Understanding Travel Performance Marketing in Asia

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1 Understanding Travel Performance Marketing in Asia March 6, 2013, ITB: Berlin Eric J. Gerritsen Vice President, Sales & Business Development, Neverblue Travel Affiliate Network

2 Travel Affiliate Network background: Delivering digital marketing services to the leading travel companies of the world Dedicated network of over 25,000 affiliates worldwide Delivering hotel, flight and packages bookings through CPA, CPM, CPI, CPC methodologies , social, search, display, and mobile media Offices in Los Angeles, Victoria, Hong Kong and London

3 Online travel marketing: 16% of all online travel bookings are done via affiliates We expect to sell over One Million hotel room nights in Asia this year Book over 500,000 flights Sell over 25,000 packages

4 Outline of presentation: Opportunity in Asia: The Big Picture For Advertisers & Merchants - What is Affiliate Marketing? - Why does it work for travel merchants? For Affiliates

5 Opportunity: The Big Picture Why Asia? Why Now?

6 Asian Internet in Numbers:

7 Asian Internet in Numbers:

8 Asian Internet in Numbers: The next billion Internet users

9 Asian Internet in Numbers:

10 Asian Internet in Numbers:

11 Global Adspend Asia #1 next year Crossover point Is next year

12 Digital Adspend:

13 Big trend Mobile marketing in Asia:

14 Big trend Mobile marketing in Asia: 2 nd largest mobile ad market after US Need for great performance campaigns Important to travel market apps Affiliates with mobile experience emerged in 2012, leaders who can scale will emerge in 2013 Pay-per-call models to emerge this year

15 Mobile Opportunity Mobile is the fastest growing advertising medium in history billion Apps downloaded in billion Apps downloaded in million active mobile web users in Asia 54% of travel marketers will increase mobile marketing spend in % of travel marketers plan to release iphone apps in % of travel marketers have an ipad app ready for

16 Mobile Products & Services We make it possible for advertisers and traditional agencies to run mobile campaigns at scale. Agency Services: Business Intelligence Consultancy - Mobile Engagement Creative Campaign Optimization Media Buying & RTB Arbitrage Mobile App and Web Development Our Mobile Reach: Consumer Brand Campaigns (CPM) Performance Marketing Lead Gen (CPC) Mobile App Downloads (CPI) Search & Programs (CPA) Rich Media Campaigns (CPV)

17 For Travel Advertisers & Merchants

18 History: 40 years of rapid economic growth 60s-70s Japan, first to rise, leaders in electronics and quality manufacturing 80s-90s Tigers Korea, Hong Kong, Singapore, Taiwan, also Malaysia, Thailand cheaper manufacturing 90s-00s China, India, also Indonesia 00s-10s China surges, India grows watch Indonesia, Philippines, Vietnam Now developed Asian economies have all moved upstream into services and are also moving from export-led growth to domestic consumption led growth key point for travel merchants

19 Almost 1 billion Asians have joined the middle class in the last 30 years

20 Lifecycle Clothes Maternity For Advertisers & Merchants: Economic Lifecycle Mapping Cars Education Dating Real Estate Consumer goods Travel Entertainment Insurance Medical Diapers Insurance Dates Fashion Universities Products/Services Mortgages Electronics Hotels Health/Life Pharma Gaming A billion new consumers need all these products/services Creating the biggest marketing opportunity in human history

21 A perfect confluence 16% CAGR Rise of Asian middle class 40%+ CAGR Higher Internet penetration USA Asia Performance Marketing This is where travel marketers need to be Move to digital Adspend

22 Travel is exploding in Asia: 300 million people will visit Asia this year million people will visit China in million Chinese will have make trips outside of China in Macau outranks Vegas as the #1 gaming destination in the world 5

23 Outsource a complete affiliate program: Including: Affiliate sign ups Tracking and reporting Affiliate payouts Dispute resolution Quality control Contract management International traffic development

24 What is Performance Marketing?

25 Advantages for Advertisers & Merchants Expand Your Reach beyond Google The rest of the Internet world Go Global Google

26 What is performance marketing? Clients (Advertisers) Clients Client Value Reach Tracking Payment Processing Compliance & Quality Control Publishers (Affiliates & Internal) Search Campaigns / Media Spend Campaigns Social Media Leads / Customers Leads / Customers Display Publisher Value Campaign Marketplace Reporting Analytics Marketing Tools Cash Flow Training/Education Mobile

27 Promotion Methods Neverblue can help you be successful across the perfect mix of online promotion methods: Search Mobile Display Social Media

28 CPA Cost Per Action Only pay for predefined actions. Leads are typically sales, sign ups, downloads, or information requests.

