Affiliate & Going Global Why, where and how to geographically expand your affiliate programme Nick Fletcher, Account Director UK, Tradedoubler James Maley, International Account Director, Tradedoubler
Feb 09, 2016
Affiliate & Going GlobalWhy, where and how to geographically expand your affiliate programmeNick Fletcher, Account Director UK, TradedoublerJames Maley, International Account Director, Tradedoubler
UK versus Europe: online behaviour
Average 39 hours a month online By 2016, online will account for over 37% of total ad spend, the largest channelWe spend €1240 a year onlineInternet will account for 12.4% of GDP by 2016
Average 30 hours a month online Projected ad spend of 27.1% will continue to be behind TVEuropeans spend €871 a year onlineInternet will account for only 5.7% of GDP by 2016 – less than half the UK
UK versus Europe: affiliate landscape
Savvy consumersHigh % of sales through cashback and voucherDisplay dominated by retargetingCPA is the norm
Difference in consumer behaviour by countryDifferent tactics/approach required per marketDisplay/email/generic PPC more effectiveCPC or hybrid commissions much more prevalent
• 8.8% of EU consumers online buy cross border
• EU currently imports $34bn annually
• EC wants 20% of population to buy cross-border online by 2015
• By 2016 UK will export $18bn
Europe: opportunity
Europe: opportunity• $1.1 tn spent online in EU in 2011• Online will grow 11% each year
over next 5 years• 426.9m Europeans online• Affiliate models changing and
adapting rapidly
LatAm: opportunity• Brazil has population of 190m
(close to the UK, France, Italy and Spain combined)
• Brazil has the world’s sixth largest economy and is expected to be the fifth largest by end of 2012
• 81m Brazilians are connected to the internet
LatAm: opportunity• Brazilians spent $10 billion online
in 2011• eCommerce in Brazil is forecast to
grow by an average of 17.5% each year over the next five years
• Consumer electronics purchases make up 37% of the online retail market in Brazil
• Other growing categories are media and computer hardware and software
How: exporting from the UK
• Lower initial cost• UK based operations• Quick set up
• Shipping costs• Payment• Consumer reluctance to
purchase cross border
Exporting from the UK
Clear shipping costs
Local currency
Local language
Different competitor landscape
Cross-border publishers
Different effective channels
How: geographical expansion
• Local payment methods• Lower delivery times &
shipping costs• Local expertise
• Significant initial costs• Brand awareness• Risk factor• Different competitor
landscape
Geographical expansion
•Dominant affiliate models•Metrics / commission models
•Language•Currency / payment•VAT and domestic taxes•Logistics / delivery
• International coordination & planning•Local affiliate management and knowledge
•Launch plan•Clear communication to local and international affiliates
Local knowledge is the key to success
SummaryDifferent markets require local expertiseConsider International vs local publishersNumber of cross border purchases set to growStrive to be the first and best in market