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Affiliate Marketing Overview & Committee Kick-Off January 13, 2008 Rob Kramer VeriSign 1 What Is Affiliate Marketing? Affiliate marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. Marketing methods employed by affiliate marketers include search engine optimization, paid search engine marketing, e-mail marketing and display advertising. 2 3 How Affiliate Marketing Relates to Mobile + Affiliate marketing on the Internet began in the mid 1990s + Initially, most common compensation method was cost per click + Now, majority of affiliate marketers follow the revenue share or cost per lead model + Currently Affiliate Marketing accounts for and estimated 75% of Off Deck lead generation for mobile content. Online Affiliate Marketing Spending (in billion $) Market Size $5.0 Effective ROI* CAGR = 12% $4.0 $3.3 $3.0 $2.0 $2.1 $1.0 $0.0 2008 Source: Jupiter Research 2012 Source: eMarketer *Affiliate Marketers can also use the various online advertising tactics listed to drive traffic to the jump pages 4 Affiliate Marketing Committee • The Affiliate Marketing Committee is being established to educate the industry as well as create guidelines and best practices for Affiliate Marketing as it relates to Mobile. • The initial priority will be to create a cross-carrier guideline for affiliate jump pages, at the request of the US Consumer Best Practices Committee. In an effort to grow the space by providing further clarity to the affiliate space, the committee will then work to establish educational materials to define “affiliate marketing” as well as develop broader best practice guidelines for affiliate marketers in the United States. • The Committee will also monitor and discuss changes in the regulatory environment as it relates to mobile affiliate marketer networks. 5 Your Participation is Welcome Affiliate Marketing Committee Co-Chairs: Rob Kramer Email: [email protected] Phone: 617-673-2471 Brad Blanken Email: [email protected] Phone: 813-777-5960 MMA Committee Contact: John Manganilla Email: [email protected] Phone: 303-381-3964 6