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2. Who's who? ? Cheryl Ingram, UK Client Development Director, Commission Junction ? Peter Norris, Performance Marketing Manager, EMEA, InterContinental Hotels Group ? Lena Siara Huang, eCommerce Manager, Marriott International
3. Agenda ? Introduction - the European landscape ? Marriott and IHG program overviews ? Interview - with IHG and Marriott ? Wrap-up ? Any questions?
4. European Facts ? The total online audience in Europe grew by 8% YOY to 241 million (June 08) ? This year, eMarketer estimates there will be 136.1 million Europeans online in the five largest European Union countries - UK, France, Germany, Italy, Spain ? c178 million Europeans go online every week ? Over half (55%) of internet users in Europe go online everyday ? Europe now accounts for 28% of the total world population ? Online behaviours across Europe have changed dramatically - a massive 80% of European internet users have bought a product or service online, up 3% since 2006 and double the 2004 figure.(EIAA Mediascope study)
13. The IHG Affiliate Campaign An introduction: - IHG has one global affiliate programme with local management in the Americas, EMEA and APAC regions; - Commissions are paid on completed stays; - Promote all brands and hotels globally; - Migrated to CJ in 2008 from BeFast;
14. Why we chose CJ Some of the benefits of the CJ platform are as follows: - A global leader in affiliate marketing, allowing IHG to work with new sites in all regions - Opportunity to partner with top performing affiliates - Affiliate commissions can be paid in multiple currencies - The potential for more revenue and exposure for our hotels - Allows for easy sign-up and enrolment to the affiliate program
15. Our Expansion into Europe ? Install ?on-the-ground' local management of affiliate programmes ? Build direct relationship between local CJ manager & IHG performance marketing manager for that country ? Provide local Performance marketing managers with outlet for potential publishers ? Provide facility for new publisher enquiries & streamlined sign-up process ? Grow affiliate based revenue in France, Germany, Italy & Spain. ? Commission new revisions & improve quality of existing affiliate campaign materials in Europe (creative, links, catalogue) ? Operate recruitment drive of locally identified potential publishers
17. Marriott International - Fast Facts Marriott has over 3,100 hotels in 68 countries, and has been ranked as the lodging industry's most admired company In 2008, has been ranked ? ? #7 in the Top 10 largest consumer retail Web sites in the world No other hotel company has made it into the Top 10. ? #1 for User Experience? First time a direct supplier has out-performed any travel service aggregator, including Expedia and 2008 Online Sales ? drove $6.2 billion in gross revenue (+18.8% YoY) ? Marriott Global sites grew +66% YoY
19. Affiliate Marketing - a Growing Channel Affiliate Marketing as strategic part of overall online strategy ? Channel increases visibility online ? Gives access to new customers and customer segments ? Affiliate shoppers tend to buy more than the average shopper ? Lower CPA than other advertising channels Why Marriott decided to expand globally? ? In the US affiliate marketing spending accounts for 9% of total online ad spending and is estimated to reach $3.3 billion in 2012 ? The US affiliate industry is estimated to grow at a compound annual growth rate (CAGR) of 13% over the next five years ? Travel is #1 advertiser sector in affiliate industry, accounting for 30% ? Affiliate marketing is a growing channel - globally
20. Marriott's Affiliate Programmes Today US Program UK Programme ? Launched in 2003 ? Launched in 2007 ? Main audience in US & Canada ? Main audience in UK & Ireland ? To date 3,000+ affiliates ? To date 600+ affiliates YOY Growth 2008: +80%
22. International - Operations Regional Offices - International Sites - Affiliate Programs Central Europe North America Germany USA France UKIMEA Asia-Pacific US & Canada UK & Ireland UK Ireland Australia China Carrib.-LatAm Japan South Korea LatAm - Spanish/ Espa?ol Brazil
23. Previous Affiliate Marketing Structure Campaigns, creative & strategy drip fed into European campaign with no consideration of language, regional differences, or local contacts.
25. Affiliate Programme Realignment The new structure increases programme accessibility for the local IHG manager, as well as utilising local knowledge on both IHG and CJ sides; Recruitment ongoing by CJ Non-CJ Provided with Local CJ Manager able to Publishers in information immediately offer terms local market Local IHG from Affiliate Performance Commission programme Marketing Junction Local On-the-ground, local CJ Existing CJ manager on? Manager manager able to approach Publishers in publisher & invite to local market program. IHG identified potential publishers identified in local market, by local IHG performance marketing manager & added to campaign
30. Publisher Communication Cultural Less Differences Face-to- Face Language Issues Time Differences Local Knowledge Publisher Communication
31. Revised Campaign Materials Some of the changes we've made to ensure good communication: - New translated publisher information pages; - Newly commissioned IHG branded creative; - Hotel database updated and translated for publisher download; - Deeplink URL generators; - Translated newsletters/emails..
33. Meeting Publisher's Needs Country Cultural Specifics needs Publisher Market Needs Trends Industry Trends
34. Keeping up-to-date ? Understanding and being aware of each market is vital to success. - Local CJ Manager inputs on country trends, creative requirements & bespoke opportunities within publisher base; - Local IHG Performance Marketing manager forms relationships with local publishers and can negotiate deals; - UK & US IHG Performance Marketing Managers can open promotional campaigns out to Europe through translated and locally relevant materials. - Maintain a presence on A4U and approach potential affiliate partners via system.
36. Fresh & Innovative Programs Affiliate Offers ? Hotels/ Rooms with 11 different Marriott brands Commissions on completed stays ? ShopMarriott Products Commissions on online purchases Affiliate Tools ? Variety of creative and advanced links ? Data feeds, Deep links, Custom links ? Deals and specials Communication Constant updates with tips & tricks
37. What's Next? Global Expansion - Things to consider ? Market potential ? How developed is eCommerce in this market/ country ? Existing affiliate industry ? Awareness of your products/ services/ brand ? Local representation/ Language constraints ? Choosing the right affiliate network ? Technical and cost considerations
38. Where are we now? ? Within Europe; - 270+ publishers signed up in Europe; - Fully integrated, locally managed, regional campaigns running in France, Germany, Italy and Spain; - 33% increase in European affiliate revenue since start of European expansion; - Ongoing recruitment drive, reviewed on a quarterly basis in place to grow European publisher base organically. ? Globally; - 28% YOY Growth in March Gross Revenue
44. Wrap Up One size does not fit all Communication, Communication, Communication
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