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1
THAT IS ME!My Road to Sucess with
Marc Hergenröther
Affiliate Marketing
2
HOW DID I START?HOW DID I START?
CRITICAL KPIS
- PREMIUM INVENTORY
- ADSERVING TECHNOLOGY
- MULTIPLE ADVERTISERS
3
4
MARKET REQUIREMENTS
5
MARKET GROWTH RATE
6
HTTP://WWW.BLOOMBERG.COM/NEWS/ARTICLES/2015-02-25/THE-20-FASTEST-GROWING-ECONOMIES-THIS-YEAR
7
INTERNET USAGE
8
http://www.internetworldstats.com
9
CREDIT CARD ACCEPTANCE
10
11
DEMOGRAFICS
12
…
13
14
ACTIVITIES
- DISPLAY ADVERTISING (POSTVIEW)
- SEA
- USER RETARGETING (6 MONTHS LATER)
15
RESULTS?
- ROI POSITIVE AT DAY 1
- FIRST PAYMENTS AFTER 3 MONTHS
- REVENUE: 30.000 EURO AFTER 3 MONTHS
- BUT: DEPENDING ON SOME CASH COWS
16
HOW TO SCALE?
- MORE ADVERTISERS
- MORE NETWORKS
- MORE COUNTRIES
17
18
Old School
until 2012
RealTime Advertising (RTA)
• Programmatic Media Buy without personal contacts
• Realtime Bidding
• Multiple Websites with high transparency
• Huge Reach and Frequency
• Control about Price and Targeting
• Usage of User Data from different sources
• Delivery on multiple Devices
• Globales Frequency Capping
• Advanced Reporting – Reach and Frequency, Customer Journey, …
20
21
HOW TO PROCEED IN THE
FUTURE?
22
DATA DRIVEN ADVERTISING
23
THE FUTURE IS
CUSTOMER CENTRIC!
Product Intend
Clicker
Spendings
Personal Data
Step in the Sales Funnel
Search
User Intend
CRM and Offline Data
24
1st Party Data
Online Behavior, Keywords,
Conversions, …
2nd Party Data
Data from niche websites,
showing User Intend
3rd Party Data
Purchased Data from Data
vendors
Offline Data
CRM Data, Loyalty Card, …
25
collect adapt segment manage
DMP DSP
How does it work?
26
RETARGETING
Geo
Prague
Demografics
Female, Age 25
Interest
Shopping, lifestyle,
Intend
Jimmy Choo, 39,
Device
Tablet
Prospecting
Prospecting
28
 Targeting on new Audiences and potential customers, which were not in contact with the
advertsier yet (Prospecting/New Audience Targeting)
- based on collected Data
- Data from Visitors of specified Content Website (Contextual)
- Demografic Data, collected via Facebook campaigns (Facebook)
- Search Data from SEA activities (Intend Data)
- Bannerclicks
- Exclusion of existing customers(negative Retargeting)
- 3rd Party Data
29
Lookalike Modelling
Lookalike Modelling
30
 Loookalike Modelling is looking for statistical twins of your current users or buyers, where many
parameters are likely the same
- Simular visited websites
- Simular reactions on Banners (Bannerviews and Clicks)
- Simular Website Behavior (Time Spent, Visited Categories and Products, Conversions)
- Weather situation at the time of the conversion
- Referring URL
- Used Keywords
- Geo….
31
MANY THANKS!
https://www.facebook.com/hergenroether
https://www.xing.com/profile/Marc_Hergenroether

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Marc Hergenröther

Notas do Editor

  1. Thx, pleasure to be here in Prag talk about my experiences with Affiliate Marketing and to show you a quite new publisher modell which could be interesting for you as well My name is Marc, I am addicted to affiliate marketing This picture used 10 years ago, first speech on the OMD in Düsseldorf in 2005, Online Marketing was a very new and small business. The show attended by just 5000 people, now 45.000 people But this picture still drscribes what Display Advertsising/ Affiliate is all about Delivering the right parcels or ads just in time to the right audience and make them happy. Especially that is what I am trying to do. personally delivering Display ads since 2004 Mediaplex, american adserving provider, always trying to find the right user, right ad, the right time on the best placement. After some experience in adserving, tracking and email marketing I founded my first company, a digital marketing agency focusing on affiliate marketing. Vladan asked me to talk about my business and experiences as affilaite
  2. So? how did I start? Somewhen I thought why not using my experience with tracking, adserving, affiliate (Commission Junction was a daughter of VC) to start a own business. That time one of the buzzwords was PostView campaigns. OM shows - demand for people who do PV campaigns. And affiliates beeing sucessful What does PostView Tracking mean for an Advertiser PV? Chance to get a huge reach on the market, millions of AI based on a cpa model. In General - branding on cpm - postview you reach a huge audience with low investment. PostView enables to deliver on premium inventory for a cpa. From Affiliate perspective - increase of total revenue by getting paid for views So closer look to the benchmarks, companies already sucessful and the market itself Find out reson for success major points which are absolutely essential: Premium inventory, required by advertsiers (exclusive deals with networks, wher you are the only one serving PostView ads, low price (hard in the beginning, price depending on spents, later easier, now RTB) To have a bunch of Advertsiers, who accept Postview tracking, to be able to optimize Technology state of the ar, able to optimize banners based on conversion rate. Unfortunately the German market was already satured and it seemed to be difficult to become sucessful. Advertsier already were partnering with big affiliates, which had deals with premium networks.
