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Asian Affiliate Market: How to Crack the Billion Dollar Nut

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This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: The Asia-Pacific (APAC) region has been experiencing tremendous growth within digital and affiliate marketing in the past years. Let’s look at the market, and successful case studies.

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Asian Affiliate Market: How to Crack the Billion Dollar Nut

  1. 1. THE ASIAN AFFILIATE MARKET HOW TO CRACK THE BILLION DOLLAR NUT
  2. 2. MOZOO + 150 COUNTRIES EUROPEAN MOBILE ADVERTISING LEADER + 5,000 CAMPAIGNS + 1,000 CLIENTS 2010 2013 2016 2016 110 MOBILE EXPERTS 2016
  3. 3. OUR TIME TODAY 01 04 05 0602 03 APAC DIGITAL AD SPEND CHINA TRAFFIC SOURCES VERTICALS ADVERTISER RELATIONSHIPS CASE STUDIES
  4. 4. APAC DIGITAL AD SPENDING BIG FAT STATS
  5. 5. APAC MOBILE AD SPEND GREW BY 18.2% IN 2016 TO REACH $59.7BN OVERTOOK NORTH AMERICA IN 2016, WHICH GREW BY 9.6% TO REACH $59.5BN 13.4 23.7 36.8 51.1 66.1 79.1 0 10 20 30 40 50 60 70 80 90 2014 2015 2016 2017 2018 2019 MOBILE AD SPENDING (BILLIONS) 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 2014 2015 2016 2017 2018 2019 MOBILE AD SPENDING (% OF TOTAL DIGITAL AD SPENDING)
  6. 6. CHINA LEADING APAC GROWTH, GREW BY 28% IN 2016 39.7 65.7 22 48.7 0 10 20 30 40 50 60 70 2016 2019 DIGITAL & MOBILE AD SPEND (BILLIONS) Digital Ad Spend Mobile Ad Spend
  7. 7. CHINA LEADING APAC GROWTH, GREW BY 28% IN 2016 165 95 15 0 20 40 60 80 100 120 140 160 180 USA WESTERN EUROPE CHINA AD SPEND PER CAPITA ($)
  8. 8. BOOMING TERRITORIES: JAPAN 4TH BIGGEST DIGITAL AD SPEND GLOBALLY 10.5 12 5 8.4 0 2 4 6 8 10 12 14 2016 2019 DIGITAL & MOBILE AD SPEND (BILLIONS) Digital Ad Spend Mobile Ad Spend
  9. 9. BOOMING TERRITORIES: SOUTH KOREA 6TH BIGGEST DIGITAL AD SPEND GLOBALLY 3.3 4.4 2.1 3.4 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2016 2019 DIGITAL & MOBILE AD SPEND (BILLIONS) Digital Ad Spend Mobile Ad Spend
  10. 10. TRAFFIC SOURCES LAUNCHING A CAMPAIGN IN CHINA
  11. 11. THE BIG THREE 85%OF TOTAL CHINA TRAFFIC
  12. 12. BAIDU SEARCH & DISPLAY TRAFFIC 70M DAILY ACTIVE SEARCH USERS 660M MONTHLY MOBILE SEARCH USERS GOOD REPORTING INTERFACE 300 RESELLERS ALL FOCUSED ON DIFFERENT VERTICALS
  13. 13. WECHAT MOMENTS BEHIND WECHAT (WEIXIN) ALSO QQ AND QZONE COMMUNICATION AND GAMES WECHAT: 517M DAU SLOWLY OPENING UP TO ADVERTISERS THREE WAYS TO ADVERTISE
  14. 14. 1. WECHAT MOMENTS SINCE 2015 TWO TYPES OF COMPANIES CAN USE MOMENTS: COMPANIES REGISTERED IN MAINLAND CHINA WILLING TO INVEST AT LEAST $7,500 USD FOREIGN COMPANIES WILLING TO INVEST AT LEAST $20,000 USD USE A RESELLER LIKE MOZOO
  15. 15. 2. KEY OPINION LEADERS LEVERAGE SOCIAL INFLUENCERS FROM $100 BANNER TO $50K BLOG POST NOT MUCH RED TAPE AROUND COMPLIANCE USE PARKLU TO FIND INFLUENCERS
