Performance & Affiliate Marketing Explained

February 2011Matt Bateman : MD

Gavin Hudson : Key Accounts ManagerViva9 Pty Ltd

www.vivanine.comwww.commissionmonster.com.au

Agenda

• Introductions• Risk and Reward in Online Media• Affiliate marketing Explained

– Traditional Cost Per Sale model– Utilising affiliates for non-eCommerce clients - CPL

• Building a deep-profiled email database. – Use email and online performance marketing to target key influencers

and target demographics • The Model • 4 Rules • How is this relevant to you? • Using Social Media in conjunction with affiliate

eCommerce in Australia

What was the last product you purchased online?

The Company: Viva9

• Australia’s Leading performance marketing network • Part of IPMG http://www.ipmg.com.au/businesses/interactive/businesses/viva9• Digicon, PEP Central, Offset Alpine, Holler, MassMedia, Traction, Campaign Master,

Response Directive, Blackglass• Since 2001

– Offices - Sydney, Melbourne, Auckland• What we do: Drive Sales, leads, outcomes

– Affiliate Marketing: Commission Monster www.commissionmonster.com.au – Database Marketing: Rewards Palace & Survey Choice

Risk and reward in online media

What buys do you do?Cost per…

Risk

Reward

Results

Affiliate Marketing

An introduction

Performance Marketing Model

What we can do

• Drive outcomes– CPM, CPC, CPL, CPA, CPS, CPNAA, Cost Per…• Volume• Take online offline

– We can drive offline customers too!– Vouchers– Coupons– “Free” brand-building

• Cost effective database generation• Sales• Incremental volume

Benefits

• Viva9 give advertisers the ability to conduct pure pay per performance campaigns

• Full approval of publishers/websites running the campaign. No Blind Buys

• Email affiliates are an excellent ‘push’ channel

• Approval of valid leads

• Work with client to ensure long term profitability and sustainability of channel

• Viva9 can moneitse an effective online channel for non pure eCommerce clients

Early Performance Models Focused on eCommerce

Traditional Cost Per Sale Model

PROS • Guaranteed ‘can’t lose’

model for clients • End Consumer pays no

more – commission included in sale price

• Easy to explain and sell • ‘Environment’ less of a

concern

CONS • Lower Margin• Lack of sophisticated

publishers • Traffic becoming

commoditised• Sometimes hard to drive

volume• Less good for high-value

products• Market Being driven

bottom-up

Building A Database

Cost Per Lead (CPL)

Building a Database

• Build a relationship with someone • Communicate more effectively • Get over that awkward ‘getting to know you’

phase• Once someone has opted-in, then you can

communicate with them and their peers for a relatively low cost

• ‘Media’ cost is:

One upfront cost

How do you build an effective database?

• Quickest way to build a database? • An integrated promotion using TV and ATL

media as well as online• Minimum cost-per-record? $20+

Lifecycle of an eDM customer

Initial Offer ‘Download Information’ ‘Register for free’$3 CPL un-targeted

Profile Customer Commercial Rel’ship

Continue conversation via Targeted eDM

Build audiences Market to them Achieve end result – customer that buys

$3 per Customer Signed up On Your Site

How does this compare with your average cost from other marketing

sources?Cost Per Click?

Cost Per Listener?Cost Per Walk-In Customer?

Meet Sandy

Age: 40s Lives: Adelaide, SA- Married, Two Children

Household Income: $150k p.a

Worries about: MortgageCar InsuranceHealth Insurance

MGB for the household

Medium to Heavy Internet User

Cares about: The Environment Education

Sandy’s Journey

Australia Post – Australian Lifestyle Survey

• 35,000 signups in a six-week period across all demos in Australia

Latest Survey Offer for Household Surveys members

Hi Sandy,

Meet Rob

• Age: 23• Bachelors Degree • Lives:

– Country NSW • Huge online social network – 500+

connections • Likes to research best deals on line • Heavy Internet user • Infrequent consumer of network TV,

radio or newspapers• Interested in – Deals, cool stuff

Survey Choice Landing Page

4 Rules for generating an email database

Rule No.1 – Understand your target audience & aims• Who are you trying to talk to? • How prepared are you for ongoing dialogue? • What does success look like?

