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Performance marketing: Display matters - Ulrich Bartholomaus

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Performance Marketing: Display Matters
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Page 1: Performance marketing: Display matters - Ulrich Bartholomaus

Performance Marketing: Display Matters

Page 2: Performance marketing: Display matters - Ulrich Bartholomaus

Agenda

1) Introduction

2) Why Display Matters

3) How to increase and optimse Display Traffic

Page 3: Performance marketing: Display matters - Ulrich Bartholomaus

Introduction

Page 4: Performance marketing: Display matters - Ulrich Bartholomaus

affilinet – the facts

• Established in Germany in 1997

• Operating in 7 countries across Europe

• Over 120 staff

• 1,600 active affiliate programs

• 500,000 affiliate websites

• 14 years experience in managing CPA,

CPL and CPC campaigns

Page 5: Performance marketing: Display matters - Ulrich Bartholomaus

The Affiliate Marketplace Idea

- Grow Marketplace- Increase Service Quality- Continue to offer innovative solutions

More Sales & Leads

Page 6: Performance marketing: Display matters - Ulrich Bartholomaus

Why Display Matters

Page 7: Performance marketing: Display matters - Ulrich Bartholomaus

Insights into the affilinet Marketplace – how relevant are display ads in Performance Marketing?

What are we looking at?

• January 2011 figures

• Publisher Business Models that use gif banners as primary creative for driving the traffic to the Advertiser‘s sites

• Impressions

• Unique Users

• Click-Through Rates and Conversion Rates

Page 8: Performance marketing: Display matters - Ulrich Bartholomaus

Specific Publisher Business Models use banners as primary creative at very high volumes

Publisher Bus. Model

Using Display Ads as primary Creative

Share of Gif Banners of Total Impressions

Click-Through-Rate Gif Banners

CR Gif Banners

eCPM Gif Banners

Performance Display √

Portal&Communities √

E-Mail Distributors √Topic / Niche Websites √

Overall 86% of these use Gif Banners (impressions)These models account for 75% of all impressionsWe reach 24 Mio Unique Users per day with these models in Germany

96%

72%

85%

74%

1%

3%

9%

3%

0,5%

0.76%

0.93%

1%

0.21€

0.40€

1.45€

1.75€

Page 9: Performance marketing: Display matters - Ulrich Bartholomaus

Display matters!

Page 10: Performance marketing: Display matters - Ulrich Bartholomaus

An Affiliate Network has the power to reach half of all users within a country and one day using gif banners

affilinet reach:24 Million Unique Users per day

Germany:51,78 Million Internet Users*

AGOF Internet Facts 2011-02

Page 11: Performance marketing: Display matters - Ulrich Bartholomaus

The largest Marketing Agencies in Germany

Page 12: Performance marketing: Display matters - Ulrich Bartholomaus

Small improvements in Click-Through-Rates and Conversion Rates have a big impact on increasing Sales

25 Mio Unique UsersCR of 0.5% (performance media bus model)= 125K Sales

Lift CR by 20% to 0.6%= 150K Sales= 20% more Sales 20% more Sales!

Page 13: Performance marketing: Display matters - Ulrich Bartholomaus

How to increase traffic and increase sales with Performance Display Marketing: Vodafone case

Sales were doubled within one quarter.

Page 14: Performance marketing: Display matters - Ulrich Bartholomaus

How to increase traffic and sales with Retargeting –

Online Retail case

Revenue increase with Retargeting: affilinet Online Retail Advertiser

Revenue Retargeting

Revenue other business models

+ 153%

Page 15: Performance marketing: Display matters - Ulrich Bartholomaus

High uplift in Click-Through-Rates with Retargeting

Retargeting ads increase reach and awareness and in turn increase Click-Through-Rates*

* Click-Through-Rate affilinet Online Retail Advertiser

+ 1.240%

0.10%Standard Click-Through-Rate

1.24%Click-Through-Rate Retargeting

Page 16: Performance marketing: Display matters - Ulrich Bartholomaus

High uplift in Conversion-Rates with Retargeting

Retargeting increases Conversion-Rate and Sales*

+ 650 %

0,40 %Standard CR

2,60 %CR Retargeting

* Conversion-Rate affilinet Online Retail Advertiser

Page 17: Performance marketing: Display matters - Ulrich Bartholomaus

Higher Click-Through-Rate with Retargeting

+ 1.900 %

0,02 % 0,38 %

Retargeting ads increase reach and awareness and in turn increase Click-Through-Rates*

