Central Role Of Affiliate Marketing - Michael Steckler - Platform A

transcript

The central role of Affiliate Marketing in the digital ecosystem

Michael StecklerManaging Director Platform-A, UK

The new home for AOL Properties, Advertising.com, buy.at, Quigo, Tacoda and Third Screen Media.

1. Technology continues to drive innovation and growth

2. Scaled networks enable mass market or mass niche

3. On-line channels complement not compete

Agenda

Context

Challenge & Opportunity

Our Approach

Continued underestimation of technology

The increasing digitisation of media

47% of people use

TV and Internet concurrently on

a daily basis (second only to

eating)UK Internet users with broadband access:

Almost

one third of UK internet

users are ‘heavy users’, spending

16+ hours per week online

More than

6 out of 10 UK adults go online

at least once a week

Nearly 32 million people now ‘frequently online’ in the UK

Source: EIAA Mediascope Study 2007, IAB & Thinkbox, TV and Online:Better Together, April, 2008

Move to mass

2006 2007 2008 2009 2010 2011 2012

age 65+

age 55-64

age 50-54

age 45-49

age 35-44

age 25-34

age 18-24

age 12-17

age 0-11

S:Jupiter internet Demographics Model, Jan 08

+25.8%

+5.8%+46.8%+43.6%+42.1%+76.0%

+24.2%+21.0%+7.9%

% growth

The Private Individual

The Networked Individual

The Electronic Individual

c. 20th

c. 21st

Shifting social norms

Technology introversion to extroversion

source: PSB, 2005 from Mark J Penn Microtrends: The Small Forces Behind Today’s Big Changes Page 254

Reliance on internet activities

Top 10 Website Activities (%)Top 10 Website Activities (%)

40% 20% 5% 6% 3% 1% 3% 1% 1% 1%1%2%2%2%2%6%7%25%32%

EmailSearching

Instant Messaging

Communicating via Social Networking sites

Music downloads

Making telephone calls via Skype or via your ISP

Listening to radio

On-line gaming

Downloading a film, TV or video clip

Watching film, TV or video clips

UK Europe

Next 11 Website Activities (%)Next 11 Website Activities (%)

1%1%1%1%0

Visiting chatrooms

Sharing thoughts on forums

Ratings and reviews

Creating an online personal profile Blogging

Podcasting

P2P File sharing

Creating and sharing content

Giving to charity RSSMash Ups

(Net) Could not live without something

UK Europe

[Base: All internet users (n=4017) and all UK internet users (n=620)]

Q7bi.And of the ones that you have used, which of the following web activities that you undertake monthly could you not live without?

EIAA STUDY, OCT 2007

Scaling of niche

Move to automation

Agenda

Context

The new world of targeting

Creating anxiety free surfing

What they say is not what they do

53% may see an item on the high street and then look for it cheaper online

53% like to try an item in store before purchasing online

Source: AOL E-commerce Jan 08Source: AOL/Promise Privacy on the Internet Study 2008

Mothership(M) (M) (M)

Classic Website(Yesterday)

Current Web-network(Today)

Future Web Strategy(Tomorrow)

Scaled fragmentation

Discoverability

Friends of friends

What does it boil down to

• Rapidly evolving market

• Social behaviour changes

• Consumers represent their interests

• High street and on-line begin to merge even more

• Time-online and increase in entertainment drives increased experience and expenditure

• Great opportunity to sell more across multiple channels

• Niches at scale and technology are the enablers

Agenda

Context

Our Approach

We reach nine out of ten online consumers in the UK

Source: comScore August 2008, ** denotes advertising networks

Our solutions reach across the fragmented digital landscape

premium

# of sites

BRANDED DESTINATIONS

BLOGS / LONG TAIL

THE NETWORKSDisplayVideoAffiliate

AOL MEDIA PROPERTIESPARTNER SITES

We’re powered by the web’s best technologies

Audience insights and behavioural targeting

Online ad serving and campaign management for display, video and mobile

Search engine marketing powered by AdLearn

Algorithms for the optimisation and delivery of advertising

Premium contextual targeting

Industry-leading affiliate solution

Client-centric focusb

ce solu

Client

premium integrated branding

video, rich media & mobile

marketing

behavioural targeting

network branding & targeting

contextual marketing

social network

marketing CPC performanceadvertising

lead generationmarketing

CPA performanceadvertising

click to buy performance

marketing

search & shopping

engine marketing

Maximizing Publisher revenue

Behavioural Targeting

Premium Vertical Channels

Premium with performance

Performance with managed Frequency

Performance with uncapped, unmanaged frequency

Site Volume + Frequency

Low High

Premium Branded

BALANCED PORTFOLIO

Reduction in buy.at Reliance of Top 5 AffiliatesIncrease in Longtail Affiliates & Performance

Affiliate decides to build a Content relevant site

Affiliate designs content componentsAffiliate chooses colour of site background & image sizes

ADDITIVE TECHNOLOGY

contextual

Images are then generated dynamically

Euroffice API service

1. Customer searches for ‘paper’ on a search engine2. Affiliate’s paid search link appears displaying

relevant keywords to the customer’s search query.3. Customer clicks on affiliate link.4. On arriving to the landing page, the customer is

immediately presented content displaying many popular paper products based on the original user search

5. Customer clicks ‘more info’ to buy a product6. A single line of HTML code is inserted into the

relevant confirmation page on the merchant’s site to show a successful transaction has taken place.

Technology & networks

Ticketmaster Event Engine

Ticketmaster initial results

1. Technology continues to drive innovation and growth

2. Scaled networks enable mass market or mass niche

3. On-line channels complement not compete

Thanksmichael.steckler@platform-a.com