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.
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
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)
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. 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. 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
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publishers
• Provide facility for new publisher enquiries &
d f l f bli h i i & streamlined sign‐up process
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• 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
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, Marriott.com 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 Hotels.com
2008 Online Sales
• Marriott.com drove $6.2 billion in gross revenue (+18.8% YoY)
• Marriott Global sites grew +66% YoY
Marriott Global sites grew +66% YoY
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
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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. 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%
22. International ‐ Operations
Regional Offices – International Sites – Affiliate Programs
North America
North America Central Europe
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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. Previous Affiliate Marketing Structure
Campaigns, creative &
C i ti &
strategy drip fed into
European campaign
with no consideration
of language, regional
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differences, or local
contacts.
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
27. Publisher Recruitment
Recruiting
Direct Network
Conferences/ Outreach to pubs
Regional
with various
Direct Outreach Managers
business models
Regional
Hotels
28. Publisher Recruitment Challenge
Attracting,
Attracting
targeting &
approaching the
approaching the
right
publishers in
each country…
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30. Publisher Communication
Less Cultural
Face-to- Differences
Face
Language
Issues
Time
Differences
Local
Knowledge
K l d
Publisher Communication
Publisher Communication
33. Meeting Publisher’s Needs
Country Cultural
Specifics needs
Publisher Market
Needs Trends
Industry
Trends
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.
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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. 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
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grow European publisher base organically.
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• Globally;
– 28% YOY Growth in March Gross Revenue
28% YOY Growth in March Gross Revenue