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

• 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

• 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

• 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

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

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

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

• 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

• 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

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

• 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

• 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

• 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

• 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

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

• 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

• 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

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

• 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

Insiders Guide To Europe - Vincent Pelillo, Sabine Hasse, Nicky Iapino, Peter Rowe, Auke Boersma

Technology

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