asian affiliate market: how to crack the billion dollar nut
TRANSCRIPT
THE ASIAN AFFILIATE MARKET
HOW TO CRACKTHE BILLION DOLLAR NUT
MOZOO
+ 150 COUNTRIES
EUROPEAN MOBILE ADVERTISING LEADER
+ 5,000 CAMPAIGNS+ 1,000 CLIENTS
2010 2013 2016 2016
110 MOBILE EXPERTS
2016
OUR TIME TODAY
01 04 05 0602 03
APAC DIGITALAD SPEND
CHINA TRAFFICSOURCES
VERTICALS ADVERTISERRELATIONSHIPS
CASESTUDIES
APACDIGITAL AD SPENDING
BIGFATSTATS
APAC MOBILE AD SPEND
GREW BY 18.2% IN 2016 TO REACH $59.7BN
OVERTOOK NORTH AMERICA IN 2016, WHICH GREW BY 9.6% TO REACH $59.5BN
2014 2015 2016 2017 2018 20190
2
4
6
8
10
12
MOBILE AD SPENDING (BILLIONS)
2014 2015 2016 2017 2018 20190.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
MOBILE AD SPENDING (% OF TOTAL DIGITAL AD
SPENDING)
CHINA
LEADING APAC GROWTH, GREW BY 28% IN 2016
2016 20190
10
20
30
40
50
60
70
39.7
65.7
22
48.7
DIGITAL & MOBILE AD SPEND (BILLIONS)
Digital Ad Spend Mobile Ad Spend
CHINA
LEADING APAC GROWTH, GREW BY 28% IN 2016
USA WESTERN EUROPE CHINA0
20
40
60
80
100
120
140
160
180
165
95
15
AD SPEND PER CAPITA ($)
BOOMING TERRITORIES: JAPAN
4TH BIGGEST DIGITAL AD SPEND GLOBALLY
2016 20190
2
4
6
8
10
12
14
10.5
12
5
8.4
DIGITAL & MOBILE AD SPEND (BILLIONS)
Digital Ad Spend Mobile Ad Spend
BOOMING TERRITORIES: SOUTH KOREA
6TH BIGGEST DIGITAL AD SPEND GLOBALLY
2016 20190
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
3.3
4.4
2.1
3.4
DIGITAL & MOBILE AD SPEND (BILLIONS)
Digital Ad Spend Mobile Ad Spend
TRAFFICSOURCES
LAUNCHINGA CAMPAIGNIN CHINA
THE BIG THREE
85%OF TOTAL CHINA TRAFFIC
BAIDU
SEARCH & DISPLAY TRAFFIC
70M DAILY ACTIVE SEARCH USERS
660M MONTHLY MOBILE SEARCH USERS
GOOD REPORTING INTERFACE
300 RESELLERSALL FOCUSED ON DIFFERENT VERTICALS
WECHAT MOMENTS
BEHIND WECHAT (WEIXIN)
ALSO QQ AND QZONECOMMUNICATION AND GAMES
WECHAT: 517M DAU
SLOWLY OPENING UP TO ADVERTISERS
THREE WAYS TO ADVERTISE
1. WECHAT MOMENTS SINCE 2015
TWO TYPES OF COMPANIES CAN USE MOMENTS:
COMPANIES REGISTERED IN MAINLAND CHINA WILLING TO INVEST AT LEAST $7,500 USD
FOREIGN COMPANIES WILLING TO INVEST AT LEAST $20,000 USD
USE A RESELLER LIKE
MOZOO
2. KEY OPINION LEADERS
LEVERAGE SOCIAL INFLUENCERS
FROM $100 BANNER TO $50K BLOG POST
NOT MUCH RED TAPEAROUND COMPLIANCE
USE PARKLUTO FIND INFLUENCERS
3. BANNERS
STANDARD BANNERS AND MPU’S WITHIN WECHAT
OLD BANNERS:POOR PERFORMANCE AND TARGETTING
LITTLE CONTROL
NEW BANNERS:CPV MODEL
FULL CONTROL AND BETTE EFFICIENCY
ONLY FOR CHINESEREGISTERED COMPANIES
USE RESELLERS LIKE
MOZOO
ALIBABA
eCOMMERCE PLATFORM LIKE AMAZON
427M MAU
USED TO SELL PRODUCTSNOT TO BUY TRAFFIC
