How to Run High Performance

Branding Campaigns

10/07/2009
Agenda
Changes in Consumer Behavior

Changes in Brand Marketing Strategies

Case Study: How HUGGIES® used transparent Cost-per-Lead

Advertising to Run a Branding Campaign

How To Run a Transparent CPL Campaign

Consumer
Behavior
IS
Changing
More people are on the Internet

US Internet Population
72% 250

70%
200

68%
150

(Millions)
66%
100
64%

50
62%

60% 0
2007 2008 2009 2010 2011 2012

Online Users Penetration

Source: Leichtman Research Group, Inc., June 30,2009.

People Spend Twice as Much Time
Online as TV

Others
17.6 Hours
25%
Internet
32.7 Hours
46%
Print
3.9 Hours
6%

Hours & time share on TV, 16.4, 23%

each medium per week

Source: IDC: US Consumer Online Behavior (February 2008).

 They Carry the Internet Around on
Mobile Devices
88% of Americans have one
or more mobile devices

51% of consumers report it

would be hard to give up
their mobile phone

107% more information was

consumed via mobile web in
2008 as compared to 2007

1 Nielsen Mobile, Q1 2009

2 “Mobile Internet becoming a daily activity for many,” comScore press release, March 16, 2009
3 “Mobile phone harder to give up than Internet,” eMarketer, March 2008

6
Users Spend More Time On Social
Networks Than Ever
Growth in Time
% Reach Growth Spent on Facebook
(Dec '07 - Dec '08)
Over the Last Year
6.0%

5.0%

4.0% Of US Internet Users

3.0% Have a Social
2.0% networking profile
1.0%

0.0%
Of All Smartphone
Activity Is Social
Networking

Source: Global Faces and Networked Places (Nielsen, March 2009)

Online Media Influences Offline
Purchases

$1,200

$1,000
Online Shoppers are
Becoming Precision $800

Shoppers... $600

By 2012, the percentage $400

of web-influenced $200
purchases will nearly
$-
double 2007 2012

Web Influenced Retail Store Sales Retail e-commerce sales

For every $1 Spent Online, the Internet Influences $3.45 Offline…

Source: Multichannel Retailing (eMarketer)
People Are Responsive To Online Ads
But…
The Majority Don’t Like Click-Through
Banner Ads…
78% of consumers dislike leaving a site after clicking on a
banner ad
– Harris Interactive Sep’09

78% of Consumers 96% of Consumers

DISLIKE LIKE

Leaving a site Receiving

after clicking on special offers
a banner ad from brands
they have sign-
up for
Changing Branding Strategies
But With Changing Consumer Behavior…
Brand Marketers Are Moving From
Broadcasting…
 …to Engagement
Loyalty Programs
Email Newsletters/Direct Mail

Community Sites

Twitter Groups
Move to Engagement = Increase in
Digital Spend
The New Advertising Outlet – Your Life

“The 25 companies that spent

the most on advertising over
the last five years cut their
spending last year in
traditional media.”

Marketing’s Key New Metric Nike Plus Community

“As consumer’s trust in “We’re not in the business of

traditional media reduced, keeping the media companies
marketers need a new alive…we’re in the business of
approach. We propose a connecting with consumers.”
new metric - engagement.” Trevor Edwards
Vice President, Global Brand and Category
Management.

Source: Advertising Age, October 13, 2007

There are a Variety of Ways To Engage
An Audience

Catalog/DVD, Other, 2%
Advocacy, 5%
2%
Free Trial
Offer, 9%

Brand/
Community
Site, 51%
E-Newsletter
w/ Deals, 31%

Source: Pontiflex CPL Report, August, 2009

And Many Brands Use Multiple
Engagement Touch Points
The New Branding/Engagement
Campaign is a Two Step Approach
ACQUIRE BRAND
interested consumers in relevant ways
LET’S LOOK
AT AN
EXAMPLE
Step One: Acquiring the Right
Consumers
BRAND
ACQUIRE in relevant ways
Interested consumers
HUGGIES Wanted to Capture the
Contact Information of Consumers
The Contact Information of A Consumer
is Also Called a Lead
FIRST NAME: JANE

LAST NAME: DOE

EMAIL: jdoe@gmail.com

ADDRESS: 123 NICE LANE

CITY, STATE, ZIP: SAN

FRANCISCO, CA, 90012

INTERESTED IN HUGGIES: YES

To Acquire Leads, HUGGIES Could
Choose From 4 Pricing Models
CPM Pricing Models: Pay For
Impressions

