How mobile is creating a buzz in the online performance marketing channel - Liane Dietrich

Copyright 2010 LinkShare Corporation. All rights reserved.

Liane Dietrich

How Mobile is creating a buzz in the

online performance marketing channel

2Copyright 2010 LinkShare Corporation. All rights reserved.

Who am I?

Liane Dietrich - Managing Director, LinkShare

LinkShare employee since 2003

Relocated to London from New York as Managing Director at the launch of

LinkShare UK in 2006.

Rakuten employee since 2006

Prior to LinkShare, spent 9 years at General Electric Company

Six Sigma Quality Master Black Belt, is a speaker at industry events, has a

business process patent and received a B.S. in Mathematics from the

University of Notre Dame.


• Is the future mobile?

• Is the consumer equipped for mobile to be the future?

• Is the consumer ready for mobile?

• What insight do we have into the future?

• Are the players ready?

• Is the industry ready?


Online shopping defied the recession with 14%

growth YOY in 2009 (1)

Affiliate marketing revenues grew an impressive 38.2

per cent to £72.6 million last year (2)

The sector continues to flourish and will drive more

than £4.5 billion in e-commerce sales this year, a 12%

increase on 2009 (3)

Accounts for 8% of all online retail sales (3)

Sources: (1) IMRG/CapGemini Index 2009; (2) IAB 2009 Online Adspend Survey

(3) E-consultancy’s valuation

Value of the Affiliate Market


Growth...

Sources: E-consultancy’s Market Valution

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0.6

1.4

2.2

3.1

3.84.1

4.6

5.2

5.8

6.5

7.3

8.1

Value of UK affiliate industry, based on value or sales driven by sector

(£billions)


Growth... Where will future growth come from?

Sources: E-consultancy’s Market Valution

Value of UK affiliate industry, based on value or sales driven by sector

(£billions)

Social Media?

Video?

Mobile?

Behavioural Retargeting?

Vouchers?

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0.6

1.4

2.2

3.1

3.84.1

4.6

5.2

5.8

6.5

7.3

8.1


Is the future mobile?


Is the consumer mindset geared toward

mobile?


Don’t get enough information from TV advertising

The Information Shopper

Have more confidence in online information than salespeople

Spend 1+ hour/week conducting online research

Source: LinkShare Proprietary Research with PSC Inc. 2009


% who research online before buying

20-45%55-70%80-85%

Source: LinkShare Proprietary Research with PSC Inc. 2009

The Information Shopper


Is the consumer equipped for mobile to be

the future?


Constantly Connected


Increasingly Connected


Is the consumer ready for mobile?


With the arrival of Smartphones, mobile is playing an increasingly important part in

the way consumers research, browse and shop

25% of respondents have used their mobile phone’s browser or app, to

browse or research, in the last week

Now they are equipped

Souirce - Portaltech & eDigital Research June 2010 – Consumer Shopping behaviour and the role of mobile within the multi-channel mix


Now they are equipped



Looking to save money



By 2015, it’s estimated that shoppers from around the world will

spend approximately £75 billion on goods and services bought

through their mobile phones.

Further validating the market opportunity, technology industry

analysts at Forrester Research, Inc. found that on average, retailers

surveyed reported that their mobile browsers are generating 2.8

percent of overall site traffic and two percent of Web revenue.

In the same report, Forrester found that “affiliate marketing surfaced

as a strong customer acquisition tool.”

Source: ABI Research. “Mobile Online Shopping and Mobile Payments for Virtual Goods

Enter the Mainstream” February 2010

More importantly… they are spending

http://www.forrester.com/


What insight do we have into the future?


Over half the Japanese have a Smartphone

http://www.linkshare.ne.jp/





Mobile Affiliate Marketing is profitable

• In 2010 38% of affiliate

revenue was accounted for

by mobile

• Up from 27% in 2009

• In 2010, the mobile affiliate

market grew by 16%

compared to 2009 and this

growth is expected to

continue

• All networks provide a

mobile service





26Copyright 2010 LinkShare Corporation. All rights reserved. 26

前年比132％

前年比222％

2008年度のリンクシェア内携帯アフィリエイト流通総額携帯アフィリエイトは223％の伸長率を記録。2009年度では更に132%の伸長率となり、引き続き成長！！

Mobile GMS growth

YOY

222%

YOY

132%

PC vs Mobile GMS ratio

Mobile GMS is growing





27Copyright 2010 LinkShare Corporation. All rights reserved. 2010/10/14 27

Fashion

Mobile GMS growth rate

Cosmetics

Tickets & Entertainment

Catalogue

TV shopping

Mobile Fashion GMS growth

Identifying the growth opportunities


There are quirks…

While PC sales skews to weekend, Mobile sales are almost flat


Are the players ready?


