Understanding the UK Market James Little, Head of Affiliate Development, AffiliateFuture (UK)
INTRODUCTION
Introduction – Who am I? <ul><li>Head of Affiliate Development at Affiliate Future </li></ul><ul><li>UK Affiliate Evangeli...
Introduction - AffiliateFuture <ul><li>Fastest growing affiliate network in the UK, offices in USA & Madrid -  Responsible...
THE UK AND ONLINE
The UK and Online – UK Stats <ul><li>The UK Population: 61,186,000 (est: Jan 08) </li></ul><ul><ul><li>Expected to grow to...
The UK and Online – Shopping and Affiliate Stats <ul><li>97% of Internet users have shopped online; joint second behind So...
The UK and Online – Behind the Stats <ul><li>Stats are all very well – but what do they mean? </li></ul><ul><ul><li>High I...
HOT UK AFFILIATE TOPICS
Hot Topics – What you should know <ul><li>Spyware is banned by all major UK networks </li></ul><ul><li>Last click always w...
Hot Topics – Voucher Codes <ul><li>Discount & Voucher codes key terms </li></ul><ul><li>Click to Reveal most common practi...
Hot Topics – Cashback/Incentive <ul><li>Cashback starting to become mainstream </li></ul><ul><ul><li>MSN/MirrorCashback/Su...
Hot Topics – Other <ul><li>De-Duping - One of the biggest challenges of the industry at present </li></ul><ul><ul><li>Doub...
THE TOP 5 UK NETWORKS
Top 5 Networks – AffiliateFuture <ul><li>5 Day Validation Period  </li></ul><ul><li>Strong technology  </li></ul><ul><ul><...
Top 5 Networks – Affiliate Window <ul><li>Lots of High Street Retailers </li></ul><ul><li>Regular (twice monthly) payments...
Hot Topics – Buy.at/Platform A <ul><li>Now an international network </li></ul><ul><li>Good support for PPC affiliates </li...
Top 5 Networks – CJ <ul><li>Well established with large variety of programmes with true global reach </li></ul><ul><li>Lar...
Top 5 Networks – Tradedoubler <ul><li>Large range of merchants </li></ul><ul><li>Plenty of reporting metrics </li></ul><ul...
SOME SUPER AFFILIATES
MyVoucherCodes <ul><li>Largest Vouchercode site in UK </li></ul><ul><li>Received 8.5m+ UV’s in December 08 </li></ul><ul><...
Top Cash Back <ul><li>2 nd  Largest cashback site </li></ul><ul><li>200,000 Active members (who have logged in recently) <...
Holiday Watchdog <ul><li>Started by two people in 2003 </li></ul><ul><li>Listing over 40,000 hotels </li></ul><ul><li>Powe...
Mobiles4Everyone <ul><li>Established in 2002 - UK’s first mobile phone price comparison site </li></ul><ul><li>Compares ov...
2009 PREDICITIONS
<ul><li>Evolution by merchants (Sunpress) </li></ul><ul><li>More CPL campaigns </li></ul><ul><li>More Niche merchants (and...
QUESTIONS AND ANSWERS
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Understanding The Uk Affiliate Landscape

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This session will cover the culture of affiliate marketing in the UK, as well as statistics revealing growth rates, size of market and the latest trends.

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Understanding The Uk Affiliate Landscape

  1. 1. Understanding the UK Market James Little, Head of Affiliate Development, AffiliateFuture (UK)
  2. 2. INTRODUCTION
  3. 3. Introduction – Who am I? <ul><li>Head of Affiliate Development at Affiliate Future </li></ul><ul><li>UK Affiliate Evangelist </li></ul><ul><li>6 Years experience in Affiliate Industry at all levels (Affiliate, Merchant, Agency, Network). </li></ul><ul><li>Member of IAB Affiliate Council </li></ul><ul><li>Blogger ( www.3wdl.co.uk ) and Freelance Journalist </li></ul>
  4. 4. Introduction - AffiliateFuture <ul><li>Fastest growing affiliate network in the UK, offices in USA & Madrid - Responsible for £160 million worth of sales in 2007 </li></ul><ul><li>Over 4% overall conversion rate, across 130,000 affiliates and 950 merchants </li></ul><ul><li>Number one affiliate network for Travel merchants and affiliates </li></ul><ul><li>3-Stage tracking including Cookieless Tracking via </li></ul><ul><li>76,580,497 total unique clicks processed in 12 months </li></ul>
  5. 5. THE UK AND ONLINE
