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Presentation delivered at the Digital Marketing Show 2013 (www.digitalmarketingshow.co.uk)
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The Future of Performance MarketingThe Future of Performance Marketing
Digital Marketing Show, 26Digital Marketing Show, 26thth November 2013 November 2013
www.PerformanceHorizon.com
About MeAbout MeSubtitle as necessarySubtitle as necessary
• Have worked in performance marketing for 8 years
• Head of Client Services – affiliate network
• Head of Performance – i-level
• Chair of IAB Affiliate Marketing Council 2010
• Co-founder and Head of Product – Performance Horizon Group @mattb811
www.PerformanceHorizon.com
Putting Performance Marketing in ContextPutting Performance Marketing in ContextIAB UK Online Performance Marketing Study 2012IAB UK Online Performance Marketing Study 2012
• In the UK, advertisers spent over £800m on online performance marketing activities
• This generated over £9 billion in sales
• ROI of £11 for every £1 spent
• Advertisers estimate they will spend 5 – 10% more in 2013
www.PerformanceHorizon.com
Where is affiliate marketing?Where is affiliate marketing?
• 3 days
• Over 200 sessions
• Some of the biggest names in digital marketing
• 1 session from a performance marketing company
www.PerformanceHorizon.com
Why is this??Why is this??
Why is Performance Marketing still viewed
as the unwanted ginger step child of digital
marketing?
www.PerformanceHorizon.com
What I’ll talk about todayWhat I’ll talk about today
• What’s the difference between affiliate and performance?
• Where do Performance Horizon Group fit in?
• Why performance marketing is growing.
• How will it continue to grow? Powering digital innovation
• What we need to do to encourage this.
www.PerformanceHorizon.com
Affiliate vs PerformanceAffiliate vs Performance
Brand
Agency
Affiliate Network
Affiliates
www.PerformanceHorizon.com
How has affiliate evolved?How has affiliate evolved?
Brand / Agency
Top Affiliates
Affiliate Network
Long Tail
www.PerformanceHorizon.com
Big affiliates get biggerBig affiliates get bigger
www.PerformanceHorizon.com
What is performance marketing?What is performance marketing?
• Performance-based advertising is a form of advertising in which the purchaser pays only when there are measurable results. (Wikipedia)
• Affiliate marketing is a sub-set of performance marketing.
• Plenty of performance marketing activity has always taken place outside of affiliate networks
www.PerformanceHorizon.com
Performance marketing examplesPerformance marketing examples
Travel
Finance
www.PerformanceHorizon.com
New models monetising through performanceNew models monetising through performance
Call Tracking
Mobile
Retargeting
ContentOn Site
Abandonment
Cart Abandonment
www.PerformanceHorizon.com
Where do Performance Horizon fit in?Where do Performance Horizon fit in?
Brand
Performance Marketing Hub
Call Tracking
Mobile
Affiliate Networks
ContentDirect
AffiliatesDirect
Partners
Cart Abandonmen
t
Retargeting
On Site Abandonmen
t
www.PerformanceHorizon.com
Performance HorizonPerformance Horizon
www.PerformanceHorizon.com
Why will performance continue to grow?Why will performance continue to grow?
Paying on performance is a very attractive proposition to
advertisers
Provides a channel for innovative new ideas to flourish
www.PerformanceHorizon.com
Innovation in performance marketingInnovation in performance marketing
Content monetisation tool turning traditional publishers into affiliates
www.PerformanceHorizon.com
Innovation in performance marketingInnovation in performance marketing
On site abandonment technology
www.PerformanceHorizon.com
Innovation in Performance MarketingInnovation in Performance Marketing
Created an online version of the traditional freshers fair
• To reach 100k students in person would cost £70k• 2013 they saw 200,000 conversions on site• All rewarded solely on a performance basis
www.PerformanceHorizon.com
Innovation in performance marketingInnovation in performance marketing
Crossing the divide between online and offline
www.PerformanceHorizon.com
But… need to understand dataBut… need to understand data
• Performance marketing is an umbrella term that covers many different marketing models.
• All the risk is on the partner as they don’t get paid unless the pre agreed action takes place, and last click wins.
• But… you need to understand how they interact with each other and with other channels.
www.PerformanceHorizon.com
Drilling down into your dataDrilling down into your data
What impact does each partner have on the path to
sale?
What is the value of customers being driven by each partner?
• Some partners have become very good at grabbing the last click
• Others may not be rewarded properly as they are not the last click
• Do some partners drive a better type of customer than others?
• Are you taking vouchers and discounts into consideration?
• Can you factor in lifetime customer value?
www.PerformanceHorizon.com
Key takeawaysKey takeaways
• Performance marketing needs to be taken seriously within your organisation
• Provides sales and a framework for innovation
• Closely analysing and understanding the data is vital