This presentation is from Affiliate Summit East 2017 (July 30 - August 1, 2017 in New York). Session description: Overview of how to approach a network selection during setup of your affiliate marketing programs considering public vs. private networks, local or international approaches while internationalizing.

1. HOWTO DEFINE YOUR
(INTERNATIONAL) NETWORK
STRATEGY

2. ABOUT METAPEOPLE & THE
SPEAKER
18 YEARS
EXPERIENCE
OUR
SKILLS
 5 years of Affiliate Marketing experience within
European performance marketing agency
metapeople
 Since 2017: Head of Affiliate Marketing @
metapeople
 Strategically supervising 25+ Advertiser in 45+
markets worldwide
Valentina Piol
AREASOF
EXPERTISE

3. AFFILIATE – A CHANNEL FOR EVERY BRAND?
MOST PROMISING AFFILIATE MIXES
Most promising: high brand awareness + low explanation need (+ reasonable ABV)
 CPA: COST PER ACTION
 Mainly for retail (fashion, FMCG etc.), travel,…
 Often low explanation need
 Cookie life-time between 14 and 30 days
 CPL: COST PER LEAD
 Mainly for insurances, contracts…
 Often high explanation need
 Cookie life-time between 60 and 90 days
Brand
awareness
Explanation need
+
+

4. AFFILIATE – INFLUENCING FACTORS
INTERNAL FACTORS
Internal factors:
 Margin
 Average basket value
 Unique visitors
 Internationalization strategy
 Available budget
MARGIN
Relevant factor
to define
commissionable
categories
ABV
Defines the
height of
commissions in
interaction with
margins
UNIQUE
VISITORS
Less than
20.000 
Affiliate not
recommended
Check of internal factors
before defining actual
network strategy
1
STRATEGY
Market selection
& penetration,
local know-how,
(de-) centralized
organization
BUDGET
Fixed or open
budget defines if
campaign or
program can be
setup

5. AFFILIATE – INFLUENCING FACTORS
External factors:
 Competitor analysis
 Target groups
 Niche vs. mass market
 Markets to target
COMPE-
TITION
Which networks
are chosen by
competitors? One
or more involved?
TARGET
GROUPS
Online affinity of
target group e.g.
based on age
and general
behavior?
NICHE
Focus on niche /
branch related
networks only?
MASS
Products for
broader target
group and also
for affiliates?
External factors to be
defined by advertiser for selection
of possible networks
MARKETS
Focus on core
markets or
specializing in
more exotic
ones?
2
EXTERNAL FACTORS

6. AFFILIATE – INFLUENCING FACTORS
External
factors
Internal
factors
INTERNAL AND
EXTERNAL
FACTORS
=
HAND IN HAND TO
DEFINE THE BEST
STRATEGY!

7. AFFILIATE – NETWORK STRATEGIES
RELEVANT AFFILIATE MARKETS
Core
Affiliate
market
1
Advanced
Affiliate
market
2
Emerging
Affiliate
market
3
3
3
2
33
3
LATAM:
MX and BR as advanced market
AR, PR, CL (…) as emerging ones
EUROPE:
UK and DE as European core markets
FR, NL (…) as advanced ones
Eastern Europe as emerging markets
2
1
2
1
2
2 3
1
3

8. AFFILIATE – NETWORK STRATEGIES
GLOBAL, LOCAL, NICHE OR PRIVATE?
GLOBAL LOCAL PRIVATENICHE
 International coverage
 Focus on specific regions
 Overlapping affiliate bases
 National coverage
 Focus on specific markets
 Mainly local affiliates
 Focus on niches only
 Branch related affiliate base
 Int. and local active
 No regional focus
 Int. coverage possible
 Pure tracking platform
Various options available which will help supporting own targets

9. AFFILIATE – NETWORK STRATEGIES
KEYFACTS PER NETWORK TYPE
GLOBAL LOCAL PRIVATE
Support
Reporting
(Own) Handling
Finance
Costs
Given via account management Given via account management Own authority
Tracking relevant KPIs only Tracking relevant KPIs only Detailed reporting options
Interference possible at any time Limited interference possible Own handling = requirement
Pre- and post payment Pre- and post payment Mainly post payment
20% - 30% (+ add. costs) 20% - 30% (+ add. costs) 5% - 15% (+ add. costs)
Factors which can decisively influence the own options

10. AFFILIATE – NETWORK STRATEGIES
WHEN TO CHOOSE WHAT
 Advantages & disadvantages of network strategies
Single network strategy Multi network strategy
 Cost reduction for setup and fix fees
 Exclusivity reduces network fee
 Lower administrative effort
 Attribution: easier to implement & track
 Higher affiliate coverage
 Exclusivity only for certain markets possible
 Doesn’t apply if only one market is setup
 Attribution: not possible to reward across networks
Some markets are covered best via multi network approach (local + international)

