Overview
Advertisers are watching every dollar they spend, and that means you should be offering them pricing that lets them pay only for user actions they receive. Advertisers are moving from big direct sale campaigns to more indirect sales channels, buying more and more from the publishers who can give them performance-based pricing. As a publisher or an ad network, if you can deliver what your advertisers want—and measure it—you have an edge in the market. Is your business ready for performance marketing?
"Internet advertising is becoming performance-driven," says Imran Khan of JP Morgan Chase (February 2009). "The economic challenges will continue to force the industry to change. The emphasis on performance in this economy means that the shift from cost-per-impression pricing to performance-based pricing (cost-per-activity such as click, acquisition or other intended user action beyond impression) has been accelerating."
Also, according to the 2008 IAB Internet Advertising Report (March 2008):- Performance-based revenue comprised 57% of overall online revenue while CPM or impression based revenue comprised 39% in 2008
- Performance-based revenue grew by 11.8% (from $10.8B to $13.3B) while CPM or impression-based revenue shrunk by 13.3% ($9.5B to $9.1B) in 2008
Creating a successful performance-based program isn't just about changing how you charge—it also means you have to change your business operations and your way of selling. And we can help. If you haven't been able to make performance-based solutions work for you, the Yahoo! Professional Services team will help you make it work.
What We Provide
We'll engage with your team to develop a custom plan based on a proven methodology that will include scoping of current sales products and processes, a pilot to test performance selling, analysis to identify an optimization strategy, product and process design and training and rollout. At the end of the engagement, you'll receive the following:
Sales Team Enablement
- On-site training for your sales force on performance advertising
- Messaging recommendations for performance advertising materials and collateral
Optimization Strategy
- Campaign optimization tips and best practices
- Industry insights and benchmarks
- Managed services of optimization for partners who do not have dedicated resources (optional)
Performance Product Recommendation
- Analysis of inventory and historical metrics to project performance expectations
- Optimal pricing and packaging options for your performance-based offerings
How You Can Benefit
- Generate incremental revenue by capturing the growing brand response and performance dollars
- Increase the value of non-guaranteed inventory by managing performance-based buys in the
non-guaranteed display market
- Build infrastructure expertise and support without adding overhead
Summary
There is a growing shift in how advertisers are buying media. Performance-based offerings are becoming more common and more desired by advertisers. With Yahoo! Professional Services, we'll help our partners customize a performance-based solution that can work and meet their objectives. Being an innovator and market leader of the online display market, we have the industry knowledge and expertise to help you succeed.