ad:tech San Francisco: Performance Marketing – Getting the Most from Your Marketing Dollar in a Tough Economy
Session Description: How can marketers get the most from their budgets in a difficult economic climate? We’ll explore how to attain more from a smaller budget via performance marketing with practical, tactical solutions. We’ll look at the pros and cons of allocating dollars to performance marketing and we’ll discuss what technological innovations are coming to the performance marketing space that will maximize budgets and minimize challenges.
This session took place Wednesday, April 22, 2009. The speakers:
- Neil Strother, Analyst, Forrester Research (Moderator)
- Peter Bordes, CEO, MediaTrust
- Steve Schaffer, Founder and CEO, Vertive
- Jarvis Mak, Senior VP, Global Research and Insights Director, Havas Digital
- Kelly Powers, Senior Manager, Customer Acquisition, Zazzle
This session was definitely geared towards those marketing and advertising professionals that are not already in the performance marketing game. It was very insightful to watch from that point of view in mind.
Bullet Point Review!
- Neil asks “What is performance marketing?”
- Paying only for results, whether those results are leads, referrals, a percentage of the sale. Advertisers get to determine how much they pay.
- You can leverage your affiliates to assist with your paid search efforts.
- You need to have good landing pages.
- What’s the real value of the actions being driven?
- What you’re paying for is marketing.
- Affiliates have more incentive to drive more qualified traffic and customers.
- Affiliates drive higher conversions, average orders.
- There’s three types of advertising, CPM, CPC, and CPA.
- Merchants only want to pay one touch point for the sale.
- There’s a mentality that affiliates are frowned upon; CEOs will be wary of the methods but CFOs will be excited about the value and efficiency of the channel.
- AM is very data driven – more money is shifted towards traceable marketing.
- Executives need to understand affiliate marketing; the whole industry is misunderstood.
- Industry is starting to get the data out and break through the black box and lack of transparency.
- Peter briefly explained what’s going on with the #advertisingtax to the crowd.
- A couple of states have been able to stop the #advertisingtax but it’s moving fast.
- Fraud has grown exponentially, especially in lead gen.
- Paying for leads welcomes fraud in som,e industries, ask yourself if you can pay for a different action.
- A major player will soon announce a ranking system (Peter couldn’t divulge who).
Points brought up during the Q&A
Is there a metric to show brand safety? No. It’d be nice to take the focus off the brand.- Yes you need brand awareness, but that’s not going to drive a sale. The best offer is.
- It’s not infinitely scalable; you can always throw more money at search, etc. but throwing more money at affiliate marketing doesn’t work because the core is the relationships.
- Amazing how much more some merchants pay on other marketing methods and channels over affiliate marketing.
- Advertisers need to do a better job at attribution to track the sales to the correct channels.
- Feel free to launch new products with affiliate marketing; it has worked in the past when done right.
- What are some practical takeaways?
- Continue to optimized
- Work on attribution
- Look at marketing channels as a holistic portfolio.
- Focus on better, fewer networks and don’t spread your program too think.
The Q&A portion wasn’t so much a traditional Q&A as it was a case study like discussion. The panel really wanted to help with real examples, and only one gentleman in consumer finance was willing to ask for assistance.
Read MoreIAB Revising Interactive Ad Units
The Interactive Advertising Bureau (IAB) today announced that it has held its first meeting of the Re-Imagining Interactive Advertising Task Force, comprised of top online publishers, media agencies and, for the first time, creative officers from the nation’s leading advertising agencies. Their purpose is to examine the current standards and update them, taking into consideration the evolution of online advertising.
“We believe we can make interactive advertising far more hospitable to the craft and practice of persuasion by putting creativity front and center in the development of advertising standards,” said Randall Rothenberg, President and CEO of the IAB. “By bringing creative agency leaders into the discussion of the standards, we highlight our industry-wide mission to showcase brands and engaging consumers in meaningful ways.”
The IAB first established a set of standards for interactive advertising in 2002. These standards have become the golden rule in online advertising, be it traditional CPM or affiliate advertising. The board includes players from heavy hitters like Cars.com, Disney Interactive Media Group, Google, Platform-A, Microsoft Advertising, Yahoo, and Turner Broadcasting System, Inc.
Also coming out of the IAB today is their Impression Exchange Solution. This document sheds light on impression data and makes it easy to convert to a single standard that all publishers will recognize.
The document identifies the key functional requirements necessary for the automated exchange of impression data between publishers and third-party ad servers, which will allow publishers and agencies to detect and address discrepancies in near real-time.
Their goal is to minimize discrepancies in online data. Good luck to the IAB!
Affsum Session: Reaching Aggressive Goals without Monetary Incentives
Date: Monday, January 12th, 2009. Session 4c, 11:30am.