29 CPS Cost Per Sale These types of affiliate programs pay out a percentage of sales each time there is a transaction.

30 CPI - Apps Cost Per Install Payout occurs when a customer enters your online app store and installs the products.

31 CPM Cost Per 1000 Impressions This type of online media buying is most popular for brand advertisers.

32 HelloCPM.asia HelloCPM operates on a cost per impression each time a banner ad is displayed on a mobile device. Typical Mobile CPM prices (USD) to achieve volume in the following regions: Region Bid Rate Australia $3.00 China $1.50 Germany/France $2.80 India $1.50 UK $3.00 US $2.60

33 For Affiliates

34 What is an Affiliate? An Affiliate is any owner or buyer of online media where an advertisement can be placed and viewed by consumers Website owners Newsletter publishers Search engine marketers Etc. Neverblue connects Affiliates with Advertisers via our market-leading proprietary platform. Neverblue's affiliate network gives advertisers enhanced exposure and affiliates higher payouts.

35 2013 Affiliate Trends: Hunger for learning among affiliates Move from Asian affiliates running American campaigns on American media to running Asian campaigns on Asian media Huge inventory of mobile media affiliates will figure out how to monetize, including pay-per-call Three major domestic markets: China, India & Japan + major regional, pan-asia market As more advertisers and merchants jump on board, more campaigns for affiliates to choose from Hong Kong and Singapore to emerge as the leading centers for performance marketing in the region

36 Dedicated to Asian Affiliate Development Neverblue recognizes the benefit of investing in their affiliates and actively hold events in order to meet affiliates, provide training, as well as share knowledge. Neverblue Interact Events 7 events last year: Shenzhen, Hong Kong, New Delhi, Bangkok, Shanghai, Beijing, Singapore 8 events planned for 2013 Local Forums Monthly Webinars

37 Out of Bounds Thailand in March Fly our Top 20 affiliates to Phuket, Thailand All expenses paid Adventure/bond

38 Compliance/Quality Control Neverblue CQA is recognized as an industry leader in quality management and client risk mitigation Core objective: to proactively mitigate fraud by leveraging our in-house monitoring systems, so our partners receive the highest quality traffic. Benefits include: Proactive Trend Watching Team Dedication Monitoring Top Publishers Lean and Flexible

39 Technology

40 Server-to-Server Tracking Affiliate User 1. User Visits Page with a Neverblue click link Neverblue 2. User clicks on a Neverblue click link 7. Neverblue conversion pixel NB cookie: ID click info 4. redirects the User to the advertiser landing page 3. Neverblue sets a cookie, records a link, and 9. Neverblue server acknowledges receipt ID12345: click info ID12345: conversion info 5. User performs an action on the advertiser s site 6. Advertiser shows a conversion page with a Neverblue conversion pixel 8. Advertiser server posts back a conversion to Neverblue with conversion info Advertiser

41 Ring Revenue & Click to Call Features: IVR/Quality Call Filtering Quality Call Pricing Call ROI by Keyword Fraud Prevention Creative Library Real-time Analytics Free Tracking Phone Numbers Storefronts and Datafeeds Online Campaign Integration

42 Summary Asia Performance Marketing Trends : Expect more travel advertisers and merchants to get into performance marketing, to drive both Asia sales and drive global expansion plans Many new players in China lots of drama and confusion. Leaders will emerge Payment terms in India could slow evolution down there Leaders will start to rapidly separate from followers. Winners will invest and be local Homegrown players will link up to major global players. M&A will start to figure into the picture Indonesia, Vietnam, Philippines will come into the mix adding another 100M Internet users in SE Asia Large spoils will go to those who figure out mobile affiliate marketing in a specifically Asian use context Travel will emerge as the #1 performance marketing vertical in Asia

43 Asia Unit B, 6/F, Teda Building 87 Wing Lok St Ho Jeff.kwokATneverblue.com (Director, BD-Asia)

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