DAVID RODNITZKY

Performance Marketing

• WHAT IS PERFORMANCE MARKETING?• MONETIZING CONTENT• MONETIZING RETAIL• PUTTING IT ALL TOGETHER

Agenda

In The Beginning (Offline). . .

Evolution of Online Marketing

1994 1998 2002 2005 2008 2010

Cost per A

cquisition

Revenue S

hare?

Definition of Performance Marketing

• Any form of advertising where the advertiser only pays if and when a specific event occurs, which is usually defined as either a click, lead or sale.

• WHAT IS PERFORMANCE MARKETING?• MONETIZING CONTENT• MONETIZING RETAIL• PUTTING IT ALL TOGETHER

Agenda

What Type of Site Do You Have?

Brand is Important Money is Important

Performance Marketing for Content Sites

Five Common Ways to Monetize Content• CPC Text Ads• Affiliate or Lead Generation Offers• Co-Registration• Incentivized Premium Content• Email Newsletter

CPC Text Ads

What Is It?• Publisher paid when someone

clicks on an ad• Advertisers target specific

sites or target by topic• Leading CPC networks:

Google AdSense, Quigo, IndustryBrains

Pros• Easy to set up• No sales!• Non-obtrusiveCons:• Watering down• CPMs very low• Potential brand issues

Affiliate Banner Ads

What Is It?• Paid on CPL (form submit) or CPA

(item purchased)• You choose the offer and the

banner to promote• Leading affiliate networks:

Commission Junction, LinkShare, Google Affiliate Network

Pros• Payments up to $100• You are in control• 1000s of offers to selectCons:• Requires HTML/design knowledge• CPAs/CPLs watered down• Difficult to get into some programs

Lead Generation Offers

What Is It?• Paid on CPL (form submit) or CPA

(item purchased)• Promote offer by banner, text, or

hosted form• Leading lead generation networks:

Hydra, Azoogle, ClickBoothPros• Payments higher than affiliate

offers• You can negotiate special ratesCons:• May require programming

knowledge• Very difficult to develop

relationships

Co-Registration

What Is It?• Additional offers presented during

the registration process• Usually related products or

servicesPros• Increase revenue through cross-

selling similar companiesCons:• Can create bad user experience

Incentivized Premium Content

What Is It?• User signs up for offer, gets

access to content• Leading companies: TrialPay,

WebLoyalty, ARPUPros• Increases conversion to paid

content• User gets something free, you get

paidCons:• Lower payment due to

“incentivized nature”• Significant integration work• Some programs can create

negative consumer experience

Email Newsletters

What Is It?• User signs up for newsletter,

performance ads are sent to user• User can also opt-in for permission

to receive special offersPros• Monetization without site visit• Some email offers are very

effectiveCons:• CAN-SPAM compliance• Branding issues

• WHAT IS PERFORMANCE MARKETING?• MONETIZING CONTENT• MONETIZING RETAIL• PUTTING IT ALL TOGETHER

Agenda

Performance Marketing for Retail

Five Common Ways to Monetize Retail Sites• Cross-sell• Post-Transactional Upsell• CPC Text Ads• Co-Registration• Email Newsletter

Cross-Sell

What Is It?• During a purchase, offer users

an additional product to increase monetization

• Top performance marketing cross-sell companies: WebLoyalty, ARPU

Pros• Adds revenue• Can be highly targeted offer

with high conversionCons:• Risks losing sale• Risks bad customer

experience

Post-Transactional Upsell

What Is It?• After a purchase, offer users

an additional product to increase monetization

• Can be anything from affiliate banner to page with CPC ads

Pros• Adds revenueCons:• Risks losing sale• Risks bad customer

experience

CPC Text Ads, Co-Reg, Email

What Is It?• Same advertising mediums

that content sites usePros• May drive revenue from

consumers who decided not to purchase

Cons:• Can cannibalize sales• Risks bad customer

experience

• WHAT IS PERFORMANCE MARKETING?• MONETIZING CONTENT• MONETIZING RETAIL• PUTTING IT ALL TOGETHER

Agenda

Case Study: WrinkleCream.pro

Objective: Sell wrinkle cream online through affiliate offers

Concept: Build a review site that compares wrinkle creams available via affiliate program, market on AdWords

Monetization Step One: Find Offers

Researched more than 50 wrinkle cream affiliate offers on sites like CJ.com, Linkshare, Hydra

Rated offers based on effectiveness, CPL, and likelihood of conversion

Sent rankings to designer

Monetization Step One: CJ Example

Monetization Step Two: Develop Site

Looked at similar review sites on the Web

Wrote content Tested multiple

designs based on feedback loop of RPC (revenue per click)

1

23

Monetization Step Two: Develop Site

Consumers preferred star ratings over point system

Multiple places to click on offer increased conversion

Fewer products recommended increased sales

Monetization Step Three: Track Data

Track revenue, profit, cost at a global level Track individual products and individual advertising

channels Track changes as a result of testing

Monetization Step Three: Track Data

Track geography, time of day, referral source, etc!

Monetization Step Three: Track Data

Track PROFIT!

Case Study Results: WrinkleCream.pro

Profitable in month two Monthly growth rate of 50% MoM Profit tanked after site was hacked and new competitors

entered space Recent shift from SEM to SEO!

Key Benefits of Performance Marketing

Easy to Use – Limited Tech Work or Sales Needed

Lots of optionsPayouts Can be Very HighIncremental Revenue for Your Business

Key Drawbacks of Performance Marketing

Performance Based – No Guarantees of $$$Can Distract Consumers from Core

Content/ProductYou End Up Taking Heat from User for Bad

PartnersCan Create Bad User Experience and Reduce

Repeat Visits and PurchasesRequires Constant Maintenance and Iteration

to be Successful over the Long Run

Want to Learn More?

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Thank You!

Contact Info: David Rodnitzky, david@ppcassociates.com My company: www.ppcassociates.com My blog: www.blogation.net Conference: www.CRSconference.com