End of Co-Registration Craze in CPA Marketing?

coreg.gifDo a search for “co registration.”

It can be a scary thing. Consumers have complained voraciously. As Wayne Porter and the brilliant Jan Hertsens point out, there are also serious security concerns over these types of offers.

Nevertheless, companies have made millions on co registrations in the CPA network space. Not only that, but new firms are popping up every day attempting to monetize the reg path and make use of the path that users take to confirm purchases or prize sign ups. Is it worth it? Has the coreg market met its plateau of revenue?

Registration path offers (co-regs) have had a storied history in our industry. The platform has suffered from a lack of real time reporting, a lack of real time validation and a lack of transparency. What was once primarily a broker driven market eventually received enough traction to hit the big networks, portals and merchant offers. In addition, the data points gathered are now greatly enhanced to full lead forms that mimic the advertisers’ web sites, which gives rise to even more concerns over brand recognition and recovery.

The simple “yes/no” opt-in platform has morphed into a very lucrative model. The leads produced in the co-reg model are now held to be of higher quality than other channels such as email, banner or pop (in many circles). Whereas many advertising networks kept registration path offers separate from their email counterparts, many advertisers and publishers are re-examining the co-reg and finding it a very successful model. But, the hotness of 2004 is beginning to wear thin with consumers and advertisers (lead quality lagging). Is the platform still valid for CPA networks and affiliate marketing?

The UK blog One Little Duck (Ze Frank homage?) makes a very good post about this issue. Jason there includes four examples of issues that he has with coregs within the scope of affiliate marketing

As an affiliate we promote Co-Reg competitions from a number of networks, but I have to admit to being increasingly concerned about the quality and standard of the merchants involved in this sector. Furthermore, comments from our userbase indicate quite strongly that they are far from impressed by the quality of the competitions and this has led to less promotion and diminishing revenue.

Check out his four examples. He’s on to something and this is an area of the online marketing galaxy which needs to find exposure and spotlight. Coregs are and can continue to be a profitable revenue stream for new and existing CPA companies which sale leads, but the consumers have to find trust within this platform to make it work in the long term.

Internet Ad Potential Underestimated (by Analysts and CPA Marketers)

The rapid rise of the online ad industry in the past decade has been widely discussed and hyped in a media environment where offline spending is decreasing while online spends (and ROI) continue to grow.  According to Terry Semel, CEO of Yahoo, the valuation that most analysts have placed on the internet ad industry for 2007 are underestimated…

The growth potential of Internet advertising has been underestimated because the predictions did not include advertising on video, social media or mobiles.”

Video as you all know will become a major factor on the Internet.  It will be everpresent throughout the Internet and it will find its proper way to advertise.

if(!CMSB_ID){var CMSB_ID=””} CMSB_ID+=”midarticle_elections,”;document.write(”);

So whether it’s mobile or whether it’s video or whether it’s more and more community (social networking sites), these factors have not gone into those numbers, so we think the actual growth potential of advertising online is really being understated.”

Google has already recognized and cannonized this insight in the purchase of such properties as YouTube and JotSpot (wiki platform).  Yahoo seemed to be recognizing and acting on this trend last year with the purchase of Flickr and del.icio.us.  However, Google seems to be much more adept and willing to make the moves necessary to capitalize on the emergence of social media.

Farther down the food chain, networks in the affiliate, CPA and partnership marketing space have not moved as fast (or at all) to secure their footing in the emerging social media opportunities present.  CPA marketing has an incredible potential to make relevant ads useful and profitable to individuals and consumers.

Will 2007 bring the first toe-dippings of CPA networks into the social media pool?

The Future of CPA Networks?

alladspace.jpg

Today brings the launch of another partnership marketing network, AllAdSpace.com. However, this network is putting a twist on the common notions of what being a network means. As more of these networks launch, what sorts of implications do their hybrid way of doing marketing online have for more traditional affiliate and CPA networks?

AllAdSpace’s hook is that it is free for both webmasters and advertisers. So, webmasters and site owners are able to sell ad space by listing it for free, and advertisers are able to search and browse listings of ad space, also for free. Unlike other online ad marketplaces and auction services, AllAdSpace.com charges no fees to ad buyers or sellers, and doesn’t take a percentage cut of any sales made.

According to the site, the network was conceived as a response to the online marketing industry’s lack of a completely free ad marketplace where site owners can sell ad space without having to pay a fee or give up a percentage of the sale.

The founder, Joseph Messina writes:

“No one should have to settle for only a percentage of their ad revenue. The future of buying and selling ad space online is definitely heading in a new direction, and AllAdSpace.com is proud to be taking the initiative to lead in this revolutionary idea.”

Essentially, these networks eliminate the middle-person in the publisher/network relationship. Just as importantly, this platform also eliminates the tracking, paperwork and bandwidth issues that can plague CPA networks which grow too fast or which are not equipped with adequate resources.

The real question is about the publishers. Will publishers see an opportunity for transparency and full reclamation of their generated commissions, or will they see these platforms as lacking essential protections in terms of reporting, payout dates and insertion orders. The publisher must decide if it is worth the 10-30% margins that most networks take to provide these services.

For all of their problems, networks do bridge the vast expanse which exists between most advertisers and publishers. For that reason, I don’t see these platforms cutting into the margins of CJ or Linkshare who rely on larger merchants and relative anonymity of relationship within the publisher base. The smaller CPA networks, however, should pay attention.

Q & A with Riya / Like.com’s Marketing Director Beth Kirsch

new-riya-logo.giflogo-like.gif

Affiliate (or partnership-based) online advertising can and must change dramatically in how it is executed. We are truly in the junior leagues with “affiliate marketing” and “shopping comparison” in terms of cost and delivery structure. There are too many limitations. There are tectonic shifts occurring, today, beneath our feet and driven by advertisers.

