[Webinar] SpiraTest - Setting New Standards in Quality Assurance
Valuing Partner Traffic through the evolution of Ecommerce
1. Valuing Partner Traffic
Through the Evolution of
eCommerce
Christian Erhard
Head of Partner Management Europe
eBay International Marketing GmbH
2. The marketing landscape is rapidly shifting
New formats creating new ad opportunities
• Local commerce rejuvenated by mobile
• New experiences driven by phone and tablet adoption
• Online and offline blur
Your advertising spend
• Ad formats and behavioral data converging
• Search / Social
• Display / Search
• Shopping Comparison / Affiliates
• TV / Internet
New consumer behaviours
• Personalization
• Social commerce
• Mobile
3. In the world of
UNLIMITED
OPPORTUNITIES
how do you
DETERMINE VALUE
to make the
right investment?
4. Every investment is different. Reward it accordingly.
INVESTMENT DEFINE ASSESS ESTABLISH
OPPORTUNITY VALUE QUALITY PAYMENT STRUCTURE
5. What does value in internet marketing mean?
Define measurable indicators for each traffic source / campaign
Strategic
ROI Value
- Brand awareness
- Visits
- Pre-post analysis
ROI positive — cost vs spend ROI positive / neutral / negative
6. Traffic quality - true value
Incrementality Would this sale have happened anyway?
of sales
• Lifetime value of customers
Other quality
• User onsite behaviour
factors
• Legitimate traffic
8. Quick eBay Partner Network background
eBay has had an affiliate
program since 2001
eBay Partner Network was
launched in April 2008
In-house platform has
improved availability of data
and ability to innovate
We’re the merchant
(12 eBay sites + Half.com)
and the network
9. Quick eBay Partner Network background
Over 100K affiliates in
27 countries
Many business models
are supported, including
portals, niche content
sites, blogs,
deals/loyalty sites, and
more
10. Why we love affiliate marketing
Measurable, ROI
Performance- Positive
based
Rewards Rapid Growth,
Huge
Entrepreneurs Opportunities
11. Why did we launch Quality Click Pricing?
We began asking ourselves these questions....
―Did the affiliate’s efforts ―Are the affiliate’s leads
generate the lead/sale?‖ worth what we pay
for them?‖
―How do we incentivise ―How do we incentivise
our best publishers to publishers driving lower
send us more traffic?‖ quality traffic to improve?‖
12. Quality Click Pricing
Drive quality Quality of traffic EPC Amount
traffic to eBay evaluated posted
INVESTMENT DEFINE ASSESS ESTABLISH
OPPORTUNITY VALUE QUALITY PAYMENT STRUCTURE
13. What is the incremental value affiliates add to my business?
• Purchases Would the
What is
• Bids event have
each event
• New user taken place
• Ad Revenue worth?
without ad
• Mobile interaction?
USER EVENTS VALUE INCREMENTALITY
14. Quality Click Pricing – short and long term incremental value
When traffic is delivered to an eBay site, we assess its quality by looking at the
short term and long term incremental value
that the traffic brings to eBay.
SHORT TERM VALUE LONG TERM VALUE
incremental revenue: revenue that new users
purchases, PayPal and advertising (ACRUs) generate on eBay
+ beyond the first few days
Engagement after a click
= =
direct result of the life-time of value to eBay of the
publisher’s marketing efforts new customers you drive to our site
15. Quality Click Pricing
Incremental purchase revenue
Historical
Rolling Long term value of new users
Average
Additional sources of value
TOTAL REVENUE
18. Mobile Commerce | eCommerce
Source: http://techcrunch.com/2012/05/30/heres-kleiner-partner-mary-meekers-latest-data-dump-mind-the-mobile-monetization-gap/
19. Mobile users have everyday predictable patterns
Mobile serves as an alarm Social is checked The mobile is becoming a
clock. throughout the day due to new way to ‘count sheep‘
the fresh content and as many browse to relax /
desire to stay connected. decompress.
“The first time I come “Thanks to my “Late at night, I‘ll have the
into contact with my Smartphone I can be iPad out just browsing.
phone is early morning. connected all day long I usually check eBay to see
I wake up to the alarm with my friends via what auctions are ending
on my phone, I roll over Facebook and I know or what‘s new. It‘s
and check email.“ what they are up to.“ relaxing.“
Brandon S., 20 Sarah P., 31 Steve G., 45
20. Using mobile, the WHERE and WHEN become less important –
shopping can happen anywhere, anytime
Whilst travelling/ Whilst waiting around, ‘Skiving’ at work
commuting – trains, e.g. at the school gates
buses airports etc
In the supermarket Downtime at home In bed at night/upon
waking
Source: eBay Mobile Research, m-Commerce users (2765), e-Commerce users (1935)
21. Characteristics of today’s mCommerce consumers
% agreeing with “love online shopping”
M purchasers – 81% E only purchasers – 65%
% agreeing with “regular shopping sprees”
M purchasers – 49% / E only purchasers – 30%
% agreeing with “first one to try new things”
M purchasers – 50% / E only purchasers – 20%
% agreeing with “love discover apps on phone”
M purchasers – 45% / E only purchasers – 10%
Source: eBay Mobile Research, m-Commerce users (2765), e-Commerce users (1935)
22. Characteristics of today’s mCommerce consumers
Global eBay transactions volume via
M--‐commerce was a $3.4 billion market in the U.S.
in 2010; expected to grow to $119 billion by 2015 mobile in $ billion
across the globe
Number of eBay downloads to date: 80,000,000
Expensive items purchased: 8
ebay.com:
$ 249,999 Lamborghini Gallardo
5
$ 52,999 Hermes Birkin Crocodile Bag
2
ebay.co.uk:
£ 87,896 Maybach Automobile
£ 19,595 Vintage Rare Red Sea-Dweller Rolex 2010 2011 2012
Forecast
Source: eBay and ABI Research
23. eBay Partner Network Mobile | Web-to-Web
Mobile Traffic vs. classic Web Traffic
• Transparency: Partners learn even more
about what their customers buy
• Efficiency: Activities can be better adapted
and optimised to customers
shopping behaviour ?
• Earnings: All traffic to international eBay
mobile sites is taken into account and
reported on
24. A few parting thoughts. Ask yourself:
Are you making the most of the data you have?
Are you capturing all user events that create value?
Is your current payment structure flexible enough to account for future events?
Are you ready for what is coming next?
25. Questions?
Christian Erhard
Head of Partner Management Europe
eBay International Marketing GmbH
cerhard@ebay.com
eBay Partner Network Blog:
www.ebaypartnernetworkblog.com