MediaTrust Performance Affiliate Marketing Ant-Fraud Summit Overview
- 1. Performance Marketing Leadership Summit November 3rd 2009 Peter Bordes, CEO, MediaTrust
- 2. State of the Industry #1 problem in the industry is fraud. It hurts industry growth because: It cripples existing business and hurts future growth Brand advertisers dont trust the channel, so big budgets are staying on sidelines Existing advertisers hurt by chargebacks, losses of merchant accounts, lead fraud Performance marketing segment is losing advertisers to other trusted direct response channels Publishers have a di cult time nding campaigns with longevity
- 3. The Industry is Growing, But... US Online Affiliate Spending - 2005-2012 (Billions) $3.3 $2.9 $2.6 $2.3 $2.1 $1.8 $1.6 $1.3 2005 2006 2007 2008 2009 2010 2011 2012 Online A liate Marketing SpendingTitle Source: Jupiter Research 2008 Category
- 4. The reputation of the industry is being damaged ... the fraud issue needs to be addressed immediately!
- 5. Why is Fraud Prevalent? Our Industry has a history of siloed, fragmented networks. Data is black-boxed and there is a lack of transparency Our industry is reactive vs being proactive/in front of issues Fraud rings can move around due to lack of industry communication and sharing of data Few industry associations exist to establish standards, best practices and self-regulation Issue is swept under the rug because people are still making money and afraid to talk about it Its up to the networks and platforms to solve this problem
- 6. Fraud Example* Fraud rings are openly buying and selling approved CPA network accounts so that others can login with them to defraud advertisers and end-users * unfortunately, this is one of MANY types of fraud we see every week
- 7. So what is MediaTrust doing? Publisher on-boarding process re-architected to be much more rigorous Publisher cross-referencing between partner networks Publisher referencing from trusted publishers Site and landing page review to examine for nefarious practices Development of "trusted criteria" for existing network of publishers Removal of 1000s of untrusted and un-veri ed publishers Real-time analysis of live campaigns via proprietary fraud detection software
- 10. Results Come Fast We have already earned a reputation as one of the most di cult platforms to get into Fewer bad publishers are applying and our publisher conversion rates have increased with our more demanding sign up process
- 11. What should the Industry do? Support our industry association -the PMA- to set standards/guidelines and create research Industry leaders need to band together and develop self- regulation guidelines Create transparency via shared data among providers to prevent fraud rings, nefarious a liates, etc Generate industry publisher and advertiser whitelists to keep out dodgy players Develop education and accreditation programs