This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: The Asia-Pacific (APAC) region has been experiencing tremendous growth within digital and affiliate marketing in the past years. Let’s look at the market, and successful case studies.

1. THE ASIAN AFFILIATE MARKET
HOW TO CRACK
THE BILLION DOLLAR NUT

2. MOZOO
+ 150 COUNTRIES
EUROPEAN MOBILE ADVERTISING LEADER
+ 5,000 CAMPAIGNS
+ 1,000 CLIENTS
2010 2013 2016 2016
110 MOBILE EXPERTS
2016

3. OUR TIME TODAY
01 04 05 0602 03
APAC DIGITAL
AD SPEND
CHINA TRAFFIC
SOURCES
VERTICALS ADVERTISER
RELATIONSHIPS
CASE
STUDIES

4. APAC
DIGITAL AD SPENDING
BIG
FAT
STATS

5. 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
13.4
23.7
36.8
51.1
66.1
79.1
0
10
20
30
40
50
60
70
80
90
2014 2015 2016 2017 2018 2019
MOBILE AD SPENDING (BILLIONS)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
2014 2015 2016 2017 2018 2019
MOBILE AD SPENDING
(% OF TOTAL DIGITAL AD SPENDING)

6. CHINA
LEADING APAC GROWTH, GREW BY 28% IN 2016
39.7
65.7
22
48.7
0
10
20
30
40
50
60
70
2016 2019
DIGITAL & MOBILE AD SPEND (BILLIONS)
Digital Ad Spend Mobile Ad Spend

7. CHINA
LEADING APAC GROWTH, GREW BY 28% IN 2016
165
95
15
0
20
40
60
80
100
120
140
160
180
USA WESTERN EUROPE CHINA
AD SPEND PER CAPITA ($)

8. BOOMING TERRITORIES: JAPAN
4TH BIGGEST DIGITAL AD SPEND GLOBALLY
10.5
12
5
8.4
0
2
4
6
8
10
12
14
2016 2019
DIGITAL & MOBILE AD SPEND (BILLIONS)
Digital Ad Spend Mobile Ad Spend

9. BOOMING TERRITORIES: SOUTH KOREA
6TH BIGGEST DIGITAL AD SPEND GLOBALLY
3.3
4.4
2.1
3.4
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2016 2019
DIGITAL & MOBILE AD SPEND (BILLIONS)
Digital Ad Spend Mobile Ad Spend

10. TRAFFIC
SOURCES
LAUNCHING
A CAMPAIGN
IN CHINA

11. THE BIG THREE
85%OF TOTAL CHINA TRAFFIC

12. BAIDU
SEARCH & DISPLAY TRAFFIC
70M DAILY ACTIVE SEARCH USERS
660M MONTHLY MOBILE SEARCH USERS
GOOD REPORTING INTERFACE
300 RESELLERS
ALL FOCUSED ON DIFFERENT VERTICALS

13. WECHAT MOMENTS
BEHIND WECHAT (WEIXIN)
ALSO QQ AND QZONE
COMMUNICATION AND GAMES
WECHAT: 517M DAU
SLOWLY OPENING UP TO ADVERTISERS
THREE WAYS TO ADVERTISE

14. 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

15. 2. KEY OPINION LEADERS
LEVERAGE SOCIAL INFLUENCERS
FROM $100 BANNER TO $50K BLOG POST
NOT MUCH RED TAPE
AROUND COMPLIANCE
USE PARKLU
TO FIND INFLUENCERS

16. 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 CHINESE
REGISTERED COMPANIES
USE RESELLERS LIKE
MOZOO

17. ALIBABA
eCOMMERCE PLATFORM LIKE AMAZON
427M MAU
USED TO SELL PRODUCTS
NOT TO BUY TRAFFIC
eCOMMERCE IS BOOMING
IN APAC & CHINA
ALSO USE
TAOBAO
WHICH HAS AN ADEXCHANGE TAOBAO TANX

18. ALIBABA
eCOMMERCE PLATFORM LIKE AMAZON
427M MAU
USED TO SELL PRODUCTS
NOT TO BUY TRAFFIC
eCOMMERCE IS BOOMING
IN APAC & CHINA
ALSO USE
TAOBAO
WHICH HAS AN ADEXCHANGE TAOBAO TANX

