Using Display and Affiliates Successfully

Tony WindersVice President, Marketing

ValueClick Mediatwinders@valueclick.com

AWARENESSAWARENESS LEADSLEADS SALESSALES CRMCRM

CPL/CPA ProgramsCPL/CPA Programs

Display/Rich Media/VideoDisplay/Rich Media/Video

Behavioral MarketingBehavioral Marketing

Technology (Ad Serving, Email, Attribution, Analytics)Technology (Ad Serving, Email, Attribution, Analytics)

Search MarketingSearch Marketing

Affiliate MarketingAffiliate Marketing

ValueClick, Inc. Overview by Objective

Comparison ShoppingComparison Shopping

Our Proprietary Data Our Scale Our Quality

The Only Network of Its Kind

• 69 million purchases/mo.

• 155 million product searches/mo.

• Ad interaction across 31 billion impressions/mo.

• Browsing behavior across 8,000 sites• Quality people, service and expertise

• Direct site relationships and access to top comScore sites• Network monitoring team and technology

• 83.0% reach

500 Million Anonymous

Profiles

• 162 million unique visitors/mo.

Source: comScore , July 2009

• Third largest ad supported property online

Display Advertising Affiliate Marketing

Pricing Model CPC, CPM, CPA CPA, CPL

Objective Brand/awareness, Leads and sales

Budget IO with set budget Pay as you go

Term Short term Long term

Publisher Focus Content Search, Deal/Coupon, Loyalty, Comparison

Publisher Base Relationships highly vetted Entry relatively open

Risk Shared risk, backend ROI Low risk, guaranteed ROI

Display Advertising and Affiliate Marketing Distinctions

Overcoming Common Misperceptions About Networks

Misperception #1

Networks are comprised of low quality sites where I wouldn’t want to advertise. Misperception #2

Networks don’t provide the control and transparency I require to protect my brand.

Misperception #3

All display ad networks are created equal.

 Branding/Awareness 1 2 3 4 5 Direct response

Acquisition 1 2 3 4 5 Retention

Online response 1 2 3 4 5 Offline response

Time to Goal: Now 1 2 3 4 5 A year from now

Heavy reliance on ROI 1 2 3 4 5 No ROI tracking

US Only 1 2 3 4 5 International 

Questions to Ask Yourself

 What makes you different from other ad networks? How do you acquire your inventory?  Do you offer site transparency?  What brand protection do you offer clients?  What reporting capabilities do you offer?  What ad serving, targeting and optimization do you offer?  What behavioral targeting capabilities do you offer?

Can you provide a list of client references?

Questions to Ask Network Partners

In Summary

Main Considerations about Display and Affiliate

• Lines between affiliate and display channels are blurred

• Separate perception from reality regarding use of networks

• Ask yourself questions about your true objectives

• Ask tough questions of your network partners

• Test continually, find complementary channels and realize integration is a long term process with infinite options

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Using Display, Email and Affiliates Effectively

Integrated Marketing SummitOctober 8, 2009

www.adknowledge.com

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Mike Fitzgerald

Adknowledge COO; former GM Email

Former CTO of Email Dynamics, a division of SearchLogic

Former Software Engineer at Groove Networks, MyWay.com and Synopsys

Expertise in:– Email Marketing– Online Advertising– Technology and Software Development– Data Analytics

Lived and worked in Boston, Mountain View, Boulder, and Kansas City

mfitzgerald@adknowledge.com

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Company Snapshot

Advertisers/PublishersAdvertisers/Publishers

LocationsLocations

Kansas City, New York, Los Angeles, San Francisco

Satellite offices in Chicago, Ft. Myers, London, Vancouver, and Sydney.

230 (110 in technology)EmployeesEmployees

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Web Content Email Social

Single Destination to buy six channels:

Social

Email

Web Content

Affiliate

Virtual Currency

Domain

Pay-per-click marketplace

Familiar User-Interface

Category-based bidding

Single Destination

Expand Your Reach Beyond Google and Yahoo

Uniques (Billions/Month)

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Targeting system performs billions of calculations per day to predict which ads to show to individual consumers.

Targets users, not content. Ads are matched to users based on behaviors and demographics.

Technology predicts future behaviors basedon past, recorded responses.

Adknowledge does not track or store any “PII”.

Targeting enables advertisers toreach qualified consumersacross multiple channels.

Targeting

Right Ad. Right Time. Right Customer.

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American Family InsuranceFind an Auto Policy that Fits Your Needs. Get a Quote Todaywww.amfam.com

Consumer receives email from Adknowledge Consumer clicks to advertiser’s site

Find the car insurance you need at affordable rates!

Email Ad Example

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U.S. Market Facts

In 2009, $488 million is projected total email spending

71% of consumers remember email communications when making purchases at the sending company’s web site

45% of landing pages don’t repeat the strong promotional copy found in the email

66% of email marketers agree email is the most cost-efficient marketing tool at their company

Behavioral targeted ad spending continues to increase

Behaviorally Targeted Online Advertising Spending(Millions)

16Source: Online Publishers Association, September 2009

Opportunity

Consumers Spend 95% of Time Online Outside of Search

Content42%

Communications27%

Commerce13%

Community13%

Search5%

Content Communications Commerce Community Search-30%

0%

30%

60%

-2% -7% -19%

63%

0%

Consumer Time 2009

Change from 2008

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Funnel Awareness

Understand Your Position in the Purchase Funnel

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Funnel Awareness

Push Marketing Reaches Consumers Earlier in the Process

Awareness

Interest

Research

Action

PUSH

PULL

Consumer clicks anEmail for Laptops

Consumer searchesFor “Dell Latitude Deals”

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Customer acquisition from push marketing requires more selling on the landing page.

Align your site hierarchy with the purchase funnel.

Small changes can make a big difference.

Test, Test, Test.

Funnel Awareness

Tailor the Landing Experience to the Consumers’ Context

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Email Awareness

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Landing Pages

From email offer or ad, managing different user experience

Page eliminates distraction. Focus on product features

Page creates upsell opportunities.

Page has higher engagement.

Opportunities to increase conversion rate: – Using Flash vs. non-Flash

– Simple text changes such as “Choose”, “Buy”, “Build” or “Shop Now” impact conversation rates.

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Summary

1. Targeting drives relevancy and customer engagement

2. Non-search channels fill the funnel

3. Landing page optimized for entry channel and user context

4. ROI from email is 4x higher than search

5.3 Billion Impressions

7-Step Proven Campaign Launch

More Traffic than some of the biggest fortune 500 companies!

• Merchant Accounts• Inventory• Customer Service

Step 1: Set up/ Infrastructure

Crushing the Competition

Test Competitor Proven Traffic Sources

Split Testing on Steroids!

Creative Optimization

• Image (5%)• Headline (5%)• Sub-headline (5%)• Body copy (5%)• Call to action (5%)

1St Goal: Double Conversion Rates

Example Landing Page Optimization

What is the Ultimate Goal?

• To Get the eCPM as high as possible to get more traffic

• To be able to get a ton of traffic from high volume publishers

• To keep the campaign fresh to keep growing volume

• Up-sells• Optimize Abandons• Optimize Autoresponders• Add Audio• Optimize Exit Surveys• Personalization• Price Testing• Optimize Exit Traffic

30% Increase in conversions resulted in an extra $900k per

Month!

Split Testing & Optimization is KEY

The Most Powerful Force for ANY Online Business…

Compound Conversions!

Questions?