1. Digital Cadet Presentation
Affiliate Marketing – An Australian
Perspective
Matt Bateman
MD Viva9

2. • Affiliate Marketing explained
• Performance Marketing Explained
• The numbers
– Market Size
– Growth Expectations
– How it fits into the overall marketing mix
• Real World Examples and Case studies
• Job types in performance marketing

3. Affiliate Marketing Explained
– Key Metrics and terminology used
– A brief History of Affiliate in Australia, including a brief
market overview
– How it fits into the wider performance mix
– Banners, text links – effectiveness and metrics
– eDM – how email is used in affiliate marketing to great
effect

4. Let’s start with a definition
• Affiliate Marketing is:
Revenue sharing between online
advertisers/merchants and online publishers/
salespeople, whereby compensation is based
on performance measures, typically in the
form of sales, clicks, registrations, or a hybrid
model.

5. Affiliate Network

6. In the beginning...
Amazon Affiliate Program

7. First things first – what the hell am I talking
about?
• CPC – Cost Per Click
• CPL – Cost Per Lead
• CPA – Cost Per Acquisition
• CPS – Cost Per Sale
• CPR – Cost Per Response (or Cardio-Pulmonary
Resuscitation)
• CPM – Cost Per Thousand
• It really is CPW
• In the Performance Marketing Space, Results
count, and the actual tools are irrelevant

8. Affiliate Landscape in Australia
• Fastest-growing sector of online advertising in the
Australian market
• By our estimates, the affiliate market will be worth
approx A$40-50M in 2009
• The total performance-advertising part of the market
is going to be worth $100-120M+ in 2009
• Estimates have the ‘performance’ part of the market
growing at 20-30% year-on-year

9. Performance Marketing Tracking
– how it works
Tracking pixel
Landing pages Landing pages
$ Leads Sales
Analytics Layer
Consumers Publishers
Multiple entry points
Central DB
Remarketing
opportunity

10. Key Principles
- Pay only when the objective of the campaign
has been achieved;
- Obtain centralised reporting, tracking and
billing across all participating publishers without
the need to pay for expensive third party
tracking;
- Full approval of publishers/websites running
the campaign. No Blind Buys.

11. Advertising that
worked…then
Majority of
advertising via text
and banners as well
as XML feeds
All sold on a Cost
Per Sale basis

12. What does an affiliate publisher
look like?

13. Publisher Perspective
• Concerns over cannibilisation
• Are you really maximising your inventory in terms
of ad spend?
• House ads should be almost non-existent now
• Databases and Profiling – how to make the most
out of these
• What’s next?
– Behavioural Targeting (Valueclick have just announced
their first efforts in this space)
– Consolidation across verticals

14. A comment on E-Commerce in
Australia
• Where are the major retailers online?
• How do we get them to engage online?
• The Avis model...

15. Affiliate marketing in Australia
Quality
CPC/CPL 1
CPA
0
Volume
1
1 0
0
SEARCH – SEO AND PPC
1 RETAIL/CPS

16. Performance Marketing
• Natural decentralization of Ad Spend online
• Increasing number of Ad $s going to Search, Ad
Networks, and Performance/Affiliate
• ‘Portal’ strategies now being replaced by:
– Ad Networks (AdConion, Drive PM, 3Di)
– Ad Exchanges
– Diversified Performance strategies
• Sophistication in ad-serving and tracking is
enabling agencies and clients to work with multiple
networks

17. Pricing Models – US IAB
FH 2007 FH 2008
Performance Deals 50%($4,997) 52%($6,007)
CPM 45%($4,497) 44%($5,026)
Hybrid 5%($499) 4% ($477)

18. Performance Marketing Landscape in
Australia

19. The power of email

20. How not to do it....
• Scott Richter – Mass Email Deployer

21. New revenue streams – Facebook
Advertising as a traffic driver
• 200 apps
In 1 weekend
• 18 Apps for
platinum cards
in one week

22. Twitter Feeds – Commission Monster and Viva9
• We are currently using twitter as a general
feedback and information tool on Viva9
• Commission Monster is updating campaigns and
campaign changes on the fly as we do new
things
• Viva9australia
• Promotional medium at this early
stage

23. CASE STUDIES

24. Australia Post /FDS – Database build
Objective - To build an annual survey panel
of approximately 150,000 unique members.
Campaign was broken into 2 x 3 month
surveys.
Delivery Channel – Combination of targeted
eDM, using quality opt- in databases, and
banner placement, through selected affiliates
within the Viva9 network.
Results – Both surveys were completed well
ahead of schedule.

25. Campaign Examples
Strawberrynet – Sales Campaign
Objective – To drive sales of women’s
cosmetics and men’s grooming products
Delivery Channel – Combination of targeted
eDM, banner placement and search, through
selected affiliates within the Viva9 network.
Affiliates were paid on a Commission basis
based on sales.
Results – Achieved in excess of $1 million in
sales on a monthly basis

26. Case Study – Coca Cola
• CPL Program
• Driving a DB for
coke
• Focus on families
interested in
holidays

27. Campaign Examples
ANZ Cards– Lead Generation
Open ended lead generation
campaigns for the whole ANZ Credit
Card range.
Campaigns employ a combination of
targeted eDM, using quality opt-
in databases, and banner placement,
through selected affiliates.

28. Case Study – Finance – CBA
affiliate program
•Market-leading brand
•Regular promotions to publishers
•Focus on comparison-based sites
Apply today for an everyday Low Rate
credit card with Commonwealth Bank

29. Job Types in Affiliate/Performance
• Account Management
• Campaign Management/Trafficking
• Affiliate Manager
• Sales Support
• Marketing
• BDMs

30. WHAT’S NEXT?

31. Social Media and Performance
Advertising
• At this stage, affiliates/publishers are driving
acquisition in social media
• Facebook already has profiling and targeting
capability
• My Space new tools announcement will be
interesting
• Social media looks more attractive, as search
becomes more expensive
• Is information-gathering changing?
• Twitter and Search combination could be a
game-changer

32. QUESTIONS?

33. Contact:
Matt Bateman
MD – Viva9
Level 2, 62-64 Riley Street
East Sydney
Ph: (02) 9368 6850
Email: matt@viva9.com
Twitter: viva9australia;matthieub

34. Resources
• www.affiliatetip.com
• www.affiliates4u.com
• www.emarketer.com

35. Mobile?
• Mobile advertising is estimated to be a A$5m
market in 2009
• Even in the US, mobile affiliate is still very slow in
getting off the ground
• Some interesting companies in the space:
– ADMob
– Pudding Media – behavioural targetting and advertising
• Drew Ianni (chairman of Ad-Tech)
‘2009 is not the year for mobile advertising’