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Global Affiliate Marketing - Approaching International, Regional and Local Strategy

The 'Global Affiliate Marketing - Approaching International, Regional and Local Strategy' session by Peter Figueredo, Jessica Nathan and James Maley which took place at Performance Marketing Insights NYC on March 13 2013.

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Global Affiliate Marketing - Approaching International, Regional and Local Strategy

  1. 1. Global Affiliate Marketing:Approaching international, regional & localstrategyPeter Figeuredo: Partner, Global Head of Client Services, House of KaizenJames Maley: Head of Corporate Clients Europe, TradedoublerJess Nathan: Global Affiliate Manager, Hilton Worldwide
  2. 2. Agenda• Market Overview: USA & Europe• Top affiliates• Vertical affiliates• Mobile• Legal considerations• Attribution
  3. 3. US market overview • B2C ecom sales will grow 12% to $384.8 billion in 2013 (30% of worldwide ecom) • US remains the largest spending country online but China is closing fast • Avg B2C ecommerce sales per user reach $2,466* • Advertisers with programs see 23% of their online sales coming from Affiliate** , Source: *eMarketer, Jan 2013 **AffiliateBenchmarks, 2012
  4. 4. European opportunity • 289.4m people online • Average 30 hours a month online • $1,738 average consumer spend online in 2012 • $111bn online retail spend in EU in 2012* • 12% annual growth forecast over next 5 years* • $5bn sales revenue driven within UK affiliate channel Where is the opportunity… Affiliate ad spend is expected to grow in H1 2013 +15% UK +10% Germany +7% France Source: *Forrester European Online Retail Forecast 2011-2016 **PhoCusWright European Online Travel Overview December 2012
  5. 5. Top affiliates in the US• 49% of US internet users 18+ will redeem a digital coupon/code for online or offline shopping *• 55% of respondents said they always check for deals before purchasing• 43% said promotional offers on coupon or deal sites often close the deal if they are undecided on a purchase• 48% believe promos on coupon or deal, blogs, loyalty, cash-back, or comparison shopping sites are better than direct retailer websites ** Cash back affiliates Coupon & deal affiliates Loyalty affiliates Comparison shopping affiliatesSource: eMarketer, Dec 2012, Forrester Research, 2012
  6. 6. Top affiliates in Europe• 95% of online consumers compare prices online*• 73% download coupons online• Over 40% of consumers via affiliation go direct to their favourite loyalty, cashback, voucher site• 40 – 60% multi channel purchases within affiliation end on a top partner site Cashback & Loyalty Voucher / coupons Closed networks Meta & price comparison Supplementary paid search
  7. 7. Vertical affiliates: US
  8. 8. Vertical affiliates: UK, France and Germany• Advanced multi- channel journeys• Vertical sites drive traffic• Purchase on cashback/loyalty
  9. 9. Vertical affiliates: Nordics• More blogging and user generated content sites• Consumers captured at point of purchase• Reviews/ recommendations more influential
  10. 10. Vertical affiliates: Italy and Spain• More PPC/SEO/SEM• Lack of quality content• Cashback sites starting to develop• Combined cashback and content offerings
  11. 11. Vertical affiliates: Eastern Europe• Affiliate channel developing• CPC prevalent• Content sites developing• Looking to UK as a model
  12. 12. Vertical affiliates
  13. 13. Working with niche affiliates to grow revenue11/1/2012 11/15/2012 11/29/2012 12/13/2012 12/27/2012 1/10/2013 1/24/2013 2/7/2013 2/21/2013
  14. 14. Content affiliates drive the most value THE VALUE OF REVIEWS • PhocusWright reports that people who read online hotel reviews are 59% more likely to book • A 2011 Forrester study found that close to 50% will not book a hotel without online reviews • Hotels which engage with guests see a 6% increase in review scores
  15. 15. Legal considerations in US See colourful and confusing TAX LAW graphic TRADEMARK Bid on any keyword but don’t confuse the consumer Soon to follow EU law (IMHO) COOKIES US LAW Everyone can sue for any reason
  16. 16. US “Affiliate” Tax Law Map courtesy of Commission Junction
  17. 17. Legal considerations in Europe Each market has deductible taxes TAX LAW that are fixed and based on services you provide! TRADEMARK Protecting your brand in the EU To protect users from cookies being COOKIES downloaded on their device and have their behaviour tracked without consent INTERNATIONAL Supranational and local law, and LAW the future… the right to be forgotten
  18. 18. Mobile – the big picture• Over 50% of Americans have a mobile phone (Comscore 2012)• Half of US smartphone users use m-commerce apps (Nielson, June 2012)• Examples of mobile-optimized publishers: – Retailmenot – CouponCabin – TapJoy – Red Laser• 15% of conversions tracked by Impact Radius are mobile – 64% iOS & 35% are Android – Mobile AOV was 39% higher than web – Android AOV is 29% higher than iOS
  19. 19. Mobile – the big picture• ~33% of CJ advertisers that have a mobile enabled website• Top 5 Categories for Mobile: 1. Department Stores 2. Clothing, Apparel, and Accessories 3. Computer and Electronics 4. Travel 5. Sports and Fitness• 6x growth in traffic across top mobile categories• 4x growth in sales across top mobile categories• 10% average mobile sales in top categories
  20. 20. Growth of European mobile commerce:Travel and retail (€ millions) € 19,246 € 14,656 +47% € 10,755 a year € 7,419 € 4,620 € 2,739 2012 2013 2014 2015 2016 2017Source: Forrester Research European Mobile Commerce Forecast, 2012 to 2017
  21. 21. How to make the most of mobile in Europe 57% of top 100 UK brands have a MOBILE SITES mobile site, up from 37% six months ago 88% of the top 100 global brands APPS have an app in the App store Omni-channel, geo-targeting and INTEGRATION creating immediacy
  22. 22. Mobile: think differently, then test, test, test!
  23. 23. Attribution90% of affiliate shoppers visit more than onesite before making a purchase.* Source: *Forrester Research 2012
  24. 24. AttributionLoyalty and Voucher dominate single and multi-channel purchase, with contentand vertical sites the next biggest source of traffic.Many European markets rely on a few strong converters. LAST CLICK TO SINGLE VS MULTI PURCHASE BY VERTICAL PURCHASE CHANNEL Price 1.7% 1 click comparison, virtual… 1.6% 3.2% 51% Secondary search 3.4% 11.3% Vertical / content site 12.0% 20% 2 clicks 35.1% Voucher code 21.9% 29% Loyalty / reward 48.7% programs 61.1% single channel purchase multi channel purchase 3+ clicks
  25. 25. Merchant considerations • Where is the bill being paid from and where is the invoice registered? • Will you need to deal with withholding tax? • Which entities are your contracts between? • Are you legally allowed to trade? • What are the trade restrictions in the country? • Is there an affiliate base/network in the region? • Can you pay in foreign currency? • Are there any language barriers that need to be considered with creative and landing pages? • Will you need to adapt your tracking capabilities? • Can you pay on all products or should the expansion be a separate program?
  26. 26. Summary: opportunities for US Advertisers Quick winCPC CPA Consideration
  27. 27. THANK YOU FOR LISTENINGPeter Figeuredo: Partner, Global Head of Client Services, House of KaizenJames Maley: Head of Corporate Clients Europe, TradedoublerJess Nathan: Global Affiliate Manager, Hilton Worldwide