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Taking the leap across the pond? Find out where to start, what you need to take into account, the challenges & pitfalls, and the differences in the various markets via a recent case study.Robert Glasgow, Managing Director, Webgains
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Rolling Out Across EuropeRobert Glasgow, CEO, Webgains
Why listen to me?
Apologies for the theories
My Experience Management Consulting Alladvantage.com Webgains
Agenda
Why Roll out?Roll out modelsImperatives for SuccessEuropean Affiliate MarketingNetwork helpQuestions?
Why Roll out?
GrowthSpread riskEarly mover advantageFun
4 different models Remote roll out
Do everything from home base
Organic Establish one country before moving on to the next
Organic Hub Establish sub-regional hubs eg Nordic, BeNeLux,
Southern Europe
Merger / Partner Take advantage of established infrastructure
Remote Roll out
Low costNo infrastructure to build or maintain
Advantages
DisadvantagesUsually results in poor customer serviceLack of local knowledgeDifficult to get real traction in each market
Remote Roll out
Remote Roll out
Organic Roll out
ControlledCan do at own pace
Advantages
DisadvantagesTakes a long time, unless unlimited
resourcesManagement will be spread thinly
Head Office – London
International Offices -Beverley HillsJacksonvilleTokyoBangalore
Organic Roll out
Hub Roll out
Relatively fastCover off major markets, while treating
minor markets as satellites
Advantages
DisadvantagesExpensivePotential Language issuesPotential Cultural issues
Merger / Partner Roll out
FastInexpensive and convenientLeverage management skills and expertise
Advantages
DisadvantagesSacrifice independenceDifficult living with someone elseNot good for brand identity
Absolute Imperatives for Success
Plan thoroughly Do your homework Understand legal and tax consequences Build a factbase Know how you are going to do everything, when,
where and who Build contingencies into the plan Make someone responsible for success
Absolute Imperatives for Success
Localise Website Language Customer Service Appreciation of culture Conform to local laws
Recruit wisely Align incentives to success Difficult to manage from afar
European Affiliate Marketing OverviewFragmented
Many local networks Some pan-European networks, but cross-subsidy of
smaller markets Few affiliates operate across multiple markets Different types of affiliates strongest in different
marketsLow barriers to selling internationally allow merchants to
expand across bordersBanking regulations being harmonised but we are not
there yet Speedy adoption of new formats eg cashback, voucher
codes
European Affiliate Marketing Current TrendsCPA going from strength to strength, driven by advertiser
recognition of low-risk modelConsumers turning to voucher-code and cash-back
websites in recession Issues surrounding “last-click-wins” becoming more
apparent – customer journey significant Affiliates calling for a greater emphasis on transparency
and communication across the sectorMore agencies offering affiliate services to clientsAgencies setting up their own networksFraud continuing to pose a problemMerchants consolidation to fewer networks
Roll out from a Merchant Perspective
Size of Opportunity
Size of Opportunity
High(€33k)
Low (18)
Low(€18k)
High (40)
GDP per head of
Population
Broadband Penetration
Spain
SE
FR
UKDE
USA Benelux
DK
Roll out from a Merchant Perspective
Size of OpportunityProduct: legal conformityProduct Fulfillment, returns, forward salesProduct datafeedsCustomer ServiceTax and Vat issuesSupplier payments Currency issues and hedging
Roll out from an Affiliate Perspective
Size of OpportunityDomain names and hostingTools and techniquesGetting paidCross-border transfer of learningsLocal affiliate competitorsResources and bandwidth
Networks can help!
Lead Account Manager plus localised AMs for each program
Local market conditions, local affiliates & commissions
Understanding of local competitors, USPs, pricing etc
Advice on local website designAggregated invoices / payments
How to pick a Network
Must have local office coverage where you want to be
Must be dedicated to your successMust be sympathetic to your culture and
way of doing businessMust be experienced Must have good local relationships
Questions?
Many thanks for your attention