in 7 countries across Europe
• Over 120 staff
• 1,600 active affiliate programs
• 500,000 affiliate websites
• 14 years experience in managing CPA,
CPL and CPC campaigns
The Affiliate Marketplace Idea
- Grow Marketplace- Increase Service Quality- Continue to offer innovative solutions
More Sales & Leads
Why Display Matters
Insights into the affilinet Marketplace – how relevant are display ads in Performance Marketing?
What are we looking at?
• January 2011 figures
• Publisher Business Models that use gif banners as primary creative for driving the traffic to the Advertiser‘s sites
• Impressions
• Unique Users
• Click-Through Rates and Conversion Rates
Specific Publisher Business Models use banners as primary creative at very high volumes
Publisher Bus. Model
Using Display Ads as primary Creative
Share of Gif Banners of Total Impressions
Click-Through-Rate Gif Banners
CR Gif Banners
eCPM Gif Banners
Performance Display √
Portal&Communities √
E-Mail Distributors √Topic / Niche Websites √
Overall 86% of these use Gif Banners (impressions)These models account for 75% of all impressionsWe reach 24 Mio Unique Users per day with these models in Germany
96%
72%
85%
74%
1%
3%
9%
3%
0,5%
0.76%
0.93%
1%
0.21€
0.40€
1.45€
1.75€
Display matters!
An Affiliate Network has the power to reach half of all users within a country and one day using gif banners
affilinet reach:24 Million Unique Users per day
Germany:51,78 Million Internet Users*
AGOF Internet Facts 2011-02
The largest Marketing Agencies in Germany
Small improvements in Click-Through-Rates and Conversion Rates have a big impact on increasing Sales
25 Mio Unique UsersCR of 0.5% (performance media bus model)= 125K Sales
Lift CR by 20% to 0.6%= 150K Sales= 20% more Sales 20% more Sales!
How to increase traffic and increase sales with Performance Display Marketing: Vodafone case
Sales were doubled within one quarter.
How to increase traffic and sales with Retargeting –
Online Retail case
Revenue increase with Retargeting: affilinet Online Retail Advertiser
Revenue Retargeting
Revenue other business models
+ 153%
High uplift in Click-Through-Rates with Retargeting
Retargeting ads increase reach and awareness and in turn increase Click-Through-Rates*
* Click-Through-Rate affilinet Online Retail Advertiser
+ 1.240%
0.10%Standard Click-Through-Rate
1.24%Click-Through-Rate Retargeting
High uplift in Conversion-Rates with Retargeting
Retargeting increases Conversion-Rate and Sales*
+ 650 %
0,40 %Standard CR
2,60 %CR Retargeting
* Conversion-Rate affilinet Online Retail Advertiser
Higher Click-Through-Rate with Retargeting
+ 1.900 %
0,02 % 0,38 %
Retargeting ads increase reach and awareness and in turn increase Click-Through-Rates*
Standard Click-Through-Rate Click-Through-Rate Retargeting
* Click-Through-Rate affilinet Online Retail Advertiser
Conclusions: Driving high volumes in impressions results in higher sales
Increased Display Activities =Higher Impressions =More Sales =Even more sales with efficient solutions
High volumes in impressions drive branding
effects.
High volumes in impressions drive sales in other online and offline channels
Improve CTR and CR
How to increase and optimise display traffic
How to increase reach and optimise Click-Through-Rates and Conversion Rates
Increase Reach with eReach / Post-View Tracking
Be more efficient with Retargeting
Be more efficient with Mobile Marketing
Measure effects and investments with Customer Journey Tracking
More Sales!
Customer Surveys: Publisher
70% of Publishers think current creatives to be one of the three aspects for an attractive Affiliate Program.
Mobile Marketing75% of Publishers see future potentials in Mobile Marketing
2010: 55% of Publishers gain users from mobile devices; 2011: 74% of Publisher expect to have users from mobile devices.
Customer Journey43% of Publishers would like to earn commissions based on customer journey tracking and think to earn higher commissions this way.
Customer Surveys: Advertiser
Retargeting85% know about Retargeting and 36% of those use Retargeting.
