1.Valuing Partner TrafficThrough the Evolution ofeCommerceChristian ErhardHead of Partner Management EuropeeBay International Marketing GmbH

2. The marketing landscape is rapidly shiftingNew 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 ofUNLIMITEDOPPORTUNITIEShow do youDETERMINE VALUEto make theright investment? 4. Every investment is different. Reward it accordingly. INVESTMENT DEFINEASSESS ESTABLISH OPPORTUNITYVALUE QUALITYPAYMENT STRUCTURE 5. What does value in internet marketing mean?Define measurable indicators for each traffic source / campaignStrategicROI Value - Brand awareness - Visits - Pre-post analysis ROI positive cost vs spend ROI positive / neutral / negative 6. Traffic quality - true valueIncrementality Would this sale have happened anyway? of sales Lifetime value of customersOther quality User onsite behaviourfactors Legitimate traffic 7. Incrementality 8. Quick eBay Partner Network backgroundeBay has had an affiliateprogram since 2001eBay Partner Network waslaunched in April 2008In-house platform hasimproved availability of dataand ability to innovateWere the merchant(12 eBay sites + Half.com)and the network 9. Quick eBay Partner Network backgroundOver 100K affiliates in27 countriesMany business modelsare supported, includingportals, niche contentsites, blogs,deals/loyalty sites, andmore 10. Why we love affiliate marketing Measurable,ROIPerformance-Positivebased RewardsRapid Growth,Huge EntrepreneursOpportunities 11. Why did we launch Quality Click Pricing?We began asking ourselves these questions.... Did the affiliates effortsAre the affiliates leads generate the lead/sale?worth what we payfor them?How do we incentivise How do we incentivise our best publishers topublishers driving lowersend us more traffic?quality traffic to improve? 12. Quality Click Pricing Drive qualityQuality of traffic EPC Amounttraffic to eBay evaluatedposted INVESTMENTDEFINEASSESSESTABLISH OPPORTUNITY VALUE QUALITY PAYMENT STRUCTURE 13. What is the incremental value affiliates add to my business? Purchases Would theWhat is Bidsevent haveeach event New usertaken place Ad Revenue worth? without ad Mobileinteraction?USER EVENTSVALUE 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 theshort term and long term incremental value that the traffic brings to eBay. SHORT TERM VALUE LONG TERM VALUEincremental revenue:revenue that new userspurchases, 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 publishers marketing efforts new customers you drive to our site 15. Quality Click PricingIncremental purchase revenue HistoricalRolling Long term value of new users Average Additional sources of valueTOTAL REVENUE 16. Evaluating emerging trends:mCOMMERCE 17. Mobile Commerce | eCommerce YESTERDAY TODAYTOMORROWOnline 4% Online 6%Online/Offline COMMERCEOfflineOffline37% Offline 96% 57%57% 18. Mobile Commerce | eCommerceSource: 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 patternsMobile serves as an alarm Social is checked The mobile is becoming aclock.throughout the day due to new way to count sheepthe fresh content and as many browse to relax /desire to stay connected.decompress. The first time I come Thanks to my Late at night, Ill have the into contact with my Smartphone I can be iPad out just browsing. phone is early morning.connected all day longI 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 whats new. Its and check email.what they are up to. relaxing.Brandon S., 20Sarah P., 31Steve G., 45 20. Using mobile, the WHERE and WHEN become less important shopping can happen anywhere, anytimeWhilst travelling/ Whilst waiting around,Skiving at workcommuting trains,e.g. at the school gates buses airports etcIn the supermarket Downtime at home In bed at night/uponwakingSource: eBay Mobile Research, m-Commerce users (2765), e-Commerce users (1935) 21. Characteristics of todays 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 thingsM 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 todays mCommerce consumers Global eBay transactions volume viaM--commerce was a $3.4 billion market in the U.S.in 2010; expected to grow to $119 billion by 2015mobile in $ billionacross the globeNumber of eBay downloads to date: 80,000,000Expensive items purchased: 8ebay.com:$ 249,999 Lamborghini Gallardo5$ 52,999 Hermes Birkin Crocodile Bag2ebay.co.uk: 87,896 Maybach Automobile 19,595 Vintage Rare Red Sea-Dweller Rolex 20102011 2012 ForecastSource: 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 ErhardHead of Partner Management Europe eBay International Marketing GmbHcerhard@ebay.com eBay Partner Network Blog: www.ebaypartnernetworkblog.com