Asian Affiliate Market: How to Crack the Billion Dollar Nut

THE ASIAN AFFILIATE MARKET

HOW TO CRACKTHE BILLION DOLLAR NUT

MOZOO

+ 150 COUNTRIES

EUROPEAN MOBILE ADVERTISING LEADER

+ 5,000 CAMPAIGNS+ 1,000 CLIENTS

2010 2013 2016 2016

110 MOBILE EXPERTS

2016

OUR TIME TODAY

01 04 05 0602 03

APAC DIGITALAD SPEND

CHINA TRAFFICSOURCES

VERTICALS ADVERTISERRELATIONSHIPS

CASESTUDIES

APACDIGITAL AD SPENDING

BIGFATSTATS

APAC MOBILE AD SPEND

GREW BY 18.2% IN 2016 TO REACH $59.7BN

OVERTOOK NORTH AMERICA IN 2016, WHICH GREW BY 9.6% TO REACH $59.5BN

2014 2015 2016 2017 2018 20190

2

4

6

8

10

12

MOBILE AD SPENDING (BILLIONS)

2014 2015 2016 2017 2018 20190.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

MOBILE AD SPENDING (% OF TOTAL DIGITAL AD

SPENDING)

CHINA

LEADING APAC GROWTH, GREW BY 28% IN 2016

2016 20190

10

20

30

40

50

60

70

39.7

65.7

22

48.7

DIGITAL & MOBILE AD SPEND (BILLIONS)

Digital Ad Spend Mobile Ad Spend

CHINA

LEADING APAC GROWTH, GREW BY 28% IN 2016

USA WESTERN EUROPE CHINA0

20

40

60

80

100

120

140

160

180

165

95

15

AD SPEND PER CAPITA ($)

BOOMING TERRITORIES: JAPAN

4TH BIGGEST DIGITAL AD SPEND GLOBALLY

2016 20190

2

4

6

8

10

12

14

10.5

12

5

8.4

DIGITAL & MOBILE AD SPEND (BILLIONS)

Digital Ad Spend Mobile Ad Spend

BOOMING TERRITORIES: SOUTH KOREA

6TH BIGGEST DIGITAL AD SPEND GLOBALLY

2016 20190

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

3.3

4.4

2.1

3.4

DIGITAL & MOBILE AD SPEND (BILLIONS)

Digital Ad Spend Mobile Ad Spend

TRAFFICSOURCES

LAUNCHINGA CAMPAIGNIN CHINA

THE BIG THREE

85%OF TOTAL CHINA TRAFFIC

BAIDU

SEARCH & DISPLAY TRAFFIC

70M DAILY ACTIVE SEARCH USERS

660M MONTHLY MOBILE SEARCH USERS

GOOD REPORTING INTERFACE

300 RESELLERSALL FOCUSED ON DIFFERENT VERTICALS

WECHAT MOMENTS

BEHIND WECHAT (WEIXIN)

ALSO QQ AND QZONECOMMUNICATION AND GAMES

WECHAT: 517M DAU

SLOWLY OPENING UP TO ADVERTISERS

THREE WAYS TO ADVERTISE

1. WECHAT MOMENTS SINCE 2015

TWO TYPES OF COMPANIES CAN USE MOMENTS:

COMPANIES REGISTERED IN MAINLAND CHINA WILLING TO INVEST AT LEAST $7,500 USD

FOREIGN COMPANIES WILLING TO INVEST AT LEAST $20,000 USD

USE A RESELLER LIKE

MOZOO

2. KEY OPINION LEADERS

LEVERAGE SOCIAL INFLUENCERS

FROM $100 BANNER TO $50K BLOG POST

NOT MUCH RED TAPEAROUND COMPLIANCE

USE PARKLUTO FIND INFLUENCERS

3. BANNERS

STANDARD BANNERS AND MPU’S WITHIN WECHAT

OLD BANNERS:POOR PERFORMANCE AND TARGETTING

LITTLE CONTROL

NEW BANNERS:CPV MODEL

FULL CONTROL AND BETTE EFFICIENCY

ONLY FOR CHINESEREGISTERED COMPANIES

USE RESELLERS LIKE

MOZOO

ALIBABA

eCOMMERCE PLATFORM LIKE AMAZON

427M MAU

USED TO SELL PRODUCTSNOT TO BUY TRAFFIC

eCOMMERCE IS BOOMINGIN APAC & CHINA

ALSO USE

TAOBAOWHICH HAS AN ADEXCHANGE TAOBAO TANX

ALIBABA

eCOMMERCE PLATFORM LIKE AMAZON

427M MAU

USED TO SELL PRODUCTSNOT TO BUY TRAFFIC

eCOMMERCE IS BOOMINGIN APAC & CHINA

ALSO USE

TAOBAOWHICH HAS AN ADEXCHANGE TAOBAO TANX

DSP’s

300+ DSP’s IN CHINA THAT YOU CAN USEHALF OF THESE HAVE THEIR OWN DMP

PLENTY DSP’s OUTSIDE CHINA WITH GOOD REACH

MAKE SURE YOUR DSP IS PLUGGED INTO GOOD SSP’s

VIDEO

VIDEO IS A BIG OPPORTUNITY FOR PERFORMANCE MARKETERS

‘YOUKU TUDOU’ ACQUIRED BY ALIBABA GROUP IN NOVEMBER 2015

YOUTUBE OF CHINA 80% OF VIDEO TRAFFIC

TO BUY TOP VIDEO TRAFFIC IS VERY COMPETITIVE

WORK WITH DEVELOPERS DIRECTLYOR

WITH DSP’s/SSP’s WITH NON-FUGIBLE VIDEO TRAFFIC

VERTICALSTOPVERTICALSIN CHINA

HOT VERTICALS

UTILITIES

eCOMMERCE

GAMES

NEWS

ADVERTISERSTOPADVERTISERSIN CHINA

UTILITIES

4BIGGEST UTILITES PLAYERS

QUIHOO 360

360 SECURITY: $3M PER NETWORK

OPERA MINI: $800K PER DAY

BIGGEST ADVERTISER IN CHINA

STARTED THE UTILITIES AND TOOLS TREND

FREEMIUM MODEL

ADVERTISING MONETISATION

QUIHOO 360

NOT AS BIG AS QIHOO

BUDGETS OF OVER $1M TO CERTAIN NETWORKS EVERY MONTH

UTILITIES

SHIFTING LANDSCAPE

UTILITIES WERE PREVIOUSLY ONLY REAL CN ADVERTISERS

VOLUME AND SCALE WERE VERY MUCH THE FOCUS

LOOKING FOR USERS GLOBALLY

FOCUS ON TEIR 1 COUNTRIES US & EUROPE

FOCUS ON ROI AND VALUE PER USER

GENERALLY THE US USER ECPM IS 10X THE VALUE COMPARED TO SEA

• SEA BUDGET IS IN A DECLINE, BUT US & EUROPE INCREASING

E-COMMERCE

NEXT YEAR BIG DIRECTION

THE MIDDLE CLASS IN CHINA ARE RISINGBIG INCREASE IN DEMAND

BIG OPPORTUNITY

CHINESE GOVERNMENT FORMED A POLICY TO GIVE BENEFITS

DISCOUNTS AND ADVANTAGES TO CHINESE ADVERTISERS

LITTLE RED BOOK (XIAOHONGSHU)

CONNECTS OVERSEAS MERCHANTS WITH LOCAL BUYERS

SUPPORTED BY CHINESE GOVERNMENT

FOUNDED IN 2013

RECENTLY RAISED $100M FROM TENCENT HOLDINGS

THEY ASK FOR HIGH QUALITY USERS

HAVE UNLIMITED BUDGET FOR QUALITY

VALUATION OF $1BN

GAMES

HUGE BUDGETS FOR GOOD QUALITY

HARD OR SOFT KPI’s

CLASH OF KINGS & MAGIC RUSH BIG GAMES BY ELEX WIRELESS

LOOKING FOR USERS OUTSIDE CHINA AND IN CHINA

NEWS

JIN RI TOU TIAO (JRTT)