  3. But what about foreign markets? Would it be possible to start somewhere else? So we decided to look beyond ones own nose – to other territories! Working with international Affiliate Networks makes it easy to expand. International offices, advertisers in several countries, often international publisher managers. So Affiliate networks give you the advatage to expand to other countries and to get in contact with many local advertsiers. Just get in contact with account manager , setup a local adspace and apply for recommended programs – and GO for IT But of course there are also another possibility, which is somtimes necessary – starting an legal entity In some cases you have to establsih an own legal entity, bacause laws do not allow to deal with foreign companies in some cases or tax issues are making the business unattraktive. But in most cases this is not necessary, especially when you are dealing with EU countries. Y ou just need to get in contact with ad networks to get deals regarding the unsold, remnant inventory.
  4. But which market would be worth to start with? Where you have a big potential, but not too much competitors. And which KPIs would be impotant to become sucessful? When I started thinking about new countries you should take these items into consideration: Market growth rate Online Internet usage Credit cards penetration Population (age, online spendings, …) Number of competitors
  5. These aspects are essential for beeing succesful in a new marketaspects are the most important: Market growth rate
  6. Market growth rate Means growing new jobs, higher personal income, establsihing of a upper mid class, more spendings for personal goods, more people spending money online – In General a very good climate to start with Affiliate campaigns Kenya 6% India 5,5% Nigeria growing almost 5% Turkey 3,5% That means that more and more people have more and more money and the demand for specific goods is growing massively
  7. Internet usage If you want to sell products online, you need to know how many people are able to buy them. Only people with internet connection will click on your banners, so it is important that your audience is big enough, because people are able to acces internet But also important, How is the connection, how many people have broadband, … Are the areas where is just limited acces, … All importnat to decide for a country or a certain area
  8. In my oppinion the following aspects are the most important: If you look to these numbers – Europe for example – UK 92%, DE 88%, France 83% Italy 62% - did you expect that Nigeria has 51 %, Turkey 59% The Average ratio of the Top 20 countries is 49%, so Nigeria and Turkey seem to be a quite interesting countries
  9. As I said - If you want to sell products online, you need to know how many people are able to buy them. So the ratio of credit card users is quite important to you. People with credit card are able to purchase online We saw that Turkey has a quite high market growth ratio, high ratio of internet connected users, AND 67% have a credit card! So Turkey becomes more and more interesting…
  10. http://blogs.ubc.ca/gokulankumarasamy/files/2013/09/GlobalCreditCard-v1.0.png But also South America and the Sweden is above the average
  11. Population Age ranges, Income, gender, Let me use Turkey as example again – 50% of Turkey population is younger than 29, 25 % younger than 15 years – that means most of the people are used to modern technologies an willing to buy online – So the market will heavily grwo in the next years
  12. Of course ther are other arguments to take into consideration, like Transportation service for example: If you want to start doing business in Brazil as an advertisers you have to be aware, that it will take up to one week to deliver a parcel to your recipients. If somebody ordered a pair of shoes and they don‘t fit it will talk up to 4 weeks until you get the products – in this time possible the season changed and you cannot sell it anymore. Think about flower delievry service This for example was a reason for amazon, not to start business in Brazil (because of their 1 day delivery) (they were thinking about bilding a own delivery service But also the distance, time difference is important. If you are dealing with networks in Brazil you have a small timeframe to communicate during business hours Political situation – Currently you would not start doing business in Syria or afghanistan Number of competitors So you see there are many things to take into consideration when starting in foreign countries. So in the first step we decided in 2012 to start with….
