the future of performance marketing by matt bailey

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


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


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


Why is this??Why is this??

Why is Performance Marketing still viewed

as the unwanted ginger step child of digital

marketing?


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.


Affiliate vs PerformanceAffiliate vs Performance

Brand

Agency

Affiliate Network

Affiliates


How has affiliate evolved?How has affiliate evolved?

Brand / Agency

Top Affiliates

Affiliate Network

Long Tail


Big affiliates get biggerBig affiliates get bigger


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


Performance marketing examplesPerformance marketing examples

Travel

Finance


New models monetising through performanceNew models monetising through performance

Call Tracking

Mobile

Retargeting

ContentOn Site

Abandonment

Cart Abandonment


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


Performance HorizonPerformance Horizon


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


Innovation in performance marketingInnovation in performance marketing

Content monetisation tool turning traditional publishers into affiliates



On site abandonment technology


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



Crossing the divide between online and offline


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.


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?


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


Matt BaileyHead of Product, PHG

[email protected]

@mattb811

the future of performance marketing by matt bailey

Marketing

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online version

comon site abandonment