Standard Click-Through-Rate Click-Through-Rate Retargeting

* Click-Through-Rate affilinet Online Retail Advertiser

Page 18: Performance marketing: Display matters - Ulrich Bartholomaus

Conclusions: Driving high volumes in impressions results in higher sales

Increased Display Activities =Higher Impressions =More Sales =Even more sales with efficient solutions

High volumes in impressions drive branding

effects.

High volumes in impressions drive sales in other online and offline channels

Improve CTR and CR

Page 19: Performance marketing: Display matters - Ulrich Bartholomaus

How to increase and optimise display traffic

Page 20: Performance marketing: Display matters - Ulrich Bartholomaus

How to increase reach and optimise Click-Through-Rates and Conversion Rates

Increase Reach with eReach / Post-View Tracking

Be more efficient with Retargeting

Be more efficient with Mobile Marketing

Measure effects and investments with Customer Journey Tracking

More Sales!

Page 21: Performance marketing: Display matters - Ulrich Bartholomaus

Customer Surveys: Publisher

70% of Publishers think current creatives to be one of the three aspects for an attractive Affiliate Program.

Mobile Marketing75% of Publishers see future potentials in Mobile Marketing

2010: 55% of Publishers gain users from mobile devices; 2011: 74% of Publisher expect to have users from mobile devices.

Customer Journey43% of Publishers would like to earn commissions based on customer journey tracking and think to earn higher commissions this way.

Page 22: Performance marketing: Display matters - Ulrich Bartholomaus

Customer Surveys: Advertiser

Retargeting85% know about Retargeting and 36% of those use Retargeting.

Over half of the Advertiser who don‘t do Retargeting can imagine to retarget users in 2011.

Mobile Marketing19% of Advertisers invest in Mobile Marketing.

Customer Journey37 of Advertisers track the customer journey41% think that paying commissions based on customer journey makes most sense in 2011

Page 23: Performance marketing: Display matters - Ulrich Bartholomaus

eReach / Post View Marketing

Page 24: Performance marketing: Display matters - Ulrich Bartholomaus

That‘s Efficient Reach

What is an Efficient Reach Sale?

affilinet can track a Sale/Lead, after a Click or a View (=Impression) has been generated.

Efficient Reach (eReach) Sales are Sales/Leads that are being generated through contact with the creative (=View)

The user has become aware of the advertiser‘s creative but has not clicked on it

The publisher receives commission in case the user effectuates a sale/lead at the advertiser after his contact with the creative

Click Sale = classical Sale

View Sale = eReach Sale

Page 25: Performance marketing: Display matters - Ulrich Bartholomaus

That‘s Efficient Reach

Flexible setting options of Efficient Reach Tracking

Determination of Cookie life time The Cookie life time for eReach Sales can be determined and even individually defined on publisher level.

Management on Publisher Level eReach can be set up across the whole affiliate program as well as for individual publishers.

Therefore affilinet acquires experienced eReach publishers.

Management of Publisher Commissions Individual commissions can be defined for eReach.

Management on Creative Level eReach can even be individually implemented for specific creatives.

Page 26: Performance marketing: Display matters - Ulrich Bartholomaus

Efficient Reach as a strategic instrument for revenue increase

Banner 1

TV

Search

Banner 2

Click-Cookie

Click-Cookie

eReach-creative generates additional visual penetration

Sale

Decision phase

Development of a relationship with a customer (Customer Journey)

Page 27: Performance marketing: Display matters - Ulrich Bartholomaus

Efficient Reach as a strategic instrument for revenue increase

Case Study by Pilot on the subject of effectivity of Display-Ads (SMX, 23.04.09)

• The following hypotheses have been analysed:1. If the transactions are really mainly based on coincidence, the transactions

should be spread more or less regularly throughout the cookie-liftetime.2. But if the transactions result from Display contacts they would happen shortly

after the contact.