  13. Italy – 35.5 million internet users and has the 18th place in the world by internet usage. The internet penetration rate is almost 60% Volume of the e-commerce market in Italy is 15 billion Euro. The growth rate of the e-commerce market is 20 percent. The annual spent money per user online is 1500 Euro The mobile penetration rate is 51.8 percent. 7 million Italians use credit cards. other payment systems used are PayPal (13 Mio) and cash-on-delivery. The popular products and services are vacations, travel tickets, clothing, consumer electronics, media and groceries. Beside this Italy is in trhe same time zone, you can drive there by car within a couple of hours and it is member of the European union. And almost no competitors in 2012!!!
  14. First we get in contact with the affiliate networks, in order to convince them working Personal contact, visit in Milan – TD, ZX IAB Forum in Milan OM Show Get in touch with media networks Focusing on smaller network negotiating the buy of remnant inventory Dealing with tuttogratis – promised to buy inventory for 5000 Euro a month after one month testing, cpm 0,30 Euro Premium Sports and News sites Asking for exclusivity (after 6 months we agreed on yearly contract with exclusivity, spending 10.000 Euro a month….
  15. ROI positive – From day one the ROI positive – More earning ten spendings But Inventory has to be paid upfront (new on the market, no trust) and the revnues are coming 3 months later. Without haveing venture capital you have to calcvulate accurat how much you are able to spend Another problem – depending on some cahs cows – if they decide to stop, you get in trouble. So we needed to setup many campaigns in order to find programs which are running ROI positive Lots of testing …
  16. You may ask – how ist it possible to manage so many countries - In order to manage so many coutries we hade to change something to stay efficient –So we changed the way of buying When we started we did the typical classic media buy – talking with an ad network, discussing the prices and volumes, do a booking of certain amount and took al the traffic we got delivered In 2012 we started with programmatic buying Using a technology to buy just these impressions you need for each country. Not one placement fits all – much more specific and easier to handle
  17. The Realtime buying process is one of the most essential things in the past. And essential for the next steps Because
  18. What was working in te past, is not the business modell for the future. More and more competitors are joining the market, so you have to reinvent yourself and think about a stretegy for the future
  19. And the future is data driven advertsing To most important USP you can achieve for your position as a affiliate is the Qunatity and quality of data – User behavior, DRM data, email data, … what ever you can track do it This will open multiple new business and revenue models!
  20. You are not anymore looking for placements where you ebntually reach your target group. You can know exactly define your target group based on demografics, interest and iIntend data. The user becomes more and more the center of the OM world and the commercialcan be more relevant than ever regarding to Google think are 52 % Of consumers only wathcing a commercial ehrn this ad is relevant for them!
  21. So customer data becomes more and more important to increase relavncy between commercial and user. The User will not adapt to your ad, he will just skip it if it is not relevant So you need to know your prospects, users Personal data - Age, gender – a 22 year old woman is interested in different things than a 62 year ol!, Income… What are your user looking for, what are the searching, … What is the user intend, what do they have in mind? What are their planns CRM Data, offlin e buying data, Which step in the saes funnel are tehy? Television buyer – test reports, price comparison, … How much do the spent online, when´did the buy last time,… Who click which abnners? Which products are they looking for You as a publisher or affiliate are able to track all these information, You ahve multiple advertsiers you get data from, you deliver ads on specific websites and collect user intend data
  22. Do start with data driven advertsing you need a Technology to collect and Manage data, and you need a technology to deliver these data In the first step you start collecting data from several sources… Tehn you have to connect these data together while using a key parameter Then you can start building audince segments – people with certain intend When you build a cluster you just need to dliver via In a perfect world you asre using a DMP, an adserver and a DSP
  23. Targeting on people which have been to your shop, Categroies, products basket, conversion upsell, … Means people who are not converting at onceyou take by the hand by the hand, show them last seen products, reölated products to ther bays, …. But – just bringing users back
  24. Predictive Targeting, Prospecting Concentrating on new user which are more likely to buy, people with have already the intend of buying something. They have something in mind, product, dearching for it in google, visiting websites which are about this issue, discovering simular products from different vendors, …
  25. In opposite to retargeting is prospecting driving new potential revenues to your site.
  26. In opposite to retargeting is prospecting driving new potential revenues to your site. As said earlier - You as a publisher or affiliate are able to track all these information, You are working with multiple advertsiers, you can track which users a clicking which banners, you see, which users are not reachting on which ones, you get details about website behavior, you deliver ads on specific websites a can track users which see your banner on a specific website, you know about user intend, search data …. You have the best conditions to start with data driven advertsing to be sucessful. Just get a proper DSp and start working. Good luck!