  6. 6. The UK and Online – UK Stats <ul><li>The UK Population: 61,186,000 (est: Jan 08) </li></ul><ul><ul><li>Expected to grow to 65m by 2016 and 77m by 2060 </li></ul></ul><ul><ul><li>22nd most populated country in the world </li></ul></ul><ul><li>Internet Usage at 41,817,847 - 68.6% of population </li></ul><ul><ul><li>7 th Highest Internet users (After China, US, Japan, India, Germany and Brazil) </li></ul></ul><ul><li>Gross National Income (per Capita) of US $24,486.70 </li></ul><ul><ul><li>6 th Highest Worldwide (After Luxembourg, Switzerland, Japan, Norway and USA) </li></ul></ul><ul><li>Population density of 247 persons per sq km </li></ul><ul><ul><li>20 th Highest Worldwide </li></ul></ul>
  7. 7. The UK and Online – Shopping and Affiliate Stats <ul><li>97% of Internet users have shopped online; joint second behind South Korea – US is 94% </li></ul><ul><li>Total Online UK Sales 2007 £46.6bn (growing by 54%) </li></ul><ul><li>Affiliate Sales - £3.13 billion in sales in the UK (£2.16bn 2006, £1.35bn 2005) </li></ul><ul><li>Figures ignore lead based programmes, adult industry and gambling sectors </li></ul><ul><li>Affiliate Marketing accounts for 7% of all online business in the UK </li></ul>
  8. 8. The UK and Online – Behind the Stats <ul><li>Stats are all very well – but what do they mean? </li></ul><ul><ul><li>High Internet Usage </li></ul></ul><ul><ul><li>More people shopping online every year </li></ul></ul><ul><ul><li>Mature affiliate market (lots of merchants offering commission) </li></ul></ul><ul><ul><li>High income per Capita </li></ul></ul><ul><ul><li>Lots of opportunities to monetise UK traffic! </li></ul></ul>
  9. 9. HOT UK AFFILIATE TOPICS
  10. 10. Hot Topics – What you should know <ul><li>Spyware is banned by all major UK networks </li></ul><ul><li>Last click always wins </li></ul><ul><li>Offers are not typically recycled by multiple networks – lack of “CPA” networks based out of UK </li></ul><ul><li>Most networks do not support 3 rd party pixel tracking from affiliates as most networks have bespoke software </li></ul><ul><li>No standardised formats for anything (datafeeds, vouchers, etc)! </li></ul><ul><li>Consumer behaviour is different </li></ul><ul><ul><li>“ Sales letter” type websites do not get the same kind of response as over regions </li></ul></ul><ul><ul><li>UK MLM & Ebooks marketers tend to market globally rather than to the UK as we’re slightly less receptive to them </li></ul></ul><ul><li>Delivery of items is equally important to customers as price </li></ul><ul><ul><li>Cost, Time of Delivery, etc </li></ul></ul>
  11. 11. Hot Topics – Voucher Codes <ul><li>Discount & Voucher codes key terms </li></ul><ul><li>Click to Reveal most common practice </li></ul><ul><li>IAB Rules / Guidelines to be enforced from Jan 09 </li></ul><ul><ul><li>Separation of offers and discounts </li></ul></ul><ul><ul><li>Valid codes </li></ul></ul><ul><li>Glory days now gone </li></ul><ul><ul><li>Competitive (1 in 7 sites a voucher code sites) </li></ul></ul><ul><ul><li>Some merchants no longer issuing codes / lowering commission (Figleaves example) </li></ul></ul><ul><li>New services make it easier to find codes </li></ul><ul><ul><li>Promotions.co.uk </li></ul></ul><ul><ul><li>iCodes </li></ul></ul>
  12. 12. Hot Topics – Cashback/Incentive <ul><li>Cashback starting to become mainstream </li></ul><ul><ul><li>MSN/MirrorCashback/SunCashback/GMTV/Kelkoo </li></ul></ul><ul><ul><li>TV Advertising for Cashback.co.uk – http://www.sgud.co.uk/index26.html </li></ul></ul><ul><li>100% Cashback sites most popular (Quidco).. Others include </li></ul><ul><ul><li>50% Cashback </li></ul></ul><ul><ul><li>Point based sites </li></ul></ul><ul><li>Some larger merchants leaving cashback sites (John Lewis) due to question marks their benefits </li></ul>
  13. 13. Hot Topics – Other <ul><li>De-Duping - One of the biggest challenges of the industry at present </li></ul><ul><ul><li>Doubleclick and Atlas tracking not reliable – research shows only 60% display rate of tracking code </li></ul></ul><ul><ul><li>Some merchants de-duping against inhouse brand PPC; affiliates not informed </li></ul></ul><ul><li>Rise of CPL campaigns, typically low value and used for list building </li></ul><ul><li>Influx of CPA email providers (traditionally CPM) </li></ul><ul><li>Brand name bidding </li></ul><ul><ul><li>Brand name bidding not what it was </li></ul></ul><ul><ul><li>Brandwatcher </li></ul></ul><ul><li>The Credit Crunch </li></ul><ul><ul><li>Merchants “going under” </li></ul></ul><ul><ul><li>ATOL bonding and consumer protection now a sales point </li></ul></ul><ul><li>Payment term changes – less networks paying out in advance </li></ul><ul><li>Anti-fraud measures being put in place by networks </li></ul>
