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Performance Advertising & Affiliate MarketingThis 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, PPCAdbuying.com; VP Advertising, Mercantalia; Director of Marketing, Adteractive
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DAVID RODNITZKY
Performance Marketing
• WHAT IS PERFORMANCE MARKETING?• MONETIZING CONTENT• MONETIZING RETAIL• PUTTING IT ALL TOGETHER
Agenda
In The Beginning (Offline). . .
Evolution of Online Marketing
1994 1998 2002 2005 2008 2010
Cost per A
cquisition
Revenue S
hare?
Definition of Performance Marketing
• 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.
• WHAT IS PERFORMANCE MARKETING?• MONETIZING CONTENT• MONETIZING RETAIL• PUTTING IT ALL TOGETHER
Agenda
What Type of Site Do You Have?
Brand is Important Money is Important
Performance Marketing for Content Sites
Five Common Ways to Monetize Content• CPC Text Ads• Affiliate or Lead Generation Offers• Co-Registration• Incentivized Premium Content• Email Newsletter
CPC Text Ads
What Is It?• Publisher paid when someone
clicks on an ad• Advertisers target specific
sites or target by topic• Leading CPC networks:
Google AdSense, Quigo, IndustryBrains
Pros• Easy to set up• No sales!• Non-obtrusiveCons:• Watering down• CPMs very low• Potential brand issues
Affiliate Banner Ads
What Is It?• Paid on CPL (form submit) or CPA
(item purchased)• You choose the offer and the
banner to promote• Leading affiliate networks:
Commission Junction, LinkShare, Google Affiliate Network
Pros• Payments up to $100• You are in control• 1000s of offers to selectCons:• Requires HTML/design knowledge• CPAs/CPLs watered down• Difficult to get into some programs
Lead Generation Offers
What Is It?• Paid on CPL (form submit) or CPA
(item purchased)• Promote offer by banner, text, or
hosted form• Leading lead generation networks:
Hydra, Azoogle, ClickBoothPros• Payments higher than affiliate
offers• You can negotiate special ratesCons:• May require programming
knowledge• Very difficult to develop
relationships
Co-Registration
What Is It?• Additional offers presented during
the registration process• Usually related products or
servicesPros• Increase revenue through cross-
selling similar companiesCons:• Can create bad user experience
Incentivized Premium Content
What Is It?• User signs up for offer, gets
access to content• Leading companies: TrialPay,
WebLoyalty, ARPUPros• Increases conversion to paid
content• User gets something free, you get
paidCons:• Lower payment due to
“incentivized nature”• Significant integration work• Some programs can create
negative consumer experience
Email Newsletters
What Is It?• User signs up for newsletter,
performance ads are sent to user• User can also opt-in for permission
to receive special offersPros• Monetization without site visit• Some email offers are very
effectiveCons:• CAN-SPAM compliance• Branding issues
• WHAT IS PERFORMANCE MARKETING?• MONETIZING CONTENT• MONETIZING RETAIL• PUTTING IT ALL TOGETHER
Agenda
Performance Marketing for Retail
Five Common Ways to Monetize Retail Sites• Cross-sell• Post-Transactional Upsell• CPC Text Ads• Co-Registration• Email Newsletter
Cross-Sell
What Is It?• During a purchase, offer users
an additional product to increase monetization
• Top performance marketing cross-sell companies: WebLoyalty, ARPU
Pros• Adds revenue• Can be highly targeted offer
with high conversionCons:• Risks losing sale• Risks bad customer
experience
Post-Transactional Upsell
What Is It?• After a purchase, offer users
an additional product to increase monetization
• Can be anything from affiliate banner to page with CPC ads
Pros• Adds revenueCons:• Risks losing sale• Risks bad customer
experience
CPC Text Ads, Co-Reg, Email
What Is It?• Same advertising mediums
that content sites usePros• May drive revenue from
consumers who decided not to purchase
Cons:• Can cannibalize sales• Risks bad customer
experience
• WHAT IS PERFORMANCE MARKETING?• MONETIZING CONTENT• MONETIZING RETAIL• PUTTING IT ALL TOGETHER
Agenda
Case Study: WrinkleCream.pro
Objective: Sell wrinkle cream online through affiliate offers
Concept: Build a review site that compares wrinkle creams available via affiliate program, market on AdWords
Monetization Step One: Find Offers
Researched more than 50 wrinkle cream affiliate offers on sites like CJ.com, Linkshare, Hydra
Rated offers based on effectiveness, CPL, and likelihood of conversion
Sent rankings to designer
Monetization Step One: CJ Example
Monetization Step Two: Develop Site
Looked at similar review sites on the Web
Wrote content Tested multiple
designs based on feedback loop of RPC (revenue per click)
1
23
Monetization Step Two: Develop Site
Consumers preferred star ratings over point system
Multiple places to click on offer increased conversion
Fewer products recommended increased sales
Monetization Step Three: Track Data
Track revenue, profit, cost at a global level Track individual products and individual advertising
channels Track changes as a result of testing
Monetization Step Three: Track Data
Track geography, time of day, referral source, etc!
Monetization Step Three: Track Data
Track PROFIT!
Case Study Results: WrinkleCream.pro
Profitable in month two Monthly growth rate of 50% MoM Profit tanked after site was hacked and new competitors
entered space Recent shift from SEM to SEO!
Key Benefits of Performance Marketing
Easy to Use – Limited Tech Work or Sales Needed
Lots of optionsPayouts Can be Very HighIncremental Revenue for Your Business
Key Drawbacks of Performance Marketing
Performance Based – No Guarantees of $$$Can Distract Consumers from Core
Content/ProductYou End Up Taking Heat from User for Bad
PartnersCan Create Bad User Experience and Reduce
Repeat Visits and PurchasesRequires Constant Maintenance and Iteration
to be Successful over the Long Run
Want to Learn More?
11/5 in NYCwww.CRSconference.com“CRSNY99” saves you $100
www.leadscon.com www.8020con.com
www.affiliatesummit.com
Thank You!
Contact Info: David Rodnitzky, [email protected] My company: www.ppcassociates.com My blog: www.blogation.net Conference: www.CRSconference.com