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Calling an International Expansion? Get your global digits right with programme management
1. Calling an International Expansion?
Get your Global Digits Right with Program Management
19th June 2012 – A4U Expo Barcelona
2. Introductions
• Susan Jamie – Senior Affiliate Manager at LBi
bigmouthmedia
• Aaron Shaw – Search and Affiliate Manager at
Skype
3. Agenda
• Key variances between markets
− Europe, USA and Russia
− How these have influenced program strategy
• Skype affiliate program case study
− Key considerations for expanding the global program, along
with challenges faced and strategies to drive program growth
• Summary
• Q&A
5. Market Differences – Skype Local Insights
Brand Awareness
Large familiarity with the brand, perceived as a
collaboration tool
Products
Full range offered across voice, video,
messaging, business and other e.g. Wifi
Challenges
Payment options
6. Market Differences Europe
Affiliate Issues of Importance
Google of German
49% Updates & Impact
European
shoppers visit
Most Used Links
In-house affiliate
affiliates favour -
Vouchercodes
before purchase
programsLinks –
1. Text are not
the CPA model
Forrester
2. Banners
common Datafeed
in Germany
A4U European
Research 2009
3. Datafeeds
Landscape Report
2011
7. Market Differences – Skype Local Insights
Brand Awareness
Skype has high brand popularity in Russia market,
seen as a versatile brand (innovative and multi
disciplined)
Partnerships
• Penetrate and distribute via partners including Groupon
• Expand via Broadcast and PR partnerships
Challenges
• Fraud
• Payment systems
8. Market Differences – Russia
Media adspend rose by
21% in 2011, within this
total internet spend
increased 56%
9. Market Differences – Skype Local Insights
Brand Awareness
Skype has over 85% brand awareness in the US market
Perceived as a fun and innovative brand
Products
Full range offered across
voice, video, messaging, business and other e.g.
Wifi
Challenges
Regulation around bundling calling products
10. Market Differences – USA
Brand awareness Most Used Links
is a key 1. Banners
consideration for 2. Text links
affiliates choosing
a merchant to
promote
12. Skype Global Facts
• 250 million connected users per month
• Run rate of more than 300 billion minutes annually
• Approximately 50% of the (above 300 billion minutes
stat) are video calls
• For Q3 FY12 Skype users made more than 100 billion
minutes of calls, an increase of 40% from the prior
year’s third quarter
• More than 40 million concurrent users at peak times
13. Skype’s Objectives
“Now Skype is part of Microsoft. Together we will bring innovative
technology to friends, family and colleagues everywhere. We will
enable more people to connect in more ways that transform and
enhance their lives.
And this is just the beginning” – Tony Bates
Engage 1 Billion Connected Users
• Continue to drive user led marketing strategies
• Increase the number of connected users and active days
• Drive awareness, education and adoption of multiple products
and features, moving people from free to paid
14. Driving Efficiencies with LBi
• Recruitment focused on key Skype territories
• Reporting on a global level
Process • Fraud / Reversals
• Payments in local currency
• Increase frequency and type of communications
• Build relationships with key partners in key
Communication territories
• Enhance perception management internally
• Drive incremental sales across key territories
• Increase product ranges sold globally
Financials • Restructure network fees and commission
structure
19. Skype Affiliate Case Study Summary
• Skype FTP numbers increased by 49% in the first 6
months of the new payment model going live
• Program now delivers a positive ROI
• Affiliate feedback on communication levels
• Fraud levels are minimal across all locations
• FTPs from key locations increased
− Germany up from 5% to 13%
− USA up from 47% to 65%
21. Key Considerations
1. Think global, act local
2. Act on affiliate feedback
3. Affiliate network support in local markets
4. Research into local markets and have
individual territory strategies to tie into this
Key is to talk about why these 3 territories have been chosen, key locations for skype hence they are a priority for the program. Can’t just use a blanket approach and assume what works well in UK will be the same for other territories. Important to look at the variances between different affiliate models as to which work best in certain territories, but also need to consider each market from a consumer perspective and how that will affect strategy.Important to look at the variances between markets to roll out a localised approach to the affiliate strategyInsight from an affiliate marketing and consumer perspective
Russia is poised to become the largest e-commerce market in Europe by 2018, if it maintains its current pace of growth. In September 2011, Russia overtook Germany as the European country with the most Internet users. In a December 2011 poll half of Russian urbanites said that they used the Internet at least once a day.The growth of Russia’s online audience combined with the country’s vast territory and underdeveloped retail sector makes it ideal for online shopping. e-Commerce has been growing by between 22 percent and 30 percent a year since 2009, and is expected to continue this pace in 2012. That year, Data Insight estimates the market will be worth $12.6 billion.Source: Russian Association of Communication Agencies (AKAR); detailed data - http://www.akarussia.ru/press_centre/news/id1864 for star
Talk around each difference and how we took these on board and integrated it into our program strategy
New network launches, improving affiliate toolkit on a local level, international affiliate webinar, affiliate survey
Affiliate hub, vouchercodes, commission increases
1 – global strategy for program overall, then ensure this is fed back into the individual territories that you are covering. For example, creative was developed to push the key Skype products, then localised for our key territories.2 – Vital to consider affiliate feedback, however as the program is global or international, its likely that the requests will be wide ranging dependent on the market. You need to get buy in from senior management to secure the resources to implement the requests from affiliates. To do this, its important to look at trends in key markets and use this to support your request for resources – eg Russia is an emerging market so there is huge scope to capture some of that market. Networks and affiliates will be able to help with forecasts to support how many sales they will drive if specific resources are made available3 – Affiliate networks are key in supporting the international program’s growth. How to get them involved and working to drive the program forward? When we were pitching for the new networks, we stipulated that we would need support from local account managers in each of the territories, and that this was part of the criteria for selection. Getting in place an SLA that clearly states the level of local support from the networks is fundamental in getting the right levels of support.4- All the insights that we covered in the first section have been vital for the program’s global growth. For example we have implemented some tenancies in UK and US but not with European affiliates, for these locations we have been researching working with a retargeting partner. When looking at new networks we had considered an in house affiliate program, but as these are not overly common in Germany we decided that going through a network was the best solution, especially as we get the support of the account managers in local territories.