  16. 16. 3. BANNERS STANDARD BANNERS AND MPU’S WITHIN WECHAT OLD BANNERS: POOR PERFORMANCE AND TARGETTING LITTLE CONTROL NEW BANNERS: CPV MODEL FULL CONTROL AND BETTE EFFICIENCY ONLY FOR CHINESE REGISTERED COMPANIES USE RESELLERS LIKE MOZOO
  17. 17. ALIBABA eCOMMERCE PLATFORM LIKE AMAZON 427M MAU USED TO SELL PRODUCTS NOT TO BUY TRAFFIC eCOMMERCE IS BOOMING IN APAC & CHINA ALSO USE TAOBAO WHICH HAS AN ADEXCHANGE TAOBAO TANX
  18. 18. ALIBABA eCOMMERCE PLATFORM LIKE AMAZON 427M MAU USED TO SELL PRODUCTS NOT TO BUY TRAFFIC eCOMMERCE IS BOOMING IN APAC & CHINA ALSO USE TAOBAO WHICH HAS AN ADEXCHANGE TAOBAO TANX
  19. 19. DSP’s 300+ DSP’s IN CHINA THAT YOU CAN USE HALF OF THESE HAVE THEIR OWN DMP PLENTY DSP’s OUTSIDE CHINA WITH GOOD REACH MAKE SURE YOUR DSP IS PLUGGED INTO GOOD SSP’s
  20. 20. VIDEO VIDEO IS A BIG OPPORTUNITY FOR PERFORMANCE MARKETERS ‘YOUKU TUDOU’ ACQUIRED BY ALIBABA GROUP IN NOVEMBER 2015 YOUTUBE OF CHINA 80% OF VIDEO TRAFFIC TO BUY TOP VIDEO TRAFFIC IS VERY COMPETITIVE WORK WITH DEVELOPERS DIRECTLY OR WITH DSP’s/SSP’s WITH NON-FUGIBLE VIDEO TRAFFIC
  21. 21. VERTICALS TOP VERTICALS IN CHINA
  22. 22. HOT VERTICALS UTILITIES eCOMMERCE GAMES NEWS
  23. 23. ADVERTISERS TOP ADVERTISERS IN CHINA
  24. 24. UTILITIES 4BIGGEST UTILITES PLAYERS
  25. 25. QUIHOO 360 360 SECURITY: $3M PER NETWORK OPERA MINI: $800K PER DAY BIGGEST ADVERTISER IN CHINA STARTED THE UTILITIES AND TOOLS TREND FREEMIUM MODEL ADVERTISING MONETISATION
  26. 26. QUIHOO 360 NOT AS BIG AS QIHOO BUDGETS OF OVER $1M TO CERTAIN NETWORKS EVERY MONTH
  27. 27. UTILITIES SHIFTING LANDSCAPE UTILITIES WERE PREVIOUSLY ONLY REAL CN ADVERTISERS VOLUME AND SCALE WERE VERY MUCH THE FOCUS LOOKING FOR USERS GLOBALLY FOCUS ON TEIR 1 COUNTRIES US & EUROPE FOCUS ON ROI AND VALUE PER USER GENERALLY THE US USER ECPM IS 10X THE VALUE COMPARED TO SEA •SEA BUDGET IS IN A DECLINE, BUT US & EUROPE INCREASING
  28. 28. E-COMMERCE NEXT YEAR BIG DIRECTION THE MIDDLE CLASS IN CHINA ARE RISING BIG INCREASE IN DEMAND BIG OPPORTUNITY CHINESE GOVERNMENT FORMED A POLICY TO GIVE BENEFITS DISCOUNTS AND ADVANTAGES TO CHINESE ADVERTISERS
  29. 29. LITTLE RED BOOK (XIAOHONGSHU) CONNECTS OVERSEAS MERCHANTS WITH LOCAL BUYERS SUPPORTED BY CHINESE GOVERNMENT FOUNDED IN 2013 RECENTLY RAISED $100M FROM TENCENT HOLDINGS THEY ASK FOR HIGH QUALITY USERS HAVE UNLIMITED BUDGET FOR QUALITY VALUATION OF $1BN
  30. 30. GAMES HUGE BUDGETS FOR GOOD QUALITY HARD OR SOFT KPI’s CLASH OF KINGS & MAGIC RUSH BIG GAMES BY ELEX WIRELESS LOOKING FOR USERS OUTSIDE CHINA AND IN CHINA
  31. 31. NEWS JIN RI TOU TIAO (JRTT) NUMBER 1 NEWS APP IN CHINA $MILLIONS SPENT ON AFFILIATE MARKETING EVERY MONTH
  32. 32. CAPS & BUDGET CPI THE PO ARE USUALLY SIGNIFICANTLY LOWER IN CHINA THAN IN OTHER TERRITORIES CR TENDS TO MAKE UP FOR THIS ONCE YOU HAVE PROVEN TRAFFIC QUALITY, BUDGET AND CAP TEND TO BE UNLIMITED IF YOU CAN BRING QUALITY USERS YOU CAN JUST SPEND
  33. 33. ADVERTISERS RELATIONSHIPS
