The Future of Performance Marketing

July 2013 Intelligence

Technology

Creativity & Quality

Page 2

Were are we? Affiliate marketing with declining market share

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e0%

20%

40%

60%

80%

100%

11%6%

Display

Search

affiliate

Source: OVK

The marginalization of classical affiliate marketing(Example Germany)

Page 3

Out client‘s perspectiveFrom Performance = Affiliate to Performance = Everything

5 Years ago Today

1 • Every channel managed independently: Search, Display, Affiliate

2 • Prio No 1: Grow, grow, grow• …• Prio No n: Channel efficiency

3 • Limited data intelligence - if at all with agencies

• Transparency and comparability across entire online marketing chain

• Prio No 1: Efficiency across value chain, ROI, Target group …

• Integrated optimization of online spending based on massive use of data

Pro

fession

alization

Measurable performance USP of affiliate marketing

Everything is performance! Affiliate one of many channels

Page 4

Horizontal Networks

Vertical Networks

Ad Networks

Infrastr. Networks

Audience Networks

Performance Networks

Targeted Networks

Changing market landscapeFrom a happy few to many differentiated players

Source: LUMAscapes 2012, affilinet

Agencies

Creative optimization

Data Suppliers

Sales Houses

Agency & Automated Trading Desks

DSP‘s

SSPS / Yield Optimizers Data Exchanges

Delivery, Verification, Control Systems

Data Technologies

Ad Exchanges

Pu

blish

erA

dve

rtis

er Affiliate Networks

Page 5

The new Art of Performance Marketing:Achieve goals and create value add

Source: EU, affilinet

ROI optimized sales growth

TechnologyCreativity & Intelligence

Quality

Means to an end

• Integrating entire sales channel

• Open platform

• Seamless integration

Needs-driven and bespoke solutions

• Insight-driven optimisation of the full sales process

• Driven by experts

Trust and integrity

• Handpicked Network

• Proactive quality and compliance management

Page 6

Encompassing performance marketing approachEnd-to-end management of sales channel

Advertisingsegment

Payment model

Performance Network

Performance Based CPM / CPC / CPL / CPA

I D ATraffic SalesContactBranding

Attention Interest Desire Action

RRepeat

Performance Display

Re-targeting

Search

Voucher Codes

Content Websites

Pricecomparison

Voucher Codes

Basket Abandonment

Capture

Cashback

Retargeting

A

Content Websites

Page 7

At the centerCustomer needs and situation

Source: affilinet

Sector solutions, automated reach

generation

"Help me grow"

Rapid growth in channels with scalable, efficient

reach

Growth Channels, Rapid development of

the publisher base

Growth phase

Balance of brand building and performance

Sales Fighter

Individual channel planning and

integrated solutions

"Make me excellent"

Efficient sales channel, ROI, brand protection

Strategic customer management and

optimisation

Established brand

Focus on ROI optimisation

Optimizer

Targeted and placement in topic

environments

"Make it work"

Adoption of performance as an alternative to SEM

Quick, fully automatedscaling, education

Early stages

Focus on traffic, not yet on the brand

Starters

Pro

du

ct

Vis

ion

Ser

vice

O

ffe

rin

gN

eed

sS

itu

atio

n

Page 8

Our client‘s needs:Optimize along entire sales channel

Skale Traffic

• Access additional reach

• Optimization of existing traffic

OptimizeCustomer Structure

• Get right customer mix

• Optimize Customer life-time value

Increase Basket Value

• Increase basket Value

• Reduce cancellation rates

Optimize Shopping Process

• Reduction of basket abandonment

• Conversion rate

Page 9

Optimization within performance networkUse all relevant levers to increase value

Perfor-mance

Search/Display/

eMail

5-15% Perfor-mance

Search/Display/

eMail

25-30%Skale Traffic

• Perfor-mance Display Solutions

• Target pooling of channels in the network

Optimize Shopping Process

• Customer winback solutions

• Conversion rate optimi-zation

OptimizeCustomer Structure

• Active and simple rate manage-ment and analysis

• Customer-lifetime com-pensation

Increase Basket Value

• Full trans-parency over basket

• Category manage-ment

• Strategic voucher manage-ment

Page 10

End2End Quality ManagementNetwork quality drives quality sales

Ad

vert

iser

Pu

bli

she

r

Ongoing Business

• Clearly structured sign up process

• Pre-Launch quality checks through dedicated team of experts

• Pre-Launch checks of advertiser potential

• Dedicated launch support

• Trainings and education

• Out-of the box solutions for regulatory compliance

• Standard setting product data

• Ongoing optimization of publisher base

• Excellent service / network availability

• Traffic / brand control supported by dedicated team and intelligence

• Secure payouts to partners

• Excellent service / network availability

Sign-up Phase Starting-Phase

Page 11

Future proof performance platformEnabler for growth – not Tech

Simplicity Integrated management of all channels

Optimisationusing the right media in the right environment

Flexibility Needs-orientated selection „right solution at the right time“

Ease of use Reduce manual integration

Reliability always available, highly secure

Key to success for network

End-to-end platform for all channels

Integrated tracking

Big data management – transparent optimisation and targeting

Open interface

Easy integration

Highest system availability

Page 12

Performance Marketing VisionCreate Value by making…

Source: affilinet

2000 today tomorrow

Performance revenuePerformance Marketing…• Integral part of online marketing mix• Needs driven product and service definition • Integrated solution across all channels

efficiently accessible…• Targted automation• Intelligent optimization• Easy to steer

for all• Short, Mid and Long Tail• Integrating all platforms• Efficient in every phase of life cycle