Specifically, systems flexibility will drive change. Are you a vendor to advertisers who doesn’t provide flexible delivery and payment options for advertisers? You will lose.

Once the inflection point is reached certain vendors will win and others will lose. Innovative shopping solutions — either search-based (Like.com, Jellyfish.com) or relationship based (FatWallet, CouponMountain) — stand to benefit but only those who achieve adoption in critical mass for their market segment.

bethkirsch.gifLike.com has made an interesting move in search-based shopping solutions for advertisers and consumers (I use that word because the individuals using Like.com are, in all likelihood, seeking to consume something). I chatted with Beth Kirsch, the Marketing Director at Riya/Like.com (and ReveNews blogger) about her thoughts on the future of partnership marketing and Like.com’s goals at helping to shape that future…

What parts of your previous experience with affiliate and performance marketing help you the most in your role at Riya/Like.com?

Riya has two teams that are in charge of revenue generation: the biz dev team and the marketing team. My role at Riya is running the marketing team and I’m not managing relationships at all since that is handled by Biz Dev. Riya hired me for two reasons. First, I understand the blogosphere and second, my experience on the advertiser side generating traffic as well as developing and optimizing campaigns and websites. I think a focus on ROI driven advertising helps me everyday at work and is clearly derived from my affiliate and performance marketing background.

Also, as we all know, the affiliate business model is a challenging business model. From my first day on the job, I was thinking about ways to overcome those challenges because I have a performance marketing background. Let me provide two examples: (1) I’m thinking about reasons to give the consumer to buy though us in the first place; and (2) I’m particularly concerned with retention, in other words, a reason for consumers to come back and buy though us again and again. Watching affiliates and other marketers develop solutions to these issues over the years clearly has helped.

What is interesting is in my interview with Riya, I did not mention affiliate marketing once. I just interviewed as a marketer than happened to blog. My affiliate marketing background is just an added perk for them, but it clearly helps.

In your latest series of posts on ReveNews, you write: “I thought transitioning to a smaller company than Audible and LowerMyBills.com would be fun, smooth and simple. I figured I know how to open up channels and grow them, how hard can this be?” How does the new aspect of Like.com further complicate or simplify that paradigm?

We have been working on Like.com for a while and kept it in stealth mode for PR purposes. When I wrote that statement, I knew about the release, so nothing changed that much in that perspective. What does feel different about the launch are the expectations from everyone. My colleagues in research and engineering are looking at me and my partner in biz dev waiting for us to monetize their product. I also feel the eyes of affiliate marketing community looking at me too wondering if I can pull this off. This is my first time leading the marketing strategy and a department, so the pressure is on. I tend to like working under pressure, so I welcome the challenge. But I expect it to be hard and that I will stumble a little along the way.

In that same post on ReveNews, you write that: “When I got to Riya I realized that search was important and we needed to win at the search game which to me means the need for a serious bid management tool.” You thought this was an important insight but later your CEO, Munjal Shah, helped you to realize some new insights into the growth of your company. In retrospect, what advice would you give merchants or affiliates in regards to the importance of search in growing a site, program or company?

I still think search is an important channel for the company, we just staffed it differently that I thought we would. As for advice, that is a hard one, search is different for companies at different points in their growth cycle. I do believe that search will become even more important over time though and we all need to understand it as well as we can as marketers. I think it’s important to career success if you are interested in online advertising.

How do you answer critics about the celebrity/bling nature of Like.com (given Riya’s original mission of a facial recognition search platform)?

I’ve heard one person doing this and I’d call it link baiting. 😉 More seriously, we took money from investors and it’s our job to give them a return on their investment. Companies change business models all the time. Here is a blog entry by Peter Rip, one of our board members about the change in biz model called “the Riya Pivot.” I think this talks about the change in biz model very well and the reason why.

As an experienced affiliate marketer, what implications do you see for the future of the industry in terms of what is going on with Like.com?

Riya has been very fortunate to be embraced by the Web 2.0 community. I think there is a lot of synergy between Web 2.0 and affiliate marketing. First there are affiliates that are using Web 2.0 tactics. Scott Jangro has Costumzee and Vinny Lingham has Synthasite. Both have been featured in TechCrunch, the bible of Web 2.0. To me affiliates will embrace Web 2.0 because affiliate marketers are the first to adapt to new technology.

Second, As Web 2.0 companies learn how to monetize their product, I think they might turn to affiliate and performance marketing. Riya did, ThisNext has and so have others. This in combined with the release of CJ’s long awaited web services might lead to interesting affiliate business models. It will be fun to watch. I can’t wait to see what people come up with.

Mobile Marketing Making an Impact on Affiliates?

phone_thumb.gifI’ve spent a small amount of time working with marketers devoted solely to the mobile side of things, and to be sure the space has taken off in the past 18 months.  The United States does seem to behind Europe and Asia both in terms of mobile technologies and mobile ad serving (large use of mobile internet, or WAP, in Europe is just one example).

As these technologies continue to drop in price here in the States and users continue to demand more features pertaining to quick internet access, expect this sphere of marketing to explode.

The implications of mobile marketing for affiliate (or partnership) marketers are particularly enticing (delivery of relevant content, ads or messages to interested individuals on a cheap but effective platform).  Will Google get involved in this area as well?

This is from the mobile technology blog MobHappy…

Without being too trite, I think we can say that the future for mobile advertising is already here, despite not being on many marketers’ radars yet. Hundreds of millions of ads are already being run, click-through rates are much higher than online (8% is still not unusual, though 5% is more common) and millions of dollars of revenue are being generated through the channel.

CostPerNews Widget Now Available

Links are dead (more on that soon).