Companies are investing


1. Non-Intrusive - 100% opt-in, so your customers will not feel

that you are being intrusive.

2. Tracking - You can track all your offers on mobile in the same

way

3. Eco-Friendly - By not printing vouchers or sending direct mail

you can show you are helping the environment.

4. Increased relevance - Using advanced GPS technology, you

can target customers by location

5. Higher Redemptions - Mobile vouchers have a 30%

redemption rate, much higher than the 3-5% redemption rate

for printable vouchers.

Source: VoucherCloud 2010

… seeing the benefits


Many of our merchants are mobile


It’s not just the high-street


It’s not just iPhone Apps


Publishers are going mobile


… and creating a buzz


VoucherCloud


New sites launching everyday


Is the industry ready?


WebsiteDirectories /

Banner Farms

Help with decision process

(comparison, review etc)

Mobile Website

Applications

Help with decision process

(comparison, review etc.)

Creative uses

Same Evolution?

Affiliate Marketing

Mobile


Paving the way for Mobile Affiliate Marketing

Paving the way for Affiliate Mobile Marketing


The Role of Networks

In their existence, Affiliate Networks are here to:

• Facilitate

• Track

• Optimise

• Educate

For ALL types of affiliate marketing


Doing Our Part

August 2010, LinkShare has tested, validated

and ensured its tracking technology works

across multiple mobile devices and platforms.

Extensive testing on leading smartphone

platforms:

• Apple iPhone

• Android

• Blackberry

• Palm


LinkShare Tracking from a mobile browser

From SmartPhone Mobile Browsers

Tracking functions exactly the same as

if user was browsing from a standard

Web Browser(IE,Firefox, etc)

As mobile sites are actually distinct

websites(m.company.com vs

www.company.com), another instance

of LinkShare tracking needs to be

installed and tested

From WAP Browsers

Enterprise tracking is capable of

reporting transactions from WAP

browsers

Pixel tracking will not be able to

attribute return days(on any browser

that can’t handle cookies)

http://www.company.com/


How are Smartphone browsers different?

Based on internet standards

(HTML,XML,TCP/IP)

Can correctly render the majority of

website content on the web

Capable of handling cookies

Smartphones have enough processing

power and memory to handle a full

HTML browser

Can render Javascript, allowing for

enhanced User Experience


LinkShare Merchants… Already tracking on iPhone, Android, Palm and Blackberry


• 65% trackable on iPhones

• 74% trackable on Android

• 71% trackable on PALM

• 55% trackable on Blackberry

LinkShare Merchants… Already tracking on iPhone, Android, Palm and Blackberry


Quick Summary

It’s real

Do it, and fast

Keep your eyes open

Keep talking


The Practical Stuff


Common Problems with M-Commerce

Various browsers have different behaviors (example: Flash support)

Just like with standard web browsers, some platforms have unique bugs

(example: unable to checkout and complete transaction)

As the “Era of Mobility” is still in its infancy(in the US), Advertisers have not

created a consistent user experience across mobile browsers (just how some

standard websites do not support Chrome or IE6)

Some Ecommerce sites do not have “checkout” functionality built into their

mobile platform, instead redirecting users to standard website checkout (not

mobile formatted)


Advice For Publishers:

1. Only promote Advertiser who have been tested for mobile tracking

2. You are sending your own customers to an Advertiser – so test out

the mobile user experience

3. Be direct! The fewer the clicks from a publisher’s mobile promotion

to a purchase page the better. Estimated 10% with each click

4. Demand that advertisers upload mobile banners (this helps

everyone in the network): 300 x 500, 216 x 36, 168 x 28, 120 x 20


Advice For Advertisers:

1. Explicitly state in your webserver which users should be redirected

to the mobile site.

2. Include Universal Product Code (UPC) in your feed so mobile

publishers can link product scans or comparison shopping on

directly to a product’s buy page on the mobile site

3. Get your mobile site tested for tracking with LinkShare

4. In the US, consumers are checking their email more on mobile

than on PC. So you are already being promoted on mobile, so

consider your options


Advice For Both Publishers & Advertisers:

1. Communicate

2. Align your objectives


Thank you for your time!

Liane Dietrich

Managing Director, LinkShare

[email protected]

+44 (0)20 7031 0950

Follow us:

On our blog... http://blog.linkshare.co.uk

On Twitter... @linkshareukblog

mailto:[email protected]

http://blog.linkshare.co.uk/

How mobile is creating a buzz in the online performance marketing channel - Liane Dietrich

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