Over half of the Advertiser who don‘t do Retargeting can imagine to retarget users in 2011.
Mobile Marketing19% of Advertisers invest in Mobile Marketing.
Customer Journey37 of Advertisers track the customer journey41% think that paying commissions based on customer journey makes most sense in 2011
eReach / Post View Marketing
That‘s Efficient Reach
What is an Efficient Reach Sale?
affilinet can track a Sale/Lead, after a Click or a View (=Impression) has been generated.
Efficient Reach (eReach) Sales are Sales/Leads that are being generated through contact with the creative (=View)
The user has become aware of the advertiser‘s creative but has not clicked on it
The publisher receives commission in case the user effectuates a sale/lead at the advertiser after his contact with the creative
Click Sale = classical Sale
View Sale = eReach Sale
That‘s Efficient Reach
Flexible setting options of Efficient Reach Tracking
Determination of Cookie life time The Cookie life time for eReach Sales can be determined and even individually defined on publisher level.
Management on Publisher Level eReach can be set up across the whole affiliate program as well as for individual publishers.
Therefore affilinet acquires experienced eReach publishers.
Management of Publisher Commissions Individual commissions can be defined for eReach.
Management on Creative Level eReach can even be individually implemented for specific creatives.
Efficient Reach as a strategic instrument for revenue increase
Banner 1
TV
Search
Banner 2
Click-Cookie
Click-Cookie
eReach-creative generates additional visual penetration
Sale
Decision phase
Development of a relationship with a customer (Customer Journey)
Efficient Reach as a strategic instrument for revenue increase
Case Study by Pilot on the subject of effectivity of Display-Ads (SMX, 23.04.09)
• The following hypotheses have been analysed:1. If the transactions are really mainly based on coincidence, the transactions
should be spread more or less regularly throughout the cookie-liftetime.2. But if the transactions result from Display contacts they would happen shortly
after the contact.
• Result:62% of the transactions were realised within 2 days, 38% within the following 28 days.
• Conclusion: Strong correlation between visual contact of the ad and the transaction Proves effectivity of eReach
Efficient Reach as a strategic instrument for revenue increase
Minor decrease in direct sales (approx. 14%) Increase of ovverall sales and turnover by approx. 15% Development of overall CPO depends on eReach commission
Thus: Adjustment of possible eReach commission to maximum overall CPO possible
TOTAL: 3.160 SalesRevenue: 266.900 EUR
CPO: 8 EUR
TOTAL: 2.750 SalesRevenue: 233.750 EUR
CPO: 8 EUR
Source: Post View Tracking – Is Play Time Over?, Ronald Paul, CEO Quisma GmbH
with eReach
without eReach
Cost advantages of eReach in comparison to conventional CPM campaigns
Performance-based commission during cookie life time
Cost pools:
Earnings:
Cost pools:
Earnings:
brand strengthening delivery of PIs as contracted strengthening of SEM- channel
(double costs)
brand strengthening delivery of PIs as contracted on premium publisher sites (closed
groups), therefore less waste circulation
additional visitors through SEM, who are not been cannibalized by the eReach campaign
high display efficiency in the visible range
On Top: top quality CPM inventory on a CPO base Media planning and optimization visitors and sales that are generated after the cookie life time are
free of charge additionally generated search queries (organic visitors) are
already covered within eReach
prevention of double costs due to cookie priorization
Conventional display- campaigns
CPM Reach(e.g. 500T PIs)
SEM
optimized eReach campaign
Weg.de case: there is a high effect on sales from post-view Marketing
Retargeting
Retargeting explained
Users who visited the online shop but whodid not make a purchase or any transaction can be targeted at a later stage at any time during their internet surfing stage. Retargeting ads are shown in order to make them remember about the online shop and in order to get them back into the shop for a purchase.
Retargeting in Affiliate Marketing
There are severeal reasons why Retargeting makes sense.
Apply any kind of Retargeting solution and chose the ones you prefer.
Work with handselected publishers simultaneously.
Works for Retail, Finance, Travel, Telco and any other industry.
Pay per Sale, Lead or Click.
