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The Global opportunity– Why, where
and how to geographically expand
your affiliate programme
James Maley, Head of Corporate Clients, North West
Tradedoubler
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Agenda:
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European Opportunity
United Kingdom Vs Europe
Top Affiliates: Europe
Vertical Affiliates: West & East Europe
Exporting from the United Kingdom
Geographically Expanding
Summary
Europe: opportunity
• 289.4m people online
• Average 30 hours a month online
• €1,343 average consumer spend online in 2012
• €85.8bn online retail spend in EU in 2012*
• 12% annual growth forecast over next 5 years*
• €3.9bn 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
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UK versus Europe: affiliate landscape
Difference in consumer behaviour by
country
Savvy consumers
Different tactics/approach required per
market
High % of sales through cashback and
voucher
Display/email/generic PPC more
effective
Display dominated by retargeting
CPC or hybrid commissions much more
prevalent
CPA is the norm
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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
Meta & price comparison
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Voucher / coupons
Closed networks
Supplementary paid search
Vertical affiliates: UK, France and Germany
• Advanced multichannel journeys
• Vertical sites drive
traffic
• Purchase on
cashback/loyalty
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Vertical affiliates: Nordics
• More blogging and
user generated
content sites
• Consumers
captured at point of
purchase
• Reviews/
recommendations
more influential
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Vertical affiliates: Italy and Spain
• More
PPC/SEO/SEM
• Lack of quality
content
• Cashback sites
starting to develop
• Combined
cashback and
content offerings
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Vertical affiliates: Eastern Europe
• Affiliate channel developing
• CPC prevalent
• Content sites developing
• Looking to UK as a model
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How: exporting from the UK
• Lower initial cost
• UK based operations
• Quick set up
• Shipping costs
• Payment
• Consumer reluctance to
purchase cross border
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Exporting from the UK
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Local language
Cross-border publishers
Local currency
Different competitor landscape
Clear shipping costs
Different effective channels
How: geographical expansion
• Local payment methods
• Lower delivery times &
shipping costs
• Local expertise
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Significant initial costs
Brand awareness
Risk factor
Different competitor landscape
Geographical expansion
• Language
• Currency / payment
• VAT and domestic taxes
• Logistics / delivery
• Dominant affiliate
models
• Metrics /
commission models
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• Launch plan
• Clear communication to
local and international
affiliates
• International coordination &
planning
• Local affiliate management
and knowledge
Summary
Different markets require local
expertise
Local
knowledge is
the key to
success
Consider International vs local
publishers
Number of cross border purchases set
to grow
Strive to be the first and best in
market
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