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  1. #1
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    The end of Performance Based Marketing?
    Rothenberg said the push, which would be described in greater detail during the IAB's annual conference Feb. 22-24 in Orlando, was an effort to overcome perceptions of "creative shabbiness" in online media, and to help prevent the slide toward a "performance-based" Internet advertising economy.
    Source - http://www.mediapost.com/publication...&art_aid=99161

    Relevant read - http://www.grokdotcom.com/2009/01/29...marketing-huh/
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  2. #2
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    The end of Performance Based Marketing?
    What. Again? Didn't this happen last year...and the year before that too

  3. #3
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Was the IAB behind it last year? Flippancy is not an answer to one channel in affiliate marketing's dark and dirty goings on ... imagine what they or the FTC would do if they knew about Rakuten and all their activities --- hmmmm

    Yeah lets, be coy, let's ignore that A real org is looking at what they call creative shabbiness with Brands - the networks not only allow they encourage TM theft, pimping and bidding --- it's a bloody mess and when the sunshine hits the shit the stink will rise.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  4. #4
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    Well as such then Haiko, is it really the end of Performance Based Marketing? If they do sweep through and clean up all the underhand marketing that goes on, is that really the end? Or does it then give the potential for people who ad value to shine once again.

    Cheers

    Chris
    Affiliate Marketing by AMWSO. Skype - chrissanderson ::: TEL 1-720-336-1784 ::: www.amwso.net
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  5. #5
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    So you postulate that they'll just slap hands, say bad boys and girls and allow the rest of the muck? Hmmmm

    This is step one in merchants and brands reclaiming their identities and comms paid on such ... like I said, wait till the sunshine hits the real shit ...

    No It's not the end of performance marketing it's a cleansing but ... after the cleansing initiative... it can't be the same because what has been allowed is and has been so heinously wrong that the norm and all sense of normalcy need to be recalibrated.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  6. #6
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    So you postulate that they'll just slap hands, say bad boys and girls and allow the rest of the muck? Hmmmm
    No I don't think I did.

    No It's not the end of performance marketing it's a cleansing but ... after the cleansing initiative... it can't be the same because what has been allowed is and has been so heinously wrong that the norm and all sense of normalcy need to be recalibrated.
    Like I said, it'll clean things, out, maybe the whole landscape will change, I don't see it changing massively. Affiliate programs will still exist. And if they are focused on adding value then I would hope we can all do better yes?

    Cheers

    Chris
    Affiliate Marketing by AMWSO. Skype - chrissanderson ::: TEL 1-720-336-1784 ::: www.amwso.net
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  7. #7
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    Performance-based marketing is the antithesis of traditional CPM-based advertising. At the very core of traditional advertising is its limited ability to measure effectiveness. Advertising agencies and traditional media rely on the concept of unmeasurable "branding" to sell most of their services.

    When I started out on the internet 12+ years ago, I bought into this model; it's the model I learned about in Journalism School. I absolutely believed that publishers should sell their advertising inventory solely based on CPM measures.

    I was wrong. Publishers should still seek to maximize their effective CPM earnings; but they can make more money if advertisers track and pay for advertising based on performance. Yes, it is a corrupting influence on editorial integrity; yes, it results in a shift in focus away from some important subjects that don't help advertisers generate sales. But it is the way the for-profit world works.

    > As a result, he says online has been painted with a "direct response" brush, which has a strong ROI and effectiveness component that is good in the current weak economy, because marketers tend to shift "above-the-line" traditional advertising campaigns into "below-the-line" marketing initiatives such as direct response, but it does little to elevate the perception of online's premium communications value. < (from the MediaPost article - emphasis added)

    I'm confused. Advertiser shift to a more effective online advertising strategy, and somehow that detracts from the premium value of online advertising? No, it doesn't -- what it does is shift away from "false premiums" sought by media outlets and agencies that don't deliver genuine value.

    In response, Jeff Sexton wrote:
    > They never once said that performance based advertising wasn’t making the wisest and best use of their clients’ ad budgets. They never seemed to indicate that their clients would be selling more and gaining more market share if they were actively branding on the web. * * * Hmmm. Does this sound like Randal and the IAB are most concerned for what’s best for clients or in what’s best for Internet Advertising Agencies? < (from Grok.com)

    And there you have it. Advertising agencies are mostly concerned about advertising agencies. Of course, some advertising agencies are good at ROI-based advertising, but I think the MediaPost article accurately reflects how ROI and measurability are viewed with disdain by most traditional advertising agencies. (Of course, this is changing, as the 'new media' divisions of these agencies take over the business. Many agencies will suffer and die, though, while their traditionalists continue to resist change and give bad advice to clients.)

    Traditional "advertising-supported" newspapers and TV are dying (not quickly, but they are absolutely bleeding out). They will hopefully be replaced by content that is "consumer-supported." Ironically, this will drive a shift away from not only traditional "brand" advertising but also performance-based advertising! Instead of focusing on programming that helps sell products, media must focus on programming that consumers are willing to pay for.

