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Central Role Of Affiliate Marketing - Michael Steckler - Platform A

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Affiliate Marketing, Platform A, a4uexpo, a4uexpo London, Michael Steckler
33
The central role of Affiliate Marketing in the digital ecosystem Michael Steckler Managing Director Platform-A, UK The new home for AOL Properties, Advertising.com, buy.at, Quigo, Tacoda and Third Screen Media.
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Page 1: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

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.

Page 2: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Today

1. Technology continues to drive innovation and growth

2. Scaled networks enable mass market or mass niche

3. On-line channels complement not compete

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

Page 3: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Agenda

Context

Challenge & Opportunity

Our Approach

Page 4: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Continued underestimation of technology

Page 5: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

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:

92%

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

Page 6: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

6

Move to mass

0%

100%

200%

300%

400%

500%

600%

700%

800%

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

10%

20%

30%

40%

50%

60%

70%

80%

Page 7: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

The Private Individual

The Networked Individual

The Electronic Individual

c. 20th

c. 21st

c. 21st

Shifting social norms

Page 8: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Technology introversion to extroversion

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

Page 9: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Reliance on internet activities

9

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%

0

20

40

60

80

100

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 (%)

2%

85%

83%

1%1%1%1%0

20

40

60

80

100

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

Page 10: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Scaling of niche

Page 11: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Move to automation

Page 12: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Agenda

Context

Challenge & Opportunity

Page 13: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

The new world of targeting

Page 14: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Creating anxiety free surfing

Page 15: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

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

Page 16: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Mothership(M) (M) (M)

Classic Website(Yesterday)

Current Web-network(Today)

Future Web Strategy(Tomorrow)

Scaled fragmentation

Page 17: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Discoverability

Page 18: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Friends of friends

18

Page 19: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

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

Page 20: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Agenda

Context

Challenge & Opportunity

Our Approach

Page 21: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

We reach nine out of ten online consumers in the UK

Source: comScore August 2008, ** denotes advertising networks

Page 22: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Our solutions reach across the fragmented digital landscape

niche

premium

# of sites

BRANDED DESTINATIONS

BLOGS / LONG TAIL

THE NETWORKSDisplayVideoAffiliate

AOL MEDIA PROPERTIESPARTNER SITES

Page 23: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

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

Page 24: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Client-centric focusb

ran

din

g s

olu

tio

ns

perfo

rman

ce solu

tion

s

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

Page 25: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

25

Maximizing Publisher revenue

Behavioural Targeting

Premium Vertical Channels

Premium with performance

Performance with managed Frequency

Performance with uncapped, unmanaged frequency

Site Volume + Frequency

eCPM

Low High

Premium Branded

Page 26: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

BALANCED PORTFOLIO

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

Page 27: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

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

Page 28: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

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.

Page 29: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Technology & networks

Page 30: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Ticketmaster Event Engine

Page 31: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Ticketmaster initial results

Page 32: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

Today

1. Technology continues to drive innovation and growth

2. Scaled networks enable mass market or mass niche

3. On-line channels complement not compete

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

Page 33: Central Role Of Affiliate Marketing - Michael Steckler - Platform A

[email protected]

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


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