eCOMMERCE IS BOOMINGIN APAC & CHINA
ALSO USE
TAOBAOWHICH HAS AN ADEXCHANGE TAOBAO TANX
ALIBABA
eCOMMERCE PLATFORM LIKE AMAZON
427M MAU
USED TO SELL PRODUCTSNOT TO BUY TRAFFIC
eCOMMERCE IS BOOMINGIN APAC & CHINA
ALSO USE
TAOBAOWHICH HAS AN ADEXCHANGE TAOBAO TANX
DSP’s
300+ DSP’s IN CHINA THAT YOU CAN USEHALF OF THESE HAVE THEIR OWN DMP
PLENTY DSP’s OUTSIDE CHINA WITH GOOD REACH
MAKE SURE YOUR DSP IS PLUGGED INTO GOOD SSP’s
VIDEO
VIDEO IS A BIG OPPORTUNITY FOR PERFORMANCE MARKETERS
‘YOUKU TUDOU’ ACQUIRED BY ALIBABA GROUP IN NOVEMBER 2015
YOUTUBE OF CHINA 80% OF VIDEO TRAFFIC
TO BUY TOP VIDEO TRAFFIC IS VERY COMPETITIVE
WORK WITH DEVELOPERS DIRECTLYOR
WITH DSP’s/SSP’s WITH NON-FUGIBLE VIDEO TRAFFIC
VERTICALSTOPVERTICALSIN CHINA
HOT VERTICALS
UTILITIES
eCOMMERCE
GAMES
NEWS
ADVERTISERSTOPADVERTISERSIN CHINA
UTILITIES
4BIGGEST UTILITES PLAYERS
QUIHOO 360
360 SECURITY: $3M PER NETWORK
OPERA MINI: $800K PER DAY
BIGGEST ADVERTISER IN CHINA
STARTED THE UTILITIES AND TOOLS TREND
FREEMIUM MODEL
ADVERTISING MONETISATION
QUIHOO 360
NOT AS BIG AS QIHOO
BUDGETS OF OVER $1M TO CERTAIN NETWORKS EVERY MONTH
UTILITIES
SHIFTING LANDSCAPE
UTILITIES WERE PREVIOUSLY ONLY REAL CN ADVERTISERS
VOLUME AND SCALE WERE VERY MUCH THE FOCUS
LOOKING FOR USERS GLOBALLY
FOCUS ON TEIR 1 COUNTRIES US & EUROPE
FOCUS ON ROI AND VALUE PER USER
GENERALLY THE US USER ECPM IS 10X THE VALUE COMPARED TO SEA
• SEA BUDGET IS IN A DECLINE, BUT US & EUROPE INCREASING
E-COMMERCE
NEXT YEAR BIG DIRECTION
THE MIDDLE CLASS IN CHINA ARE RISINGBIG INCREASE IN DEMAND
BIG OPPORTUNITY
CHINESE GOVERNMENT FORMED A POLICY TO GIVE BENEFITS
DISCOUNTS AND ADVANTAGES TO CHINESE ADVERTISERS
LITTLE RED BOOK (XIAOHONGSHU)
CONNECTS OVERSEAS MERCHANTS WITH LOCAL BUYERS
SUPPORTED BY CHINESE GOVERNMENT
FOUNDED IN 2013
RECENTLY RAISED $100M FROM TENCENT HOLDINGS
THEY ASK FOR HIGH QUALITY USERS
HAVE UNLIMITED BUDGET FOR QUALITY
VALUATION OF $1BN
GAMES
HUGE BUDGETS FOR GOOD QUALITY
HARD OR SOFT KPI’s
CLASH OF KINGS & MAGIC RUSH BIG GAMES BY ELEX WIRELESS
LOOKING FOR USERS OUTSIDE CHINA AND IN CHINA
NEWS
JIN RI TOU TIAO (JRTT)
NUMBER 1 NEWS APP IN CHINA
$MILLIONS SPENT ON AFFILIATE MARKETING EVERY MONTH
CAPS & BUDGET
CPI THE PO ARE USUALLY SIGNIFICANTLY LOWER IN CHINA THAN IN OTHER TERRITORIES
CR TENDS TO MAKE UP FOR THIS
ONCE YOU HAVE PROVEN TRAFFIC QUALITY, BUDGET AND CAP TEND TO
BE UNLIMITED
IF YOU CAN BRING QUALITY USERS YOU CAN JUST SPEND
ADVERTISERS RELATIONSHIPS
ADVERTISER RELATIONSHIPS
LIVE: 25K OFFERS IN CHINA
DIRECT ADVERTISER RELATIONSHIPS ARE VERY
IMPORTANT
IF YOU DON’T SPEAK CHINESETRUSTED INTERMEDIARY
