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, Marriott.com 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 Hotels.com
2008 Online Sales
• Marriott.com 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/ Español
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
27. Publisher Recruitment
Recruiting
Direct Network
Outreach to pubs
Conferences/ Regional
with various
Managers
Direct Outreach business models
Regional
Hotels
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
