1. Affiliate & Going Global Why, where and how to geographically expand your affiliate programme Nick Fletcher, Account Director UK, Tradedoubler James Maley, International Account Director, Tradedoubler

2. UK versus Europe: online behaviour Average 39 hours a month online By 2016, online will account for over 37% of total ad spend, the largest channel We spend €1240 a year online Internet will account for 12.4% of GDP by 2016 Average 30 hours a month online Projected ad spend of 27.1% will continue to be behind TV Europeans spend €871 a year online Internet will account for only 5.7% of GDP by 2016 – less than half the UK

3. 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

4. 8.8% of EU consumers online buy cross border EU currently imports $34bn annually EC wants 20% of population to buy cross-border online by 2015 By 2016 UK will export $18bn Europe: opportunity

5. $1.1 tn spent online in EU in 2011 Online will grow 11% each year over next 5 years 426.9m Europeans online Affiliate models changing and adapting rapidly

6. LatAm: opportunity Brazil has population of 190m (close to the UK, France, Italy and Spain combined) Brazil has the world’s sixth largest economy and is expected to be the fifth largest by end of 2012 81m Brazilians are connected to the internet

7. LatAm: opportunity Brazilians spent $10 billion online in 2011 eCommerce in Brazil is forecast to grow by an average of 17.5% each year over the next five years Consumer electronics purchases make up 37% of the online retail market in Brazil Other growing categories are media and computer hardware and software

8. How: exporting from the UK Lower initial cost UK based operations Quick set up Shipping costs Payment Consumer reluctance to purchase cross border

9. Exporting from the UK Clear shipping costs Local currency Local language Different competitor landscape Cross-border publishers Different effective channels

10. How: geographical expansion Local payment methods Lower delivery times & shipping costs Local expertise Significant initial costs Brand awareness Risk factor Different competitor landscape

11. 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

12. Local knowledge is the key to success Summary Different 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