I’ve been promoting widgets as a promising platform for the future of affiliate marketing. So, I decided to construct a widget for Cost Per News that you can place on web pages or your desktop. Updates and podcasts that are added here will automatically be updated on your widget, so it will save you a little time if you’re a regular visitor.

Here is the file:
costpernews_widget.htm

Let me know if you have any suggestions or usage questions.

Weekly Insight – November 10, 2006

weekinsight.GIFAgain this week we overstepped the thirty minute barrier that Jeff was aiming for. We even went a small amount over the hour mark, but the conversation was interesting for the most part. The asides and random tangents were there, but we’re ringing them in much more effectively and the conversation is really becoming more developed (and valuable) every week. The addition of David Lewis to the regular cast of Amanda, Jeff, Wayne, Lee and myself added more depth to the insights on topics such as Jellyfish and coupon sites.

This show was particularly broad in scope, but there were some very good in depth discussions. We covered everything from the new Like.com to widgets to Marchex and Zanox with some more discussions about the nature and future of affiliate marketing thrown in. If you’re in the affiliate marketing industry and interested in cost per action, SEO or coupon sites, this is a must listen in my opinion. At the end of the show I got to throw in some comments about MyAffiliateProgram’s v9, which I will be covering early next week and we’ll hopefully be discussing on the podcast next week.

Weekly Insight

Friday November 10, 2006

  • David Lewis Shows Up!
  • Love, Hate for Like.com
  • Widgets, Search: Affiliate Marketing’s Future
  • Marchex/Domainers Marchex/Domainers Launching Ad Networks
  • Google v. Zanox

Download the Show in mp3

Here’s the link to the Weekly Insight Feed

Google Checkout Is Going International

google-checkout.jpgA few weeks back I made big news and landed on TechMeme for pointing out that ZeFrank’s Gimme Some Candy promotion had been dropped by Google Checkout for not selling an actual product. In the end, this worked out for Frank’s benefit as many of his Canadian users pointed out that Google Checkout was not open to residents of Canada anyway. He moved his promotion to PayPal and it has (by all accounts) been a large success both for Frank and his viewers who are more than happy to pay for duckies (even me).

Now, it looks as if Google Checkout is going international (heading off Zanox at the pass, perhaps?). Why is this important? Think of the vertical channels, content creation/aggregation (YouTube and Wiki’s) and the limited scope Adense to adequately encompass the growing canon of user content. The international factor is a logical extension of where Google is heading with its Advertising Operation System.

Garret Rogers writes:

Since I live in Canada, purchasing or selling items on Google Checkout is not an option. I really wanted to check out the new “email invoice” feature they just announced today, but I’m unable to sign up as a seller.

Bitter, I decided to poke around in the source code to see what I could find. It turns out they are getting ready to open up the service to Canada, and probably other countries soon. When you are in the signup form for Google Checkout, you can type this javascript into your address bar to reveal a Canadian signup page — unfortunately I’m still unable to register.

This is potentially a very important issue as Google seems to be amping up Checkout for the Holiday and early 2007 season with major discounts available to consumers in partnership with participating merchants.

Google is heading into CPA next year and it’s going to be a much larger scheme than we’ve imagined in all of our pontificating!

Affiliate Networks – Changing of the Guards?

logoazoogle.jpgcpaempire.jpglogo_hydramedia.jpg

adter.jpgvendare.gifaddrive.gif

In his wrap-up coverage of this year’s ad:tech NYC, Scott Rewick of NextInternet writes that one of the things unique about this year’s conference was:

Rise of the “new networks” XY7, ClickBooth, CPA Empire, HydraMedia. I grew up in the early days of the Internet when the companies attracting all of the attention were Adteractive, MetaReward, and Azoogle. I sense a “changing of the guard” as the older companies mature, while the younger ones are aggressively pursuing growth.

I agree with Scott on the transformation that has been happening in the network side of the industry over the past four years. I was with SubscriberBASE at the time when the affiliate network phenomenon was just beginning to take off, and Jeff French had the foresight to see the need to expand our business to include this emerging space with the AdDrive network. Working with AdDrive in the early stages of growth and brand expansion was an incredible experience, and as Scott points out, the main competitors early on were the likes of Azoogle.

However, the market of affiliate networks soon experienced a Big Bang explosion which created an entire universe of networks along with a seemingly inexhaustible supply of material for the creation of new networks.
What’s the reason for this “changing of the guard” as Scott calls it? It has less to do with the ability of the “older” networks to keep up with shifting marketing forces, and more to do with these networks (Azoogle, Adteractive) maturing and expanding their scope in relationship to the largest of networks such as CJ or Linkshare.

As Jeff Molander pointed out last year,

I wonder… is it possible that Azoogle hopes to net a good number of the more cost-sensitive, smaller advertisers from the CJ network (during the most expensive time of the year)? Those, perhaps, who feel under-served (by CJ) and who have declined to purchase service packages for themselves? Might Azoogle be inclined to believe that they can make a better “value offer” to such advertisers… including a more affordable service offering that keys on the existing Azoogle “sweet spot” of hooking advertisers with their existing network of productive affiliates?

Spot on questions, Jeff. These questions are still not answered by Azoogle or any of the networks making the move from a publisher-network to industry competitor and are still relevant for discussions about the CPA space. With Google potentially considering a CPA move, next year could be quite interesting for everyone involved.
The stars seem to be aligning for major acquisitions in this space in 2007, so maybe the haze around the future of these networks will begin to clear then.

Changes at Yahoo’s Upper Levels?

question.jpgValleywag is reporting a tip that some of the top people at Yahoo! are going to be receiving the pink slip in the immediate future.