    Maybe the disappointing Super Bowl ads this year were just more canaries in the coal mine. Maybe the era of lavish branding is over.
    Last edited by markwelch; February 3rd, 2009 at 11:08 AM.

  8. #8
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Rothenberg said the push, which would be described in greater detail during the IAB's annual conference Feb. 22-24 in Orlando, was an effort to overcome perceptions of "creative shabbiness" in online media, and to help prevent the slide toward a "performance-based" Internet advertising economy.
    They can't "prevent" what has already happened.

    Although, getting paid for essentially nothing (NON-performance-based advertising) is not, in itself, objectionable. It's the puny fees advertisers want to pay for branding that's the problem there.

  9. #9
    Analytics Dude Kevin's Avatar
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    Lot's of people running scared these days, and I guess that includes the IAB. I thought MattE's comment on the Grog piece was especially insightful.

    Maybe ad agencies should embrace the new internet economy, and move towards creating advertising pieces that can be used in performance based marketing.

    And end to performance based marketing? Most C Levels would rather see the word "media buy" die first.
    Kevin Webster
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  10. #10
    Antisocial Media Expert ProWebAddict's Avatar
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    There should be a healthy balance between the two. (See avatar).

  11. #11
    Outsourced Program Manager TrishaLyn's Avatar
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    Seems to me that the only people that would be opposed to performance based advertising are those that still collect direct advertising. Am I misguided in that assumption (can't think of why anyone else would necessarily be opposed)?

  12. #12
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  13. #13
    ABW Ambassador purplebear's Avatar
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    Quote Originally Posted by Trust
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    Thanks Trust, I needed a giggle today.

  14. #14
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    The thing is with this kind of stuff, not everybody is an idiot. Some of this got tore up in the comments of the articles linked to.

    The reality is performance based marketing/affiliate marketing is the best model out there. Name one better.

    A merchant starts an affiliate program and basically has hundreds/thousands of people out there spending their own time and many times, their own money in trying to drive traffic and sales to merchants. And they only pay if they're successful. So run right, there just isn't anything better than that. And many times they get free branding on top of that. So I think the IAB makes themselves look silly with this kind of thing. So no end, death or dying.

  15. #15
    OPM and Moderator Chuck Hamrick's Avatar
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    So to play in the big league we have to call ourselves performance marketers and not affiliate marketers? And then we get dumped on by traditional marketing? That is why I am resistant to being lumped into performance marketing which includes CPA/Ad networks and all their shaddy practices. Seems AM is under siege from both performance and traditional marketing. We should be happy to exist in our own little sphere.

    Had this discussion with a account director last week that traditional agencies worked under a branding umbrella that included TV, radio, newspaper, magazine, billboards. Now online advertising uses PPC, media placement on high traffic national sites, SEO, email and affiliates. This compliments national TV advertising and long format infomercials to catch the eyeballs looking to the Internet for more information and confidence before purchasing. Since a true online advertising agency is paid in a rev share they quantify everything via ROI and report it back. Recently an online director of a large brand sent out an inquiry asking for a media agency that could provide ROI on the media spend, no one answered. It was amazing to hear the SVP of Ogilvy speak 18 months ago at CJU and admit that they were just getting into online marketing.

  16. #16
    Analytics Dude Kevin's Avatar
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    Good point, Chuck. Wasn't considering the inclusion of "bad CPA" in my comment on Performance Marketing Vs Media Buy.
    Kevin Webster
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  17. #17
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    All marketing is performance based ... if it does not generate a profit some how it goes away ... Trust is right as far as it goes ... there is nothing better than performance marketing IF YOU CAN PERFORM.

    But he misses the very point of agency or affiliate marketing ... they are also merchants/businesses. Their product is internet traffic. The street is a two way road.

    As a traffic merchant, I want product and service merchants to PERFORM if I send them visitor, just as much as they want me to send them traffic that converts into sales. Without traffic the merchant dies, without stuff that sells to offer my traffic, I die ... it's mutally assured destruction unless both sides PERFORM.

    Stealing my traffic with tricks and software is not a good thing for any business. They immediately become a dead business walking. It's just a matter of time before they fold. And the reason is this: the cost of traffic generation is exponetial ... the larger the scale the more it costs in time, effort, money.

    People got to Google - there is no free lunch on Google although sometimes it seems that way ... you can NOT have a free search engine because the logistics of delivery need servers, programs, a building and lots of electricity and air conditioning - not to mention some people who are not likely to work for free. These things cost money. No money. No search engine.

    If you want one of the 8 listings on each keyword page, you need to play Google's game. And that is - if it doesn't contribute to our making money, you don't get the listing ... the actual free listings on the first page of each keyword on Google are engineered to get the most visits possible because that means the 6 to 8 sponsored
    ads get the seen the most and as a result, clicked on the most.

    The idea of performance does not preclude the idea you have to pay for it in some manner, shape or form.

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