Top 10 Performance Marketing Technologies for 2013 – Part Three
posted by TradedoublerUK • 23 Jan 2013
Here is my final post on which performance marketing technologies and trends we should all be keeping an eye on over the coming year.
DSPs, SSPs, DEMs, RTB, etc
Although we’re not quite at the stage where we’re seeing networks and publishers using Demand Side Platforms and Supply Side Platforms on a daily basis (it’s still very much dominated by CPM/CPC), Real-Time Bidding is now used across many different areas of digital marketing. This, combined with acquisition-focused display tech such as Re/Pre-targeting, means that it’s not entirely implausible that we’ll start to see Display Engine Marketing making a sizeable contribution (in one form or another: think arbitrage) to the sales that affiliate networks are driving in 2013 for their advertisers - all on a CPA basis.
Mark Zuckerberg famously lost $4.7bn in just six days as investors began to question just how much ad-revenue Facebook could pull in. It’s not an unfair question – although “FB” has made somewhat of a recovery, the consensus so far is that Facebook simply doesn’t deliver the ROI required in the digital marketing world.
I, for one, will be very surprised if Facebook is not able to remedy that issue this year. It has the users, it simply needs to find a more inventive way to monetise them – a problem that Twitter isn‘t necessarily likely to share. Enter Forward3D: their work with Twitter’s API allows them to create targeted tweets for advertisers on a CPA basis. As Wulfric Light-Wilkinson of Forward3D explains: “Striking the balance between making a return from Social media outreach and annoying users is a very difficult thing to achieve. We use a mixture of our clients' brand guide lines and good staff training and high volume Big Data linguistic analysis technology to intelligently target the right users with the right proposition when they need it. This works especially well with Twitter where immediacy is key and typical users are in more likely to be receptive to a commercial message when asking a question as opposed to Facebook where they're in more of a browse mode and entertainment focused.
Judging by what we read in the industry press, it feels like the end of the “last click wins” model has been on the cards for years now – but I don’t think we’ll see a shift away from the model for the majority of advertisers this year. However, this isn’t to say that understanding the user-journey isn’t important, because it should remain as the cornerstone of performance marketing. User-journey analysis will face some significant challenges this year, notably from the growth of multi-device purchasing behaviour, so it is important that the companies providing this data are able to adapt accordingly.
After promising much for several years, mobile finally exploded into life in 2012. Although the networks knew it was coming, the speed by which m-commerce has grown over the past 12 months seems to have taken many advertisers by surprise. In-depth research on mobile consumer behaviour and how mobile device-type influences the consumer purchasing journey have created a wealth of information and best practice which helps clients generate incremental revenue from this growing channel. Tradedoubler has even been able to crack the lucrative app marketplace with the first performance marketing model designed for app marketing campaigns. Networks owe it to publishers to be able to track and remunerate them for any transactions they generate, or risk losing publishers to competitors’ programmes.
Performance marketing has always been on the cutting edge, eager to embrace new technologies that are often subsequently adopted by other marketing channels. Personally, I can only see this being reaffirmed in 2013 – the very nature of our industry means that we need to quickly keep abreast of changes in consumer behaviour, and react accordingly. Some of the trends and technologies listed above present serious challenges and potential changes to the way we do business on a daily basis, but if any channel can make it work - it’s performance marketing.
I hope you’ve enjoyed my three blogposts on what I think the future could hold for us – it’s going to be interesting to see how many of my predictions come true.
Nick Flecther, Head of Client Strategy