Insiders Guide To Europe - Vincent Pelillo, Sabine Hasse, Nicky Iapino, Peter Rowe, Auke Boersma
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Transcript of Insiders Guide To Europe - Vincent Pelillo, Sabine Hasse, Nicky Iapino, Peter Rowe, Auke Boersma
The Insider´́́́s Guide to Affiliate
Marketing in Europe
a4uexpo 2008
Nicky Iapino, Vincent Pelilo, Auke Boersma,
Peter Rowe, Sabine Haase
successful together
Agenda
• Market Size
• Understanding Local Markets
- UK
- Germany
- France
- Netherlands
• Best Practice Account Management
Page 2
• Best Practice Account Management
• Affiliates – Expanding to Europe
• Summary
• Questions & Answers
AdLINK Group
AdLINK Group is Europe's leading
independent Online Marketeer with
revenue of £185m in 2007. The
Group comprises the following
Business units:
• Affiliate Marketing with affilinet
Page 3
• Affiliate Marketing with affilinet
• Display Marketing with AdLINK Media
• Direct Marketing with net:dialogs
• Email Marketing with composite
• Domain Marketing with Sedo
affilinet
• Founded October 1997, 100+ employees
• Networks in Germany, France, UK,
Netherlands, Spain, Austria &
Switzerland
• 1,500 Affiliate Programs
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• Averaging 2.6m transactions per month
• Serving over 6bn impressions per month
• 35,000+ active (clicks) Affiliates
• Multi-lingual, multi-currency platform
European Market Size - £m
150
200
250
300
350
In Europe, the total
value of the Online
Market reached £8.5
billion in 2007
Page 5
0
50
100
150
2005 2006 2007 2008
NL ES FR DE UK
Online Users across Europe
Italy
France
UK
Germany
29.6
30.4
35.9
47.4 -1%
+14%
+6%
+6%
Y-o-Y
Page 6
Switzerland
Netherlands
Spain
Italy
5.3
12
21.8
29.6 +6%
+18%
+23%
Almost 50% of Online
Users in Europe are
from UK & Germany
+12%
European Market Specifics – UK Advertisers
• Retail, Travel & Finance are the key revenue drivers
• Automotive & FMCG are growing and beginning to explore Affiliate Marketing/CPA Advertising
• Quality of traffic and understanding of Affiliates is
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understanding of Affiliates is key
• De-duplication of Sales is becoming more prevalent with better technologies
• Provision of widgets & tools is growing rapidly
European Market Specifics – UK Affiliates
• Most valuable Affiliates are
SEO and Content
• Paid Search continues to be
a key source of traffic
• Voucher Code Sites have grown rapidly over the last 12 months but issues over terms
Page 8
• Advertisers are looking to expand reach to non-traditional Affiliates that historically worked on CPM basis
• General diversification of Affiliate types as more varied Advertisers enter the market
European Market Specifics – Germany Advertisers
• Online transaction-oriented businesses strongest
• Automotive & FMCG emerging sectors
• Agency business accounts for approx. 40%. Specialist Agencies with major share
• Majority of Programs still self-serviced
Page 9
• Affiliate Campaign business increasing
• Requirements of Platforms high due to high level of self-service Programs
• Key Product reqs:- Flexibility & variety of creative - Detailed range of security features- Abundant statistics offering
European Market Specifics – Germany Affiliates
• SEM prevailing business model;
openness of Advertisers to
controlled SEM increasing
• Content/SEO/Comparison sites
almost equally important
• eMail and Cashback publishers
developing
Page 10
developing
• Big bonus Programs offering high
reach
• Split of portfolio: Top Publishers &
Longtail across all Networks
• Publisher scene heavily connected
European Market Specifics – France Advertisers
• Increasing varied industry segments:- historic Advertisers (Travel, Retail &eMerchants)
- new segments (Banking/Finance,Automotive & FMCG)
• Lead Generation business is strongly increasing & co-registration also developing
• Rough Media Agencies positioning
Page 11
• Rough Media Agencies positioning since more Advertisers deciding to directly manage their Programs
• Affiliate Campaign business is strenghtening; Short-term Online Marketing actions increasingly developing
• Double-tracking Technology; Advertisers wanting to optimise the de-duplication in Online Marketing mix
European Market Specifics – France Affiliates
• Top Publishers now big companies
• Top 3 Publishers´́́́ business models
Email/SEM/Feed-user (Price Comparison, Cashback)/Network (site-under)
• Email model growing, especially Lead Generation (high reach + accurate targeting)
• Performance/SEM model still high, but at same pace
Page 12
• Strong connections among Publishers
• Concentrated amongst 5-10 big Publishers for each Program
•The 3-part relationship (Publisher-Advertiser-Platform) has to be re-invented, with the Platform as the trusted 3rd party
• High quality Publishers key for Platforms,rather than getting more Advertisers
European Market Specifics – Netherlands Advertisers
• Strong in CPC campaigns
• Several strong financial A-brands with ongoing Programs
• Upcoming FMCG – NEW BUSINESS!
• Growth of high potential Gambling
Page 13
• Growth of high potential Gambling Industry slowed down due to laws
• Massive amount of Leads delivered via CSV files
• Enabling Media Agencies to regain lost business
European Market Specifics – Netherlands Affiliates
• Strong in Loyalty/Voucher
• Email Marketing has extensive
reach
• Display plays minimal role
• SEM: a unique combination of
Page 14
• SEM: a unique combination of
trusted local SEM players &
international SEM companies
• 9-95 rule instead of 20-80
Market Similarities & Differences
• Retail features strongly across most markets, slightly smaller in Netherlands
• Gaming features highly in France, less so in other Euro markets
• Automotive & FMCG growing as Advertisers explore new Marketing avenues and Affiliate Marketing becomes more
Page 15
Marketing avenues and Affiliate Marketing becomes more sophisticated channel
• SEM still the main driver of traffic, directly and indirectly
• Loyalty very strong in the UK, less strong across Europe
Best Practice Euro Management
• Vital to understand the local markets you wish to operate in:
- Affiliate nuances across sectors
- Benchmark your activity against local competitors
- Strategy may vary by country depending on your market position
• Commissions may vary significantly by country so its important to
retain flexibility
Page 16
• Work with your local Network and/or Agency to develop tiers & incentives which satisfy the local market
• Understanding the Affiliates by market allows you to tailor communication accordingly
• Important to select a Network that suits your goals & aspirations
Best Practice Euro Management
• Local or Central Management
• Local- Mainly dependant on resource & skill sets
- Local input allows a higher degree of involvement & bespoke deals
- Create better local relationships with key Affiliates
- Example = eBay
Page 17
• Central- Allows a better overview of the whole market
- Brand message must retain consistency across the markets
- Communication is key both internally & externally
- Example = Dating Direct/Meetic
Expanding into Europe - Affiliates
• Crucial to liaise closely with your Affiliate Network representative
• Leverage their understanding of the local marketplace
• Understanding who the local Advertisers are can be time consuming
Page 18
consuming
• A single point of contact who is supportive can help establish you more quickly than going it alone
• Double check T&Cs to avoid issues in the long run
Future of European Affiliate Marketing
• Increase of cross-border business
• Increased number of Affiliates operating across markets
• Establishment of mega-publishers across markets
• SEM will remain a key driver of sales, directly or indirectly
Page 19
• Borders will blur between Media & Affiliation, de-duplication will become more important
• Monetisation via Video will come…sooner or later
• Security and Quality will become more important
Questions & Answers
successful together