Guaranteed

  • Bill Demas, Senior Vice President & General Manager, Yahoo Publishing Network
  • Will Johnson, VP & general manager of the Yahoo Publishing Network

Any connection to the coming class action lawsuit first elaborated on by Jeff Molander?

vSocial and Adify Team Up for In-Video Vertical Advertising

logo_adify_large.gif

vsocial.jpg

Adify is an interesting new player in the video space. Underneath the heading of “Community Driven Ad Networks,” their blog states that:

At Adify, we are developing a business model that “wraps around” this emerging form of content creation with a unique set of services for supporting monetization. Our community networks are designed to enable any participant – publisher, advertiser or user / enthusiast – to benefit directly from helping in the advertising sales or support process. We think that this is a breakthrough model with the same potential to democratize the business side of online media.

Of course there are alternatives for anyone seeking to spread the use of their video in either a specific vertical or across many channels. Today, however, Adify entered into a partnership with vSocial to allow publishers the option of publishing, branding and spreading their user generated content.

vSocial is a social networking for video platform that enables content owners, site operators and online marketing organizations to custom brand, target, virally distribute and monetize their message via video, so this partnership makes for an interesting platform for publishers looking outside the Revver or YouTube models.

According to the press release, this partnership shows some differentiation from competitors by enabling the publisher to include advertising through ease of use:

Enabling in-video advertising is the next logical step in the evolution of the online video space, said Mark Sigal, CEO and co-founder of vSocial. By integrating our vConnect video platform with Adifys advertising platform, we are giving video publishers a simple way to create value around their content and their brand in a manner that harnesses the power of social networking to create greater reach than has been available in the past.

The biggest problem I see with this new platform is the reluctance many publishers may have for turning over their content to serve ads which they have limited or no control over. Revver has done a decent job at confronting this worry by allowing some control of ad content, and by building up its own brand since well-known “vlogs” are using the service.

While attempting to bring some democracy to video generation, this partnership still has a few questions of ad-relevancy and long term vision to make clear before publishers begin signing up.

Widgets and the Future of Affiliate Marketing

Steve Rubel writeswidget.gif

Within a year we’re going to see blogs transforming themselves into customized start pages. This won’t happen with all blogs. It will start with high-traffic sites that zero in on popular verticals like tech and politics. As these tools become more sophisticated and easy to use, the trend will migrate down the Long Tail into other niches.

As I have mentioned before, you can easily transform your default home page into a one-stop-shop that covers most of your basic needs. So why can’t a blogger provide the same service to people who share a common passion on a topic?

Similarly, affiliate marketing in general (from the mom-and-pop sites up to the large loyalty sites) could see such a transformation if a 3rd party platform was made available to the industry. What would spur this metamorphosis? Limitations of scaling.

Rubel points out that one of th reasons this transformation has not occurred en masse in the blogosphere (particularly high traffic niche blogs) is because of the lack of infrastructure. Widgets require registrations (how about co-registrations??) and the ability to cope with large amounts of demand for personalized data. Simply put, most affiliates (and affiliate networks) don’t have the tech infrastructure for such an undertaking. Rubel suggests that in the next year, 3rd Parties will see this deficit and

“will handle the back end processing in exchange for a piece of the generated advertising revenue. This is a great next step for AdSense.”

Take this one step further into the realm of affiliate marketing. Providing a platform for delivering personalized data based on registrations in exchange for a piece of generated advertising revenue sounds very much like the model which most affiliate and CPA networks already operate under. That is no accident, because serving widgets and serving ads (particularly customized ads based on user choices and user registrations) have more in common than anyone in the affiliate marketing world has taken time to notice.

With the introduction of attention and more venture capital into the CPA network space, companies with familiarity of API’s and widget technology are also bringing new tools into the industry. Could the utilization of widgets enter with these newcomers?

The idea of building or morphing a high traffic affiliate site (especially think of loyalty sites such as uPromise, eBates, FatWallet or BizRate) into a widgetized one stop shop beyond the context of just hyperlinks into the realm of customized and portable content is not hard to imagine. Would this be profitable? Yes. Would this encourage user interaction? I definitely think so.

Transforming an affiliate site into a widget building blocks site requires one central thing besides the technology: relationship. Relationship is something (in theory) affiliate marketing is capable of producing across a wide variety of diaspora channels. And this producing of relationship engenders a community receptive to certain forms of communication. Of course, email marketing was effective before we killed it, and RSS has been called by many the next great hope.

However, let’s move beyond those models which still enforce that top-down dictation model and focus on models (like widgets) that produce a back and forth between user and affiliate site. That’s where affiliate marketing shines, and that’s the promise that widgets specifically have for pushing certain parts of the industry in the right direction.

For example, the new email company Gigya shows how utilizing widgets to communicate ideas, data and micro-entertainment might work in practice. Using Gigya’s interface, users can embed widgets containing music, videos, games and even their MySpace layout into an email. The person who receives the email will be able to play back the video, song or whatever has been embedded if they can view HTML email. Imagine an affiliate site or loyalty site pushing company or user generated content in such a format.

Jeff Molander makes the following lucid and well thought out insights about affiliate marketing’s scalability in the context of the relationship paradigm…

Why the freak-out by traditional affiliate managers and executives as Google enters the space? One word: Scale. It’s a word that, to many, is not comfortable in a realm that is dominated by relationships (those nasty little things that don’t scale!). The concepts of transparent (you know who, what, how, when you’re dealing with) advertising and opaque (you have less of an idea) are central as the former offers less scale, the latter more. As time goes on (competition for advertisers heats up) making performance-based ad buying frictionless is becoming more important. Hence, “traditional” (relationship-oriented, transparent, high maintenance) affiliate programs become more focused (coupon and loyalty shopping sites) and receive less attention (as they require more people power to scale).

The link is dead. Content customization based on a relationship (even as simple as user registration or co-registration) and micro-systems of delivery of that content is the new black. Affiliate marketing, with its ability to make relationships, has a great opportunity to make use of widgets and widget delivery to set the larger industry standard.

