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