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Optimization

Affiliate Marketing Tips from an 80′s Action Figure

Mar
04

Contributed by Maor Sadra, Director of Sales

“By the power of Greyskull, I have the Power!” If you grew up in the 80s, you may remember He-Man yelling this line while waving his mighty sword to get ultimate power. I’m not going to comment on the lack-of-imagination-name the creator of the show gave ‘He-Man’. My post is still related to online media.

Part of my sales team’s responsibility at Adsmarket is working with advertisers to create affiliate programs that publishers can generate results. We are middle-men, and we end up having the same ‘who has the power’ discussion at least 5 times a week.

For years, I’ve heard advertisers and publishers arguing the ultimate question: Who has the power?  Who is more responsible for the success of the other? Is it the advertiser who is paying for the media, or is it the publisher, whose media generates results for the advertiser (even allowing them to advertise)?

Advertisers are indeed sponsoring the world nowadays. Think of an internet without advertising, where you would have to pay (gasp!) for content, videos, streaming music or for reading this post…

Publishers are the ones responsible for the content you see & hear on the web. And more often than not, they are a business meant to generate revenue in addition to providing users with content.

That’s why I’m here to say that it’s not a question of who has the power. Power should have nothing to do with performance marketing. It’s all about the WinX3 Solution.

The WinX3 Solution:

In every campaign, there are 3 ultimate factors to consider:
Publisher + Advertiser + User = MORE SALES

What can go wrong??  The number of wrong equations goes on and on:

  1. An Advertiser promoting the right offer on the wrong media will likely to not generate good results (quality/quantity).
  2. A Publisher running a campaign where the Advertiser is offering a too-low CPA will not generate a high enough ROI in comparison to their media value and will eventually drop the campaign.
  3. A user seeing an un-related ad on a website will likely to not take action.
  4. An Advertiser promoting an offer with a long tedious user flow will not get the volume required.

The right equation is simple:

A campaign must be designed to match the Advertiser, Publisher AND User needs – Only then will it generate good results on a long term basis.

As an Advertiser, your goal should be to create high converting pages, looking at minimizing the user flow while offering an incentive for the users you are looking for to take action.  Research the rates you are able to offer publishers for quality conversions to be competitive in your industry.

As a Publisher – know your users and traffic, and promote the right offers for the right users. Generating low quality for Advertisers ensures a one-time campaign.

As a user – Keep enjoying free content, and hope the free ride continues…

Must haves for affiliate marketers – Conversion Rate Optimizers

Jan
24

No doubt, if you are an affiliate or at all involved in online sales and marketing, you are going to hear the phrase “Conversion Rate Optimization” (CRO) a lot in 2010. It is not a new field, but it is now the most popular buzzword in performance-based marketing. In my opinion, CRO is always at the heart (and the art) of the science of performance.

If you are an online merchant, your websites are your best sales managers – they work hard (24/7) and cheap (compared to live salesmen). Whether you use your site to sell your products, collect leads or sell advertisement placements, there are two ways to make them perform better and sell more:

  • The expensive way – buy more traffic
  • The smart way – conversion rate optimization

Actually,   to increase the profit you should do both; however, you should perform conversion rate optimization before you buy more traffic. The essence of CRO is enabling your site to “close” more deals.

Here’s an example , and yes, this involves some basic math!

Jake Sully rents the movie Avatar from his website. From his past experience, for every 100 visitors from his PPC campaigns, 2 visitors rent the movie from which he earns $4 commission each. Since Jake is paying $0.05 per click, he spends $5 and earns $8 commission for 100 visitors.

It looks like it’s a nice campaign, with a 1.6% ROI (8/5).  Jake’s keywords generate 10,000 clicks a day, and with a $500 spend, $800 earning, that’s $300 profit per day.

Good…but not perfect.

By taking conversion rate optimization actions, Jake managed to improve his click-to-conversion rate from 2% to 3%, meaning that for every 100 clicks he is doing one sale more then he used to before the CRO. That’s one more sale of pure profit since the costs of clicks haven’t changed. So for every 100 clicks he spends $5 and earns $12. That’s 2.4% ROI! (12/5), and at the end of the day, after sending 10,000 clicks, Jake will spend the same $500 but will earn $1200, leaving him a daily profit of $700 (233% more!).

And don’t forget, one time CRO will affect the conversion rates for the rest of the campaign.

So, how should we optimize our conversion rates?

In one of my previous posts, “What’s in Your User’s Mind?”, we discussed the importance of understanding the user’s way of thinking in order to improve the conversion rate.

To make a long story short, here are few rules of thumb to improve the conversion rates:

  1. Keep the opportunities for thinking limited
  2. Make  benefit-oriented headers, slogans and text
  3. Remove navigation bars
  4. Minimize the number of fields the user needs to fill
  5. Lead the user’s eye to the important places in the page
  6. Keep the important buttons (“Submit”, “Check out”, “Order Now”…) above the fold and use a clear call to action.
  7. Make sure your banners and landing pages match. If a user liked the banner and the offer in it and decided to click on it, he should get the same offering and the same look and feel in the landing page.
  8. Keep it simple, keep it clear and keep it short.

And as I always say – TEST, TEST and TEST.
Use few different designs and creatives, try different backgrounds, different buttons places, different “hero shots”, different headlines, different color combinations and whatever is replaceable. And always measure the conversion rate of each design in order to optimize it.

There are hundreds of tools and books on the net that can help you do the optimization such as:

As you can see, conversion rate optimization brings you pure profit and in the short and long-term it is a wise move, and an art that demands a good understanding of your users and the way they think. By testing and measuring you can do CRO with very low costs, but make a direct impact on your ROI.