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Insiders Guide To Europe - Vincent Pelillo, Sabine Hasse, Nicky Iapino, Peter Rowe, Auke Boersma

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Insiders Guide To Europe - Vincent Pelillo, Sabine Hasse, Nicky Iapino, Peter Rowe, Auke Boersma

  1. 1. ´ The Insider´s Guide to Affiliate Marketing in Europe a4uexpo 2008 Nicky Iapino, Vincent Pelilo, Auke Boersma, Peter Rowe, Sabine Haase successful together
  2. 2. Agenda • Market Size • Understanding Local Markets - UK - Germany - France - Netherlands • Best Practice Account Management • Affiliates – Expanding to Europe • Summary • Questions & Answers Page 2
  3. 3. AdLINK Group AdLINK Group is Europe's leading independent Online Marketeer with revenue of £185m in 2007. The Group comprises the following Business units: • Affiliate Marketing with affilinet • Display Marketing with AdLINK Media • Direct Marketing with net:dialogs • Email Marketing with composite • Domain Marketing with Sedo Page 3
  4. 4. affilinet • Founded October 1997, 100+ employees • Networks in Germany, France, UK, Netherlands, Spain, Austria & Switzerland • 1,500 Affiliate Programs • Averaging 2.6m transactions per month • Serving over 6bn impressions per month • 35,000+ active (clicks) Affiliates • Multi-lingual, multi-currency platform Page 4
  5. 5. European Market Size - £m In Europe, the total 350 value of the Online Market reached £8.5 300 billion in 2007 250 200 150 100 50 0 2005 2006 2007 2008 NL ES FR DE UK Page 5
  6. 6. Online Users across Europe Y-o-Y Germany 47.4 -1% 35.9 +6% UK 30.4 +14% France 29.6 +6% Italy 21.8 +23% Spain 12 +12% Netherlands 5.3 Almost 50% of Online +18% Switzerland Users in Europe are from UK & Germany Page 6
  7. 7. European Market Specifics – UK Advertisers • Retail, Travel & Finance are the key revenue drivers • Automotive & FMCG are growing and beginning to explore Affiliate Marketing/CPA Advertising • Quality of traffic and understanding of Affiliates is key • De-duplication of Sales is becoming more prevalent with better technologies • Provision of widgets & tools is growing rapidly Page 7
  8. 8. European Market Specifics – UK Affiliates • Most valuable Affiliates are SEO and Content • Paid Search continues to be a key source of traffic • Voucher Code Sites have grown rapidly over the last 12 months but issues over terms • Advertisers are looking to expand reach to non- traditional Affiliates that historically worked on CPM basis • General diversification of Affiliate types as more varied Advertisers enter the market Page 8
  9. 9. European Market Specifics – Germany Advertisers • Online transaction-oriented businesses strongest • Automotive & FMCG emerging sectors • Agency business accounts for approx. 40%. Specialist Agencies with major share • Majority of Programs still self-serviced • Affiliate Campaign business increasing • Requirements of Platforms high due to high level of self-service Programs • Key Product reqs: - Flexibility & variety of creative - Detailed range of security features - Abundant statistics offering Page 9
  10. 10. European Market Specifics – Germany Affiliates • SEM prevailing business model; openness of Advertisers to controlled SEM increasing • Content/SEO/Comparison sites almost equally important • eMail and Cashback publishers developing • Big bonus Programs offering high reach • Split of portfolio: Top Publishers & Longtail across all Networks • Publisher scene heavily connected Page 10
  11. 11. European Market Specifics – France Advertisers • Increasing varied industry segments: - historic Advertisers (Travel, Retail & eMerchants) - new segments (Banking/Finance, Automotive & FMCG) • Lead Generation business is strongly increasing & co-registration also developing • Rough Media Agencies positioning since more Advertisers deciding to directly manage their Programs • Affiliate Campaign business is strenghtening; Short-term Online Marketing actions increasingly developing • Double-tracking Technology; Advertisers wanting to optimise the de- duplication in Online Marketing mix Page 11
  12. 12. European Market Specifics – France Affiliates • Top Publishers now big companies ´ • Top 3 Publishers´ business models Email/SEM/Feed-user (Price Comparison, Cashback)/Network (site-under) • Email model growing, especially Lead Generation (high reach + accurate targeting) • Performance/SEM model still high, but at same pace • Strong connections among Publishers • Concentrated amongst 5-10 big Publishers for each Program •The 3-part relationship (Publisher-Advertiser- Platform) has to be re-invented, with the Platform as the trusted 3rd party • High quality Publishers key for Platforms, rather than getting more Advertisers Page 12
  13. 13. European Market Specifics – Netherlands Advertisers • Strong in CPC campaigns • Several strong financial A-brands with ongoing Programs • Upcoming FMCG – NEW BUSINESS! • Growth of high potential Gambling Industry slowed down due to laws • Massive amount of Leads delivered via CSV files • Enabling Media Agencies to regain lost business Page 13
  14. 14. European Market Specifics – Netherlands Affiliates • Strong in Loyalty/Voucher • Email Marketing has extensive reach • Display plays minimal role • SEM: a unique combination of trusted local SEM players & international SEM companies • 9-95 rule instead of 20-80 Page 14
  15. 15. Market Similarities & Differences • Retail features strongly across most markets, slightly smaller in Netherlands • Gaming features highly in France, less so in other Euro markets • Automotive & FMCG growing as Advertisers explore new Marketing avenues and Affiliate Marketing becomes more sophisticated channel • SEM still the main driver of traffic, directly and indirectly • Loyalty very strong in the UK, less strong across Europe Page 15
  16. 16. Best Practice Euro Management • Vital to understand the local markets you wish to operate in: - Affiliate nuances across sectors - Benchmark your activity against local competitors - Strategy may vary by country depending on your market position • Commissions may vary significantly by country so its important to retain flexibility • Work with your local Network and/or Agency to develop tiers & incentives which satisfy the local market • Understanding the Affiliates by market allows you to tailor communication accordingly • Important to select a Network that suits your goals & aspirations Page 16
  17. 17. Best Practice Euro Management • Local or Central Management • Local - Mainly dependant on resource & skill sets - Local input allows a higher degree of involvement & bespoke deals - Create better local relationships with key Affiliates - Example = eBay • Central - Allows a better overview of the whole market - Brand message must retain consistency across the markets - Communication is key both internally & externally - Example = Dating Direct/Meetic Page 17
  18. 18. Expanding into Europe - Affiliates • Crucial to liaise closely with your Affiliate Network representative • Leverage their understanding of the local marketplace • Understanding who the local Advertisers are can be time consuming • A single point of contact who is supportive can help establish you more quickly than going it alone • Double check T&Cs to avoid issues in the long run Page 18
  19. 19. Future of European Affiliate Marketing • Increase of cross-border business • Increased number of Affiliates operating across markets • Establishment of mega-publishers across markets • SEM will remain a key driver of sales, directly or indirectly • Borders will blur between Media & Affiliation, de-duplication will become more important • Monetisation via Video will come…sooner or later • Security and Quality will become more important Page 19
  20. 20. Questions & Answers successful together

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