BANNER

LANDING PAGE
CPM Pricing Models Are Declining…

“It’s no secret that CPM

advertising delivers poor
returns”
- Sam Parry
Director of Online Membership & Activism, EDF

“The Internet is more and

more a Performance-driven
model”
- Imran Khan
Managing Director, J.P. Morgan

…Performance pricing models are increasing share

Source: 2008 IAB PWC Internet Advertising Report

In The Performance Advertising Choice
Set, HUGGIES instantly eliminated CPA

CPA Advertising
Transaction based

Low Volume

Less Advertiser Control

Not Ideal for Relationship

Building
CPC Pricing Models : Pay For Clicks

TEXT ADS

LANDING PAGE
 Pros and Cons of Search

++ --
-KeywordsIncreasingly
-Keywords Increasingly
- Higher
- Higher ROIROI than
than CPMCPM Expensive
Expensive

- Active
- Active Universe
Universe of of Searchers
Searchers - -Reach
ReachLimited
LimitedtotoSearchers
Searchers

- Sophisticated
- Sophisticated Front-End
Front-End - -Poor
PoorIntegration
Integrationwith
with
Campaign
Campaign Management
Management Campaignbackend
Campaign backend

-Noguarantee
-No guaranteethat
thatclicks
clickswill
will
becomeleads
become leads
CPL Advertising: Pay Only for Sign-Ups

Similar to CPM
and CPC models
except that
advertisers only
pay for qualified
sign-ups
“The only viable way forward is to shift from the
procurement-oriented benchmarks of input
measures such as CPMs [or cost per 1,000 viewers]
to more output-oriented measures such as cost per
hand-raiser and cost per lead.”

- Phil Cowdell, Head of North America, WPP/Mindshare

The Old Cost-per-Lead Market

Lack of transparency: Difficult to determine source of lead

Fragmented: No single point of connection to the market

Difficult to implement: Long and expensive campaign set-ups

Generic: High focus on generic leads; Leads resold to

multiple advertisers
The New Cost-per-Lead: Marketing
Leads
“The emergence of marketing leads has changed the online lead
generation landscape.”

MarketingLeads
Marketing Leads
Sales Leads

• Generic Brand specific

• Can be resold Never resold
to anyone Used across all
• Limited to industry
finance, categories
insurance 100% opt-in
industries, etc.
“Cost-per-lead advertising brings a new
dimension to lead generation. Rather than
turning to brokers of generic sales leads,
marketers can entice consumers to opt in
based on specific ads – and pay only for
valid sign-ups.”
The CPL Advantage for HUGGIES
Kate Johnson Personal Care Consumer Relationship Marketing Manager

ROI “CPL allows you to invest money where

you drive results”

“In terms of being able to target the

right consumer at the right time in the
Timeliness most relevant way, CPL advertising is
right up there with search.”

“Transparency lets us optimize our

campaigns, and identify how the different
publishers are doing in terms of delivering
Transparency the right consumers. In turn, that helps
consumers view the most relevant
advertisements.”
Step 2: HUGGIES First Acquired Users
- Then Engaged Consumers
ACQUIRE
BRAND
interested consumers
in relevant ways
The Brand Sent Weekly Emails

Engaged Consumers at Multiple Touch points

Sent Weekly Emails with Relevant Content

– Special Promotions

– Youtube Videos

– Reward Programs

– Pregnancy Countdown Widget

Pregnancy Countdown Widget

Mother enters her due date

Pregnancy Countdown Widget

Mothers enters due date

Mother selects destination

site
Pregnancy Countdown Widget

Mother enters due date

Mother selects destination

site

Mother Embeds Widget in

Social Networking Profile
Advantages of Pregnancy Countdown
Widget
Branding ROI

•Relevance • Tracked activity of

+
acquired consumers

•HUGGIES stayed • Email Metrics

in control of the •Widget Downloads
message •Purchases

•Viral •Increased ROI by 50%

Why it worked for HUGGIES
Kate Johnson Personal Care Consumer Relationship Marketing Manager

“Kimberly-Clark will also see importance on the

types of relationships we have with our
consumers and finding right ones – the ones we
can have biggest impact with.

