Adrian Moss - CNBC TV Interview
Sydney, Australia, 19 July 2006, dgmAustralia announce third year record growth resulting from pay for performance online advertising
dgmAustralia announced today, that over the past financial year they have recorded a substantial 400% year on year growth. The announcement coincides with a number of Australian advertisers getting smarter with their online marketing, making the savvy decision to pay for online advertising based on performance deliverables only.
"There is still a way to go," said Fionn Hyndman, Managing Director of dgmAustralia, "The advertisers in our network are reaping the benefits and reporting transparent ROI that clearly demonstrates pay for performance ads work. However there is still a mindset in Australia to adopt a campaign driven deployment based on CPC or CPM, as opposed to taking a performance-led marketing view as the Americans and Europeans do".
Pay for performance advertising was said to be founded by Jeff Bezos, the founder of Amazon and has been a core part of the online marketing mix in the USA and Europe since 1997, with the current annual value of the UK market alone estimated to be $3.30bn. The Australian market is still in it's infancy to adopt such a successful model with no standard national market value figures available.
Hyndman commenting on the late adoption by Australian advertisers, stated, "It shouldn't be hard for marketer's and media buyers to evaluate the benefits of a pay for performance ad strategy, however our observations are that the Australian market is almost polarised between those that "get it" and those that "don't". Yet the risks and cost to entry are low and benefits are proven to be great. Frankly, I am not surprised by our growth, the advertisers that are using the model here are very successful, and yet, it has astounded me how slow the wider uptake is in Australia for such a successful International advertising model".
One company that is getting it, is OMD Australia, Executive Director of Digital & Direct , Leigh Terry supports Hyndman's view; "We find that we are able to offer our clients exceptional value, strategic thinking and ROI from online advertising expenditure paid for on performance metrics. It is a model that keeps the boardroom very happy. The outcomes are win-win, media owners can get greater value from their inventory, commercialise unsold inventory and our advertisers can pay them up to an unlimited amount based on an action and / or sale achieved. Even better when optimised through an alignment with SEM"
Sydney, Australia 17 July 2006, dgmAustralia deliver an immediate impact after being appointed as Search Engine Marketing agency for Yahoo! Search Marketing. ,
Within 6 weeks of their appointment, dgmAustralia have reduced the cost per acquisition dramatically under target for Yahoo! Search Marketing. Ironically being the search agency for the search company, dgm announced that they are already in the second phase of the strategy, increasing new account sign ups week on week.
John Matthews, Head of dgmSearchLab, said, "The early and immediate success of the strategy, demonstrates the close understanding, expertise and market knowledge both our companies share. Yahoo! Search Marketing is benefiting from the growth in online advertising budgets, a natural consequence of growing numbers of internet users and online shoppers, while also reflecting media consumption trends".
dgmAustralia have been carrying out SEM for Yahoo! 7 since November 2004, working strategically over medium to longer term goals, building a sustainable profitable marketing channel.
Yahoo! Search Marketing, Head of Marketing, Stevan Caldwell, commented, "The continued pressure on marketers to demonstrate ROI accrued from their marketing decisions has helped SEM to grow its share of the online advertising industry. At Yahoo! Search Marketing we are no different in our need for a good SEM agency to manage the complexity of a successful SEM strategy and our relationship with dgm is proving highly effective".
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