Expanding your US business into Europe can be a great opportunity to open a new revenue stream and increase your brand internationally. Last year, eMarketer estimated there were 136.1 million Europeans online in the five largest European Union countries – France, Germany, Italy, Spain, and the UK.
Advertisers spent $7.5 billion to reach all Western Europeans, up 25% from $6.0 billion in the previous year. European online retail activity rose “a staggering 58%” in 2007, with a similar increase witnessed in 2008 (see the Forrester Research report ‘Robust European Online Shopping Growth to Continue’ 2008).
Which markets?
German based InnoGames (www.innogames.de) is a developer and distributor of browser-based games. It runs affiliate programs for its most successful title Tribal Wars across Germany, Spain, Sweden, UK Netherlands, Portugal and Romania.
Julian Bock, Product Manager, believes that the question of which markets to enter first is not simply a case of launching in the biggest markets. “Tribal Wars was a huge hit and we used customer information & the existing user base to give us an idea of which countries to go into.”
A key understanding of your customer and market data will give you the initial insight you need to make good planning decisions.
Opening your US business in the UK, where there is a shared language, is the obvious first choice. YesAsia.com, a leading Asian online entertainment retailer, sells Chinese, Japanese and Korean products including CDs, videos, books and games.
Stefan Janssens, Internet Marketing Manager for YesAsia.com and YesStyle.com, explains that language was the key reason they launched first in the UK. “We started in the UK, for the simple reason that our site is in English. We then also started programs in France and Germany, because they are the largest markets outside the UK.”
The Right Partner is Key
Launching an e-commerce operation into a new market can be high risk. Which markets should you expand to, when and how? Is there sufficient customer demand for your products and services? How will you handle shipping and distribution in another country? Will you need to consider language and translation issues? Are there legal or tax issues?
Even if you have done all the primary research, it may be easier with a local partner who can advise you of local best practices. The right affiliate network can help by:
• Providing a bi-lingual point of contact for you and your affiliate partners
• Understanding local market conditions
• Knowing local affiliates who can best promote your program
• Understanding the local competitive landscape and advising on USPs, commission structures and affiliate benefits you’ll need to stay competitive
• Advising on localized website language, design and presentation
Merchants in the United States that are entering new international markets should consider affiliate networks with an established presence to help them roll out their business. With careful planning, running a European affiliate program should become a springboard to greater things.
Jodi has ten years of experience in e-commerce and performance marketing and is currently an Account Manager for Webgains USA where she is working with many of Webgains’ international publishers and advertisers.
Download the entire FeedFront issue 8 here – http://www.scribd.com/doc/20220412/FeedFront-Magazine-Issue-8
FeedFront issue 8 articles can be found here as well: http://feedfront.com/archives/article00date/2009/10
