Ulrich Bartholomäus from affilinet discusses the importance of display advertising for performance marketing. He shows that display accounts for the majority of impressions and traffic within the affilinet network. Optimizing tactics like retargeting, post-view tracking, and mobile marketing can significantly increase click-through rates, conversion rates, and overall sales. Tracking the full customer journey is important to understand how different channels influence each other and to optimize affiliate payouts and marketing strategies accordingly.

1. Performance Marketing: Display Matters

2. Agenda 1) Introduction 2) Why Display Matters 3) How to increase and optimse Display Traffic

3. Introduction

4. Introducing myself Ulrich Bartholomäus Managing Director affilinet Germany, Austria & Switzerland In the Affiliate Business since 2005 ubartholomaeus@affili.net www.xing.com/profile/Ulrich_Bartholomaeus twitter.com/Ubartholomaeus http://de.linkedin.com/in/bartholomaus

6. Operating in 7 countries across Europe

7. Over 120 staff

8. 1,600 active affiliate programs

9. 500,000 affiliate websites

10. 14 years experience in managing CPA, CPL and CPC campaigns

11. The Affiliate Marketplace Idea - Grow Marketplace - Increase Service Quality - Continue to offer innovative solutions More Sales & Leads

12. Why Display Matters

14. Publisher Business Models that use gif banners as primary creative for driving the traffic to the Advertiser‘s sites

15. Impressions

16. Unique Users

18. Display matters!

19. An Affiliate Network has the power to reach half of all users within a country and one day using gif banners affilinet reach: 24 Million Unique Users per day Germany: 51,78 Million Internet Users* AGOF Internet Facts 2011-02

20. The largest Marketing Agencies in Germany

21. High potential to improve Click-Through-Rates and Conversion Rates 34% Xy%

22. Small improvements in Click-Through-Rates and Conversion Rates have a big impact on increasing Sales 25 Mio Unique Users CR of 0.5% (performance media bus model) = 125K Sales Lift CR by 20% to 0.6% = 150K Sales = 20% more Sales 20% more Sales!

23. How to increase traffic and increase sales with Performance Display Marketing: Vodafone case Sales were doubled within one quarter.

24. How to increase traffic and sales with Retargeting – Online Retail case Revenue increase with Retargeting: affilinet Online Retail Advertiser + 153% Revenue Retargeting Revenue other business models

25. High uplift in Click-Through-Rates with Retargeting Retargeting ads increase reach and awareness and in turn increase Click-Through-Rates* 0.10% + 1.240% Standard Click-Through-Rate 1.24% Click-Through-Rate Retargeting * Click-Through-Rate affilinet Online Retail Advertiser

26. High uplift in Conversion-Rates with Retargeting Retargeting increases Conversion-Rate and Sales* + 650 % 2,60 % 0,40 % Standard CR CR Retargeting * Conversion-Rate affilinet Online Retail Advertiser

27. Higher Click-Through-Rate with Retargeting Retargeting ads increase reach and awareness and in turn increase Click-Through-Rates* + 1.900 % 0,02 % 0,38 % Standard Click-Through-Rate Click-Through-Rate Retargeting * Click-Through-Rate affilinet Online Retail Advertiser

28. Conclusions: Driving high volumes in impressions results in higher sales Increased Display Activities = Higher Impressions = More Sales = Even more sales with efficient solutions Improve CTR and CR High volumes in impressions drive branding effects. High volumes in impressions drive sales in other online and offline channels

29. How to increase and optimise display traffic

30. How to increase reach and optimise Click-Through-Rates and Conversion Rates Increase Reach with eReach / Post-View Tracking Be more efficient with Retargeting Be more efficient with Mobile Marketing Measure effects and investments with Customer Journey Tracking More Sales!

31. Customer Surveys: Publisher 70% of Publishers think current creatives to be one of the three aspects for an attractive Affiliate Program. Mobile Marketing 75% of Publishers see future potentials in Mobile Marketing 2010: 55% of Publishers gain users from mobile devices; 2011: 74% of Publisher expect to have users from mobile devices. Customer Journey 43% of Publishers would like to earn commissions based on customer journey tracking and think to earn higher commissions this way.