  34. 34. ADVERTISER RELATIONSHIPS LIVE: 25K OFFERS IN CHINA DIRECT ADVERTISER RELATIONSHIPS ARE VERY IMPORTANT IF YOU DON’T SPEAK CHINESE TRUSTED INTERMEDIARY SUCH AS A NETWORK WORK WITH A ‘LOCAL’ NETWORK WHO WORKS DIRECTLY WITH THE ADVERTISERS CLEAR COMMUNICATION FOR PAYMENTS, TRAFFIC QUALITY, KPIS, CAPS
  35. 35. CASE STUDY CHINESE UTILITIES CPI IN INDONESIA
  36. 36. CASE STUDY EMMANUEL CINCA HEAD OF ADIFY SUPER AFFILIATE EXPERT IN PROMOTING CHINESE OFFERS
  37. 37. CASE STUDY TRAFFIC THE BLACKBERRY MESSENGER APP GENERATED A FEW HUNDRED MILLION RAW IMPRESSIONS PER DAY ON TWO BANNER SIZES: 320X50 AND 300X250
  38. 38. CASE STUDY ANGLE TEST STARTED WITH DIRECT LINKING 5 BANNERS, EACH WITH AN INDIVIDUAL ANGLE ONE OF WHICH WAS “MAKE YOUR ANDROID LOOK LIKE AN IPHONE” THIS ANGLE GOT TO BREAK EVEN IN THE INITIAL TEST POWER IN ‘GENERIC’ ANGLES VERY NICH & SPECIFIC ANGLES AREN’T ALWAYS THE ANSWER TO SCALE QUICKLY, GENERIC ANGLES CAN BE POWERFUL
  39. 39. CASE STUDY ADD LANDING PAGE SIMPLE LANDING PAGE KEPT IT CLEAN AND LEFT IT TO BEGIN WITH ITERATED AGGRESSIVELY ON BANNERS AIMING TO INCREASE CTR AND ALSO CR OFTEN TOUGH TO BALANCE THE TWO WHEN BUYING BANNERS ON CPM
  40. 40. CASE STUDY BANNER ITERATIONS
  41. 41. CASE STUDY GETTING 100% ROI THE NON-ANIMATED VERSION OF THIS BANNER ACHIEVED 100% ROI SLICK LOOKING BANNER WAS MOST SUCCESSFUL TESTED MORE LPS, SOME WITH FANCIER DESIGNS BUT NOTHING BEAT THE ORIGINAL CONSTANTLY ASKED FOR QUALITY FEEDBACK NOTE DUE TO THE GENERIC ANGLE, SCALING TO NEW GEOS WAS EASY
  42. 42. CASE STUDY RESULTS OVER 252,000 INSTALLS GENERATED IN INDONESIA ALONE, JUST ON THIS TRAFFIC SOURCE $63,000 COMMISSION OVER 100% ROI SUBSEQUENTLY SCALED TO MORE GEOS & TRAFFIC SOURCES
  43. 43. CASE STUDY LESSONS SCALABILITY CAN BE ACHIEVED MANY WAYS, BUT THE KEY THING IS MAKING SURE YOU KEEP YOUR AUDIENCE LARGE ENOUGH DON’T BE PUT OFF BY LOW PAYOUTS USE NETWORKS WHO WERE IN DIRECT WITH THE ADVERTISERS LOCALLY
  44. 44. FINAL THOUGHTS THE ASIAN AFFILIATE MARKET
  45. 45. TO RUN CHINESE OFFERS GLOBALLY QUALITY OF TRAFFIC IS A BIG THING JUST DRIVING INSTALLS OR ACQUISITIONS IS DEFINITELY NOT ENOUGH HARD KPIS ARE BECOMING THE NORM MAKE SURE YOU CHECK THE KPIS (OFTEN RETENTION RATE) BEFORE YOU START BE PREPARED TO HAVE PAYMENTS WITHHELD IF YOU DON’T HIT THE KPIS LET THE TRUSTED AFFILIATE NETWORK RUN THE RELATIONSHIP WITH THE ADVERTISER START WITH GENERIC ANGLES FOR SCALE, THEN ITERATE WITH MORE SPECIFIC ANGLES UNDERSTAND THE CULTURAL HOOKS IN EACH TERRITORY
  46. 46. TO RUN CHINESE OFFERS GLOBALLY SIGNIFICANT BARRIERS TO ENTRY RUNNING AFFILIATE OFFERS WITH NETWORKS ALREADY IN THESE TERRITORIES IS SUPER IMPORTANT UNDERSTANDING WHO THE BIG ADVERTISERS ARE, WHAT THE BIG VERTICALS ARE AND WHAT THE BIG TRAFFIC SOURCES ARE BUILD RESELLER RELATIONSHIPS WITH THE BIG TRAFFIC SOURCES
  47. 47. THANK YOU

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