With a branding strategy focused on engagement,

there is a lot there that can be done in terms of
boosting relevant brand metrics while increasing
ROI.”
Many advertisers are acquiring
marketing leads by adding CPL
advertising to their CPC/search efforts
Marketers can run CPL Ads on Premium
Online and Mobile Sites…
And Engage Leads Via Multiple
Vehicles to Achieve Brand and ROI Goals…
How to Start and
Run Your CPL
Campaign
CPL Vendor Checklist

Open
– Can I manage multiple publishers from a single
point of connection?

Transparent
– Can I see where my offers are running?
Be Clear on Campaign Goals

Campaign Purpose

Fields
 Collect Basic Information
Collect More Information As You Build Trust

Cost-per-Lead • First Name

• Last Name
• Email
•Address

$ • Timestamp
Standard Fields
• IP

•Gender
Premium Fields
$$
•Phone
•Date of Birth

• Are you a

$$$ Available
Publishers
registered
voter?
•Have you
Custom Fields

traveled to
Hawaii in the
last six months?
 Collecting Basic Information
Upfront is More Cost-Effective
$2.50
Average CPL (Overall) $2.27

$2.00

$1.50

$1.00

$0.60
$0.50

$-

Basic Fields Premium Fields

Basic Fields = First Name, Last Name, Email Address, Postal Address
Premium Fields = Telephone Number, Twitter Username, Custom Questions, Geo-targeted Information
Select Publishers From Different Media

Mobile

Websites Mobile Social

Use Different Types of Creative
Serve Ads On the Registration Path

Offer something of value

– Free newsletter sign-ups

– Exclusive travel deals

– Valuable Coupons

– Free adventure guide!

– Find events in your city now

– Receive your weekly dose of

health news
Use a Mix of Different Creative

CPL Display Banners

Ideal for Brand Marketers

Available in standard IAB sizes

Eliminates click-through

– User submits information

– Information sent via backend

– Visitor stays on publisher page

– Vastly improved conversions rates

Use a Mix of Different Creative
Mobile Banners

Be Concise

Be relevant

Deliver instant gratification

Complement online publisher buy

with mobile to extend reach
Setting up CPL Creative is as Simple as
Creating Search Creative
Get Automated Data The Way You Want It
A one-time automated data transfer set up
Description Real-time?

FTP Folder-based drag & drop X

SFTP Secure FTP X

Email Sent via email X

HTTP Post Publisher server to advertiser server √

HTTP(S) Post Secure HTTP √

Follow-up on leads in real-time
Connect campaign front-end
with follow-up system

Deploy auto-responders that can

be sent instantly upon receipt

Keep consumers engaged with

your brand

Pontiflex AdLeads™ enables

real-time transmission of auto-
responders
Optimize, Optimize, Optimize
 About Pontiflex
Technology
Industry’s first open and transparent cost-per-lead (CPL) market

Progress
Series B Funded (April 2009); Major Clients - Obama Campaign, Kimberly Clark, eFax, Disney,
Blockbuster, Dell.

Employees & Offices

30+ employees; Brooklyn, New York; Seattle, Washington & Pune, India

Executive Team
Involved in online advertising since its inception; Leadership roles at Amazon, IBM and
Ogilvy
Market validation
“If I had to choose between CPM, CPC and CPL, it would
undoubtedly be CPL.”
- Kate Johnson, Personal Care Marketing
Manager, Kimberly-Clark

“CPL advertising enables us to connect with the right kind of

consumer and boost not only ROI, but brand metrics.”
- Michael Wunsch, Vice President, Media &
Strategy, Leapfrog Interactive

“..the reason we are using Pontiflex is because it saves us so

much time.” - Doug Colbeck, CEO, Hillclimb Media

“Leads from Pontiflex on a CPL have vastly outperformed any

CPM and CPC campaigns that we have tested. Our open rates
have increased by more than 30% in the past nine months due to
our CPL initiatives with Pontiflex.”
- Kurt Homfelt, CEO , Dunhill Vacations

“There's a big opportunity for a system specifically designed for

online lead generation that provides advertisers the ability to
transparently connect to publishers.”
- Chris Phillips, Assistant Director, Internet Marketing, UNICEFZ

“We’re definitely seeing ROI and are continuing to roll it out –

we’ re going to see more.”
- Joe Baker, VP, Care2.com
THANK YOU

Jeff Gottesman
jg@pontiflex.com
718.801.8491