Accountable Social Marketing and CPL Benchmarks

2/25/10

• The Growth of Social Marketing• Best Practices for Building Accountable

Social/Community Sites• CPL Benchmarks by Industry• Campaign snapshot: The ASPCA

Agenda

Social media is growing• Global time spent on

social networks increased 82% YOY.1

• In the U.S., average time spent increased 143% YOY.2

• Facebook is now the 2nd most popular site on the web.3

• Nearly 75 million people visited Twitter in January 2010.4

1 Nielsen, Dec 20092 Nielsen, Dec 20093 Compete.com, Feb 20104 ComScore, Feb 2010

Marketers are also building community sites

Pressure to show ROI from social community marketing is growing, tooOver 1/3 of marketers are committed to measuring social marketing returns1

1 The Altimeter Group, January 2010

What makes social marketing measureable? 1. Acquire engaged users 2. Pay only for engaged users

Best Practices for Acquiring Engaged Users

1 The Altimeter Group, January 2010

Three ways to acquire users

Pay For Impressions

Pay For Clicks

Pay For Leads/Community members

CPM, CPC, CPLAvailable Online Pricing Models

CPC and CPL [Performance]: Growing at the expense of CPM

“It’s no secret that CPM advertising delivers poor returns”

“The Internet is more and more a Performance-driven model”

- Sam Parry Director of Online Membership & Activism,

EDF

- Imran KhanManaging Director, J.P. Morgan

Internet Advertising Revenues By Pricing Model

Source: IAB/PWC

What is CPC?Search ads: Advertisers pay only for clicks, not for impressions.

User clicks Redirected to landing

page

Fills out form Leads

What is CPL?Sign up ads: Advertisers pay only when users sign up for communities or special offers, not for impressions or clicks.

User signs up inside ad Leads

CPC and CPL: Both deliver users with high intent

CPC CPL

But only CPL is the native pricing model for social marketing

Only pay for

It’s not surprising that nearly 50% of people acquired through CPL were engaged through social/community sites….

Click costs are already well established…

Average Cost-per-Lead Across Industry Verticals

Basic Fields Premium Fields $-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

Q3 Q4

$0.81

$3.36

$2.72

The Pontiflex CPL ReportAverage CPL: Overall Q3-Q4 2009

$0.62

Source: Pontiflex Internal Research, Dec. 2009

The Pontiflex CPL ReportAverage CPL: Consumer Packaged Goods Q3-Q4 2009

Basic Fields Premium Fields $-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Q3 Q4

$0.78 $0.78$0.82

$1.01

Source: Pontiflex Internal Research, Dec. 2009

The Pontiflex CPL ReportAverage CPL: Travel Q3-Q4 2009

Basic Fields Premium Fields $-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Q3 Q4

$0.54

$1.27

$0.51

$1.39

Source: Pontiflex Internal Research, Dec. 2009

The Pontiflex CPL Report Average CPL: Technology Q3-Q4 2009

Source: Pontiflex Internal Data, 2009

Basic Fields Premium Fields $-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

Q3 Q4

$0.45

$0.98

$0.55

$1.22

The Pontiflex CPL ReportAverage CPL: Entertainment Q3-Q4 2009

Source: Pontiflex Internal Research, Dec. 2009

Basic Fields Premium Fields $-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

Q3 Q4

$0.75$0.99

$3.00 $3.00

The Pontiflex CPL ReportAverage CPL: Retail Q3-Q4 2009

Source: Pontiflex Internal Research, Dec. 2009

Basic Fields $0.59

$0.60

$0.61

$0.62

$0.63

$0.64

Q3 Q4

$0.63

$0.61

The Pontiflex CPL ReportAverage CPL: Consumer Electronics Q3-Q4 2009

Basic Fields Premium Fields $-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Q3 Q4

$0.67$0.72

$0.65

$1.40

Source: Pontiflex Internal Data, 2009

The Pontiflex CPL ReportAverage CPL: Non-profit/Advocacy Q3-Q4 2009

Basic Fields Premium Fields $-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

Q3 Q4

$1.33 $1.44

$1.56

Source: Pontiflex Internal Research, Dec. 2009

Case StudyHow the ASPCA increased its donor base using CPL ads to build email, Facebook, and Twitter marketing programs.

Campaign Snapshot: The ASPCAStep 1: Ran CPL sign up ads on relevant sites

Campaign Snapshot: The ASPCAStep 2: Sent Relevant and Timely Emails

Email is the Gateway to Social Marketing

• 96% of consumers are willing to share email addresses to receive advertising offers/information

• Only 12% are willing to share social networking information1

1 Harris Interactive Survey, September 2009

Email Home/Work Address

Home/Cell/Work Telephone

Social Networking Information (Twitter

handle, etc)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All RespondentsRespondents Who Have Provided Information Online

Campaign Snapshot: The ASPCAStep 3: Engaged Through Social Media

E-mail is only one way to engage your member, donor, and advocate… When we combine all three (Facebook, Twitter and e-mail), we capture a bigger audience.

Debbie SwiderSenior E-Marketing Manager

Thank you!

Jon BeardsleyChief Revenue Officer

jon@pontiflex.com718.801.8488

Appendix

Research Methodology: CPL BenchmarksData compiled for time period July 1, 2009 – December 31, 2009

Sample of 807 publisher websites

Leads included were non-incentivized, opt-in, and purchased on a Cost-per-Lead pricing model.

Consumer sample included adults 18+ in North America

Report does not include CPL figures for emerging media

Please note that the CPL for these media may be higher or lower than the data reported based on intent, content, and media type.