This document discusses digital performance marketing, which uses advertising to drive specific consumer actions and only pays the advertiser when those actions are completed. There are two classifications of performance marketing - pay-for-performance, where advertisers pay for actions like sales or leads, and performance optimization, which utilizes advertising to drive website visits. The document outlines the requirements, types of actions and advertising, benefits and risks of both pay-for-performance and performance optimization strategies. It concludes by listing five reasons why performance marketing is an effective approach.

1. LL
the Sales
Funnel
with
Performance
Marketing

2. Bio
Mike McAnally
-@mmcanally
- Partner & Co-Founder
- 17 Years Interactive
Marketing Experience
- Affiliate Marketer since
1997

3. Agenda
What is Digital Performance Marketing
Advertising and Actions
Traditional vs. the Next Generation
Benefits and Risks
5 Key Takeaways

4. Digital Performance
Marketing
Use advertising
to drive a specific
“action "and only
pay when that
action is
completed.

5. Digital Performance
Marketing
Performance Marketing Requirements
- The ad campaign drives consumer action, as
opposed to just raising awareness
- The consumer action can be clearly measured
- Ads can be optimized in near real-time based
on the measurement
- Payment is made based on consumer action

6. Digital Performance
Marketing
Actions
- Top of funnel actions
produce engagement
and branding
- End of funnel actions
result in sales and
leads but cost more
to produce

7. Digital Performance
Marketing
Advertising
- CPM (Cost-per-Thousand)
- CPC (Cost-per-Click)
- Cost per Lead (CPL)
- CPA (Cost-per-Action or Cost-perAcquisition)

8. Digital Performance
Marketing
Two classifications
of Performance
Marketing
- Performance
Optimization
- Pay-forPerformance

9. Pay-for
Performance
Pay-for-Performance drives customers to
your site where you pay on action

10. Pay-forPerformance
A “Virtual Sales Force”
uses your digital assets
to produces sales
and/or leads
- Affiliate Marketing
- Cost Per Acquisition
- Multi-level Marketing

11. Pay-forPerformance
Affiliate Marketing
-Ads run on pre-approved
Affiliate Web sites
- Customer clicks on your ad
delivered by the network
- Customer lands on your
site
- Pay a percentage of sale
upon action

12. Pay-forPerformance
CPA (Cost-per-Acquisition)
- Ads run on CPA ad networks
- The networks pick the sites
and affiliates that match your
product
- Action tracked on your site
- Pay fixed cost only on
defined acquisition

13. Pay-forPerformance
Multi-level Marketing
- Sales force is
compensated for sales
they make and for
referred sales
- Use of sub-domain Sites
- Heavy use of Social
“word of mouth”
- Good to be at the top

14. Pay-for
Performance Benefits
Benefits
- Low Risk (Performance Based)
- Pay only on sale or lead
- Cash flow friendly
- Visibility and branding
- Virtual sales force

15. Pay-for
Performance Risks
Risks
- Branding issues
- Traffic hijacking
- Sales attribution
- KPIs don’t match
- Virtual Sales force

16. Performance
Optimization
Performance Optimization utilizes your
advertising assets to drive visits to your site

17. Performance
Optimization
Algorithmic Software
intelligence to drive
optimization in
real-time
- Bid Management
- Re-targeting /
Remarketing
- Real-time bidding

18. Performance
Optimization
Bid Management
- Predictive Bidding driven
by algorithms
- Forecasting &
Recommendations
- Utilized on Search &
some Social Networks
- Drives Keyword Clicks to
your site

19. Performance
Optimization
Retargeting / Remarketing
- CPC Based ad delivery
- Cookie based technology that
delivers ads to people who have
visited your site
- Retargeting serves ads based on
frequency, interests and search
history
- Drives awareness via
impressions
- Fills the funnel with clicks

20. Performance
Optimization
Real-time Bidding
(RTB)
-Computerized /
Algorithm driven
buying
-Bid requests driven
by personalization
-Utilized by Demandside platforms (DSP)

21. Performance
Marketing Benefits
Benefits
- Visibility and branding
- Impressions
- High quality clicks
- Reach new potential
customers
- Identify target markets

22. Performance
Marketing Risks
Risks
-Cash flow prohibitive
- Rogue Networks
- Fraud
- Privacy / Data
Collection
- Your Web site needs
to convert

23. 5 Reasons to try
Performance Marketing
1. Fastest growing segment in Digital Marketing
2. The ROI returned an average of $11 to 1
3. 93% of companies using would recommend it
to others
4. New revenue opportunities are utilizing it to
great effect; Mobile, Lead Gen, CPA
5. Business intelligence technology and tools are
available to enhance tracking and ROI

24. Digital Performance
Marketing
In the future all digital
marketing will be classified as
“performance.”
- Thank You

25. Contact Us
Mike McAnally
21960 Minnetonka Blvd. Suite 100
Excelsior, MN 55331
email@nordicclick.com
952.460.3333
www.nordicclick.com