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Customer Journey, a Trip to the Future of CPA Be prepared for a detailed analysis of the customer journey and the allocation of commissions to various Online Marketing channels such as Search, Display and Affiliate Marketing. On the basis of a practical case set up by affilinet and explido, the audience will learn about the options and effects of a new way of commissioning.
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a4u Europe, Munich, May 18th 2010
Thomas Eisinger, explido WebMarketing
Sabine Haase, affilinet GmbH
Alexander Hall, Tipp24 Entertainment GmbH
Customer Journey –a Trip to the Future of CPA
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Agenda
• About us
• Background Customer Journey
• Tipp24 Case
• Set-up
• Findings
Page 2
• Outlook
• The way forward
• Q&As
Tipp24Games – Your Partner for Casual Games
Company
� Founded in Feb 2008
� 100% subsidiary of Tipp24 SE
� Casual-based Skillgames
Business Model
� Users play against each other
� Stake between 50 ct. & 10 €
� Winner 80%, Tipp24Games 20%
Page 3
Gamedesign
We design high-quality
games in terms of
layout & gameplay
Design of Characters
We design high-
quality and individual
game characters
eCommerce
We have high
compentence in
mass transactions
explido is an international performance marketing agency
SEM/SEOSEM/SEO
explido
Performance
Tool-Box
Adtraxx
Action Allocator
Affiliate Marketing
Social Media Marketing
Product Portals
Founded in 1999, explido are now a team of 85 in Augsburg, Frankfurt, Hamburg
Page 4
Action Allocator
Adfeed
Affiliate Tool-Box
Conversion Optimization
� Usability Optimization
� Landingpage Optimization
� Web Analytics
Product Portals
Performance Ads (Display)
affilinet is the No.1 in Performance Marketing in Germany
Effective Partnership-Management
• Major European player
Performance based Media
• Campaign managementfor sales, leads and
Innovative Software Solutions
• Marketing trackingsolution Media Essentials
Page 5
• 1.600 programs & 450.000 publishers
• Innovative products & platform
• High transparency, quality and security
for sales, leads andclicks
• eReach for mediaperformance
• Branding performancewith affilinet securityguarantee
solution Media Essentials
• Huge application store
• Innovative developerportal
• Bid management via thesearch manager
Agenda
• About us
• Background Customer Journey
• Tipp24 Case
• Set-up
• Findings
Page 6
• Outlook
• The way forward
• Q&As
Which cookie wins?
Is last cookie still state-of-the-art?
Page 7
How does thejourney look like?
Do I win or do I lose?
The journey begins – I want to play Knobel Jack ☺☺☺☺
Page 8
Usually search is first – Keyword search or even brand search
Page 9
Maybe a publisher site is next …
Page 10
…plus many other sites…
Page 11
And then…YOU GET THERE!
Page 12
The Tipp24 case: customer journey example
Display
AffiliateBanner 3
Visual
Lead/Sale
Lead/s
ale
pro
bablit
y
Page 13
DisplayBanner 1
Search
Display Banner 2
View-Cookie
Click-Cookie
Visual penetration
Decision PhaseLead/s
ale
pro
bablit
y
Time
Click-Cookie
ProductBranding
ProductInterest
ProductDesire
ProductPurchase
The sales impulse is driven by different channels throughout the journey
Display
Page 14
Search
Affiliate Marketing
Agenda
• About us
• Background Customer Journey
• Tipp24 Case
• Set-up
• Findings
Page 15
• Outlook
• The way forward
• Q&As
Main goal of the analysis for Tipp24
How does the customer journey look like and how many touchpoints do exist?And – how can I use this information to become more effective?
Page 16
Assumptions when starting the analysis
• Customer journey lengthy, difficult to analyse
• SEM only „enabler“ of transaction, stands at the end of the chain
• Display will profit from a journey analysis
• Affiliate marketing positioned towards the end of the journey
Page 17
The following channels have been looked at
SEMNon Brand Search
AffiliatePostview
Display View
Page 18
SEMBrand Search
AffiliateClick
Display Click
Technical set-up, tracking requirements, rules applied
• Collecting all clicks and banner views usingthe explido ‚ActionAllocator‘
• Possibility of measuring all differenttouchpoints
• SEM: campaign structured in ‚brand‘ and‚non-brand‘ keywords
Page 19
‚non-brand‘ keywords
• ActionAllocator decides at the point of salewhich tracking pixels should be activated
The initial results….
