This presentation is from Affiliate Summit West 2018 (January 7 - January 9, 2018 in Las Vegas).
Session description: How is affiliate marketing business in Latin America. Which countries are stronger, which niche are more popular. Profile of the Latin consumer. Biggest players in the region.
3. 3
2 Latin Americas…
2 Latin
Americas
Market differences.
Brazil operates more like a
closed market.
Cultural & and language
differences.
4. 4
The affiliate marketing expertise pyramid
Showing the expertise level of each submarket in this online marketing practice.
ARGENTINA & MEXICO
CHILE, COLOMBIA,
PERU, ECUADOR.
02
03
1. BRAZIL is at the top of
the pyramid, with a huge
gap of knowledge with
their neighbors.
2. ARGENTINA & MEXICO
with a decent market
activity, but still far from
an experienced market in
this practice.
3. THE REST are not very
familiar at all to this
business. Few local
brands and affiliates.
01BRAZIL
5. 5
Timeline
2001 2006 2007 2008 2009
Mercadolibre
Launches their
affiliate program.
Netshoes
Start to migrate their
business online.
Netfilia
Antevenio’s affiliate
network - Netfilia -
lands in Argentina.
Kwanko
Enters to the region
through Brazil.
Lomadee
First Latin American
affiliate network, goes
live.
Lead-gen
campaigns
Mobile content
Campaigns
Cost per sale
Campaigns
6. 6
Timeline
2010 2011 2012 2013 2015
Soicos
First hispanic Latin
American affiliate
network, start
operations in
Argentina.
Linio & Dafiti
100% online e-
commerce sites
appears in the scene.
Awin
Formerly named
Zanox, step foot in
Brazil.
Mercadolibre
Closes their affiliate
program.
Despegar
The biggest OTA in
the region, launches
their affiliate program.
Lean-gen
campaigns
Mobile content
Campaigns
Cost per sale
Campaigns
7. 7
Biggest players - Brazil
RakutenAwin
Actionpay
OptimiseLomadee
Afilio
The first country to gain attention from the Europeans & American big players was Brazil, that’s why
Brazilians have so many foreign networks compared to the rest of the region.
8. 8
Biggest players – Hispanic Latin America
Soicos
Clickwise / Pampa
Vorcu – Ceased operationsDGMax
Kwanko
On the other hand, there are some affiliate networks that in addition to working in Brazil, also operate in
the rest of Latin America
Tradetracker
14. 14
Affiliates
Educate the local affiliates in the best performance practices, and
encourage to more entrepreneurs and webmasters, to consider the
affiliate marketing as an appealing business.
Merchants
Convince the merchants that the affiliate marketing is the right online
marketing tool to promote to go after their sales goals.
Biggest challenges
----- Meeting Notes (12/12/17 22:53) -----
The objective of this talk is to:
A
B
C for those who want to use this presentation as an starting point to make some research about the market.
D And of course, invite you to participate.
----- Meeting Notes (12/12/17 22:53) -----
Before starting, I'd like to make a huge differentation between Brazil, and the rest of latin america. The hispanic part of latin america.
Is not only the cultural thing, or the language. Or the fact that Brazil is the biggest market in the region. It's also the fact that Brazil is the most mature market in latam.
They have more smart merchants, which make more local entrepreneur or webmasters get interested in the performance world, and becoming affiliates. That make Brazil be way ahead of Argentina or Mexico in terms of performance marketing.
So this is why you will see that I make this differentiation all along the way.
----- Meeting Notes (29/12/17 15:25) -----
Before starting I would like to make an importante differentiation between the hispanic market and the brazilian market.
Because of the market differences, in terms of shoppers, expertise, size, etc. Also 'cause of the language and cultural thing. Brazil always operated independently from the rest of the region, and we slowly started to be more integrated during the past years, having different networks, (Las que operan aca no lo hacen alla) and not so many regional affiliates and merchants.
----- Meeting Notes (29/12/17 12:46) -----
Here I've classified the level of expertise of each country group, where the most experienced like I've mention is Brazil, will a wide local affiliate and merchant base.
In the second place, we can see Argentina and Mexico. In these two countries, we have a decent activity and a lot of new customers have show up in the networks the past year. In terms of affiliates, Argentina has a big advantage compared to Mexico that still has a lack of webmasters considering us, as an interesting biz.
Finally, Countries like Chile, Colombia, Peru, Ecuador and the rest of the region, are not very familiar with this marketing practice, and have few/none local merchants and affiliates.
----- Meeting Notes (29/12/17 14:53) -----
The difference between Brazil and the rest of the countries is so big that you'll how I make that differentiation all along the way with some stats and insights.
----- Meeting Notes (12/12/17 22:53) -----
Ok so I made this timeline where I put what I think were the most important milestones from the past years.
You'll see that each year has it colour, which is related to what I experienced were the most common or prevailing campaigns at the time.
----- Meeting Notes (12/12/17 22:53) -----
The lightblue phase was the one that has more CPL leadgen campaigns, with clients like universities, banks, etc.
The purple phase, was more commonly composed by mobile suscription campaigns, with a total different clients.
And the green era is when the real affiliate marketing, were the ecommerce sites appear in the scene developing the long term affiliate programs that we are more used to.
Of course in all this phases, both customers and affiliates were different companies/players.
----- Meeting Notes (12/12/17 23:26) -----
Also, in order to "survive" along the years we had to make a mix, of campaigns.
----- Meeting Notes (29/12/17 13:57) -----
You can see how a challenge was for us to be up to date with all these changes. Having a whole new different clients and affiliates for each phase, and also having different technological needs along the way. The timing was crucial, to be on track in the industry.
----- Meeting Notes (12/12/17 23:26) -----
DGmax: This one is a curious one. It's an american network, that is focused only in latam. We cooperate a lot, they are good guys.
Vorcu: This one ceased operations a few years ago.
----- Meeting Notes (29/12/17 13:57) -----
Remember what I said about the changes of the industry, well this network was focused on one client type, at a moment that was not enough to survive.
----- Meeting Notes (29/12/17 13:57) -----
How I made this? I gathered a lot of partner affiliate program lists, and categorized each AP.
This of course won't be exact, but It does work as a trend, so take it that way.
Brazil is responsible for most of the inputs in the fashion and h&t programs.
In Argentina, more than the 75% of the travel products are bougth online, so we have a lot of OTAs with an AP live.
----- Meeting Notes (29/12/17 13:57) -----
In this one we can see the origin of the merchants.
Look how curious it is that we have almost the same AP from XCSH brands that the hispanic latin american brands. Crazy huh?
----- Meeting Notes (29/12/17 14:27) -----
Regarding to the challenges we have to overcome in the near future, summing up the problem is that we still have to spread the world.
Educating the affiliates in the best practices and encouraging more entrepreneurs and webmasters to consider the affiliate as an atractive business opportunity.
----- Meeting Notes (29/12/17 12:16) -----
Like I said in the pyramid slide, latin america is a huge a varied region, where we have a different market stages and types. From the most advanced countries like Brazil up to the newbies like Chile or Colombia. Nevertheless, the evolution signs are very strong, and the hispanic part moves altogether, so the evolution for the next years will be huge. Taking this in account, and understanding how the ecommerce figures are gorwing, think that it's the right time jump in, and start making business, wether you fit in a mature market, or you feel more comfortable in not so saturated market! So to sum-up, it's the time, join us, come to take advantage of the opps that the region is giviing, my name is Ignacio Pronzati, here are my contact details hope hear from you!