NUMBER 1 NEWS APP IN CHINA

$MILLIONS SPENT ON AFFILIATE MARKETING EVERY MONTH

CAPS & BUDGET

CPI THE PO ARE USUALLY SIGNIFICANTLY LOWER IN CHINA THAN IN OTHER TERRITORIES

CR TENDS TO MAKE UP FOR THIS

ONCE YOU HAVE PROVEN TRAFFIC QUALITY, BUDGET AND CAP TEND TO

BE UNLIMITED

IF YOU CAN BRING QUALITY USERS YOU CAN JUST SPEND

ADVERTISERS RELATIONSHIPS

ADVERTISER RELATIONSHIPS

LIVE: 25K OFFERS IN CHINA

DIRECT ADVERTISER RELATIONSHIPS ARE VERY

IMPORTANT

IF YOU DON’T SPEAK CHINESETRUSTED INTERMEDIARY

SUCH AS A NETWORK

WORK WITH A ‘LOCAL’ NETWORK WHO WORKS DIRECTLY WITH THE ADVERTISERS

CLEAR COMMUNICATION FOR PAYMENTS, TRAFFIC QUALITY, KPIS, CAPS

CASE STUDY

CHINESEUTILITIESCPIIN INDONESIA

CASE STUDY

EMMANUEL CINCA

HEAD OF ADIFY

SUPER AFFILIATE

EXPERT IN PROMOTING CHINESE OFFERS

CASE STUDY

TRAFFIC

THE BLACKBERRY MESSENGER APP GENERATED A FEW HUNDRED

MILLION RAW IMPRESSIONS PER DAYON TWO BANNER SIZES:320X50 AND 300X250

CASE STUDY

ANGLE TEST

STARTED WITH DIRECT LINKING 5 BANNERS, EACH WITH AN INDIVIDUAL ANGLE

ONE OF WHICH WAS “MAKE YOUR ANDROID LOOK LIKE AN IPHONE”

THIS ANGLE GOT TO BREAK EVEN IN THE INITIAL TEST

POWER IN ‘GENERIC’ ANGLES

VERY NICH & SPECIFIC ANGLES AREN’T ALWAYS THE ANSWER

TO SCALE QUICKLY, GENERIC ANGLES CAN BE POWERFUL

CASE STUDY

ADD LANDING PAGE

SIMPLE LANDING PAGE

KEPT IT CLEAN AND LEFT ITTO BEGIN WITH

ITERATED AGGRESSIVELY ON BANNERS

AIMING TO INCREASE CTR AND ALSO CR

OFTEN TOUGH TO BALANCE THE TWO WHEN BUYING BANNERS ON CPM

CASE STUDY

BANNER ITERATIONS

CASE STUDY

GETTING 100% ROI

THE NON-ANIMATED VERSION OF THIS BANNER ACHIEVED 100% ROI

SLICK LOOKING BANNERWAS MOST SUCCESSFUL

TESTED MORE LPS, SOME WITH FANCIER DESIGNS BUT NOTHING BEAT THE ORIGINAL

CONSTANTLY ASKED FOR QUALITY FEEDBACK

NOTEDUE TO THE GENERIC ANGLE, SCALING TO

NEW GEOS WAS EASY

CASE STUDY

RESULTS

OVER 252,000 INSTALLS GENERATED IN INDONESIA ALONE, JUST ON THIS TRAFFIC SOURCE

$63,000 COMMISSION

OVER 100% ROI

SUBSEQUENTLY SCALED TO MORE GEOS & TRAFFIC SOURCES

CASE STUDY

LESSONS

SCALABILITY CAN BE ACHIEVED MANY WAYS, BUT THE KEY THING IS MAKING SURE YOU KEEP YOUR AUDIENCE LARGE ENOUGH

DON’T BE PUT OFF BY LOW PAYOUTS

USE NETWORKS WHO WERE IN DIRECT WITH THE ADVERTISERS LOCALLY

FINALTHOUGHTS

THE ASIANAFFILIATEMARKET

TO RUN CHINESE OFFERS GLOBALLY

QUALITY OF TRAFFIC IS A BIG THING

JUST DRIVING INSTALLS OR ACQUISITIONS IS DEFINITELY NOT ENOUGH

HARD KPIS ARE BECOMING THE NORM

MAKE SURE YOU CHECK THE KPIS (OFTEN RETENTION RATE) BEFORE YOU START

BE PREPARED TO HAVE PAYMENTS WITHHELD IF YOU DON’T HIT THE KPIS

LET THE TRUSTED AFFILIATE NETWORK RUN THE RELATIONSHIP WITH THE ADVERTISER

START WITH GENERIC ANGLES FOR SCALE, THEN ITERATE WITH MORE SPECIFIC ANGLES

UNDERSTAND THE CULTURAL HOOKS IN EACH TERRITORY

TO RUN CHINESE OFFERS GLOBALLY

SIGNIFICANT BARRIERS TO ENTRY

RUNNING AFFILIATE OFFERS WITH NETWORKSALREADY IN THESE TERRITORIES IS SUPER IMPORTANT

UNDERSTANDING WHO THE BIG ADVERTISERS ARE, WHAT THE BIG VERTICALS ARE AND WHAT THE BIG TRAFFIC SOURCES ARE

BUILD RESELLER RELATIONSHIPS WITH THE BIG TRAFFIC SOURCES

THANK YOU