Internationally Managing Your Campaign From A Distance


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Topic: Internationally Managing your Campaign from a Distance
How to successfully manage an international affiliate program? How to overcome challenges related to country and culture differences, and what to keep in mind when expanding your affiliate program beyond national borders? This topic is also becoming more relevant for affiliates as they take their marketing efforts global and learn how to best work with international advertisers.
In today’s economy, performance marketing is a crucial component of companies’ overall online marketing strategy. Affiliate Marketing is essential as it has a lower CPA than other advertising channels, and it is major vehicle for increasing visibility online. We live in a Global Economy, and expanding your online activities internationally is more important than ever to be successful.

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Internationally Managing Your Campaign From A Distance

  1. 1. Internationally Managing  Internationally Managing your Campaign from a  Distance 29th April 2009
  2. 2. Who’s who? • Cheryl Ingram UK Client Development Director Cheryl Ingram, UK Client Development Director,  Commission Junction • Peter Norris, Performance Marketing Manager,  EMEA, InterContinental Hotels Group EMEA InterContinental Hotels Group • Lena Siara Huang eCommerce Manager Lena Siara Huang, eCommerce Manager,  Marriott International
  3. 3. Agenda • Introduction – the European landscape • Marriott and IHG program overviews  • Interview – with IHG and Marriott • Wrap‐up  • Any questions?
  4. 4. European Facts • The total online audience in Europe grew by 8% YOY to 241 million (June 08) • This year, eMarketer estimates there will be 136.1 million Europeans  online in the five largest European Union countries – UK, France,  Germany, Italy, Spain • c178 million Europeans go online every week • Over half (55%) of internet users in Europe go online everyday • Europe now accounts for 28% of the total world population • Online behaviours across Europe have changed dramatically  a massive  Online behaviours across Europe have changed dramatically ‐ a massive 80% of European internet users have bought a product or service online,  up 3% since 2006 and double the 2004 figure.(EIAA Mediascope study)
  5. 5. YoY Growth in Broadband Penetration
  6. 6. Differences by Market
  7. 7. Differences by Market
  8. 8. Differences by Market
  9. 9. Differences by Market
  10. 10. Differences by Market
  11. 11. Peter Norris
  12. 12. IHG at a Glance
  13. 13. The IHG Affiliate Campaign An introduction: – IHG has one global affiliate programme with local management in the  Americas, EMEA and APAC regions; – Commissions are paid on completed stays; – Promote all brands and hotels globally; Promote all brands and hotels – Migrated to CJ in 2008 from BeFast;
  14. 14. Why we chose CJ Some of the benefits of the CJ platform are as follows: – A global leader in affiliate marketing, allowing IHG to work with new  sites in all regions – Opportunity to partner with top performing affiliates – Affiliate commissions can be paid in multiple currencies Affiliate commissions can be paid in multiple currencies – The potential for more revenue and exposure for our hotels – Allows for easy sign‐up and enrolment to the affiliate program 
  15. 15. Our Expansion into Europe • Install ‘on‐the‐ground’ local management of affiliate programmes • Build direct relationship between local CJ manager & IHG performance marketing  manager for that country • Provide local Performance marketing managers with outlet for potential  i l publishers  • Provide facility for new publisher enquiries & d f l f bli h i i & streamlined sign‐up process li d i • Grow affiliate based revenue in France, Germany, Italy & Spain. • Commission new revisions & improve quality of existing affiliate campaign  materials in Europe (creative, links, catalogue) • Operate recruitment drive of locally identified potential publishers
  16. 16. Lena Huang
  17. 17. Marriott International – Fast Facts Marriott has over 3,100 hotels in 68 countries, and has been ranked as the  lodging industry s most admired company lodging industry’s most admired company In 2008, has been ranked … • #7 i th T 10 l #7 in the Top 10 largest consumer retail Web sites in the world t t il W b it i th ld No other hotel company has made it into the Top 10. • #1 for  User Experience #1 for “User Experience”  First time a direct supplier has out‐performed any travel service  aggregator, including Expedia and  2008 Online Sales • drove $6.2 billion in gross revenue  (+18.8% YoY)   • Marriott Global sites grew +66% YoY Marriott Global sites grew +66% YoY
  18. 18. Marriott ‐ Brands