Session Description: This session outlines how to best manage affiliate relationships to reach major revenue goals without additional budget. Tactics focus on non-monetary incentives to increase affiliate performance. The panel consisted of:
- Chris Kramer, Co-Founder & Media Director, NETexponent (Moderator)
- Darren Eilers, Founder & CEO, DME Media, LLC
- David Lewis, CEO & Founder, Cashbaq
- Kevin Smith, Affiliate Marketing and Business Development Manager, Brown Shoe Co. – Shoes.com
OK, this session wasn’t what I expected it to be. It seemed more like a session on how to treat or work well with super affiliates, which I’ve attended before and got kind of the same tips from. Maybe I perceived this wrong, but I expected some tactics on how to creatively promote affiliate programs without money, but it turned out to be how to fire up your top affiliates, and still mentioned money.
Bullet Point Review!
- The majority of affiliates say they make most their money from less than 5% of the merchants they promote.
- David says: compensation does matter. We’re willing to promote products and brands with zero compensation up front.
- David says: if you know our business, we’ll talk to you. Without knowing that basic fact, all of the other things you can say don’t matter.
- Darren says, to managers: relationships matter. Keep in mind that everyone does things differently. They do expect a better relationship than any other affiliate.
- Darren says, to fellow affiliates: You can’t expect a merchant to call you back unless they have an incentive to. So the affiliate has to sell you on themselves. Pitch you.
- David says: the compensation has to sometimes be different for loyalty sites. Get datafeeds cleaned up. Better sales will come from that and the creativity affiliates use with datafeeds.
- Darren acknowledges: we know that it’s sometimes an uphill battle for merchants to get the datafeeds fixed by their IT departments, but if the affiliate doesn’t get the datafeed that’s clean, they have to go with someone else.
- David notes that he’s personally working hard to create a standard taxonomy that everyone uses for datafeeds to make that portion of the industry more uniform.
- The key is keeping it updated.
- Chris noted that the number 1 thing affiliates wanted from them are custom landing pages. The second was product feeds, third promotions and incentives, and fourth was coupon code offers.
- Kevin wants affiliates to know that they can get help when they need it. The more information we as merchants can give the affiliate, the more money they make, more sales for us.
- David warns that the conversions really have to be solid. It’s better for the merchant and the affiliate.
- Kevin includes information about the products and company in their newsletter. He tosses out as much information as he can that will help the affiliates.
- It’s hit & miss in terms of the merchant giving information to the affiliate in terms of what they’ll use.
- A lot of the money they make is reinvested.
- David uses an analogy of a bobsled team for the merchant. They’re the head of the team and just need the push from the merchant to get rolling down the track.
- Darren advises that you take your top affiliates and let them help you test landing pages. He’s usually willing to work with merchants that ask for that kind of help since he’ll ultimately receive the benefit.
- Chris warns though that a lot of affiliates don’t want to be guinea pigs and how often are you willing to take the risk? Darren responded that it depended on how long he’s worked with and trusts the merchant. He doesn’t mind being a guinea pig if it means he can make more money.
- David warned against merchants making knee-jerk reactions. Use the data and make decisions based on that.
- Darren says if you know them and spend the time to get to know their business and form a partnership, merchants are usually more willing to give them inside data to help them out.
- Are there three different teams compensated separately? Many merchants have the SEO team, SEM team, and Affiliate team. If the program is run correctly the affiliates help all three teams. it’s all of our sales, not my sales or your sales.
- Kevin says more affiliates looking at CPM than CPA – with the economy there’s not as much money out there for CPA offers anymore since they don’t return like sales do.
- David relayed something he read that said 73,000 stores will close in the US this year (estimate). If someone comes to them and says they’re cutting their commissions, it’s a mistake but OK, they’ll look at your competitors more. Someone has something similar and will boldly raise their commissions to stand out.
- Darren warns that before you lower commissions across the board, take a look at your top affiliates. Weed them out and tier your structure. Maybe increase compensation for the top affiliates and lower it for the others.
- David says to reward those meeting your goals.
- Kevin notes that they did that and it worked great.
- Kevin adds not to be knee-jerk reactionary. Try to look at a monthly picture. For them the 2nd Saturday of every month is their big Saturday Sale, and affiliates know that. Being transparent helps them stand out. Allow them to lean on the merchant. Brand equity is very important.
- Kevin has seen more volume with coupons and loyalty sites.
- Chris shares more poll results amongst affiliates: What matters most before joining? 1. Commissions 2. Product being sold 3. Brand 4. Tracking platform 5. Terms and conditions 6. EPC 7. Affiliate manager/outsourced program managers 8. Return days 9. Action occurrences
- Darren says to look at your affiliate manager very closely to analyze the relationship. When the AM gets to know what the affiliate does, they can customize incentives specifically for them.
- Darren also says to give your top affiliates your true top performing keywords.
- Chris asks if a big brand can get away with paying less commissions. Darren says they can if their conversion rates are higher.
