1

29 October 2015Matthias Stadelmeyer, CEO

Jeff Johnston, VP Product Management

Exposing performance

marketing myths

2

• Your customers are online all day, every day

• Connected with each other and with brands

• They plan, research and buy your products online. Anytime. Anywhere.

The digital eco-system has transformed our lives

3

An increasingly complex landscape

947 companies in January 2014

1,876 companies in January 2015

4

For digital marketers, the pace of change is daunting

• Marketing has changed more in the last year than in the last five*

• Many marketers struggle to adapt to the technology that is driving change

• And only one-in-three* say they are tech-savvy

*Source: Adobe

5

Engaging with your customers can be a challenge

• Marketers are spending more on online advertising

• Three-quarters of consumer brands say engaging connected customers is a priority

BUT• Only 29% have a strategy in place to target

and sell to this audience• 37% don’t know how to use data collected

from online sales to inform a targeting strategy

6

Its hard to succeed when the challenge is so complex

7

Growing consumer and brand demand has led to a surge in digital marketing platforms, technologies and tools

Disconnected solutions

8

The fragmented, overlapping, complicated map of technologies, customer data sources and systems has made it difficult to integrate, understand and manage the success of individual campaigns 

Data that is not realising its potential

9

• A unified approach to tracking, reporting and attribution

• Single sets of data for omnichannel personalisation

• Partnership marketing through private and public networks

• Advanced technology and data analytics

• Expertise and account management 

The digital advertising landscape must evolve to deliver

10

Its foundations in technology, quality of traffic and end-to-end tracking make it ideally placed to act as a springboard for industry-wide integration and innovation 

Performance marketing has a vital role to play in this new future

11

TradedoublerRedefining our position in the digital market place

12

Taking a position at the centre of the digital eco-system

13

Creating a new form of digital advertising

Digital Advertising 1.0 untargeted creative treatments based on delivery/budget goals

Digital Advertising 2.0 targeted creative treatments based on contextual data

Digital Advertising 3.0 targeted creative treatments based on user data – the Adnologies ad tech offering

Digital Advertising 4.0 will be a combination of all of this optimised by artificial intelligence to achieve definable marketing goals with an omni-channel approach

14

Digital Advertising 4.0 will harness powerful new technology and artificial intelligence to deliver optimised and personalised advertising that delivers smarter results

Digital Advertising 4.0 will deliver smarter results

15

• A data management platform for unified insight and tracking

• Live information on programme performance

• Quick access to KPI-based data for smarter business decisions

 

Data-driven insight is at the heart of success

16

• With ADAPT we can expose performance marketing myths and deliver smarter results for our clients

• ADAPT makes sense of complex performance marketing data• Creates meaningful visualisations • Data and insights are available in real time• Clients have access to an entire cube of data • They can use it to understand and maximise their performance

marketing

Exposing performance marketing myths

17

Exposing performance marketing myths

18

Cashback steals the last click…

19

• Cashback sites do not steal the last click

• When a customer converts on a cashback site, 83% of the customer journeys start on cashback.

• Cashback sites convert customers 3.3 x faster compared to the average user journey

Myth – cashback steals the last click

Where cashback is the last click (converting site) which site was the first click

5%4%

3%

4%

83%

1% 1%Partner network

On site con-version

Content portal

Voucher sites

Cashback

Email

Other

20

• In the UK when a customer converts on a cashback site, 92.5% of the customer journeys start on cashback

• But who is eating into cashback’s sales?

• When a customer journey

starts on cashback, 72% of sales convert on a Voucher site (excluding sales that converted on cashback)

Myth – cashback steals the last click

Where cashback is first click which sites are the last click (excluding cashback)

6% 4% 8

%

72%

5%0% 0% 4%

Partner networkPrice ComparisonContent portalVoucher sitesReward platform3rd party technologyOn site con-versionOther

21

Myth - cashback drives lower basket values

Retail

Telecoms & Utilities

Fashion

NW average

Travel

Finance

85.9%

87.8%

90.2%

92.5%

98.7%

99.0% • The higher the basket value the more likely the consumer is to start their online journey on cashback

• In Travel, 98% of sales that convert on a cashback site, start their customer journey on a cashback site

First click and last click cashback – UK data

22

Performance marketing loses sales at the weekend…

23

• Our network data shows that sales are lower at the weekend than during the week

• But mobile devices are much more likely to be used at the weekend

• 15% of smartphone sales take place on a Saturday, while 16% of tablet sales take place on a Sunday

Myth – sales are lower at the weekend

% of sales by day & device in Germany, France, UK, and Sweden

Monda

y

Tues

day

Wedne

sday

Thurs

day

Frida

y

Satur

day

Sunda

y10%11%12%13%14%15%16%17%

Computer SmartphoneTablet Average all devices

Sales by device and day of the week

% o

f sal

es

24

• In Retail, sales under perform on Saturday but perform better on Sunday

• Sales on tablet devices are above average on Sunday which mirrors our data across all verticals

• In the UK on a Saturday consumers are 22% more likely to shop on their smartphone than they are on any other day of the week

A closer look at retail sales at the weekend

% of retail sales by day and device in Germany, France, UK, and Sweden

Monda

y

Tues

day

Wedne

sday

Thurs

day

Frida

y

Satur

day

Sund

ay10%11%12%13%14%15%16%17%

Computer SmartphoneTablet Average all devices

Retail sales by day of the week

% o

f sal

es

25

A single online strategy fits all

26

• Not true – German consumers make up their minds much more quickly

• An average online journey takes five days, compared to 11 days in Sweden or France

• German consumers are switched on and focused when it comes to online shopping

Myth – a single online strategy fits all

Germany UK Sweden France

5.17.0

11.0 11.1

Average user journey time in days

Average user journey time in days in Germany, France, UK, and Sweden

27

• The Gaming sector has the longest average user journey time

• On Social & Dating sites in Germany it takes on average 0.12 days (2.88 hours) for user journeys to convert to a sale

• Online strategies need to be adapted and optimised based on insights into variations in consumer behaviour

Myth – a single online strategy fits all

Gaming Fashion Travel Shopping & Retail

Social & Dating

17.0314.77

5.944.15

1.57

Average user journey time in days

Vertical Sector

Average user journey time in days in Germany, France, UK, and Sweden

28

Vertical sites are unrewarded

29

• The myth is busted as verticals are being rewarded:

• In France 66% of customer journeys starting on vertical sites end on vertical sites.

• 83% of customer journeys in the UK starting on vertical sites end on vertical sites

• In Sweden, 94% of journeys that start on vertical sites end on vertical sites.

Myth – Vertical sites are unrewarded

Sweden UK Germany France0%

20%

40%

60%

80%

100%

120%

Vertical site Voucher Price comparison RewardCashback Other

Country

% o

f sa

les

Last click site types when a vertical site is the first click

30

• Cashback sites do not steal the last click and should not be perceived as last click crunchers

• Smartphones and tablets come into their own at the weekend, so a multi-device strategy is needed to optimise mobile conversions, particularly at the weekend

• One strategy does not fit all: understand local variations and adapt your strategy to take advantage of local differences in online shopping behaviour

• User journey insights enable marketers to understand the role that different channels and business models play in driving sales

• Channels and sites can be optimised; hybrid payment models that ensure that all types of site are remunerated for the role they play in driving sales should be considered

Conclusions

31

Questions

32

29 October 2015Matthias Stadelmeyer, CEO

Jeff Johnston, VP Product Management

Exposing performance

marketing myths