In this mode of widget usage, scalability is not a detriment to affiliate marketing. Rather than adhering to that long held belief that the non-scalability of affiliate marketing is what’s holding the industry back from the major leagues, realizing that new platforms (such as widgets) provide a way for affiliates and networks to utilize the relationship factor as a positive… an incredibly profitable and long-term solution positive.

Merkle Taps Alterian for Email and Online Marketing

logo_alterian_logocolor.jpg

merkle_main.gif

Alterian is a provider of software for analytics and lead integrated marketing.  According to their press release, the goal of their software platform is to make it cost effective for marketers to gain insight into their data and use this to drive an integrated marketing strategy, across multiple online and offline channels, from a single set of applications and infrastructure.  A few of their clients include Accenture, Acxiom, Allant Group, Carlson Marketing Group, Experian, Epsilon, Donnelley Marketing, Harte-Hanks, Merkle, Ogilvy One and Euro RSCG Worldwide.

Experian is a big player in online marketing, so pay attention to this.

Merkle, who will be using Alterian’s software for email and their online marketing programs considers itself a data-driven marketing solution that enable large national organizations to maximize the results from their marketing investment.  Basically, Merkle provides customer strategy, business intelligence and analytics, data sourcing, media targeting and measurement, and marketing technology solutions to medium to large size corporations.

Alterian (LSE:ALN), the leading global provider of Analytics Led Integrated Marketing software, has signed a three-year licensing agreement with Merkle for the latest addition to its marketing suite, the Dynamic Messenger online marketing platform. Merkle is one of the nations largest database marketing agencies, and under the agreement Merkle will roll out Alterians technology to current and new clients and integrate Alterians solution with other online and offline marketing services and solutions.

Why is this important?  Let’s analyze the press release of this partnership…

Integrated marketing promises many benefits, but achieving these benefits depends on having insight into customer, transactional and marketing data to create appropriate strategies, and the ability to leverage this across multiple channels quickly., said David Eldridge, Alterians chief executive officer. Marketers are turning to service providers and technologies with the capability to provide this insight, combining online and offline data, and to take immediate action as a result. We are excited to be working with Merkle to deliver our solutions unique capabilities, which we fully expect will provide significant advantages to their clients.

The synthesis of online and offline marketing is a no-brainer, but the platforms available to large corporations interested in leveraging customer relationships across verticals and and independent channels has been slow in development and even slower in adoption.

This piece from Merkle’s homepage sums up this sentiment…

It’s no longer effective to broadcast your marketing messages to millions of anonymous people and hope for a solid return on investment. Available information about your customers and prospects has increased exponentially. And for the first time in the history of marketing, you can base your strategy on real facts.

However, as the consolidation of user generated content and social media continues to gain momentum, this synthesis will escalate rapidly and more partnerships of this type will occur and have large implications for affiliate marketing and the way the chain of ad spending which funds affiliate marketing is done.

MediaWhiz Buys Text Link Ads

mwprivlogo.gifBig week for MediaWhiz. Last night in NYC to celebrate ad:tech, MediaWhiz threw a poker tournament. Today, it was announced that they’ve acquired Text Link Ads.

Was this a good buy for MediaWhiz? Where are they looking to move with this buy?

Text Link Ads doesn’t use “no follows” for their links, which has given the platform a good deal of suspicion and has given rise to some debate about its long term health as a model.

Isn’t the link dead in terms of long term value to the market?

New Yorks’ Media Whiz advertising firm has acquired Cincinati’s Text Link Ads. The deal was announced this morning, but the financial details aren’t being disclosed.

Text Link Ads typically sells small text ads for a fixed monthly rate, not pay per click. They advertise on blogs extensively (disclosure: including this one). The company recently released a product called “Feedvertising” that allows publishers to easily place ads from Text Link Ads, ads the publisher sells themselves directly or other messages into their RSS feeds. We use this service to promote other sites in the Crunch network. I hope that this product continues to flourish post acquisition.

Techcrunch » Blog Archive » Text Link Ads Gets Bought by MediaWhiz

Turn Network – Future of CPA Networks?

turnlogo.jpgTechcrunch features the new Turn CPA network, which is launching with 18 million in venture capital. What is interesting about the new network is its approach on CPA and a growing trend “up the food chain” of utilizing CPA but doing so in a more automated fashion (think BrightRoll or RightMedia).

One thousand advertisers are said to be participating along with 30 publishers. That seems like a small number compared to traditional CPA Networks (smaller networks having in the hundreds of publishers up to the larger networks with many thousands), but the platform needs quality, not quantity, and doesn’t have time to educate or steer webmasters and mom-and-pop affiliates.

Marketing through CPA networks farther down the chain involves working with publishers and affiliates in a dynamic based on relationships. Affiliate marketing teeters on the edge of long term sustainability by a few entrenched and well deserving sites or being subsumed by the contextualization of advertising on the web, turning affiliate marketing into something like an automated widget.

This transformation is already occuring within the realized limitability of affiliate marketing to scale effectively. Hence, new platforms like Turn are looking for a work around…

Buying ads in the Turn Network doesn’t require keyword selection and management. Instead, buyers identify actions they want their audience members to take and how much they would be willing to pay per time those actions are taken. That action might be a site visit, email sign-up or completed transaction.

When visitors come to a site, data about those users, contextual analysis of the site, of the ads and of every ad permutation’s success in that and related sites are all considered in determining each ad’s probability of success. That probability of conversion is then considered relative to the price being paid on a CPA bases. The CPA bid divided by the probability of the action being takes equals an ad’s effective revenue per thousand impressions. And thus an ad is served!

What is at stake is a ten year history (and some would say promise) of performance marketing on a more individual and even democratic level. Continued automation of the space at the higher levels doesn’t bode well for the plethora of CPA networks paying for booths and parties at this year’s ad:tech NYC right now.

