Institute of Electronic Business e.V.: Performance Marketing

Performance Marketing has become one of the most important instruments for successful e-commerce. The goal is to integrate the palette of online marketing tools (search engines and optimization, affiliate programs, email marketing, etc.) in such a way that a web site is easily found on the internet and that as many visitors as possible are won over as long-term customers. The particular appeal of performance marketing stems from its ability to continuously and directly monitor the effectiveness of its integrated tools so that campaigns can be optimized on the run.

Advantage

Impact of instruments employed can be immediately and permanently checked and Campaigns can be optimized while they are running.

Initial situation

E-Commerce growth unstoppable

Average annual growth rates of 33%
But still a small portion of ca. 2-5% of the total volume of trade

Initial Situation – What is so Special about the "E"?

What are the specific, new challenges and opportunities which make the "E" in commerce so exciting?

New Forms of Media Usage Behavior

Consumption versus Action

Media-time budgets are being shifted more and more to the Internet, at the cost of classical media
Internet usage occurs independently of the classical socio-demographic characteristics, new target groups develop (communities, gamers, bloggers, etc.)
Users place own content in the network and develop their own networks
Companies and products are more intensively a part of public discussions

New Possibilities of Communication

Scatter versus Precision landing

User actively search the Internet for information – pick-up instead of penetration
Needs need not be awakened, they are manifest – convince instead of promise
Information and purchase option are only one click away from each other – conspicuousness at the POI
One-to-one communication is possible – personalization instead of segmentation

New Possibilities for Control of Success

Accountability versus Just-in-Time Optimization

User activities can be measured directly and throughout the entire purchase process
Results are available almost immediately for the optimization of a campaign, website, contents, etc.
Preferences from the purchasing history can be included in new, personalized offers
Purely success-based advertising and cooperation model become possible