This document discusses optimizing affiliate recruitment efforts in Europe by understanding affiliate lifetime value (LTV). It begins by reviewing the European online retail landscape and fragmentation across countries and currencies. Calculating affiliate LTV is presented as key, including metrics like revenue, orders, or customers. Matching affiliates to profiles based on country, business type, and LTV is described as important. The document recommends using LTV data to focus recruitment, remove unproductive affiliates, and employ both passive and active techniques. Overall, understanding and leveraging affiliate LTV is posited as critical for increasing affiliate program ROI and performance.

1. Affiliate LTV and Other Ways
to Effective Publisher
Recruitment in Europe
by Teodora Dobjanschi, Sr. Affiliate Recruiter

2. 2
European Online Sales Landscape
Affiliates Recruitment Challenges
How to optimize your recruitment
efforts: Affiliate LTV and why it matters
Techniques for Effective Publisher
Recruitment
Takeaways
Agenda:

3. 3
1. European Online Sales Landscape vs
US & Canada
The online retail sector is the main driver of growth in European
and North American retailing.
US
$349.20 bln. 2015 to
$399.48 bln. in 2016
+14.4% in 2016
Canada
$17.14 bln in 2015 to
$22.96 bln in 2016
+34.0% in 2016
Europe
€185.39 bln in 2015 to
€216.32 bln in 2016
+16.7% in 2016
Source: http://www.retailresearch.org/onlineretailing.php

4. 4
Online retail sales in Europe 2014-2017
Source: http://www.retailresearch.org/onlineretailing.php
+18.4% (in 2014) +16.7% (2016)+18.6% (in 2015) +15.7% (2017)

5. 5
2. Affiliates Recruitment Challenges
Fragmented Market
Language Barriers
Multiple currencies, apart from the Euro there are other
national currencies
Differing legislation, tax, and VAT value
Cultural differences

6. 6
Online retail sales top 8 countries 2015 – 2016
Fragmented Market:
European online market is dominated by the UK, Germany and France
Online Retail
Sales
Online Sales
(£ bln) 2015
Growth
2015
Online Sales
(£ bln) 2016
Growth 2016 Online Sales in
euros (bln) 2016
UK 52.25 16.2% 60.04 14.9% 71.05
Germany 44.61 23.1% 52.77 18.3% 62.45
France 30.87 17.0% 36.02 16.7% 42.63
Spain 8.15 18.6% 9.68 18.8% 11.45
Italy 6.35 19.0% 7.42 16.9% 8.78
Netherlands 5.94 16.8% 6.92 16.5% 8.19
Sweden 4.17 15.5% 4.85 16.4% 5.74
Poland 4.33 21.0% 5.10 17.8% 6.03
Europe 156.67 18.6% 182.80 16.7% 216.32
Source: Centre for Retails Research
81.42%

7. 7
European landscape for software and
digital goods
Top 3 Countries (EU)

8. 8

9. 9
Language Barriers:

10. 10
Multiple Currencies:
Source: The Economist

11. 11
The Digital Single Market:
(http://europa.eu/rapid/press-release_IP-16-1887_en.htm)
Geo-blocking
Cross-border delivery
Customer trust
New rules should boost cross-border ecommerce
in Europe
Consumers who want to buy abroad are discriminated in terms of access to prices, sales or payment conditions;
improve cross-border parcel delivery, so consumers and retailers can both benefit from affordable deliveries and
convenient return options.
Source: http://ecommercenews.eu & http://europa.eu/rapid/press-release_IP-16-1887_en.htm

12. 12
Lifetime Value – What is it – Why is it important and what do you
do with it.
The value an affiliate has in a specific program based on its
contribution to the business ROI.
LVA as a measurement tool for affiliates management, activation,
and recruitment.
3. Optimize your recruitment efforts:
Affiliate LTV

13. 13
Definition: We can say that the Lifetime Value of an Affiliate is
equal to the money value of an affiliate during its relationship
with you.
Metrics: Revenue? Number of orders? Number of new
customers? There is no magic formula for all, and it really
depends on what is more relevant for your program.
What is the LVA:

14. 14
Calculating value [What?].
The right match [How?].
Plan ahead [Why?].
Affiliate Lifetime Value:
Source: feedprofessor.com

15. 15
Calculating Value [What?]
Revenue or New Customers
= Overall LVA
Total number of affiliates
Revenue or New Customers
= Productive Affiliates Lifetime Value
Number of active affiliates
Revenue or New Customers from a specific Country
= Regional LTV
Number of Affiliates from that country

16. 16
Calculating Value [What?]
 UK, Germany, and France Productive LVA for software and
digital goods niche:
UK Germany France
LVA $3,460 LVA $283 LVA $360
Source: Avangate Stats, 2015

17. 17
Calculating Value [What?]
Make sure you know the lifetime value of your affiliates:
 Affiliate geo-target.
 Affiliate business type: content, coupon, comparison website,
cashback, SEM, Media Buyers, etc.
 New customers or Revenue generated.

18. 18
The Right Match [How?]
Know
your
TARGET
Create
the
PROFILE
Find the
real
MATCH
Source: learngermancoach.com
1 2 3

19. 19
Taking a closer look at your affiliates lifetime value tells you
more about:
 The state of your program.
 The status of your affiliates.
 The most productive affiliates.
 Top potential affiliates.
 Affiliates that are not a good fit for your program.
The Right Match [How?]
The affiliate lifetime value is not the general value of one affiliate,
but rather their value with a specific advertiser.

20. 20
Plan Ahead [Why?]
Source: samplestuff.com
1
• Focus your recruitment actions on top LVA categories.
2
• Remove unproductive affiliate category from future
recruitment campaigns.
3
• Use both passive (they sign-up) & active (you reach out to
them) affiliate recruitment techniques.

21. 21
4. Techniques for Effective Publisher
Recruitment
Affiliate Profile Affiliate Recruitment Techniques
Country / Geo-target Manual Mapping per Country
Segmentation by category/ niche* PPC & Referrals
Promotional Methods Sign-up Page Optimization
LVA Affiliate Networks
Language & Currency limitation Events/ Conferences

22. 22
What does the lifetime value of an affiliate mean.
How to calculate the lifetime value of an affiliate.
How to use LVA to drive smart strategies and actions
for your program to increase ROI.
Learn to be in control of your affiliates recruitment
budget.
Increase the overall performance of your program by
using data.
5. Takeaways

23. Avangate B.V.
Amsterdam, The Netherlands
Tel: +31 20 890 8080
Avangate Inc.
Redwood Shores CA., USA
Tel: (650) 249 - 5280
info@avangate.com www.avangate.com
Q&A

24. Avangate B.V.
Amsterdam, The Netherlands
Tel: +31 20 890 8080
Avangate Inc.
Redwood Shores CA., USA
Tel: (650) 249 - 5280
info@avangate.com www.avangate.com
Feedback: teodora.dobjanschi@avangate.com