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2. 2 The Global opportunity– Why, where and how to geographically expand your affiliate programme James Maley, Head of Corporate Clients, North West Tradedoubler

3. 3 Agenda : o European Opportunity o United Kingdom Vs Europe o Top Affiliates: Europe o Vertical Affiliates: West & East Europe o Exporting from the United Kingdom o Geographically Expanding o Summary

4. 4 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

5. 5 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

6. 6 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 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

7. 7 Advanced multi- channel journeys Vertical sites drive traffic Purchase on cashback/loyalty Vertical affiliates: UK, France and Germany

8. 8 Vertical affiliates: Nordics More blogging and user generated content sites Consumers captured at point of purchase Reviews/ recommendations more influential

9. 9 Vertical affiliates: Italy and Spain More PPC/SEO/SEM Lack of quality content Cashback sites starting to develop Combined cashback and content offerings

10. 10 Vertical affiliates: Eastern Europe Affiliate channel developing CPC prevalent Content sites developing Looking to UK as a model

11. 11 How: exporting from the UK Lower initial cost UK based operations Quick set up Shipping costs Payment Consumer reluctance to purchase cross border

12. 12 Exporting from the UK Clear shipping costs Local currency Local language Different competitor landscape Cross-border publishers Different effective channels

13. 13 How: geographical expansion Local payment methods Lower delivery times & shipping costs Local expertise Significant initial costs Brand awareness Risk factor Different competitor landscape

14. 14 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

15. 15 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