This document summarizes a discussion between Robert Glazer, CEO of Acceleration Partners, and Brian Marcus, VP of Global Marketing at TUNE, about the growth of performance marketing and partnerships. Some key points discussed include:
- An increasing percentage of marketing budgets are moving towards performance-based models where companies only pay for measurable results or outputs.
- Performance partnerships through affiliate marketing allow for increased marketing reach, flexibility, and reduced risk through a pay-for-performance model with transparency.
- Emerging technologies like automation, AI, and programmatic advertising are helping performance partnerships scale while protecting against fraud.
- In the future, marketers will focus more on measurable bottom-line results and conversions
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Partnerships: Expanding the Size of the Performance Pie
1. Fireside Chat: Expanding the
Size of the Performance Pie
With Bob Glazer and Brian Marcus
07/29/2018
2. ROBERT GLAZER
CEO and Founder, Acceleration Partners
rglazer@accelerationpartners.com
@robert_glazer
www.accelerationpartners.com
BRIAN MARCUS
VP of Global Marketing, TUNE
brianm@tune.com
@tune
www.tune.com
3. Acceleration Partners is the leading
global performance partnerships agency
focused on delivering brand-aligned,
affiliate marketing programs for the
world’s top brands.
www.accelerationpartners.com
TUNE delivers innovative measurement
solutions that help marketers and their
partners effectively manage campaigns,
engage the right audiences, optimize ad
performance, and grow their business.
www.tune.com.
4. “There is a growing demand for all marketing to be performance-based, says Laurie Cutts, Head of Partner & Media
Channels at Acceleration Partners. “Companies are no longer tolerating paying for things and being kept in the dark
about what they are getting in return.”
Performance evolution: putting brand budgets to work
62% OF MARKETING BUDGETS MOVING
TOWARDS PERFORMANCE MARKETING
5. Ultimately, the performance partnership model is easier to scale and increase reach quickly, and the pay-for-
performance mechanism inherent to affiliate marketing ensures that, with sufficient oversight and fraud protections,
brands and retailers are able to vastly reduce marketing risk.
Performance evolution: putting brand budgets to work
WHY IS PERFORMANCE MARKETING GROWING FASTER
THAN TRADITIONAL MARKETING?
Increased marketing reach
More flexible
Pay for performance
Transparency of spend & revenue
Reduced marketing risk
6. “We’re seeing our customer composition diversify,” says Cameron Stewart, Chief Operating Officer at TUNE. “Many of
our new HasOffers clients are brands using the product internally to manage external teams of marketers.”
Performance evolution: putting brand budgets to work
WHERE PERFORMANCE MARKETERS WORK
Agencies
Brands
Ad Networks
Marketing Platforms
7. Performance evolution: putting brand budgets to work
“We are increasingly seeing brands using first click, position-based and multi-touch models for commissioning their
affiliates. This is especially true for retailers that work with content partners,”
– Laurie Cutts, Head of Partnerships, Acceleration Partners
8. “Too many companies are paying their marketing partners for inputs when they should be paying for outputs.
Performance Partnerships has become the go-to model for growing a brand.”
– Robert Glazer, Founder & CEO at Acceleration Partners
Performance evolution: putting brand budgets to work
PERFORMANCE 2020: 5 KEY REQUIREMENTS
Fraud protection
Automation & AI
Transparency & Openness
Alignment of Incentives
Owned Platforms
16. ROBERT GLAZER, CEO, Acceleration Partners
Robert Glazer is the founder and CEO of global performance marketing agency,
Acceleration Partners. He is also the co-founder and Chairman of BrandCycle. In addition
to being a serial entrepreneur, Robert has a passion for helping individuals and
organization build their capacity to outperform. Glazer is the author of the bestselling
book, Performance Partnerships: The Checkered Past, Changing Present and Exciting
Future of Affiliate Marketing and his Friday Forward (www.fridayfwd.com) inspirational
posts reach over 35,000 leaders each week across the world.
BRIAN MARCUS, VP of Global Marketing, TUNE
Brian has been shaping the performance marketing and ecommerce communities — as a
digital marketer, as a platform owner, and as a platform evangelist — since 2002. Brian
launched into eCommerce leading customer acquisition at JC Whitney. From there, he
went on to build two global affiliate marketing platforms, one at Google (GAN) and the
other at eBay (ePN). Most recently, Brian was VP of Marketing at Teespring, a Selling and
eCommerce platform for designers and creators.
17. One technology that you’ve
talked about is programmatic …
especially private programmatic.
Can you explain?
18. Can focusing on bottom-funnel
conversions save marketers from
the data deluge and analysis
paralysis?
19. What does that mean for smaller
marketing firms that could be
partnering with these
enterprises, brands, and
retailers?
Let me introduce your speakers today briefly
My name is John Koetsier … I’m TUNE’s mobile economist. I also write for Forbes and Inc.
We’re super-happy to have the accomplished Rober Glazer with us, CEO of Acceleration Partners and author of the bestselling book: “Performance Partnerships”
Also, it’s great to have TUNE’s own VP of global marketing with us, Brian Marcus, who has a long history in performance marketing
More on Bob and Brian in a moment!
Who’s TUNE?
TUNE has built an amazing marketing measurement platform that helps enterprise, retail, and brand customers grow their business by investing their marketing dollars for highest return.
Who’s Acceleration Partners?
Acceleration Partners is the leading performance marketing agency that delivers brand-aligned affiliate marketing for top global companies.
We’re starting to become much more intentional about it
We did some research in the last few months
On average, performance marketers think that about 62% of overall brand and enterprise marketing budgets are moving to performance marketing.
And a significant chunk of them -- a full 70% -- feel that between 50% and 100% of marketing budgets will move to performance channels. That’s massive.
There’s a reason for that growth.
“There is a growing demand for all marketing to be performance-based, says Laurie Cutts, Head of Partner & Media Channels at Acceleration Partners. “Companies are no longer tolerating paying for things and being kept in the dark about what they are getting in return.”
The reasons are pretty clear and pretty simple … performance marketing has 5 key benefits
- flexibility
- increased marketing reach
- pay for performance … so you can scale it
- transparency of spend and return
- lower-risk … b/c managed correctly, you you’re never spending huge amounts with uncertain returns
Along with the growth, we’re seeing significant change in where performance marketers work
Basically … that’s everywhere marketers work
A decade ago, affiliate marketing may have lived in the basement, the coffee shop, or the shabby little office on the wrong side of the tracks.
Today, performance marketers are everywhere, in every niche of the marketing ecosystem.
A quarter work in agencies. Another quarter work directly for brands. About 16% work with the adtech platforms, like TUNE’S own HasOffers, that enable performance partnership marketing at scale.
There’s still a lot of room for performance marketing to grow, however. And our respondents ID’d 5 key requirements for the industry’s continued growth
fraud protection … should go w/o saying …
automation & AI … marketers need simpler ways of dealing with vast volumes of campaigns and data … they need smart systems that make decisions intelligently based on pre-set marketing goals
transparency & openness … performance marketers need to be clear about tactics, strategies, and sources to enable trust from enterprise and brand customers. In return, of course, brands need to respect confidences
alignment of incentives … if performance marketers are simply incentivized to provide traffic, leads, or other top-of-funnel inputs, they will do exactly that. But if they are incentivized to drive actions that result in provable ROI -- and can be properly measured in doing so -- then incentives are aligned between partners and brands.
owned platforms … When brands own their platforms, they set the rules. That enables transparency, alignment, and fraud protection. It also ensures that brands don’t pay more than they need to for services rendered.