2Performant.com - self-service affiliate platform for e-commerce, more than 1,700,000 transactions generated in CEE. Facts and figures about 8 CEE markets on ecommerce and affiliate marketing (focused on Poland and Romania) + Romanian affiliates profile.

1. Affiliate marketing in
emerging markets
1 million conversions later
Dorin Boerescu, CEO 2Parale & 2Leva

2. 2Parale – Biggest affiliate Romanian network
• Founded in 2009
• +350 advertisers
• +33.000 affiliates
• More than 1 million conversions
– >660k sales (+€20 million sales for advertisers)
– >540k leads
• More than €1.5M paid commissions
• Realtime.2parale.ro – all conversions in real time
• iOS app

3. 2Leva
• Founded in 2011
• +35 advertisers
• +4,000 affiliates
• More than 100k conversions
– >80k sales (+€2 million sales for advertisers)
– >34k leads
• Realtime.2leva.bg/realtime

4. 8 emerging markets
• Romania
• Bulgaria
• Croatia
• Slovenia
• Hungary
• Czech Republic
• Slovakia
• Poland

6. 8 markets at a glance
• 96 million people
• 51 million internet users
• 53% average internet penetration
• €1bn online advertising market
• €4.5bn offline advertising
• €12bn ecommerce
• €30 million affiliate marketing budgets

7. 8 markets sizes
Population
Online advertising market
€
Offline advertising market
€
Romania 19M 46M 303M
Bulgaria 7.3M 24M 169M
Croatia 4.2M 14M 195M
Slovenia 2M 16M 140M
Hungary 10M 120M 444M
Slovakia 5M 65M 300M
Czech Republik 10.5M 291M 1.3bn
Poland 38M 496M 1.730bn
Total 96M €1bn €4.6 bn

8. 8 markets sizes
Ecommerce market € Affiliate marketing budgets €
Romania 1bn 2M
Bulgaria 300M 300k
Croatia N/A 300k
Slovenia 200M N/A
Hungary 1.3bn 1M
Slovakia 600M 500k
Czech Republik 2.7bn 5M
Poland 5.9bn 20M
Total €12.3bn €29.1M

9. Big guys are already here
• International/regional big players from
ecommerce/advertising/affiliate
• Zanox, Tradedoubler, Vodafone, PayPal, PayU,
Opencart, Magento, PrestaShop, Google,
Sociomantic, AdPilot, Allegro/Naspers,
BonPrix, Facebook etc.

10. Market specifics
• Young and undeveloped: Romania (2 significant
networks), Bulgaria (1.5  ), Croatia&Slovenia
(none), Hungary (1?) but with a fast growing pace
• Fast rise and fall of daily deals industry (led by
international players like Groupon or regional big
players like Kolektiva) – 2011-2013
• They drove a higher acceptance of online
payments (5-30%) – for the benefit of all
ecommerce, and a fast development of affiliate
industry.

11. Romanian affiliate market
• Ecommerce + CPS based
• 50-100% annual growth 2012-2016
• Networks:
– 2Parale
– Profitshare
– Forestview
– Piata digitala
• Clients: emag (Naspers), Elefant (big bookstore, now
moving to an everything store), regional and local
players in Fashion, Home&deco, Computers&Electronics
• ~10% of the e-shops are active in affiliate marketing.

12. Romanian affiliate market
• Telecom is coming – Vodafone program active in 2Parale
• Banks, insurance - testing
• Big publishers and media groups – moving to
ecommerce and affiliate projects
• Cash-back started in 2012/2013
• Small players on vouchers or emailing
• Strong on PPC and comparision engines/agregators
• Conversion rate 1-3% (network average)
• Average basket value: €37 - 7% average commission
• 4.5k e-shops, €1bn ecommerce

13. Poland affiliate market
• One of the oldest in region – definitely the biggest
• Big “offline” clients - banks, automotive, telecom, FMCG (e.g. Adidas,
T-mobile, Kinder, Peugeot, Pepsi)
• CPC/CPL based – strong on finance/insurance
• Big publishers and media groups as affiliates
• Networks:
– Tradedoubler
– Novem
– Afilo
– Netsales
– Zanox
– Netaffiliation
– Tradetracker
• 12k e-shops, €62 average basket value, 24% of eshops using aff mkg
• €5.9bn ecommerce, €500M online advertising, €20M affiliate budgets

14. Sources
• Mediafact Book Romania - by initiative
• Do you CEE? - by Gemius/IAB
• ADEX Benchmark - by IHS/IAB
• ROads - by pwc/IAB
• Ro e-commerce landscape - by GPeC.ro
• Is Polish e-commerce booming? - by OEX Divante
• Ecommerce Poland 2013 – by dotcom river
• 2Parale data
• NB all data are for 2012/2013

15. Affiliate profile, behavior, traffic sources
Romania, 2013

16. Affiliate profile – Romania
• Market research by 2Parale
• Published in august 2013
• 851 affiliates responded

17. Gender
71%
29%
Male
Female

18. Age
25-34
18-24
35-45
45-54
under 18 55-64

19. When did you enter in affiliate marketing?
53%
23%
11%
6% 7%
2013 2012 2011 2010 before 2009

20. how much do you earn monthly from aff mkg?
90%
7% 2% 1%
less than €250 €250-1000 €1000-€10,000 €10,000 -

21. Direct traffic sources
54%
41%
30%
22%
21% social media
personal blog
niche content projects
reviews sites
general publishing
project

22. How much do you reinvest from your
affiliate income?
43%
29%
11%
17%
I don't reinvest 1%-20% 21%-40% more than 40%
28% of affiliates invest more than 20%

23. Best practice
• Affiliates who invest constantly may be your
best long term partners.
Help them to get better ROI - pay them
faster, offer them incentives for bigger
performance, share more information.

24. In how many programs are you active?
<10
80%
80%
13%
4%
3%
less than 10
11-50
51-100
more than 100

25. Best practice
• Most likely – you have 1/10th of your affiliates
attention.
Be ACTIVE and RELEVANT!

26. What are the most important criteria
to try a new affiliate program?
79%
48%
39%
31%
22% 22%
% of commission advertisers
reputation
tools provided
(banners, feeds
etc.)
advertisers
category
% of rejected
commissions
terms and
conditions of
program

27. Best practice
• There are few things to draw affiliates attention
when starting a new program.
Start with a BIGGER COMMISSION than
category average (at least for a while)

28. Top reasons to stop promoting an
affiliate program
54% 52%
36% 35%
30% 27%
low eCPC % of rejected
commissions
too high
late payments available tools low conversion
rate
weak
communication
with aff man

29. Best practice
• You don’t have many aspects under your
control in keeping your affiliates active
• Pay the commissions as fast as you can
• Listen. Answer. Help. Share. Be honest.

30. Insight
• I love the statistics from 2Parale and the fact that I
receive an email immediately after I generated a
commission, with details about the advertiser and
the sale. Also, they have a tool to generate an
affiliate link directly in the browser when you visit
an advertiser website.

31. Thank you
dorin.boerescu@2parale.ro