The 'Global Affiliate Marketing - Approaching International, Regional and Local Strategy' session by Peter Figueredo, Jessica Nathan and James Maley which took place at Performance Marketing Insights NYC on March 13 2013.

1. Global Affiliate Marketing:
Approaching international, regional & local
strategy
Peter Figeuredo: Partner, Global Head of Client Services, House of Kaizen
James Maley: Head of Corporate Clients Europe, Tradedoubler
Jess Nathan: Global Affiliate Manager, Hilton Worldwide

2. Agenda
• Market Overview: USA & Europe
• Top affiliates
• Vertical affiliates
• Mobile
• Legal considerations
• Attribution

3. US market overview
• B2C ecom sales will grow 12% to $384.8 billion
in 2013 (30% of worldwide ecom)
• US remains the largest spending country online
but China is closing fast
• Avg B2C ecommerce sales per user reach
$2,466*
• Advertisers with programs see 23% of their
online sales coming from Affiliate**
,
Source: *eMarketer, Jan 2013 **AffiliateBenchmarks, 2012

4. European opportunity
• 289.4m people online
• Average 30 hours a month online
• $1,738 average consumer spend online in 2012
• $111bn online retail spend in EU in 2012*
• 12% annual growth forecast over next 5 years*
• $5bn sales revenue driven within UK affiliate
channel
Where is the opportunity…
Affiliate ad spend is expected to grow in H1 2013
+15% UK
+10% Germany
+7% France
Source: *Forrester European Online Retail Forecast 2011-2016
**PhoCusWright European Online Travel Overview December 2012

5. Top affiliates in the US
• 49% of US internet users 18+ will redeem a digital coupon/code for online or offline shopping *
• 55% of respondents said they always check for deals before purchasing
• 43% said promotional offers on coupon or deal sites often close the deal if they are undecided on a
purchase
• 48% believe promos on coupon or deal, blogs, loyalty, cash-back, or comparison shopping sites are better
than direct retailer websites **
Cash back affiliates Coupon & deal affiliates
Loyalty affiliates Comparison shopping affiliates
Source: eMarketer, Dec 2012, Forrester Research, 2012

6. Top affiliates in Europe
• 95% of online consumers compare prices online*
• 73% download coupons online
• Over 40% of consumers via affiliation go direct to their favourite loyalty, cashback, voucher site
• 40 – 60% multi channel purchases within affiliation end on a top partner site
Cashback & Loyalty Voucher / coupons Closed networks
Meta & price comparison Supplementary paid search

7. Vertical affiliates: US

8. Vertical affiliates: UK, France and Germany
• Advanced multi-
channel journeys
• Vertical sites
drive traffic
• Purchase on
cashback/loyalty

9. Vertical affiliates: Nordics
• More blogging
and user
generated content
sites
• Consumers
captured at point
of purchase
• Reviews/
recommendations
more influential

10. Vertical affiliates: Italy and Spain
• More
PPC/SEO/SEM
• Lack of quality
content
• Cashback sites
starting to
develop
• Combined
cashback and
content offerings

11. Vertical affiliates: Eastern Europe
• Affiliate channel developing
• CPC prevalent
• Content sites developing
• Looking to UK as a model

12. Vertical affiliates

13. Working with niche affiliates to grow revenue
11/1/2012 11/15/2012 11/29/2012 12/13/2012 12/27/2012 1/10/2013 1/24/2013 2/7/2013 2/21/2013

14. Content affiliates drive the most value
THE VALUE OF REVIEWS
• PhocusWright reports that people
who read online hotel reviews are
59% more likely to book
• A 2011 Forrester study found that
close to 50% will not book a hotel
without online reviews
• Hotels which engage with guests
see a 6% increase in review
scores

15. Legal considerations in US
See colourful and confusing
TAX LAW graphic
TRADEMARK Bid on any keyword but don’t
confuse the consumer
Soon to follow EU law (IMHO)
COOKIES
US LAW Everyone can sue for any reason

16. US “Affiliate” Tax Law
Map courtesy of Commission Junction

17. Legal considerations in Europe
Each market has deductible taxes
TAX LAW that are fixed and based on
services you provide!
TRADEMARK Protecting your brand in the EU
To protect users from cookies being
COOKIES downloaded on their device and have
their behaviour tracked without consent
INTERNATIONAL Supranational and local law, and
LAW the future… the right to be
forgotten

18. Mobile – the big picture
• Over 50% of Americans have a mobile phone (Comscore 2012)
• Half of US smartphone users use m-commerce apps (Nielson, June 2012)
• Examples of mobile-optimized publishers:
– Retailmenot
– CouponCabin
– TapJoy
– Red Laser
• 15% of conversions tracked by Impact Radius are mobile
– 64% iOS & 35% are Android
– Mobile AOV was 39% higher than web
– Android AOV is 29% higher than iOS

19. Mobile – the big picture
• ~33% of CJ advertisers that have a mobile enabled website
• Top 5 Categories for Mobile:
1. Department Stores
2. Clothing, Apparel, and Accessories
3. Computer and Electronics
4. Travel
5. Sports and Fitness
• 6x growth in traffic across top mobile categories
• 4x growth in sales across top mobile categories
• 10% average mobile sales in top categories

20. Growth of European mobile commerce:
Travel and retail (€ millions)
€ 19,246
€ 14,656
+47% € 10,755
a year
€ 7,419
€ 4,620
€ 2,739
2012 2013 2014 2015 2016 2017
Source: Forrester Research European Mobile Commerce Forecast, 2012 to 2017

21. How to make the most of mobile in Europe
57% of top 100 UK brands have a
MOBILE SITES mobile site, up from 37% six
months ago
88% of the top 100 global brands
APPS have an app in the App store
Omni-channel, geo-targeting and
INTEGRATION creating immediacy

22. Mobile: think differently, then test, test, test!

23. Attribution
90% of affiliate shoppers visit more than one
site before making a purchase.*
Source: *Forrester Research 2012

24. Attribution
Loyalty and Voucher dominate single and multi-channel purchase, with content
and vertical sites the next biggest source of traffic.
Many European markets rely on a few strong converters.
LAST CLICK TO SINGLE VS MULTI
PURCHASE BY VERTICAL PURCHASE CHANNEL
Price 1.7% 1 click
comparison, virtual… 1.6%
3.2%
51%
Secondary search 3.4%
11.3%
Vertical / content site 12.0% 20%
2 clicks
35.1%
Voucher code 21.9% 29%
Loyalty / reward 48.7%
programs 61.1%
single channel purchase multi channel purchase 3+ clicks

25. Merchant considerations
• Where is the bill being paid from and where is the invoice
registered?
• Will you need to deal with withholding tax?
• Which entities are your contracts between?
• Are you legally allowed to trade?
• What are the trade restrictions in the country?
• Is there an affiliate base/network in the region?
• Can you pay in foreign currency?
• Are there any language barriers that need to be considered
with creative and landing pages?
• Will you need to adapt your tracking capabilities?
• Can you pay on all products or should the expansion be a
separate program?

26. Summary: opportunities for US Advertisers
Quick win
CPC CPA
Consideration

27. THANK YOU FOR
LISTENING
Peter Figeuredo: Partner, Global Head of Client Services, House of Kaizen
James Maley: Head of Corporate Clients Europe, Tradedoubler
Jess Nathan: Global Affiliate Manager, Hilton Worldwide