How will this affect CJ or Linkshare or Azoogle or AdDrive or VendareNetBlue in the near or long term future?

News of the Day: Google Print Ads in Newspapers

og010906m.gifAlong with the start of a very crowded ad:tech NYC today, the online marketing world is buzzing with news of Google’s print ads program. According to BusinessWeek, the most notable part of Google’s print program is its size and scope at launch…

Google Print Ads is notable for both the number of newspapers that have signed on, as well as the participants it’s attracting. Among the participating papers are some of the nation’s largest and most renowned: The New York Times, The Washington Post, The Boston Globe, the Chicago Tribune, The Philadelphia Inquirer, and The Denver Post. More than 100 advertisers will take part as well. (The test hasn’t yet started, and Google declined to release the names of virtually all advertisers.) Tom Phillips, director of Google Print Ads, says he expects the program to be expanded to include weekly newspapers “sooner rather than later.” He says weekly magazines eventually will be involved as well.

Print publications have long been wondering about their future with the competition of online advertising showing increasingly higher returns and shares of advertising budgets. By bridging this gap, Google is issuing forth a strange extension of life for offline content publications. In one respect, the new influx of ads and interest (and relevancy) which Google brings to newspapers and eventually magazines is a blessing. At the same time, there is a fang’s edge to the print content industry in that Google is positioning itself as a metric setter, as it has done with search.

Google Print Ads differs from Google’s AdWords search-term auctions, in which advertisers bid for space adjacent to search results for selected keywords. The new program allows newspapers to set minimum prices. Another difference: In at least one early move into this arena, Google simply bought ad space from publishers and auctioned off pieces to advertisers. But with Print Ads, “rather than create some artificial scarcity by buying [ad] inventory and then auctioning it off,” says Google’s Phillips, advertisers will “bid on inventory and then allow [newspapers] to decide on whatever makes sense.”

So, there’s the crux of this whole development (which has been in small testing since late last year and was seen as inevitability). The question was not if Google was going to go print, but how, and would their move into the space create disproportionate and falsely increased ad rates as the print publishers and advertisers sought to find the market equilibrium. It seems as if Google is inverting what it does with AdWords and bidding on the space already in existence.

Weekly Insight Podcast 11/3 – 11/10

The new Weekly Insight podcast that we recorded on Friday is now up. The show is getting better and better every week, and I’d definitely suggest checking out this new episode if you haven’t done so already. We grill affiliate educators, grill Wayne on ReveNews and have a great debate on the state of affiliate marketing (you can only imagine what Jeff, Amanda and I came up with!).

Thanks to Carsten for the plug on ReveNews as well!

Weekly Insight – 11/03/06 (83 MINUTES)

This Week’s Gossip and News:

Media_httpwwwcostpernewscomwpcontentuploads200611ipodwithbuttons16thumbnailgif_eosfnwpgcxpqixh

– MonkeyPhonecall to Scoble
– Affiliates: To Educate Them or Not?
– A Critical Look at Revenews, Gurus, Conferences
– Is Our Industry Looking Backward?
– Deep Thoughts: Search, Memetics & Affiliates

Listen to Weekly Insight Now in mp3

Subscribe to the Weekly Insight Feed

Weekly Insight Podcast 11/3 – 11/10

The new Weekly Insight podcast that we recorded on Friday is now up. The show is getting better and better every week, and I’d definitely suggest checking out this new episode if you haven’t done so already. We grill affiliate educators, grill Wayne on ReveNews and have a great debate on the state of affiliate marketing (you can only imagine what Jeff, Amanda and I came up with!).

Thanks to Carsten for the plug on ReveNews as well!

Weekly Insight – 11/03/06 (83 MINUTES)

This Week’s Gossip and News:ipodwithbuttons_16.gif

– MonkeyPhonecall to Scoble
– Affiliates: To Educate Them or Not?
– A Critical Look at Revenews, Gurus, Conferences
– Is Our Industry Looking Backward?
– Deep Thoughts: Search, Memetics & Affiliates

Listen to Weekly Insight Now in mp3

Subscribe to the Weekly Insight Feed

Google Brooooad Search – Response from Rimm-Kaufman

George Michie, VP of Client Services at The Rimm-Kaufman Group, has sent me a detailedgeorge-135x203.jpg and illuminating response to a previous post where I questioned some of his conclusions about Google’s AdWords Broad Match. Thanks for the bak-and-forth, George! Let us know what you think of the issue in the comments.

“Brooooooad match as you ably define it is a nice crutch for advertisers who don’t want to take the time to billed a massive term list with carefully assigned landing pages and targeted copy. The bottom line is Google’s matching algorithms are the best in the world, but they’re no where near as good as those of a smart human, and imho never will be. Language is really hard.

But the proof is in the pudding. Every time we’ve pulled terms off of broad/extended match and put them on phrase or exact match, the conversion rates on those terms have improved. The tough calculus is whether that improvement gives enough ability to bid more and gain higher position and traffic, such that you get better performance and just as much volume. Often it turns into a volume versus efficiency game.

Particularly with the added complexity brought in by the local advertising network, it seems that Google’s brain center has too many ads to choose from within a retailer’s portfolio, and they aren’t making choices with the best interests of the retailer in mind. We think retailers will benefit by shrinking the choices for them until they learn to better prioritize among them.”