19. DSP’s
300+ DSP’s IN CHINA THAT YOU CAN USE
HALF OF THESE HAVE THEIR OWN DMP
PLENTY DSP’s OUTSIDE CHINA WITH GOOD REACH
MAKE SURE YOUR DSP IS PLUGGED INTO GOOD SSP’s

20. 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 DIRECTLY
OR
WITH DSP’s/SSP’s WITH NON-FUGIBLE VIDEO TRAFFIC

21. VERTICALS
TOP
VERTICALS
IN CHINA

22. HOT VERTICALS
UTILITIES
eCOMMERCE
GAMES
NEWS

23. ADVERTISERS
TOP
ADVERTISERS
IN CHINA

24. UTILITIES
4BIGGEST UTILITES PLAYERS

25. 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

26. QUIHOO 360
NOT AS BIG AS QIHOO
BUDGETS OF OVER $1M TO CERTAIN
NETWORKS EVERY MONTH

27. 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

28. E-COMMERCE
NEXT YEAR BIG DIRECTION
THE MIDDLE CLASS IN CHINA ARE RISING
BIG INCREASE IN DEMAND
BIG OPPORTUNITY
CHINESE GOVERNMENT FORMED A
POLICY TO GIVE BENEFITS
DISCOUNTS AND ADVANTAGES TO
CHINESE ADVERTISERS

29. 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

30. 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

31. NEWS
JIN RI TOU TIAO (JRTT)
NUMBER 1 NEWS APP IN CHINA
$MILLIONS SPENT ON AFFILIATE
MARKETING EVERY MONTH

32. 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

33. ADVERTISERS RELATIONSHIPS

34. ADVERTISER RELATIONSHIPS
LIVE: 25K OFFERS IN CHINA
DIRECT ADVERTISER
RELATIONSHIPS ARE VERY
IMPORTANT
IF YOU DON’T SPEAK CHINESE
TRUSTED INTERMEDIARY
SUCH AS A NETWORK
WORK WITH A ‘LOCAL’ NETWORK WHO
WORKS DIRECTLY WITH THE ADVERTISERS
CLEAR COMMUNICATION FOR PAYMENTS,
TRAFFIC QUALITY, KPIS, CAPS

35. CASE STUDY
CHINESE
UTILITIES
CPI
IN INDONESIA

36. CASE STUDY
EMMANUEL CINCA
HEAD OF ADIFY
SUPER AFFILIATE
EXPERT IN PROMOTING CHINESE OFFERS

37. CASE STUDY
TRAFFIC
THE BLACKBERRY MESSENGER APP
GENERATED A FEW HUNDRED
MILLION RAW IMPRESSIONS PER DAY
ON TWO BANNER SIZES:
320X50 AND 300X250

38. 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

39. CASE STUDY
ADD LANDING PAGE
SIMPLE LANDING PAGE
KEPT IT CLEAN AND LEFT IT
TO BEGIN WITH
ITERATED AGGRESSIVELY ON
BANNERS
AIMING TO INCREASE CTR AND
ALSO CR
OFTEN TOUGH TO BALANCE THE TWO
WHEN BUYING BANNERS ON CPM

40. CASE STUDY
BANNER ITERATIONS

41. CASE STUDY
GETTING 100% ROI
THE NON-ANIMATED VERSION OF THIS
BANNER ACHIEVED 100% ROI
SLICK LOOKING BANNER
WAS MOST SUCCESSFUL
TESTED MORE LPS, SOME WITH FANCIER
DESIGNS BUT NOTHING BEAT THE ORIGINAL
CONSTANTLY ASKED FOR QUALITY FEEDBACK
NOTE
DUE TO THE GENERIC ANGLE, SCALING TO
NEW GEOS WAS EASY

42. 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

43. 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

44. FINAL
THOUGHTS
THE ASIAN
AFFILIATE
MARKET

45. 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

46. TO RUN CHINESE OFFERS GLOBALLY
SIGNIFICANT BARRIERS TO ENTRY
RUNNING AFFILIATE OFFERS WITH NETWORKS
ALREADY 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

47. THANK YOU