  19. 19. Affiliate Marketing – a Growing Channel Affiliate Marketing as strategic part of overall online strategy • Channel increases visibility online Channel increases visibility online • Gives access to new customers and customer segments  • Affiliate shoppers tend to buy more than the average shopper • Lower CPA than other advertising channels Why Marriott decided to expand globally… • In the US affiliate marketing spending accounts for 9% of total online  ad spending and is estimated to reach $3.3 billion in 2012 • The US affiliate industry is estimated to grow at a compound annual  y g p growth rate (CAGR) of 13% over the next five years • Travel is #1 advertiser sector in affiliate industry, accounting for 30% • Affiliate marketing is a growing channel – globally Affiliate marketing is a growing channel 
  20. 20. Marriott’s Affiliate Programmes Today US Program UK Programme • Launched in 2003 • Launched in 2007 • Main audience in US & Canada • Main audience in UK & Ireland • To date 3,000+ affiliates To date 3,000+ affiliates • To date 600+ affiliates To date 600+ affiliates YOY Growth 2008: +80%
  21. 21. Interview
  22. 22. International ‐ Operations Regional Offices – International Sites – Affiliate Programs North America North America Central Europe p USA Germany France UKIMEA US & Canada UK UK & Ireland Asia‐Pacific Ireland Australia China Carrib. LatAm Carrib ‐LatAm Japan LatAm ‐ Spanish/ Español South Korea Brazil
  23. 23. Previous Affiliate Marketing Structure Campaigns, creative &  C i ti & strategy drip fed into  European campaign  with no consideration  of language, regional  g g g differences, or local  contacts.
  24. 24. Revised Affiliate Program Structure
  25. 25. Affiliate Programme Realignment The new structure increases programme accessibility for the local IHG  manager, as well as utilising local knowledge on both IHG and CJ sides; Recruitment ongoing by CJ Provided with  Non‐CJ  Local CJ Manager able to  Local CJ Manager able to information  Publishers in  immediately offer terms Local  IHG  from  local market Performance  Commission  Affiliate  Marketing  Junction Local  programme Existing CJ  On‐the‐ground, local CJ  Manager M manager on… manager on manager able to approach  Publishers in  local market publisher & invite to  program. IHG identified potential publishers identified in local market, by  local IHG performance marketing manager & added to campaign
  26. 26. Interview
  27. 27. Publisher Recruitment Recruiting Direct Network Conferences/ Outreach to pubs  Regional  with various  Direct Outreach Managers business models Regional Hotels
  28. 28. Publisher Recruitment Challenge Attracting, Attracting targeting & approaching the  approaching the right publishers in  each country… h
  29. 29. Interview
  30. 30. Publisher Communication Less Cultural Face-to- Differences Face Language Issues Time Differences Local Knowledge K l d Publisher Communication Publisher Communication
  31. 31. Revised Campaign Materials Some of the changes we’ve made to ensure good communication: – New translated publisher information pages; – Newly commissioned IHG branded creative; Newly commissioned IHG branded creative; – Hotel database updated and translated for publisher download; – Deeplink URL generators; – Translated newsletters/emails.. 
  32. 32. Interview
  33. 33. Meeting Publisher’s Needs Country  Cultural  Specifics needs Publisher  Market  Needs Trends Industry  Trends
  34. 34. Keeping up‐to‐date • Understanding and being aware of each market is vital to success. – Local CJ Manager inputs on country trends, creative requirements &  bespoke opportunities within publisher base; – Local IHG Performance Marketing manager forms relationships with  local publishers and can negotiate deals; – UK & US IHG Performance Marketing Managers can open  promotional campaigns out to Europe through translated and locally  relevant materials. – Maintain a presence on A4U and approach potential affiliate partners via system. y
  35. 35. Some Extra Bits Where are you now and what  have  you learnt on the way?  you learnt on the way?
  36. 36. Fresh & Innovative Programs Affiliate Offers • Hotels/ Rooms with 11 different Marriott brands Commissions on completed stays C i i l t d t • ShopMarriott Products Commissions on online purchases Affiliate Tools • Variety of creative and advanced links • Data feeds, Deep links, Custom links • Deals and specials Communication Constant updates with tips & tricks 
  37. 37. What’s Next? Global Expansion – Things to consider • Market potential • How developed is eCommerce in this market/ country / • Existing affiliate industry • Awareness of your products/ services/ brand • Local representation/ Language constraints • Choosing the right affiliate network • Technical and cost considerations Technical and cost considerations
  38. 38. Where are we now? • Within Europe; – 270+ publishers signed up in Europe; – Fully integrated, locally managed, regional campaigns running in  France, Germany, Italy and Spain; – 33% increase in European affiliate revenue since start of European  expansion; – Ongoing recruitment drive, reviewed on a quarterly basis in place to  g grow European publisher base organically. p p g y • Globally; – 28% YOY Growth in March Gross Revenue 28% YOY Growth in March Gross Revenue
  39. 39. Coming Soon
  40. 40. Coming Soon
  41. 41. Coming Soon
  42. 42. Coming Soon
  43. 43. Coming Soon
  44. 44. Wrap Up One size does not fit all One size does not fit all Communication, Communication,  Communication, Communication, Communication
  45. 45. Any questions? Any questions?