A New Era in Performance Marketing

Happy new year to all! Earlier this month at MediaTrust, during our first weekly Sales Team meeting of 2010, we reflected back on 2009 for what it was, what made it successful, pitfalls to avoid and the lessons learned. Having been involved in the CPA industry for 5 years now, I have seen a number of significant changes and trends that have taken place in performance marketing — yet nothing compares to the volatility and instability our industry is currently experiencing. As Director of Publisher Management, one of the observations I communicated to my team is that our industry is in a “new era of change”.

The new era of our industry is driven by a desire for sustainability with new regulatory and compliance guidelines impacting the majority of business practices (especially for third tier advertisers that are involved in continuity programs otherwise known as “negative billing”). These rebill-oriented free-trial campaigns reached their peak in 2009 in terms of its dominance and overall volume on most CPA networks. Much has already been written about the driving force behind all that demand, and the reasons for its popularity and success in the consumer marketplace – as well as the risks associated if left unchecked. All the players involved including; Advertisers, Networks, Affiliates (and their traffic sources) each created their own ethical boundaries by which to operate, however the amount of profit and increasing competitive pressure eventually fueled a tipping point.

From a Network standpoint, the risks associated with assuming that business models are up to standard (or ignoring potential liabilities) are simply too high. The payment structure of most networks – weekly payouts to performing Affiliates and collecting monthly or semi-monthly payments from advertisers have resulted in millions of dollars in outstanding payments from advertisers. Add to that costly litigation which can end up including Affiliates, damaging even more relationships, and the risk factor is further multiplied.

On the Publisher side, a major shift in mindset and strategy is taking place as forward thinking Affiliates re-evaluate how and what they promote. Attending Affiliate Summit West in Vegas last week was a confirmation of this as many discussions revolved around such topics such as how to realign and thrive in a climate of increasing regulation and enhanced T&C’s. Most seem to agree that many of the fundamentals are the same and that it is about seeking realistic, value-add opportunities – with the potential for scalability and healthy ROI (It was refreshing to see this new kind of eagerness and determination to work together and seek out these opportunities).

Focusing on future opportunity in 2010 looks extremely promising if we understand the drivers for change. Expect MediaTrust to be on the forefront of the latest trends and to lead the charge through significant investment in our technology and people. We are aggressively hunting for new advertising opportunities in the existing CPA pool while also swimming upstream. Our growth strategy includes selecting new and unique campaigns in niches that have high growth potential in all forms of acquisitions – CPA, Lead Gen and Rev Share. Our philosophy is that in order to be an industry leader, one must lead by example, continuously adapt and innovate in order to dominate. We highly value our partnerships but we are also selective about where and with whom we align. For those willing to adapt and innovate along the way, the future is exciting and the path to continued success is being paved with opportunity. If you are at that stage of building your business and are open to new ideas about how to grow, we invite you to have a conversation with us.