successful together

a4uexpo Europe, Munich, May 18th 2010Thomas Eisinger, explido WebMarketingSabine Haase, affilinet GmbHAlexander Hall, Tipp24 Entertainment GmbH

Customer Journey – a Trip to the Future of CPA

Page 2

Agenda

• About us

• Background Customer Journey

• Tipp24 Case• Set-up• Findings• Outlook

• The way forward

• Q&As

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Tipp24Games – Your Partner for Casual Games

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

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%

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explido is an international performance marketing agency

SEM/SEOSEM/SEO

explido Performance

Tool-Box

AdtraxxAction Allocator

AdfeedAffiliate Tool-Box

explido Performance

Tool-Box

AdtraxxAction Allocator

AdfeedAffiliate Tool-Box

Conversion Optimization Usability Optimization Landingpage Optimization Web Analytics

Conversion Optimization Usability Optimization Landingpage Optimization Web Analytics

Affiliate MarketingAffiliate Marketing

Social Media MarketingSocial Media Marketing

Product PortalsProduct Portals

Performance Ads (Display)Performance Ads (Display)

Founded in 1999, explido are now a team of 85 in Augsburg, Frankfurt, Hamburg

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affilinet is the No.1 in Performance Marketing in Germany

Effective Partnership-Management

• Major European player

• 1.600 programs & 450.000 publishers

• Innovative products & platform

• High transparency, quality and security

Performance based Media

• Campaign management for sales, leads and clicks

• eReach for media performance

• Branding performance with affilinet security guarantee

Innovative Software Solutions

• Marketing tracking solution Media Essentials

• Huge application store

• Innovative developer portal

• Bid management via the search manager

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Agenda

• About us

• Background Customer Journey

• Tipp24 Case• Set-up• Findings• Outlook

• The way forward

• Q&As

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Which cookie wins?

Is last cookie still state-of-the-art?

How does the journey look like?

Do I win or do I lose?

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The journey begins – I want to play Knobel Jack

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Usually search is first – Keyword search or even brand search

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Maybe a publisher site is next …

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…plus many other sites…

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And then…YOU GET THERE!

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The Tipp24 case: customer journey example

DisplayBanner 1

Search

Display Banner 2

AffiliateBanner 3

View-Cookie

Click-Cookie

Visual penetration

Lead/Sale

Decision PhaseLead

/sal

e pr

obab

lity

Time

Click-Cookie

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Product Branding Product Interest Product Desire Product Purchase

The sales impulse is driven by different channels throughout the journey

Display

eMail

Search

Affiliate Marketing

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Agenda

• About us

• Background Customer Journey

• Tipp24 Case• Set-up• Findings• Outlook

• The way forward

• Q&As

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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?

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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

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The following channels have been looked at

SEMNon Brand Search

Affiliate Postview

Display View

SEMBrand Search

Affiliate Click

Display Click

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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

• ActionAllocator decides at the point of salewhich tracking pixels should be activated

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The initial results….

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The amount of touchpoints across all measured journeys is 4, the majority of leads is generated with only 2 touchpoints

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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

SEM -> SEM -> SEM

Affiliate Click -> Affiliate Click

SEM -> SEM -> SEM -> SEM

Banner Click -> Banner Click

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Which commission attribution model is right?

Last cookie wins

First cookie wins Weighed model

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Current method: Last Cookie wins

Touchpoint_1 Touchpoint_2 Touchpoint_3 Touchpoint_4100 %

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.

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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%

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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%

- 7,82%

- 38,22%

- 19,69%

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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

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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

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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 commission attribution is changed

• Current Bid Management strategy has a high impact on the journey (i.e. Brand Search)

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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 models)

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Agenda

• About us

• Background Customer Journey

• Tipp24 Case• Set-up• Findings• Outlook

• The way forward

• Q&As

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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 as such, it stems from continuous optimisation

• Analysis is only the first step, next is to optimise 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

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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 the commissions are simply attributed in a different way

• Postview is a valid option to increase impact of affiliate marketing at the start of a journey

• The journey analysis can reveal business models that support transactions, but are currently not affordable for affiliates. This could lead to new business coming into play.

• To be fair, commissions in affiliate marketing could in future be measured on the basis of affiliates business models.

successful together

Thanks for your interest

Q&A‘s please!

Thomas Eisinger, thomas.eisinger@explido.deAlexander Hall, alexander.hall@t24e.deSabine Haase, shaase@affili.net