32. Customer Surveys: Advertiser Retargeting 85% know about Retargeting and 36% of those use Retargeting. Over half of the Advertiser who don‘t do Retargeting can imagine to retarget users in 2011. Mobile Marketing 19% of Advertisers invest in Mobile Marketing. Customer Journey 37 of Advertisers track the customer journey 41% think that paying commissions based on customer journey makes most sense in 2011

33. eReach / Post View Marketing

35. The publisherreceivescommission in casetheusereffectuates a sale/leadattheadvertiser after hiscontactwiththecreative Click Sale = classicalSale View Sale = eReachSale

40. Strong correlationbetweenvisualcontactofthe ad andthetransaction

43. deliveryof PIs ascontracted on premiumpublishersites (closedgroups), thereforelesswastecirculation

44. additional visitorsthrough SEM, whoare not beencannibalizedbytheeReachcampaign

46. Media planningandoptimization

47. visitorsandsalesthataregenerated after thecookielife time arefreeofcharge

48. additionallygeneratedsearchqueries (organicvisitors) arealreadycoveredwithineReach

50. deliveryof PIs ascontracted

52. Retargeting

53. Retargeting explained Users who visited the online shop but whodid not make a purchase or any transaction can be targeted at a later stage at any time during their internet surfing stage. Retargeting ads are shown in order to make them remember about the online shop and in order to get them back into the shop for a purchase.

54. Retargeting in Affiliate Marketing

55. There are severeal reasons why Retargeting makes sense. Apply any kind of Retargeting solution and chose the ones you prefer. Work with handselected publishers simultaneously. Works for Retail, Finance, Travel, Telco and any other industry. Pay per Sale, Lead or Click. Track with Post-Click or Post-View or combination.

56. Retargeting ads examples

57. Mobile Marketing

59. 62,38 million mobile phone users in Germany (88,5% of German population)

60. Mobile internet usage: over 9 million UMU (Unique Mobile User), 14,6% of German population* * Source: AGOF mobile facts 2010

62. Buy traffic from mobile sites on CPM or CPC

63. Serveral targeting options like geo, operating system, mobile phone type

64. Buy specific channels

65. Performance-Model

66. Click toCall campaigns as direct response for calls to a call centre

68. Integrate the Affiliate Network tracking pixels on the sign-out page

69. Offer mobile phone optimised banners

72. An increasingsophisticationof online audienceshasledfewerconsumerstoclick on ads. Clickrateshave fallen to 0,14 % in Spain.

73. 8% oftheinternetaudiencegeneratesappr. 85% ofclickvolume.*ComScore: ComScoreis a US-american, international acting, influential Internet-Research company, whoregularlypublishesthe „World-Metrix-Report“, analysingtheusageofinternet.

75. The importanceof Display Ad campaignsremainsunquestioneddespiteoflowclickrates. Manystudiesrevealthat Display adscanhave a significantimpact on consumerbehaviour, creatingbrandawarenessandpositivelyinfluencingthe offline purchasebehaviour.

78. Directsales will decrease

80. First cookie wins leads to an extreme win for display view and brand, since they are at the start of the journey First cookiewinsassumesthatthefirstcontactisresponsiblethegeneratinginterest. + 25.660,00% + 29,49% - 7,04% - 41,05% - 15,49% - 96,30%

81. The current affiliate distribution explains the strong focus on the last step within in the journey

83. Customer Journey analysis is a process rather than a project

84. The journey is specific to a certain industry and to its type of product. In other words: each business – even each company – needs its own learnings

86. Conclusions Increase your performance-based display spendings now! Apply intelligent tracking solutions and optimise your ROI! Conclusions

87. affilinet GmbH Uli Bartholomäus Joseph-Wild-Str. 20 81829 München ubartholomaeus@affili.net https://www.xing.com/profile/Ulrich_Bartholomaeus twitter.com/ubartholomaeus http://de.linkedin.com/in/bartholomaus www.affili.net