Track with Post-Click or Post-View or combination.
Retargeting ads examples
Mobile Marketing
Mobile Marketing
Facts Mobile Marketing
Reach 62,38 million mobile phone users in Germany (88,5% of German population) Mobile internet usage: over 9 million UMU (Unique Mobile User),
14,6% of German population*
* Source: AGOF mobile facts 2010
There are different possibilites to gain mobile traffic
Reach-Model Buy traffic from mobile sites on CPM or CPC Serveral targeting options like geo, operating system, mobile phone type Buy specific channels
Performance-Model Click to Call campaigns as direct response for calls to a call centre Cost per Lead-campaigns
Mobile Marketing: „how to“ in Affiliate Marketing
Prerequisites for successful mobile campaigns
Mobile landing page Integrate the Affiliate Network tracking pixels on the sign-out page Offer mobile phone optimised banners Simple and quick buying process or call to action
Customer Journey
Efficient Reach as a strategic instrument for revenue increase
ComScore* Study "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“
These study analyses how online display ads affect European Consumer Behaviour.
Results:
Online ad spending increased tremendously and even surpassed spendings for TV ads. Campaign budget is moved from CPM campaigns to CPC programs. (Online campaigns represent 23% of all media spending)
An increasing sophistication of online audiences has led fewer consumers to click on ads. Clickrates have fallen to 0,14 % in Spain.
8% of the internet audience generates appr. 85% of click volume.
*ComScore: ComScore is a US-american, international acting, influential Internet-Research company, who regularly publishes the „World-Metrix-Report“, analysing the usage of internet.
Efficient Reach as a strategic instrument for revenue increase
ComScore Studie "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“
Resumee:
Linda Anderson (vice president comScore)
The affectiveness of Display campaigns can not be evaluated on the Clickrate anymore, thererfore low CTR can not be seen as a negative indication of the quality of a campaign or ist audience.
The importance of Display Ad campaigns remains unquestioned despite of low click rates. Many studies reveal that Display ads can have a significant impact on consumer behaviour, creating brand awareness and positively influencing the offline purchase behaviour.
In order to evaluate the success of a campaign it has to be looked beyond ad clicks, a holistic post view examination is necessary. (did the user see the ad before he acted?).
Efficient Reach as a strategic instrument for revenue increase
ComScore Studie "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“
Conclusion:
John Lowell (Director Research & Analytics, Starcom USA)
“A click neither generates revenue nor increases the brand value. The main purpose of Online-Advertising should not be seen in generating clicks – but instead in increasing sales or at least in creating brand awareness.”
eReach therefore is the perfect instrument to create Brand-Awareness and increase sales!
Efficient Reach as a strategic instrument for revenue increase
Significant increase in Sales through eReachSales per Day Overall Sales
eReach campaign pushes AM and SEM and other channels, where applicable Direct sales will decrease Overall sales will increase
Comparison of all channels
15%Sales Sales
Retargeting has an impact on other online channels
Comscore study: Retargeting increases brand searches by 1,046% within 4 weeks.
Source: Valueclick media, Comscore, 2010http://www.adnetworks-blog.de/comscore-studie-belegt-retargeting-ist-die-erfolgreichste-werbeform/
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_4100 % 100 % 0 % 100 % 0 % 0 % 100 % 0 % 0 % 0 %
First cookie wins assumes that the first contact is responsible the generating interest.
+ 25.660,00% + 29,49%
- 7,04%
- 15,49%- 96,30%
- 41,05%
The current affiliate distribution explains the strong focus on the last step within in the journey
Cash back sites
OtherEmail Dis-tribu-
tor
Topic Website(incl. PV)
Bannercommunity
Coupon
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
Conclusions
Conclusions
Conclusions
Increase your performance-based display spendings now!
Apply intelligent tracking solutions and optimise your ROI!
affilinet GmbHUli BartholomäusJoseph-Wild-Str. 2081829 München
ubartholomaeus@affili.nethttps://www.xing.com/profile/Ulrich_Bartholomaeustwitter.com/ubartholomaeushttp://de.linkedin.com/in/bartholomauswww.affili.net
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