Wayne Porter Offers Robert Scoble a Monkey Phone Call

Here’s the plot summary: Yesterday on the Weekly Insight Podcast, there was a discussion of a Monkey Phone Call that Microsoft MVP and Google VIP Wayne Porter had sent my way. He then hatched the plan to send one to Robert Scoble because we were discussing LinkedIn and I brought up Scoble’s infamous post on his hatred of that platform. The rest follows from that. You have to read this for yourself (Ender’s Game meets On the Road).

btw, I’m building an API for WordPress that will translate Porter-ese in the future…

“Hi Scoble, hey, few of us on a podcast (not drunk although I suspect someone hit the rubber cement a bit- host)…It should be coming out soon perhaps when Tipper Gore is done labeling it. In truth, really it is that long and I advise you just to skip to the last 10 minutes where there is some real insight into AIs affecting algorithms (unlike this totally ridiculous crap on broadmatch) and save the other valuable time in your life to do anything else….or listen to the monkey phone call piece.

One guy, that Ze Frank loving- Summerian babbeling (ok listen to podcast for that) was on too- Sam Harrelson. Sam and I were wondering did you get get the monkey phone call I sent over earlier? If so- how was it? Was it performed well for the $10 bucks? (I prefer Lindex$)

Scale of of 1 to 10 with 1 being equal to having your linkedin url scrawled on a restroom wall of a Second Life Gor convention and a 10 having naked conversations hit the bestseller list and only to find you had accidentally encoded the location of the Holy Grail and even random passages of the Da Vinci Code….(btw I’ll work on a way to make LinkedIn fun for you- I did it for spam- I can do it for dry business networks.)

Thanks for the time.. if you have a moment to give us a numeral- we need a number to settle the bet (it decides the amount of times I get to punch Jeff with my MSFT MVP pin in his eye)…if you haven’t gotten the call yet (Sam Harrelson got his and it worked out pretty well, but he said it was kinda weird and I think in a fatal attraction kind of way) Please tell me so I can ensure the call was delivered. see http://www.monkeyphonecall.com

I’ll work hard on your christmas gift maybe something you can blow up in a podcast or an old Apple PC- no real difference really. Btw- if you know Rubel’s cell number please let me know (I’ll treat it respectfully- well most of the time- I swear never to put on the wall of a truckstop)- we figure the whole Edelman- Walmart thing has Rubel down a bit, like from A to B – status maybe a C…. It really isn’t him totally- I have dealt with various aspects of Edelman over the years and well…idiots pretty much.

So I think three or four monkeycalls in a row has got to make him smile or have a transient ischemiac attack…which could erase the memory….or perhaps get me sued by Edelman. Both equally entertaining given Edelman’s lawsuit would probably get kicked out when they figured out they sent in one-two year graduates to do jury manipulation lies halycon laced drinks influence…. really if you are going to do it- do it with style, nothing worse then bad WOM- it doesn’t even approach memetics.

Anyway thanks and so long for all the fish. Note- 42 is no good… need integer from 1 to 10.

Listen to Podcast in MP3

“Working on a way to create a strain of syphillis to transmit in a VRML environment”.”

BrightRoll Launches With Contextual Ads in Video

brightroller.bmp

With $1 million in funding, BrightRoll (formerly PostRoller) has launched and is seeking to carve out a niche of contextual ad serving by making use of networks of various sites. While this is not particularly a new concept (see BlipTV or Streetfire or Magnify), BrightRoll has attracted huge media players such as MetaCafe.

The main question for BrightRoll and the others in this vertical is… what about Google? We know contextual Adsense ads are coming from Google in the YouTube and Google Video platforms, and that will set an industry standard in terms of relevancy and performance metrics. Will these competitors have time to line up major players before Google formally enters the market?

BrightRoll takes 50 percent of the ad revenue, but charges less depending on volume. He’ll never compete with a Valueclick, or sell ads to CNN. However, Sacerdoti said he wants to sign up networks of sites, so that he can run a relevant advertisement across, say 25 entertainment sites. The trick is getting a large enough network to make this pay.

VentureBeat » BrightRoll serving contextual ads in video

technorati tags:contextual, google, bliptv, magnify, brightroll

Blogged with Flock

Google’s Broooader Search – Harming Advertisers and SEM PPC Economics?

alan-135x203.jpgAlan Rimm-Kaufman is a brilliant analyst (even has a PhD in Operations Research and Statistics and is a fellow Yalie… boolah boolah). However, I disagree with my fellow bulldog on some of the conclusions he makes about Google’s expanded search algo’s. I see those algo’s rapidly using the AI tech that Google has been developing for years to tack ahead and flank abusers and potential cpc issues of reporting. That AI (expanded match as Google defined it) allows for the AdSense platform to attempt to stay one click ahead of the frauders (admittedly, not always the case as Wayne Porter could certainly point out). But to dismiss the new results as mostly non-relevant ad serving based on a few observations seems premature. Google, more than ANY marketer, is concerned with relevancy, in my opinion (contextual, wiki’s, blogs, merchant process through Checkout, Docs, YouTube, possibly radio). I think Google has a good eye to the long term because of this concern on relevancy. Read Kaufman’s insightful piece and let me know what you think…

I think Google’s revenue maximizing algorithms have discovered that the combination of “extended match” and quality-score based auctions means they can pretty much serve any ad you have on any search related to your category. The result? Higher cpcs, less traffic because of the less targeted copy, and lower conversion rates because the landing pages are wrong: a perfect storm for advertisers, degraded results for users, but more short-term revenue for Google.

New Adwords Broad Match Can Harm SEM PPC Campaign Economics

technorati tags:adsense, google, search, clickfraud, ppc, seo, affiliate

Blogged with Flock

ValueClick Attracting VC Attention with High Earnings

The image “http://i.cnn.net/money/popups/2006/biz2/b2100_hiring/gal_valueclick.jpg” cannot be displayed, because it contains errors.

ValueClick continues to draw attention for its higher than expected earnings last quarter.  It’s shares have jumped more than 15% already.  When will the VC’s start coming and will a bigger fish be making a move soon?  Too early to tell, but we’ll keep our eyes open…

Not in the betting mood on the market, but I am definately adding some ValueClick to the portfolio tomorrow.