Page 20
The amount of touchpoints across all measured journeys is 4, the majority of leads is generated with only 2 touchpoints
Page 21
The Top 10 combination models of touchpoints are…
SEM
Banner Click -> Banner View -> Banner View
SEM -> SEM
Banner Click
Affiliate Click
Banner Click -> Banner View
Page 22
Banner Click -> Banner View
SEM -> SEM -> SEM
Affiliate Click -> Affiliate Click
SEM -> SEM -> SEM -> SEM
Banner Click -> Banner Click
Which commission attribution model is right?
Last cookie wins
Page 23
First cookie wins Weighed model
Current method: Last Cookie wins
Touchpoint_1 Touchpoint_2 Touchpoint_3 Touchpoint_4
100 %
0 % 100 %
0 % 0 % 100 %
0 % 0 % 0 % 100 %
This is the standard method which
assumes that the last touchpoint of the
user is responsible for the final
lead/sale.
Page 24
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_4
100 %
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%
Page 25
- 15,49%- 96,30%
- 41,05%
The weighed attribution leads to an increase for Display view, Affiliate loses less than in the „first cookie wins“-model
Touchpoint_1 Touchpoint_2 Touchpoint_3 Touchpoint_4
100 %
50 % 50 %
40 % 20 % 40 %
35 % 15 % 15 % 35 %
In this case, the weighed
attribution assumes that the first
and last contact have the highest
value for the advertiser.
+ 12.577,00% + 13,47%
- 4,32%
Page 26
- 7,82%
- 38,22%
- 19,69%
The current affiliate distribution explains the strong focus on the last step within in the journey
Cash back sites
Topic Website(incl. PV)
Bannercommunity
Coupon
Page 27
OtherEmail Distributor
Initial learnings out of the analysis
• The measurement of all marketing channels brings valuable insights for themarketing 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
Page 28
• The impact on affiliate marketing strongly depends on the set-up of the affiliatebase
Detailed findings Tipp24 Games:In a new attribution model affiliates would lose
• The journey consists of only 4 touchpoints
• Display and Brand Search have an impact on sales and leads
• Postview impact is still too low, but could have the same impact as Display View
• Affiliate Marketing is heavily transaction focused and will lose if commissionattribution is changed
Page 29
attribution is changed
• Current Bid Management strategy has a high impact on the journey (i.e. Brand Search)
Tipp24 Games Outlook:More insights and a new attribution of investments
• Include the SEO traffic into the game
• Analyse timestamps, i.e. regular lengths of the journey and timings during the day
• Increase Postview Affiliate Marketing
• Play with differing commission models for affiliates (also based on business
Page 30
• Play with differing commission models for affiliates (also based on business models)
Agenda
• About us
• Background Customer Journey
• Tipp24 Case
• Set-up
• Findings
Page 31
• Outlook
• The way forward
• Q&As
We believe that a successful online advertiser needs to analyse the journey specific to his industry segment and product
• Cross-channel data analysis will have an increased importance
• The definition of the journey and related touchpoints can change the game
• The optimal marketing mix does not exist assuch, it stems from continuous optimisation
• Analysis is only the first step, next is to
Page 32
• Analysis is only the first step, next is tooptimise the channel mix, measure the effects, analyse the results, optimise the mix…..
• The marketing organisation will become more holistic• All channels and their interaction need to be looked at
The impact on affiliate marketing – the business model of the affiliate is the decisive factor for commissions
• Affiliates are heavily transaction focused and will therefore lose, if thecommissions are simply attributed in a different way
• Postview is a valid option to increase impact of affiliate marketing at the startof a journey
• The journey analysis can reveal business models that support transactions, but are currently not affordable for affiliates. This could lead to new businesscoming into play.
Page 33
coming into play.
• To be fair, commissions in affiliate marketing could in future be measured on the basis of affiliates business models.
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Thanks for your interest ☺☺☺☺
Q&A‘s please!
Thomas Eisinger, [email protected]
Alexander Hall, [email protected]
Sabine Haase, [email protected]
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