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The Global opportunity– Why, where and how to geographically expand your affiliate programmeJames Maley, Head of Corporate Clients, North West Tradedoubler

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Agenda:o European Opportunityo United Kingdom Vs Europeo Top Affiliates: Europeo Vertical Affiliates: West & East Europeo Exporting from the United Kingdomo Geographically Expanding o Summary

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Europe: opportunity

• 289.4m people online

• Average 30 hours a month online

• €1,343 average consumer spend online in 2012

• €85.8bn online retail spend in EU in 2012*

• 12% annual growth forecast over next 5 years*

• €3.9bn 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

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UK versus Europe: affiliate landscape

Savvy consumers

High % of sales through cashback and voucher

Display dominated by retargeting

CPA is the norm

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

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Top affiliates in Europe

Cashback & Loyalty

Meta & price comparison

Voucher / coupons

Supplementary paid search

Closed networks

95% of online consumers compare prices online*73% download coupons onlineOver 40% of consumers via affiliation go direct to their favourite loyalty, cashback, voucher site40 – 60% multi channel purchases within affiliation end on a top partner site

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• Advanced multi-channel journeys

• Vertical sites drive traffic

• Purchase on cashback/loyalty

Vertical affiliates: UK, France and Germany

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Vertical affiliates: Nordics

• More blogging and user generated content sites

• Consumers captured at point of purchase

• Reviews/ recommendations more influential

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Vertical affiliates: Italy and Spain

• More PPC/SEO/SEM

• Lack of quality content

• Cashback sites starting to develop

• Combined cashback and content offerings

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Vertical affiliates: Eastern Europe

• Affiliate channel developing

• CPC prevalent

• Content sites developing

• Looking to UK as a model

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How: exporting from the UK

• Lower initial cost• UK based operations• Quick set up

• Shipping costs• Payment• Consumer reluctance to

purchase cross border

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Exporting from the UK

Clear shipping costs

Local currency

Local language

Different competitor landscape

Cross-border publishers

Different effective channels

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How: geographical expansion

• Local payment methods• Lower delivery times &

shipping costs• Local expertise

• Significant initial costs• Brand awareness• Risk factor• Different competitor

landscape

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Geographical expansion

• Dominant affiliate models

• Metrics / commission models

• Language• Currency / payment• VAT and domestic taxes

• Logistics / delivery

• International coordination & planning

• Local affiliate management and knowledge

• Launch plan• Clear communication to local and international affiliates

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Local knowledge is the key to success

SummaryDifferent 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