• Result:62% of the transactions were realised within 2 days, 38% within the following 28 days.

• Conclusion: Strong correlation between visual contact of the ad and the transaction Proves effectivity of eReach

Page 28: Performance marketing: Display matters - Ulrich Bartholomaus

Efficient Reach as a strategic instrument for revenue increase

Minor decrease in direct sales (approx. 14%) Increase of ovverall sales and turnover by approx. 15% Development of overall CPO depends on eReach commission

Thus: Adjustment of possible eReach commission to maximum overall CPO possible

TOTAL: 3.160 SalesRevenue: 266.900 EUR

CPO: 8 EUR

TOTAL: 2.750 SalesRevenue: 233.750 EUR

CPO: 8 EUR

Source: Post View Tracking – Is Play Time Over?, Ronald Paul, CEO Quisma GmbH

with eReach

without eReach

Page 29: Performance marketing: Display matters - Ulrich Bartholomaus

Cost advantages of eReach in comparison to conventional CPM campaigns

Performance-based commission during cookie life time

Cost pools:

Earnings:

Cost pools:

Earnings:

brand strengthening delivery of PIs as contracted strengthening of SEM- channel

(double costs)

brand strengthening delivery of PIs as contracted on premium publisher sites (closed

groups), therefore less waste circulation

additional visitors through SEM, who are not been cannibalized by the eReach campaign

high display efficiency in the visible range

On Top: top quality CPM inventory on a CPO base Media planning and optimization visitors and sales that are generated after the cookie life time are

free of charge additionally generated search queries (organic visitors) are

already covered within eReach

prevention of double costs due to cookie priorization

Conventional display- campaigns

CPM Reach(e.g. 500T PIs)

SEM

optimized eReach campaign

Page 30: Performance marketing: Display matters - Ulrich Bartholomaus

Weg.de case: there is a high effect on sales from post-view Marketing

Page 31: Performance marketing: Display matters - Ulrich Bartholomaus

Retargeting

Page 32: Performance marketing: Display matters - Ulrich Bartholomaus

Retargeting explained

Users who visited the online shop but whodid not make a purchase or any transaction can be targeted at a later stage at any time during their internet surfing stage. Retargeting ads are shown in order to make them remember about the online shop and in order to get them back into the shop for a purchase.

Page 33: Performance marketing: Display matters - Ulrich Bartholomaus

Retargeting in Affiliate Marketing

Page 34: Performance marketing: Display matters - Ulrich Bartholomaus

There are severeal reasons why Retargeting makes sense.

Apply any kind of Retargeting solution and chose the ones you prefer.

Work with handselected publishers simultaneously.

Works for Retail, Finance, Travel, Telco and any other industry.

Pay per Sale, Lead or Click.

Track with Post-Click or Post-View or combination.

Page 35: Performance marketing: Display matters - Ulrich Bartholomaus

Retargeting ads examples

Page 36: Performance marketing: Display matters - Ulrich Bartholomaus

Mobile Marketing

Page 37: Performance marketing: Display matters - Ulrich Bartholomaus

Mobile Marketing

Facts Mobile Marketing

Reach 62,38 million mobile phone users in Germany (88,5% of German population) Mobile internet usage: over 9 million UMU (Unique Mobile User),

14,6% of German population*

* Source: AGOF mobile facts 2010

Page 38: Performance marketing: Display matters - Ulrich Bartholomaus

There are different possibilites to gain mobile traffic

Reach-Model Buy traffic from mobile sites on CPM or CPC Serveral targeting options like geo, operating system, mobile phone type Buy specific channels

Performance-Model Click to Call campaigns as direct response for calls to a call centre Cost per Lead-campaigns

Page 39: Performance marketing: Display matters - Ulrich Bartholomaus

Mobile Marketing: „how to“ in Affiliate Marketing

Prerequisites for successful mobile campaigns

Mobile landing page Integrate the Affiliate Network tracking pixels on the sign-out page Offer mobile phone optimised banners Simple and quick buying process or call to action

Page 40: Performance marketing: Display matters - Ulrich Bartholomaus

Customer Journey

Page 41: Performance marketing: Display matters - Ulrich Bartholomaus

Efficient Reach as a strategic instrument for revenue increase

ComScore* Study "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“

These study analyses how online display ads affect European Consumer Behaviour.

