New Celebrity & Christmas Sites Ready for the Holidays from EDebitPay
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Historically, online advertisers have purchased web media from publishers based on a cost-per-impression (“CPM”) model. This method of media buying has been losing popularity due to the uncertainty in its ability to generate revenue and returns on advertising investment. However, purchases of web media on a pay-for-performance basis are increasing and becoming one of the most effective ways to acquire new customers. With this model, advertisers only pay web publishers for a specific action, such as generating a registered user or making a sale to a customer. Recently, the Interactive Advertising Bureau (“IAB”) and PricewaterhouseCoopers LLC reported that performance-based pricing accounted for 41% of online advertising dollars spent in 2005, increasing from $3.9 billion in 2004 to $5.1 billion in 2005. With the growth in pay-for-performance advertising has emerged the dominance of direct response advertisers (“DRAs”) in the online marketing space. DRAs aim to elicit a direct action, typically bringing a consumer to a new website in order to complete a questionnaire, fulfill a promotional offering or conduct a transaction. They often have large budgets and very well defined ROI objectives as the DRA segment is extremely price sensitive and focused on measurement, performance and effective CPA. DRA advertisements are often placed in a paid search context within search results, strategically on the periphery of a web page, or directly delivered to consumers via email. DRAs often enlist the services of an affiliate network in order to fulfill their promotional offerings. Affiliate networks have access to numerous other networks and an even greater number of publishers. The result is that affiliates have access to a much larger consumer base than they can reach independently, and advertisers have a wider publisher universe available for placement of their messages or offers. As offers are passed through the advertising network chain, the cost of the lead is spread among the various parties involved in the fulfillment of it. DRAs typically structure their offers in the form of free quotes, product promotions, discounts or coupons, subscriptions, or membership/reward programs |
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AFFLIATE MARKETING
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EDebitPay’s affiliate network, EDebitPay.Net, is a robust, highly diversified network consisting of other affiliate networks, affiliate marketers, independent and affiliated publishers as well as online and offline list managers. The Company has relationships with the top 500 affiliate networks and affiliate marketers, encompassing tens of thousands publishers. This network provides a powerful distribution channel for its own offerings and those of third parties. EDebitPay’s associated affiliate marketers and networks include Datran Media, Traffix, LeadClick Media and Monetizeit. The Company actively manages its affiliate relationships and works continuously to expand and increase the effectiveness of its network. |
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Generally, there are five scenarios in which EDebitPay delivers its proprietary and third party offerings through EDP Network: |
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a) EDP > EDP Network > Publisher. In this scenario, EDebitPay submits an offering through EDP Network directly to a publisher. Upon the fulfillment of the desired action (usually completion of an application by a targeted consumer), EDebitPay will pay the publisher a fee directly. b) EDP > EDP Network > Affiliate Marketer. In this scenario, EDebitPay submits an offering through EDP Network that is later picked up by an affiliate marketer. If the affiliate marketer fulfills that offer on its own directly with a consumer, EDebitPay pays the affiliate for this desired action. c) EDP > EDP Network > Affiliate Network > Publisher. In this scenario, EDebitPay submits an offering through EDP Network. The offer is then picked up by an affiliate network that in turn markets the offer to its network of publishers and affiliates. If the offer is then fulfilled by a consumer on a publisher’s site, the affiliate and publisher will split the fees paid by EDebitPay for this desired action. d) EDP > EDP Network > Affiliate Network > Affiliate Marketer. As above, in this scenario, EDebitPay submits an offering through EDP Network that is then distributed through an affiliate network. If the offer is then fulfilled by a consumer through an affiliate marketer, the affiliate and its affiliate marketer will split the fees paid by EDebitPay for this desired action. e) EDP Network > Online List Manager. In this scenario, EDebitPay submits an offering though EDP Network that is subsequently acquired and distributed through an online list manager. If the offer is fulfilled by that email list manager, the list manager is paid by EdebitPay for this desired action. |
| EDebitPay manages its affiliate marketing efforts through its proprietary software, EDP Network. EDP Network is able to track performance metrics such as user traffic, click-through rates, application conversion rates, opt-in rates and attachment rates. In addition, EDP Network is able to track these metrics by affiliate, enabling EDebitPay to actively pursue relationships with top performing affiliates, while providing the tools necessary to identify and discontinue relationships with poorly performing |

