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Affiliate & Going Global

Affiliate & Going Global. Nick Fletcher, Account Director UK, Tradedoubler James Maley , International Account Director, Tradedoubler. Why, where and how to geographically expand your affiliate programme. UK versus Europe: online behaviour. Average 30 hours a month online

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Affiliate & Going Global

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  1. Affiliate & Going Global Nick Fletcher, Account Director UK, Tradedoubler James Maley, International Account Director, Tradedoubler Why, where and how to geographically expand your affiliate programme

  2. UK versus Europe: online behaviour • Average 30 hoursa month online • Projected ad spend of 27.1% will continue to be behind TV • Europeans spend €871 a year online • Internet will account for only 5.7% of GDP by 2016 – less than half the UK • Average 39 hoursa month online • By 2016, online will account for over 37%of total ad spend, the largest channel • We spend €1240 a year online • Internet will account for 12.4% of GDP by 2016

  3. UK versus Europe: affiliate landscape Difference in consumer behaviour by country Different tactics/approach required per market Display/email/generic PPC more effective CPC or hybrid commissions much more prevalent Savvy consumers High % of sales through cashback and voucher Display dominated by retargeting CPA is the norm

  4. Europe: opportunity • 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

  5. Europe: opportunity • $1.1 tnspent 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

  6. 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

  7. 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

  8. How: exporting from the UK • Lower initial cost • UK based operations • Quick set up • Shipping costs • Payment • Consumer reluctance to purchase cross border

  9. Exporting from the UK Local language Cross-border publishers Local currency Different competitor landscape Clear shipping costs Different effective channels

  10. How: geographical expansion • Local payment methods • Lower delivery times & shipping costs • Local expertise • Significant initial costs • Brand awareness • Risk factor • Different competitor landscape

  11. Geographical expansion • Launch plan • Clear communication to local and international affiliates • Language • Currency / payment • VAT and domestic taxes • Logistics / delivery • Dominant affiliate models • Metrics / commission models • International coordination & planning • Local affiliate management and knowledge

  12. Summary Different markets require local expertise Consider International vs local publishers Number of cross border purchases set to grow Strive to be the first and best in market Local knowledge is the key to success

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