Results:

Online ad spending increased tremendously and even surpassed spendings for TV ads. Campaign budget is moved from CPM campaigns to CPC programs. (Online campaigns represent 23% of all media spending)

An increasing sophistication of online audiences has led fewer consumers to click on ads. Clickrates have fallen to 0,14 % in Spain.

8% of the internet audience generates appr. 85% of click volume.

*ComScore: ComScore is a US-american, international acting, influential Internet-Research company, who regularly publishes the „World-Metrix-Report“, analysing the usage of internet.

Page 42: Performance marketing: Display matters - Ulrich Bartholomaus

Efficient Reach as a strategic instrument for revenue increase

ComScore Studie "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“

Resumee:

Linda Anderson (vice president comScore)

The affectiveness of Display campaigns can not be evaluated on the Clickrate anymore, thererfore low CTR can not be seen as a negative indication of the quality of a campaign or ist audience.

The importance of Display Ad campaigns remains unquestioned despite of low click rates. Many studies reveal that Display ads can have a significant impact on consumer behaviour, creating brand awareness and positively influencing the offline purchase behaviour.

In order to evaluate the success of a campaign it has to be looked beyond ad clicks, a holistic post view examination is necessary. (did the user see the ad before he acted?).

Page 43: Performance marketing: Display matters - Ulrich Bartholomaus

Efficient Reach as a strategic instrument for revenue increase

ComScore Studie "HOW ONLINE ADVERTISING WORKS: WHITHER THE CLICK?“

Conclusion:

John Lowell (Director Research & Analytics, Starcom USA)

“A click neither generates revenue nor increases the brand value. The main purpose of Online-Advertising should not be seen in generating clicks – but instead in increasing sales or at least in creating brand awareness.”

eReach therefore is the perfect instrument to create Brand-Awareness and increase sales!

Page 44: Performance marketing: Display matters - Ulrich Bartholomaus

Efficient Reach as a strategic instrument for revenue increase

Significant increase in Sales through eReachSales per Day Overall Sales

eReach campaign pushes AM and SEM and other channels, where applicable Direct sales will decrease Overall sales will increase

Comparison of all channels

15%Sales Sales

Page 45: Performance marketing: Display matters - Ulrich Bartholomaus

Retargeting has an impact on other online channels

Comscore study: Retargeting increases brand searches by 1,046% within 4 weeks.

Source: Valueclick media, Comscore, 2010http://www.adnetworks-blog.de/comscore-studie-belegt-retargeting-ist-die-erfolgreichste-werbeform/

Page 46: Performance marketing: Display matters - Ulrich Bartholomaus

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_4100 % 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%

- 15,49%- 96,30%

- 41,05%

Page 47: Performance marketing: Display matters - Ulrich Bartholomaus

The current affiliate distribution explains the strong focus on the last step within in the journey

Cash back sites

OtherEmail Dis-tribu-

tor

Topic Website(incl. PV)

Bannercommunity

Coupon

Page 48: Performance marketing: Display matters - Ulrich Bartholomaus

Initial learnings out of the analysis

• The measurement of all marketing channels brings valuable insights for the marketing 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

• The impact on affiliate marketing strongly depends on the set-up of the affiliate base

Page 49: Performance marketing: Display matters - Ulrich Bartholomaus

Conclusions

Page 50: Performance marketing: Display matters - Ulrich Bartholomaus

Conclusions

Conclusions

Increase your performance-based display spendings now!

Apply intelligent tracking solutions and optimise your ROI!

Page 51: Performance marketing: Display matters - Ulrich Bartholomaus

affilinet GmbHUli BartholomäusJoseph-Wild-Str. 2081829 München

[email protected]://www.xing.com/profile/Ulrich_Bartholomaeustwitter.com/ubartholomaeushttp://de.linkedin.com/in/bartholomauswww.affili.net


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