International Affiliate Marketing
Affiliate Summit East was a breakout show for Intela. We had our first platinum sponsorship and our very own CEO, Jim Mansfield, gave a speech on Tuesday afternoon titled “International Options for US Affiliates.” Jim’s talk was well received and fostered a great discussion among the attendees.
It is no surprise that there is so much buzz surrounding affiliate marketing internationally. Global internet usage is slated for an impressive 10% growth in 2008 fueled by proliferation of developing markets in Asia (+14%), Latin America (+19%), and Africa (23%). More developed markets in Europe are set to increase internet usage 8% vs. the United States maturing market growth of 4% for 2008.
The rising number of internet users is fueling a dynamic shift of advertising dollars to an ever increasing online audience. The UK, as a country, poses a tremendous opportunity for affiliate marketers. The Times Herald reported yesterday that UK online ad spending overtook television spending in 2007. Per capita, the UK advertisers spend the most online per user (over $200 per user versus the United States which spends $140 per user). These trends are expected to grow as the US experiences an economic cool down and emerging markets start heating up. The world economy is poised to undergo a dramatic shift where future growth will no longer be carried on the backs of the US consumer but by lots of emerging markets with a growing middle class. Company earning reports will be dependent on these emerging markets, as will the advertising and marketing industries ability to target these markets effectively.
Here are a few things to be aware of (including the benefits of working with an established international affiliate program and pitfalls to watch for when working overseas):
Traffic Opportunities
A surprising percentage of the traffic you currently have to your site or on your list may already be from other countries. Make sure that you monetize these opportunities and these users. By only being focused on one type of user you may be missing other lucrative opportunities. Implement geo redirect options and make sure that you work with a network with a variety of international campaigns to choose from.
Marketing Opportunities
Get to know your audience – culture, habits, and types of merchants and consumer brands for the country that you are trying to target. Being culturally relevant will help you connect with your target audience and will elevate your response rates over your competitors that are not doing their homework. Choose to work in countries that pose less of a language barrier; preferably ones in your native tongue such as UK, AUS, and CAN. Work with an affiliate partner with international experience that gives you insights to the market.
Currencies
Exchange rates are a blessing and a curse. The dollar to pound conversion rate can fluctuate dramatically in a single day. Work with an affiliate that can help you absorb the market swing. Otherwise you have the potential to witness your commissions change overnight for better or worse.
Intela is a global performance-based marketing firm, specializing in lead generation and customer acquisition. Intela has been working in the UK for the past 2 years and has recently launched an exclusive UK affiliate network - www.crispads.co.uk. Intela just opened its first international office in London, UK and has advertising opportunities in UK, CAN, AUS, FR and US traffic. Go to www.crispads.com to learn more.

August 19th, 2008 at 5:32 pm
This is an excellent, insightful blog entry. I hope to read more with such enthusiasm in the future.