- Chris asks how much competitive research do you do? Darren says they know what the published commission rate is. They also look at the EPC but that doesn’t really tell them too much.
- David notes that they’re big and kind of already have the big brands, so they ask different questions before they join a new program. Are you making our life easy? Do you have an 88×31 non-animated gif? Do you link to the homepage or deep link? Is it something we think our members will see as quality? Does it look like it’ll convert?
- Darren says he’ll try to get a hold of the affiliate manager to work with them to improve their site, but there’s only so much they can do so sometimes it’s hard to do that.
- Kevin creates banners on a daily basis. They’ll accommodate different sizes if asked.
- Although David says he doesn’t look at banners. Darren advises that they have to meet the challenges of Google changing, so they need to change. Banners have been around so long and they’re surprised that there’s still so much emphasis on banners. They do their own creative because it’s faster and they know what will work with their visitors. If the merchant won’t allow that, it’ll hurt them. They’ll work within their guidelines for sure.
There was a lot of good information and wasn’t much time for a Q&A session, so there was none. Despite it not being what I was going in for, it was still a good session and dropped some handy tips from some top affiliates. There was also some good data points in the slides, so here they are for your viewing pleasure as well:
Read MoreSocial Media Marketing Summit: Segmentation/Diversity
This session took place October 1st and promised to teach those in attendance how marketers can reach very specific groups of users via behavioral targeting, niche social sites, campaigns at specific demographics, hyper targeting and more. The panel consisted of:
- Chris Saad, Founder and CEO, DataPortability.org
- Will Moss, CEO, ConnectPlatform.com
- Ian Swanson, Founder and CEO, Sometrics
To be honest I didn’t like the unorganized nature the panelists took, but there were some decent take-home notes to be had from the session.
Bullet Point Review!
- Methods to find a niche are Google Search and Twitter Search.
- Don’t just observe, participate.
- Lots of people started with apps and then moved to a main web property.
- Find your audience – use demographics, psychographics, behavioral marketing – find them and partner up.
- Partner with fast growing niche networks or create one if it doesn’t exist yet in the niche you’re interested in.
- Experiment with creative ads with the owners of these networks.
- Advertising is yelling, marketing is having a conversation.
- Learn the social contract and participate accordingly.
- Have a process in place on how to respond and join the conversation.
- Put your money where your mouth is and allocate resources to monitor and respond in social media settings.
- There is a need for a new metric. Keywords used to tell people, not so much anymore.
- Need for interests to be measured (APML).
- How do you target? Try – do sample buys, experiment, do lots of little buys.
- Social networks are still cheap to advertise on because they don’t yet perform like traditional ad buys in terms of CPM.
- See what keywords people associate with your brand (quality, sucks, etc).
- Use social networking for lead generation.
- No one’s talking about your product, they’re talking about your brand – so collaborate and build a product that they’ll want to talk about.
- Use social media to saturate a niche market; brainstorm about communities of interest and participate and show your subject matter expertise.
- Use search engines to find individuals and follow them back to their communities.
Points brought up during the Q&A
- You might want to go local before going national – not all products and services scale effectively to a national audience.
- Widgets are the bumper sticker of the web.
- Develop content and specific tags (zip codes, city names, etc.) in targeting.
- Get analytics to see where your traffic is coming from.
- Keyword ads like AdWords, Facebook, MySpace are great for segmentation.
- Hyper targeting is growing in adoption.
- Open Social – create widgets that will work across multiple social networks.
- If you’re going to buy advertising on a social network, you should also participate in that network.
- Be part of that eco system in as many ways as possible.
- Using engagement to see how well ads work can also be used to see what a particular segment is interested in (e.g. how many people mouse over, click, etc.)
- Data portability will break down barriers to entry.
- Using a 3rd party metric contrasts vs. internal and lends credibility and gives you a comparison of you vs. your competitors.
Even the Q&A portion was just an extension of the session, so it was hard to really distinguish what people were asking. It was a decent session but could have been perked up with a bit more empirical data and maybe some real-world experiences.
Read MoreOnline Marketing Glossary: Distribution Network
Distribution Network:
- A network of websites or search engines and their partner sites on which paid ads can be distributed. The network receives advertisements from the host search engine, paid for with a CPC or CPM model.
To be completely honest, I don’t have an example of this or any experience. If you do, please share it in the comments so we can all learn from YOUR expertise! You have all weekend to “school” us!
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
Online Marketing Glossary: Cost per Thousand
Cost per Thousand (CPM):
- The cost metric for 1,000 banner advertising impressions. The amount paid per impression is calculated by dividing the CPM by 1,000. For example, a $10 CPM equals $0.01 per impression.
I remember this being all the rage when I was in college about 6-7 years ago. Now a days there aren’t many programs that offer CPM payment terms, but there are some.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine
