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A Natural Choice for Marketers in an
Economic DownturnNicky Iapino – Online Marketing
Consultant
Performance Marketing
Introduction
Over 10 yrs in Online Commission Junction DGM AdLINK Group (affilinet)
Affiliate champion Performance Marketing in my blood!
Agenda
History of Online Performance Marketing Current Market Status Trends What should Advertisers focus on? Total Advertising spend Online v Offline How could Performance work Offline?
History of Online Performance Marketing
Started in the US by Jeff Bezos – Amazon Affiliate Marketing entered the UK in 1999 Affiliate Networks exploded 2001-04 By 2004, market was worth £600m Lead Generation business started to emerge Performance Networks and Arbitrage Quality over Quantity
Current Market Status
£0
£500
£1,000
£1,500
£2,000
£2,500
£3,000
£3,500
£4,000
£4,500
£600m
£1,350m
£2,160m
£3,130m
£3,820m
UK online retail sales generated by affiliate market-ing: 2004-08
Source: e-consultancy 2009
2004 2005 2006 2007 2008
GBP
Mill
ions
What’s happening out there?
Trends in Performance Marketing
Reliance on SEM Publishers – brand bidding restrictions
Incremental sales value – how do Incentive Publishers fit in?
Voucher Code debate! Measuring against other Online activity – how
far do you go? Attributing multi-commission payments on a
sale
What should Advertisers focus on?
Quality over Quantity Servicing top relationships correctly – more
face-to-face contact Don’t try & grow in a direction that competes
with your top relationships There is still growth in Online…particularly in
Performance!
Total Advertising Spend : Online v Offline
Total Spend is worth £17.5bn
Online Spend
Online UK Internet Advertising worth £3,3bn in 2008 -
the only medium to experience growth 20% of all advertising budgets now spent
online Level pegging with Press Display
Offline Growth Trends: 2008
Offline Cinema only other medium to show positive
growth; 1% of market The spotlight is now on accountability Media rationing in place Commoditization of buying Prices for Offline real estate have plummeted ROI is now a given
Total Advertising Spend : Online v OfflineCinema
1%
Direct Mail12%
Di-rec-
tories5%
Internet19%
Outdoor5%
Press Classified13%
Press Display20%
Radio3%
Television22%
Cinema
Direct Mail
Directories
Internet
Outdoor
Press Classified
Press Display
Radio
Television
Source: IAB/PriceWaterhouseCoopers, 2009
Total Adspend: £17.5 billion
How could Performance work Offline?
TVPRCO channels are still under utilising Performance opportunities
Remnant space and CPA Commonplace to see URLs in Print and
Broadcast format but… These are regularly generic, and not dedicated
to a particular offer, or call to action
Radio Advertising
Volkswagen
British Airways
Adding in Performance
Both adverts push the product’s brand message
Slight amendments to the script would allow you to build in A product-specific call to action A unique telephone number and/or URL A trackable action, and an attribution value (CPA)
TV Advertising
Vodafone ‘Freedom Packs’
Limited customer engagement Generic contact point No specific call to action Could use Performance to help re-establish
brand within busy sector
Press Advertising
Indesit Washing Machine Philips AUREA Television
Adding in Performance
Ads appeared in Stuff magazine (UK ‘gadget’ magazine, Feb edition)
Neither advert had a specific offer for the model
Adding a unique offer URL or phone number enables clients to track through to order…
And pay Media Partner on a cost per order?
To Summarise
Online has a proven track record in Performance and there is still growth to come this year
Performance is emerging in Offline. It’s always been there, but there but tracking conversion has been manual
Clients looking for more customer engagement across all media