  14. 14. THE TOP 5 UK NETWORKS
  15. 15. Top 5 Networks – AffiliateFuture <ul><li>5 Day Validation Period </li></ul><ul><li>Strong technology </li></ul><ul><ul><li>Cookieless Tracking </li></ul></ul><ul><ul><li>Travel, Retail, Voucher and Cashback APIs </li></ul></ul><ul><li>Monthly payment on all transactions </li></ul><ul><li>Strong account & affiliate management </li></ul><ul><li>Strongest network for travel clients (typically v. High ticket value) </li></ul><ul><li>Based in UK, Europe and USA </li></ul><ul><li>Won IMA best use of AM award </li></ul>
  16. 16. Top 5 Networks – Affiliate Window <ul><li>Lots of High Street Retailers </li></ul><ul><li>Regular (twice monthly) payments </li></ul><ul><li>Strong account and affiliate management </li></ul><ul><li>Good reporting and stat packages </li></ul><ul><li>Good product feed solutions (ShopWindow) </li></ul><ul><li>Good anti-fraud measures </li></ul>
  17. 17. Hot Topics – Buy.at/Platform A <ul><li>Now an international network </li></ul><ul><li>Good support for PPC affiliates </li></ul><ul><li>Next-gen affiliate interface </li></ul><ul><li>Strong in Finance and Services/Utilities </li></ul><ul><li>Short run and specialist campaigns through Advertising.com </li></ul><ul><li>Variety of campaign type earnings (CPM, CPC as well as CPA) </li></ul>
  18. 18. Top 5 Networks – CJ <ul><li>Well established with large variety of programmes with true global reach </li></ul><ul><li>Large variety of promotional options </li></ul><ul><ul><li>Email Creative </li></ul></ul><ul><ul><li>Coupon Creative </li></ul></ul><ul><ul><li>Smartzones (allowing ratings) </li></ul></ul>
  19. 19. Top 5 Networks – Tradedoubler <ul><li>Large range of merchants </li></ul><ul><li>Plenty of reporting metrics </li></ul><ul><li>Ad “Pool” for displaying creative based on conversion rate </li></ul><ul><li>Strong in other European areas </li></ul><ul><li>Website verification to protect merchants and affiliates </li></ul>
  20. 20. SOME SUPER AFFILIATES
  21. 21. MyVoucherCodes <ul><li>Largest Vouchercode site in UK </li></ul><ul><li>Received 8.5m+ UV’s in December 08 </li></ul><ul><li>Email database of over 500,000 users </li></ul><ul><li>3500 merchants listed </li></ul><ul><li>Over 1000 active voucher codes at any one time </li></ul><ul><li>Over 5000 active deals and offers listed </li></ul><ul><li>Running since Nov 2006 </li></ul>
  22. 22. Top Cash Back <ul><li>2 nd Largest cashback site </li></ul><ul><li>200,000 Active members (who have logged in recently) </li></ul><ul><li>Over 1,600 Merchants Listed </li></ul><ul><li>0.25m Transactions in December 08 </li></ul><ul><li>Generated over £5m in sales in December 08 </li></ul>
  23. 23. Holiday Watchdog <ul><li>Started by two people in 2003 </li></ul><ul><li>Listing over 40,000 hotels </li></ul><ul><li>Powered by User generated content (Reviews, text + video) </li></ul><ul><li>Receives approx 8m PV’s per month </li></ul><ul><li>Recently sold for undisclosed sum to Expedia/TripAdvisor (rumoured £9m) </li></ul>
  24. 24. Mobiles4Everyone <ul><li>Established in 2002 - UK’s first mobile phone price comparison site </li></ul><ul><li>Compares over 300,000 deals from around 20 merchants/suppliers </li></ul><ul><li>Offers instant white label site plus datafeed, iframes and scripts </li></ul><ul><li>Has more than 200 active sub-affiliates/partners </li></ul><ul><li>Powers many high profile sites: Mobileshop.com, Uswitch.com, Top10.co.uk </li></ul>
  25. 25. 2009 PREDICITIONS
  26. 26. <ul><li>Evolution by merchants (Sunpress) </li></ul><ul><li>More CPL campaigns </li></ul><ul><li>More Niche merchants (and networks) </li></ul><ul><li>Network consolation </li></ul><ul><li>More expansion into the UK from Overseas publishers, merchants and networks (esp. US) </li></ul>
  27. 27. QUESTIONS AND ANSWERS
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