Affiliate LTV and Other Ways to Effective Publisher

Recruitment in Europeby Teodora Dobjanschi, Sr. Affiliate Recruiter

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European Online Sales Landscape

Affiliates Recruitment Challenges

How to optimize your recruitment efforts: Affiliate LTV and why it matters

Techniques for Effective Publisher Recruitment

Takeaways

Agenda:

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1. European Online Sales Landscape vs US & Canada

The online retail sector is the main driver of growth in Europeanand North American retailing.

US

$349.20 bln. 2015 to $399.48 bln. in 2016

+14.4% in 2016

Canada

$17.14 bln in 2015 to $22.96 bln in 2016

+34.0% in 2016

Europe

€185.39 bln in 2015 to €216.32 bln in 2016

+16.7% in 2016

Source: http://www.retailresearch.org/onlineretailing.php

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Online retail sales in Europe 2014-2017

Source: http://www.retailresearch.org/onlineretailing.php

+18.4% (in 2014) +16.7% (2016)+18.6% (in 2015) +15.7% (2017)

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2. Affiliates Recruitment Challenges

Fragmented Market

Language Barriers

Multiple currencies, apart from the Euro there are other national currencies

Differing legislation, tax, and VAT value

Cultural differences

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Online retail sales top 8 countries 2015 – 2016Fragmented Market:

European online market is dominated by the UK, Germany and France

Online Retail Sales

Online Sales (£ bln) 2015

Growth 2015

Online Sales (£ bln) 2016

Growth 2016 Online Sales in euros (bln) 2016

UK 52.25 16.2% 60.04 14.9% 71.05

Germany 44.61 23.1% 52.77 18.3% 62.45

France 30.87 17.0% 36.02 16.7% 42.63

Spain 8.15 18.6% 9.68 18.8% 11.45

Italy 6.35 19.0% 7.42 16.9% 8.78

Netherlands 5.94 16.8% 6.92 16.5% 8.19

Sweden 4.17 15.5% 4.85 16.4% 5.74

Poland 4.33 21.0% 5.10 17.8% 6.03

Europe 156.67 18.6% 182.80 16.7% 216.32

Source: Centre for Retails Research

81.42%

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European landscape for software and digital goods

Top 3 Countries (EU)

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Language Barriers:

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Multiple Currencies:

Source: The Economist

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The Digital Single Market: (http://europa.eu/rapid/press-release_IP-16-1887_en.htm)

Geo-blocking

Cross-border delivery

Customer trust

New rules should boost cross-border ecommerce in Europe

Consumers who want to buy abroad are discriminated in terms of access to prices, sales or payment conditions;improve cross-border parcel delivery, so consumers and retailers can both benefit from affordable deliveries andconvenient return options.

Source: http://ecommercenews.eu & http://europa.eu/rapid/press-release_IP-16-1887_en.htm

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Lifetime Value – What is it – Why is it important and what do you do with it.

The value an affiliate has in a specific program based on its contribution to the business ROI.

LVA as a measurement tool for affiliates management, activation, and recruitment.

3. Optimize your recruitment efforts: Affiliate LTV

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Definition: We can say that the Lifetime Value of an Affiliate isequal to the money value of an affiliate during its relationshipwith you.

Metrics: Revenue? Number of orders? Number of newcustomers? There is no magic formula for all, and it reallydepends on what is more relevant for your program.

What is the LVA:

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Calculating value [What?].

The right match [How?].

Plan ahead [Why?].

Affiliate Lifetime Value:

Source: feedprofessor.com

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Calculating Value [What?]

Revenue or New Customers= Overall LVA

Total number of affiliates

Revenue or New Customers= Productive Affiliates Lifetime Value

Number of active affiliates

Revenue or New Customers from a specific Country= Regional LTV

Number of Affiliates from that country

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Calculating Value [What?]

UK, Germany, and France Productive LVA for software and digital goods niche:

UK Germany France

LVA $3,460 LVA $283 LVA $360

Source: Avangate Stats, 2015

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Calculating Value [What?]

Make sure you know the lifetime value of your affiliates:

Affiliate geo-target.

Affiliate business type: content, coupon, comparison website,cashback, SEM, Media Buyers, etc.

New customers or Revenue generated.

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The Right Match [How?]

Know your

TARGET

Create the

PROFILE

Find the real

MATCH

Source: learngermancoach.com

1 2 3

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Taking a closer look at your affiliates lifetime value tells you more about:

The state of your program.

The status of your affiliates.

The most productive affiliates.

Top potential affiliates.

Affiliates that are not a good fit for your program.

The Right Match [How?]

The affiliate lifetime value is not the general value of one affiliate,but rather their value with a specific advertiser.

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Plan Ahead [Why?]

Source: samplestuff.com

1• Focus your recruitment actions on top LVA categories.

2• Remove unproductive affiliate category from future

recruitment campaigns.

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• Use both passive (they sign-up) & active (you reach out to

them) affiliate recruitment techniques.

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4. Techniques for Effective Publisher Recruitment

Affiliate Profile Affiliate Recruitment Techniques

Country / Geo-target Manual Mapping per Country

Segmentation by category/ niche* PPC & Referrals

Promotional Methods Sign-up Page Optimization

LVA Affiliate Networks

Language & Currency limitation Events/ Conferences

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What does the lifetime value of an affiliate mean.

How to calculate the lifetime value of an affiliate.

How to use LVA to drive smart strategies and actionsfor your program to increase ROI.

Learn to be in control of your affiliates recruitmentbudget.

Increase the overall performance of your program byusing data.

5. Takeaways

Avangate B.V.Amsterdam, The NetherlandsTel: +31 20 890 8080

Avangate Inc.Redwood Shores CA., USATel: (650) 249 - 5280

info@avangate.com www.avangate.comQ&A

Avangate B.V.Amsterdam, The NetherlandsTel: +31 20 890 8080

Avangate Inc.Redwood Shores CA., USATel: (650) 249 - 5280

info@avangate.com www.avangate.com

Feedback: teodora.dobjanschi@avangate.com