11. AFFILIATE – NETWORK STRATEGIES
HOW TO SELECT YOUR NETWORK PUZZLE PIECE
Emerging markets
Know-how needed
Strong dependence
LOCAL
AFFILIATE MARKETING
NETWORK STRATEGY
Established markets
Longtail via global
Top via Private
GLOBAL / PRIVATE
 US: established global network with local headquarter
 BRICS & Arabian region: local network due local conditions like language, education …
 EU: international networks to reduce fees by covering more markets
 Worldwide known brands: private networks to handle top affiliates

12. AFFILIATE – NETWORK STRATEGIES
Market combinations
Core market(s) only Established global with regional headquarter (CJ, Awin, Rakuten)
Global network (with local offices)
Local networks (with local knowledge like Admarula, Soicos)
Global network to cover most markets within one platform
Local networks
Global network (with local offices) + local network
Advanced market(s) only
Emerging market(s) only
Core market(s) +
advanced market(s)
Core market(s) +
emerging market(s)
Advanced market(s) +
emerging market(s)
SUMMARY: CHECKLIST TO DEFINE YOUR STRATEGY I
Depending
on Volumes,
Resources &
Strategy e.g.
private
network
applicable

13. AFFILIATE – NETWORK STRATEGIES
SUMMARY: CHECKLIST TO DEFINE YOUR STRATEGY II
Number of markets
Market type
Resource / Know how
Budget / margins
Brand awareness
Your
strategy
Available
Unavailable
Open
Limited
Single
Multi
Core
Advanced
Emerging
Low
High

14. AFFILIATE – NETWORK STRATEGIES
SUMMARY: CHECKLIST TO DEFINE YOUR STRATEGY II
Number of markets
Market type
Resource / Know how
Budget / margins
Brand awareness
Your
strategy
GLOBAL NETWORK
Start as single network
Later on local
Available
Unavailable
Open
Limited
Single
Multi
Core
Advanced
Emerging
Low
High

15. AFFILIATE – NETWORK STRATEGIES
SUMMARY: CHECKLIST TO DEFINE YOUR STRATEGY II
Number of markets
Market type
Resource / Know how
Budget / margins
Brand awareness
Your
strategy
GLOBAL NETWORK
Start as single network
Later on local
PRIVATE NETWORK
Single network strategy
Available
Unavailable
Open
Limited
Single
Multi
Core
Advanced
Emerging
Low
High

16. AFFILIATE – NETWORK STRATEGIES
SUMMARY: CHECKLIST TO DEFINE YOUR STRATEGY II
Number of markets
Market type
Resource / Know how
Budget / margins
Brand awareness
Your
strategy
Available
Limited
Single
Multi
Core
Advanced
Low
GLOBAL NETWORK
Start as single network
Later on local
PRIVATE NETWORK
Single network strategyLOCAL NETWORK
Single network / market
Later global for int.
Unavailable
Open
Emerging
High

17. AFFILIATE – NETWORK STRATEGIES
SUMMARY
No fixed
patterns as
strategies
differ
Local:
transparency
vs. local
insights
Limited
budget:
one platform
only for
campaign
More
markets:
better
negotiating
position
Emerging
markets
require local
know-how
Private:
Top affiliates
and popular
brands only

18. AFFILIATE – NETWORK STRATEGIES
CASE STUDIES
PRIVATEGLOBAL LOCAL
Summary:
In 2012, Deutsche Lufthansa decided to setup
affiliate programs in 39 markets within less than
one year.
Strategy:
 Dividing markets into EU & ROW
 Tradedoubler as network for Europe
 Commission Junction for rest of the world
Results:
 Reduced network fees  exclusivities
 Constant performance increase
Summary:
adidas had a clear focus on 4 affiliate programs
running in the European markets NL, UK, DE
and FR.
Strategy:
 Cooperation with PHG (self-serve platform)
 Focus on centralization, consolidation and a
change of network model
Results:
 Expansion to 18 markets within EU
 Trend identifications due to insights
Summary:
In 2016, Deichmann, Europe's biggest shoe
retailer, decided to setup a local network for two
of their 13 European markets: CZ and SK.
Strategy:
 Cooperation with VivNetworks
 Local network enables detailed market
insights
Results:
 Better realization of local promotions
 Sales increase and extension of affiliate base
*
* https://blog.performancehorizon.com/how-iprospect-adidas-drove-massive-affiliate-channel-growth

19. AFFILIATE – NETWORK STRATEGIES
MANY THANKS FOR YOUR ATTENTION!
READY TO SETUP YOUR
(INTERNATIONAL) NETWORK
STRATEGY?
ANY QUESTIONS?

20. AFFILIATE – NETWORK STRATEGIES
CONTACT
VALENTINA PIOL
 Head of Affiliate Marketing
 E-Mail: Valentina.piol@metapeople.com
 Phone: +49-203-41050-0
 www.metapeople.com