SUCH AS A NETWORK
WORK WITH A ‘LOCAL’ NETWORK WHO WORKS DIRECTLY WITH THE ADVERTISERS
CLEAR COMMUNICATION FOR PAYMENTS, TRAFFIC QUALITY, KPIS, CAPS
CASE STUDY
CHINESEUTILITIESCPIIN INDONESIA
CASE STUDY
EMMANUEL CINCA
HEAD OF ADIFY
SUPER AFFILIATE
EXPERT IN PROMOTING CHINESE OFFERS
CASE STUDY
TRAFFIC
THE BLACKBERRY MESSENGER APP GENERATED A FEW HUNDRED
MILLION RAW IMPRESSIONS PER DAYON TWO BANNER SIZES:320X50 AND 300X250
CASE STUDY
ANGLE TEST
STARTED WITH DIRECT LINKING 5 BANNERS, EACH WITH AN INDIVIDUAL ANGLE
ONE OF WHICH WAS “MAKE YOUR ANDROID LOOK LIKE AN IPHONE”
THIS ANGLE GOT TO BREAK EVEN IN THE INITIAL TEST
POWER IN ‘GENERIC’ ANGLES
VERY NICH & SPECIFIC ANGLES AREN’T ALWAYS THE ANSWER
TO SCALE QUICKLY, GENERIC ANGLES CAN BE POWERFUL
CASE STUDY
ADD LANDING PAGE
SIMPLE LANDING PAGE
KEPT IT CLEAN AND LEFT ITTO BEGIN WITH
ITERATED AGGRESSIVELY ON BANNERS
AIMING TO INCREASE CTR AND ALSO CR
OFTEN TOUGH TO BALANCE THE TWO WHEN BUYING BANNERS ON CPM
CASE STUDY
BANNER ITERATIONS
CASE STUDY
GETTING 100% ROI
THE NON-ANIMATED VERSION OF THIS BANNER ACHIEVED 100% ROI
SLICK LOOKING BANNERWAS MOST SUCCESSFUL
TESTED MORE LPS, SOME WITH FANCIER DESIGNS BUT NOTHING BEAT THE ORIGINAL
CONSTANTLY ASKED FOR QUALITY FEEDBACK
NOTEDUE TO THE GENERIC ANGLE, SCALING TO
NEW GEOS WAS EASY
CASE STUDY
RESULTS
OVER 252,000 INSTALLS GENERATED IN INDONESIA ALONE, JUST ON THIS TRAFFIC SOURCE
$63,000 COMMISSION
OVER 100% ROI
SUBSEQUENTLY SCALED TO MORE GEOS & TRAFFIC SOURCES
CASE STUDY
LESSONS
SCALABILITY CAN BE ACHIEVED MANY WAYS, BUT THE KEY THING IS MAKING SURE YOU KEEP YOUR AUDIENCE LARGE ENOUGH
DON’T BE PUT OFF BY LOW PAYOUTS
USE NETWORKS WHO WERE IN DIRECT WITH THE ADVERTISERS LOCALLY
FINALTHOUGHTS
THE ASIANAFFILIATEMARKET
TO RUN CHINESE OFFERS GLOBALLY
QUALITY OF TRAFFIC IS A BIG THING
JUST DRIVING INSTALLS OR ACQUISITIONS IS DEFINITELY NOT ENOUGH
HARD KPIS ARE BECOMING THE NORM
MAKE SURE YOU CHECK THE KPIS (OFTEN RETENTION RATE) BEFORE YOU START
BE PREPARED TO HAVE PAYMENTS WITHHELD IF YOU DON’T HIT THE KPIS
LET THE TRUSTED AFFILIATE NETWORK RUN THE RELATIONSHIP WITH THE ADVERTISER
START WITH GENERIC ANGLES FOR SCALE, THEN ITERATE WITH MORE SPECIFIC ANGLES
UNDERSTAND THE CULTURAL HOOKS IN EACH TERRITORY
TO RUN CHINESE OFFERS GLOBALLY
SIGNIFICANT BARRIERS TO ENTRY
RUNNING AFFILIATE OFFERS WITH NETWORKSALREADY IN THESE TERRITORIES IS SUPER IMPORTANT
UNDERSTANDING WHO THE BIG ADVERTISERS ARE, WHAT THE BIG VERTICALS ARE AND WHAT THE BIG TRAFFIC SOURCES ARE
BUILD RESELLER RELATIONSHIPS WITH THE BIG TRAFFIC SOURCES
THANK YOU