This document provides an overview of performance marketing best practices. It discusses the key parties involved, including advertisers, media vendors, agencies, and tracking software. It also covers challenges in the environment, media opportunities, pricing strategies, objectives of tracking systems, technical requirements, implementation phases, and reporting considerations. The goal is to deliver leads and sales while increasing customer lifetime value through quality creative and flexible testing of offers and bounties.

1. Performance Infrastructure
best practices guide

2. contents
Parties to Performance marketing [3]
challenges in the Performance marketing environment [ 4 ]
Performance media environment [ 5 ]
Performance Pricing [ 6 ]
objectives of tracking systems [7]
technical requirements [8]
Key considerations [9]
Implementation Phases [ 10 ]
reporting [ 11 ]
contact Information [ 12 ]
Performance Infrastructure best PractIces guIde • © 2009

3. PartIes to Performance marKetIng
Performance marketing, particularly digital performance marketing,
involves several parties, each of which is responsible for a separate
piece of the performance marketing puzzle:
• dvertiser processing/receiving the leads
a
and/or transactions
• digital-media vendors or affiliate businesses
• Performance-marketing agency
• third-party performance-marketing tracking software
Performance Infrastructure best PractIces guIde • © 2009 [3 ]

4. challenges In the Performance-marKetIng envIronment
unlike traditional digital media tracking, which focuses on impressions
and clicks, since payment in performance marketing is triggered by
a conversion (lead, subscription, purchase, etc.), additional care is
required. some emerging challenges include:
• development of high-converting landing pages/sales funnels
• evelopment of media assets that anticipate each likely
d
media environment
• ndentifying the ideal performance payment without paying
I
too much/little
• nsuring that the right traffic source receives credit
e
for the conversion
• toring traffic source-related data with the conversion data
s
• anaging traffic “quality”
m
Performance Infrastructure best PractIces guIde • © 2009 [4 ]

5. Performance medIa envIronment
fundamentally there is no difference in the media opportunities between
performance and traditional digital environments. however, a focus on
conversion efficiencies often means a stronger call to action in the use
of each format. opportunities include:
• earch engine marketing
s
• isplay advertising
d
• -mail marketing
e
• social media and blog marketing
• idget, application and other emerging media opportunities
W
Performance Infrastructure best PractIces guIde • © 2009 [5 ]

6. Performance PrIcIng
the art and science of performance marketing hinges on the conversion
payment, often known as the “bounty” or cPl/cPa (cost per lead/cost
per acquisition). We develop performance pricing strategies that take
the following points into consideration:
• lifetime customer value (Where known) or gross margin
• aximum bearable marketing cost per lead/acquisition
m
• xpected range of landing page conversion rates (by traffic category)
e
• xpected click-through and “view-through” rate on creative assets
e
• evenue through upsells, cross-sells and back-end sales
r
Performance Infrastructure best PractIces guIde • © 2009 [6 ]

7. objectIves of tracKIng systems
tracking systems in the performance marketing environment are
designed to provide transparency in conversion volume to all parties.
advanced systems also provide metrics on impressions, clicks and
other key performance indicators. objectives include:
• rovide a mechanism (such as “pixels”) on conversion pages to
P
track conversions
• ffer media vendors a Web-based near-real-time source for
o
conversion counts
• rant a window (e.g., 30 days) for attribution of a conversion after
g
a Web site visit
• upport attribution delivered through organic (nonpaid) search visits
s
• everage “gateways” ensuring that only qualifying conversions
l
are rewarded
• apture media source information with each conversion
c
Performance Infrastructure best PractIces guIde • © 2009 [7 ]

8. technIcal requIrements
to ensure full support for performance marketing, advertisers need
to ensure that their environments are technically capable of running
an efficient performance campaign. We assist our advertiser clients
in providing a performance media-friendly environment with standards:
• anding and conversion pages must support a variety of tracking
l
pixel types
• anding and conversion pages must be accessible by the
l
performance agency
• erformance media vendors must be able to simulate conversions
P
with test data
• dvertiser’s developers must be able to write conditional logic
a
on conversions
• dvertisers must be able to add tracking fields to their database(s)
a
• anding pages, any gateway, and pixel conditional logic must
l
load quickly
• -mail suppression list and opt-out functionality required
e
Performance Infrastructure best PractIces guIde • © 2009 [8 ]

9. Key consIderatIons
Performance marketing is a niche specialty with massive rewards if
properly executed. agencies that specialize in performance marketing
are typically extremely media-oriented but may lack in other important
areas. some best practices for providers:
• oal is to deliver lead/sales volume while increasing lifetime
g
customer value
• ncreasing lifetime value involves preserving brand integrity with
I
quality creative
• lexibility in offers and bounty important during early
f
“assessment phase”
• nsure that all tracking elements are in place so it’s right the
e
first time
• edia placements should protect the brand by avoiding overexposure
m
• erformance partner should work deeper than “managing
P
affiliate networks”
Performance Infrastructure best PractIces guIde • © 2009 [9 ]

10. ImPlementatIon Phases
• ssess lifetime value of a customer
a
• Identify offers and determine maximum bounties
• dd field to database and install code to store media
a
source information
• add cookie control to store media source info on original visits
• dd pixel control to fire only the right pixel on conversion
a
• Install performance tracking software
• nstall retargeting and conversion pixels
I
• et up quillion media server with campaign
s
• est and launch
t
Performance Infrastructure best PractIces guIde • © 2009 [ 10 ]

11. rePortIng
advertisers (or their performance agencies) are responsible for
managing performance reporting. each party to the transaction
requires a different set of information.
MEDIA VENDORS
• onthly report of conversions and rejected leads (if applicable)
m
MEDIA SERVER
• If paid on performance basis, reconcile invoice against conversions
pERfORMANcE tRAckINg SOftwARE
• econcile invoice against conversions
r
pERfORMANcE AgENcy
• oordinate all reports, reconciliations and payments
c
tRADItIONAl AgENcy
• dd performance numbers to nonperformance numbers
a
Performance Infrastructure best PractIces guIde • © 2009 [ 11 ]

12. for more information, please contact:
lori perman
director of new business
lori@quillion.com
310 280 7941
8500 steller drive
suite 5 culver city, ca 90232
t 310 280 7800 f 310 280 7780 w quillion.com
Performance Infrastructure best PractIces guIde • © 2009 [ 12 ]