– Online metrics– Offline metrics – Brand Interaction or a visit to a store

Rule no. 2 - 3T’s and an A

• Trust • Transparency • Truth• Accountability

Source: Lee Hopkins 2009 – Better Communication Results

Rule 3 Optimisation and Creative

• Continue to test: – Messaging – Creative (KISS works)– Landing pages and information flows

• Send users directly to the information they are after – not to a home page

• Make email creative and banners effective and easy to use• Listen to the Experts

Rule 4 – Once you’ve got them, don’t forget them • Have database acquisition built in as part of your overall

communications strategy • Ensure that you have a frequency in mind• 5 x a day is probably too much, but monthly may not be enough • Work out how email ties in with other strategic imperatives• If you have something of value to communicate, weekly or

fortnightly works well

Reaching Special Interest Groups

• Drive outcomes: – Answer a questionnaire– Fill in a request for information – Download an information pack/white paper – Register for an email newsletter

• Appropriate Incentive

- Viva9 Database Marketing: Rewards Palace, Household Surveys & Survey Choice

• Database Integrity and management– Either develop the expertise, or use the proper tools

Sidchrome - Truckloads of Tools

• Approached by agency through referral as existing channels (search, display, email) failing to deliver volume and within acceptable CPA

• From briefing to launch within 2 days

• Achieved initial budget within 3 days of launch

• Viva9 were best performing channel across all media. Display, email, search

• Low cost per acquisition and high volumes

Some examples

Some Current clients

• Finance:– American Express– Westpac– HSBC– CBA– Virgin Money• CPL– Dell– Ingham's• Audi• Nivea• Sales– Strawberry Net– Guthy Renker, • Online

– Brands Exclusive– Spreets– JumpOnIt• Telco– Foxtel– Dodo– Engin– BigPond/Telstra– Fonality,– Foxtel• Australia Post, • Sydney Airport,• UNICEF• Nike

Australia Post /FDS – Database build

Objective - To build an annual survey panel for the last 4 years. Campaign was broken into 2 x 3 month surveys.

Delivery Channel – Combination of targeted eDM, using quality opt- in databases, and banner placement, through selected affiliates within the Viva9 network.

Results – Both surveys were completed well ahead of schedule.

Ingham's Database Build May 2010

• 30,000+ opted-in members into the Ingham’s email database over a four week period • Principal method of recruitment –

performance-based email • Cost under $3 per confirmed new

member of the Ingham database • Continued communication to the

database delivering good results • New promotion kicked off July 2010• ...And Feb 2011

•Traditionally B2B is a very hard market to push online and via affiliate

•Fonality offer a niche VOIP solution for businesses

•Developed an effective cost per lead model with good landing page

•Over 1000 b2b leads delivered in 3 months = 5,000 handset leads in Jul – Sep 10

http://www.fonality.com.au/campaigns/viva_nine/#

B2B: Fonality

Current Advertisers

Current Advertisers/Group Buying

Current Advertisers on Survey Choice

Social Media

• Affiliates are active in social media– Use social media as a traffic source where permitted

• We also buy traffic from social media sources for our clients where requested

• Social Media strategy vs. Social Media as a traffic source• Blackglass

Conclusions

Matt Bateman Gavin Hudson

Viva9Digital VillageLevel 1, Building 1, 85 O’Riordan street Alexandria NSW 2015

Phone: 61 2 9368 6899

Email: matt@vivanine.com

Twitter: @viva9australia

@matthieub

Contact Details

Case Studies/Examples

Appendix

Avon: Sales Representative Campaign

• We have helped Avon build up their network of representatives

• Over 7,000 qualified leads delivered in 2010 alone via performance-based eDM's

•

• 30,000 database generated over 3 week of recruitment

• Purpose to join ‘My Maybelline’ and create a community around the product

• Successful ongoing program for Maybelline

Maybelline: database build

other examples

Coca Cola

• CPL Program• Driving a DB for coke• Focus on families

interested in holidays• Over 30,000 names in

database in 2 weeks