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Why Performance Marketing? Why Now?

CAKE "POWER THE OF PĒRFORMANCE MARKETING HOW DOES PERFORMANCE compile deals, product reviews, MARKETING fers, and when a customer dlicks Affiliates, also known as publishers, discounts, coupons and rewards through one of those offers, they arrive at the retailer's website, WORK? ready to make the purchase. Customer clicks on an ad on a publisher's website for rewards, cash back or Customer is The affiliate network redirected to the advertiser's website tracks the sales price comparison. to make purchase. origination. AFFILIATE NETWORK |(O») PUBLISHERS ADVERTISER Tracking software helps show what, when, how and where Affiliate networks help advertisers manage relationships with many different publishers. Advertisers pay publishers a commission for each transaction. customers made their online purchase. Source: The Internet Advertising Bureau, The Value of UK Online Performance Marketing January 2013 THE GROWING IMPACT OF PERFORMANCE MARKETING Performance Marketing allows you to collect data that shows the precise impact of your marketing investment. Performance Marketing is expected to grow 17% annually, growing to a $4.5 billion investment. PERFORMANCE MARKETING SPENDING Neither: 1% Won't increase: 8% THIS YEAR NEXT YEAR 77% Shrunk: 22% Don't know: 21% 71% of the companies using Performance Marketing increased their of the companies using Performance Marketing will increase their Grown: 77% Will increase: 71% commitment. commitment, 100 The more companies spend on Performance 90% 90% of companies spending $46,000 to $150,000 a month on commissions plan to increase Marketing, the more committed they are. investment in Performance Marketing. Companies committed to increasing investments in Performance Marketing in the coming year (percent of respondents) IDon't know INo, won't spend more Yes, will spend more 5% 17% 5% 19% 32% 11% 90% 81% 11% 71% 58% Average monthly commission Over $152k payment 0-$15k $15-45k $46-150k Source: Internet Advertising Bureau UK, IAB AMC Advertiser Survey November 2011 PERFORMANCE MARKETING: ARE YOU MISSING THE CMOS using Performance Marketing like the way it measures their success with real numbers. In the United Kingdom, $1.2 billion on Performance Marketing and generated $13.7 billion in sales. So why don't more CEOS know about it? advertisers spent BOAT? 93% of those in the Performance Marketing channel said they would recommend it to others. Unlikely: 6% 62% Likely: 31% Very likely: Definitely TUnlikely:1% ? How much knowledge do your CEOS have about Performance Marketing? Excellent knowledge: 15% A litle 41% None at all: Good: 35% 9% LARGE The larger the company, the less understanding there is about Performance Marketing at the senior management level. COMPANIES UNDERSTANDING UNDERSTANDING SMALL COMPANIES OVERCOMING BARRIERS Performance Marketing allows you to measure your success and tie revenue directly to marketing. Don't be left behind just because there is resistance in your company to entering new channels. Resistance to new marketing channels Top 7 49% UNCERTAIN ROI reasons executives 31% NO BUDGET ALLOCATION give for not investing in 31% COMPANY BUREAUCRACY new or unfamiliar |23% COST IS TOO HIGH marketing spaces: UNFAMILIAR WITH TECHNOLOGIES & VENDORS 22% DATA SECURITY RISKS 21% LACK OF SKILLS & 19% RESOURCES WHAT'S NEXT? A GROWING SEGMENT OF THE PERFORMANCE MARKETING CHANNEL Affiliate sites designed for smartphones are only 5% of the PM space but are growing; if you aren't positioned to target mobile customers, you could lose sales. FIVE REASONS TO MOVE INTO PERFORMANCE MARKETING It's the fastest growing segment of digital advertising. The Performance Marketing channel grew 57% from 2008 – 2012 at average of 12% annually. 2 The ROI is outstanding. In a UK study, Performance Marketing returned $11 for every dollar spent on marketing. It works. 93 percent of the companies using Performance Marketing would 3 recommend it to others. New revenue opportunities are already utilizing Performance Marketing to 14 great effect: Mobile, Lead Gen, Pay Per Action. Powerful business intelligence technology and tools are 5 already available to enhance Performance Marketing's effectiveness and help you better understand your ROI. Business Intelligence for Performance Marketers www.getCAKE.com E CAKE D:

Why Performance Marketing? Why Now?

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At CAKE we provide business intelligence for Performance Marketers. It is our mission to maximize the impact and optimize the value of digital spend for the $98 billion global digital advertising indu...

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