This presentation is from Affiliate Summit West 2016 (January 10-12, 2016 in Las Vegas, NV). Session description: Patrick will share advice on the key issues you’ll need to be aware of before entering the Chinese market. He’ll touch on the Great Firewall, transparency, privacy, and more.

1. Scaling the Great Wall:
Performance Marketing in China

2. About HasOffers by TUNE
Opportunity and Overview
Challenges to Consider
Tips for Success
Q&A
Agenda

3. As VP of Global Sales at HasOffers,
Patrick is passionate about
encouraging people and driving
growth. Patrick is responsible for the
Global Sales and Account
Management for the HasOffers
product. He joined the TUNE team in
2009, coming from a background in
technology sales, as well as a stint
casting reality TV shows. Patrick's
international team has helped
thousands of people from around the
world run successful businesses on
the HasOffers platform.
Patrick L. Hearron, VP of Global Sales at TUNE
Meet the Presenter

4. Where Performance Meets Technology
About TUNE and HasOffers

5. ● World’s largest
smartphone market.
● Represents 28.3% of all
smartphone users on the
planet.
● Access to affordable
smartphones and wifi
has contributed to
growth.
● 2016 is projected to
increase 8% to 563.3M
users.
*eMarketer, July 2015
Mobile Industry in China

6. “Mobile Ad Spend to Top $100 Billion Worldwide in 2016, 51% of Digital Market”- eMarketer, 4/2/15
Biggest Growth Regions Globally

7. ● Average consumer
downloads 40 apps per year.
● Most are open to sharing
personal data in exchange
for a return.
○ Freemium is more
effective than paid.
● 40% of consumers purposely
engage with the marketing
(vs. U.S./E.U. 0%).
Biggest Trends by Chinese Consumers
Source: PWC study

8. With opportunity comes challenge...

9. ● What do we mean by “The Great
Firewall”?
● Limited access to Facebook,
Google, Twitter—sites popular in
the U.S. and E.U.
● Little effectiveness of Google Play
and the App Store.
● The rise of hundreds of options
for third-party app stores.
● Many savvy users VPN outside of
China, but the firewall is
becoming smarter.
The Great Firewall

10. Differences from the EU/US
● Trademark is more “flexible” than in the U.S. (copycat apps and
software).
● Transparency/Privacy: sharing information (pricing).
● Importance of respect, hierarchy (decision making).
● Payment and contracts are different (terms). Delayed payments are
the norm.
Differences from the U.S./E.U.

11. ● Importance of cost over value.
● Advertisers compete with native apps (pre-installed).
● More likely to uninstall an app (consumers want targeted
information based on needs).
Differences from the U.S./E.U.

12. So, now what?

13. How to Scale the Wall?

14. ● For mobile, APK (Android Package Kit) and DDL (Direct Download Link)
are the way to go. There are hundreds of options for third-party app
stores.
● Partner with third-party companies that have access to these app stores if
you are an app marketer trying to break in.
● Look for alternative marketing channels. China is dominated by Baidu,
Tencent, Youku (Chinese YouTube), Alibaba. Not Facebook or Google.
Tips: Firewall

15. ● Chinese companies looking to
push apps to international market.
● Utility apps are most successful
thus far.
● Payout % is greater in China, than
E.U./U.S.
● Mobile video and coupons are
effective drivers of install and
engagement.
● Advertising in China? Mobile
gaming on the rise.
Tips: Mobile

16. Trends:
● $U.S./E.U. China
● U.S./E.U. China￥

17. ● Align your strategy and approach
to the culture.
● Look for alternative advertising
channels.
● Make sure expectations are clear
and defined.
● Have dedicated resources that
understand the norms, people,
and language.
● Partner with an experienced
external team.
The Do’s

18. The Don’ts
● Use a Western approach to business
development and sales.
● Assume contracts/pricing will work
the exact same as U.S./E.U.
● Disagree in a direct way.
● Localize without figuring out long-
term implications.
● Trust technologies or companies
without established experience.

19. Questions?
Get in touch!
HasOffers by TUNE
hosales@hasoffers.com
206.508.1318
Patrick Hearron
patrick@tune.com