An amazing breakout to all-time highs. In reading about the business, I am amazed no one has made a play for them and emailed a smart friend just that this afternoon.

Value Click continues to benefit from a continued fragmentation of online media media consumption.

Howard Lindzon

technorati tags:valueclick, affiliate, marketing

Blogged with Flock

Marketing Sherpa Acquired by MEC Labs Group

Content king/queen/monarch MarketingSherpa has been acquired and I can’t say enough about Anne’s hard work in making this happen.  The MarketingSherpa team is a class act and has always been (and will continue to be, I’m sure) a great resource for those in online marketing or affiliate marketing.  With over 200,000 readers and 700 case studies, the Sherpa is poised to elevate itself even further…

Anyway, enough gushing. I’m happy to hear they’ve been acquired by yet another class act in MEC labs. Congrats to Anne and all my other friends at MS! Official release here.

MarketingSherpa Gets Acquired By MEC Labs Group – ReveNews – Jim Kukral, Online Revenue News & Opinions Since 1998

technorati tags:marketingsherpa

Blogged with Flock

Affiliate Marketing Mashups?

Mashups have revolutionized the social web by freeing up access to services and allowing publishers to have a stake and claim in the chain of interaction with a merchant besides just passing on eyeballs or qualified leads.  It’s inevitable that CPA affiliates begin to use mashups.  SuperAff.com has a nice post today on the subject…

The technical side to this is above my capabilities atm, but I can definitely see what an important tool this can be for Affiliate Marketers.

The Affiliate Marketing Blog

technorati tags:mashup, affiliate, marketing

Blogged with Flock

Google Goes After Affiliate Middle Section

Google continues to up the ante in the publisher/advertiser relationship, and their newest project is yet another flanking move aimed at tightening the grip on the otherwise unruly online advertising market. This transcends CPC and heads straight into the backend of the CPA crowd. The only question is, will Google continue to innovate/renovate in this space or will they buy a network? Thanks to Jeff Molander for the find…

Called the Google Website Optimizer, the new hosted service is designed to let Web site operators do A/B and multivariate testing on the pages that their sponsored listings drive traffic, to see how various headlines, ad copy, product descriptions and images lead customers to convert. Google is partnering with Web analytics consultants EpikOne and Optimost for the service, which went into a public (but invitation-only) beta test on October 18.

Google Offers Free Landing-Page Help for Small Marketers

technorati tags:google, affiliates, cpc, cpa, adsense

Blogged with Flock

Former Dir of Strategic National Accts at ValueClick Moves to Revenue Science

Gibbs brings more than seven years of online advertising experience to this role. Immediately prior to Revenue Science, Gibbs held the position of director of strategic national accounts at ValueClick Media where her responsibilities included establishing relationships with large brand and top online marketers. Previous to her position with ValueClick, she served as vice president of sales for Fastclick.com. Gibbs has also held various senior sales roles at WebSideStory, a leading web analytics company and pre-IPO ValueClick, Inc. Gibbs holds a bachelor’s degree in accounting from Florida State University.

Misty Gibbs Joins Revenue Science as Vice President of Sales for Behavioral Targeting Network

technorati tags:valueclick, cj, affiliates

Blogged with Flock

ValueClick Reports 14 Cents Per Share Earnings in Q3

Every week on the Weekly Insight Podcast we seem to ask each other if ValueClick is really going to sell CJ. I’m of the constant opinion that no, they will not sell CJ (really, who would sell a two letter domain name these days??). If Google is looking to buy a CPA network they would look elsewhere for a better platform in terms of long term value besides just locked-in merchants (or a better name… maybe one that rhymes with Google?). Interesting earning notes from ValueClick, nonetheless.  The earnings call can be heard here on tomorrow (Wednesday November 1).

ValueClick Inc. reports earnings for the fiscal second quarter Wednesday after the market closes. Shares of digital marketing services company ValueClick fell with the rest of the online advertising sector in September after Yahoo Inc. said a slowdown in automotive and financial services ad spending would weigh on its third-quarter results. STOCK PERFORMANCE: Shares of ValueClick rose 20 percent during the quarter, ending September at $18.34 on the Nasdaq. In the past 52 weeks, the company’s stock has traded between $13.15 and $20.98.

Earnings Preview: ValueClick: Financial News – Yahoo! Finance

technorati tags:valueclick, google, azoogle, wallstreet, commissionjunction

Blogged with Flock

Can ValidClick Neutralize Clickfraud?

No one or their sister is talking about clickfraud. Sure, AdSense might be the most incredible ad platform ever, but at what cost? What are we in the CPA Network side of things doing to combat the eventual governmental/regulatory and public scrutiny that will inevitably be a result of a glossed-over clickfraud problem in online marketing?? Wayne Porter suggests a potential network with an eye on the prize, but are they taking the right step or are they interested in hopping on the “we have a solution for clickfraud that Google isn’t acknowledging” bandwagon without really offering any solution at all? At any rate, we should all pay attention when Porter addresses the issue of networks taking on clickfraud or spybots…

Think Partnership is going to launch ‘ValidClick Advertising Network’, a click-fraud solution, a network of 1000+ sites that boast proprietary clickfraud mechanisms, at the 10th annual ad:tech New York interactive marketing conference and expo. ad:tech New York is going to be held from November 6 to November 8 at the New York Hilton. We will see them showcase Kowabunga, Secondbite and MarketSmart (competing with Google’s grand plans?).

THK- Starts to Think, Shares no longer Sink – ReveNews – Wayne Porter: Greynets, Malware, Adware & Spyware Research- E-commerce, Online Revenue News & Opinions Since 1998

technorati tags:google, clickfraud, adsense, affiliate

Blogged with Flock