Calling an International Expansion? Get your Global Digits Right with Program Management

19th June 2012 – A4U Expo Barcelona

Introductions

• Susan Jamie – Senior Affiliate Manager at LBi bigmouthmedia

• Aaron Shaw – Search and Affiliate Manager at Skype

Agenda

• Key variances between markets −Europe, USA and Russia

−How these have influenced program strategy

• Skype affiliate program case study

− Key considerations for expanding the global program, along with challenges faced and strategies to drive program growth

• Summary

• Q&A

Key Variances Between Markets

Market Differences – Skype Local Insights Brand AwarenessLarge familiarity with the brand, perceived as a collaboration tool

Products Full range offered across voice, video, messaging, business and other e.g. Wifi

ChallengesPayment options

Market Differences Europe

Affiliate Issues of Importance

Google Updates & Impact

Vouchercodes

Datafeed

49% of German shoppers visit

before purchase -Forrester

Research 2009

European affiliates favour the CPA model – A4U European

Landscape Report 2011

Most Used Links1. Text Links2. Banners3. Datafeeds

In-house affiliate programs are not

common in Germany

Market Differences – Skype Local Insights

Brand AwarenessSkype has high brand popularity in Russia market, seen as a versatile brand (innovative and multi disciplined)

Partnerships • Penetrate and distribute via partners including Groupon • Expand via Broadcast and PR partnerships

Challenges • Fraud• Payment systems

Market Differences – Russia

Media adspend rose by 21% in 2011, within this total internet spend increased 56%

Market Differences – Skype Local Insights

Brand AwarenessSkype has over 85% brand awareness in the US market Perceived as a fun and innovative brand

Products Full range offered across voice, video, messaging, business and other e.g. Wifi

Challenges Regulation around bundling calling products

Market Differences – USA

Brand awareness is a key

consideration for affiliates choosing

a merchant to promote

Most Used Links1. Banners2. Text links

Skype Affiliate Case StudySkype Affiliate Program Case Study

Skype Global Facts

• 250 million connected users per month

• Run rate of more than 300 billion minutes annually

• Approximately 50% of the (above 300 billion minutes stat) are video calls

• For Q3 FY12 Skype users made more than 100 billion minutes of calls, an increase of 40% from the prior year’s third quarter

• More than 40 million concurrent users at peak times

Skype’s Objectives

“Now Skype is part of Microsoft. Together we will bring innovative technology to friends, family and colleagues everywhere. We will enable more people to connect in more ways that transform and enhance their lives.

And this is just the beginning” – Tony Bates

Engage 1 Billion Connected Users

• Continue to drive user led marketing strategies

• Increase the number of connected users and active days

• Drive awareness, education and adoption of multiple products and features, moving people from free to paid

Driving Efficiencies with LBi

• Increase frequency and type of communications • Build relationships with key partners in key

territories• Enhance perception management internally

Communication

• Recruitment focused on key Skype territories• Reporting on a global level• Fraud / Reversals• Payments in local currency

Process

• Drive incremental sales across key territories• Increase product ranges sold globally• Restructure network fees and commission

structure Financials

Overcoming challenges

Communication Process Financials

New Affiliate Payment Model

Integrating with other channels

Affiliate widget &

infographics

SEO keyword analysis

Increased FTP

sales for

Skype

Strategies to grow the global campaign

Strategies to grow the global campaign

Skype Affiliate Case Study Summary

• Skype FTP numbers increased by 49% in the first 6 months of the new payment model going live

• Program now delivers a positive ROI

• Affiliate feedback on communication levels

• Fraud levels are minimal across all locations

• FTPs from key locations increased

−Germany up from 5% to 13%

−USA up from 47% to 65%

Summary

Key Considerations

1. Think global, act local

2. Act on affiliate feedback

3. Affiliate network support in local markets

4. Research into local markets and have individual territory strategies to tie into this

Questions?

• Susan Jamie – Lbi bigmouthmedia

Susan.jamie@bigmouthmedia.com

Skype: bigmouthmedia.susan.jamie

• Aaron Shaw – Skype

Aaron.Shaw@skype.net

Skype/Twitter: @aaronbshaw