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Black Friday 2017: Main Facts and Key Indicators
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This year, Black Friday began on Thursday, November 23, when retailers launched their offers and special proposals at 19:00 Moscow time. A number of trading platforms took the initiative to open clearance sales in their merchandise displays even earlier (in some cases, even since Monday, November 20) and are planning to continue these until Friday December 1.

Admitad’s study is based on in-house data collected from all over the world between Thursday, November 23 and Monday, November 27.

Compared to the corresponding period in 2016, there was considerable turnover growth for trading platforms. The revenue of the shops that launched and promoted their own partnership programs powered by admitad increased almost 2 times YoY from $22 mln. to $43 mln.
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Such growth was due to a sharp rise in the volume of purchases recorded by admitad. It is important to note that in the context of this study, a “purchase” is understood as a completed order in an e-shop. A basket can contain several products, but the system records it as one purchase. In 2017, the number of purchases compared to Black Friday 2016 increased from 919,000 to about 1.3 million units.
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The volume of webmasters’ commission substantially increased: from $1,6 mln. to $2,6 mln.
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The European region was the absolute leader, where buyers brought 88% of the total shops’ revenues. America contributed 7%, Asia – 4%, and the share of other regions and countries amounts to around 1%.
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Regional leaders
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Most orders were made from desktops (80%), next are Android (11%) and iOS (3%).
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The most popular types of webmasters are: promocodes 25%, cashback 21% and XML-feeds 16%.
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The main volume of sales consists of Chinese goods (this is due to the fact that the Chinese display every product in the basket as a separate sale). Then follow the segments of electronics & household appliances and clothes & footwear.
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The average time of a purchase (time for making a decision on a purchase) in the first two days of Black Friday increased in comparison to the previous year, in the following days the consumers spent less time for decision-making.

The number of purchases worth over $10,000 increased in 2017. Desktop is still the primary platform for such purchases.

The number of impulse purchases (the time from redirecting to the shop site to completing a purchase is less than 20 seconds) remained unchanged in general, a small reduction in such sales was observed on iOS.



 
admitad is launching a certification program for the CPA market players
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Certification of specialists has existed in the market of Internet marketing for quite a long time, but each instrument has its own certification program.

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yandex.ru

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If we talk about the market of CPA marketing and of CPA specialists, there is no such institute in the CIS at the moment in any standardized and commonly accepted form. But at the same time the market of affiliate marketing is growing, this has been noted many times by advertisers who use the CPA channel to increase sales via the Internet.

admitad’s affiliate network has announced the launching of a program for development of common standards, training, and certification for specialists who work with affiliate networks.

The first course in certification will be held in late January 2018, and will be intended for specialists in CPA marketing from companies that work, or are just planning to start working with affiliate networks.

Over the 8 years, admitad has accumulated enough expertise and connections with leading representatives of the market both on the side of publishers and on the side of advertisers. This will allow for elaborating common standards of work in the CPA market that will be agreed with all the market’s participants, and will make it possible to attract mentors for expert assistance in training and certification.

“For many people, CPA marketing still remains Pandora’s box. Everybody understands that CPA brings sales and earnings, but many people don’t understand how this model works. This gives rise to many stereotypes, and prevents the market from developing at the pace that it can afford having all the necessary infrastructure at the moment.

In September 2017, we started working at development of a program for training and creation of the admitad Academy, and within the frame of the Academy we have already held several webinars and in-person seminars both for publishers and for specialists on the side of advertisers. Altogether we have been able to engage over 1000 persons in the Academy’s events. We have been convinced once again that there is a very high demand for training, for getting acquainted with the market of CPA marketing. People are ready to increase their level of knowledge in this field. We only have to provide them with instruments and materials. And this is what we are going to pay attention to in 2018”, admitad’s CEO Alexander Bachmann commented on the launch of the certification program.

As part of the support of the initiative on formation, standardization, and training of the CPA market, the admitad company has joined the IAB Russia association where, together with other companies, it is planning to take an active part in the development of the market of interactive advertising.



 
Merry Christmas & Happy New Year from admitad
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Dear Friends! I would like to wish all of you a Merry Christmas and a happy upcoming New Year 2018!

The year 2017 was marked by a new stage of the qualitative development of our Company. We carried on our quick growth, admitad won a number of key awards in the industry of internet marketing. We consistently expand our presence in the world market making digital advertising more efficient and transparent.

The admitad team believes that a successful business is built by people. In 2017 we founded Admitad Academy, started developing uniform standards and implementing a Training and Certification program for specialists. The first Certification course will take place at the end of January 2018 and will be intended for CPA market players who are working or just going to start working with affiliate networks.

We achieved dramatic investment results. admitad Invest entered the top five of seed funds of the Russian Federation by the number of projects in such fields as SaaS, marketplace, enterprise, commercial content projects, CPA, lead generation. The investment volume exceeded 2 million dollars. Among the projects of 2017 Epicstars, Push.World, Meds.ru and Appspress.ru are worth being mentioned accordingly.

The admitad team and I wish you good health and prosperity and hope your wishes come true in 2018. We will help you to expand the horizons of your business and to earn using our solutions and products.

Alexander Bachmann
CEO admitad
 
Record Christmas business at admitad: 236.9 million US dollars revenue for advertisers in one month

· Revenue through the affiliate network grows by more than 160 percent in the Christmas period compared to the previous year.

· Publishers receive $12.4 million in commissions paid to publishers



Heilbronn, Germany. January 10th, 2018, - In the Christmas season, most consumers like to dig extra deep into their pockets. When it's all over, looking at the balance sheet is usually a real pleasure for traders. For admitad, which is one of the world's largest CPA networks, this year is particularly true: because the revenue generated via the affiliate network in the period from Black Friday on 24 November to 25 December was more than doubled compared with the previous year.


In the Christmas season of 2017, total sales amounted to 236.9 million US dollars. In 2016 it was 89.6 million US dollars. In the Christmas season 2017, a total of around 6.7 million articles were sold via admitad (2016:2.9 million). Publishers, who earn $12.4 million in the cost-per-action programs on every user action determined, have been paid $12.4 million this Christmas, more than twice as much as last year. In 2016, admitad paid 4.5 million US dollars.


China sales figures doubled,

USA sales figures increased sixfold


The largest sales increases were recorded by admitad in the USA (sixfold increase in sales compared to the previous year) and Canada (tenfold increase in sales compared to the previous year). Sales in China doubled. In Europe, the United Kingdom, Germany, Ukraine and France are among the top-selling markets for admitad.


"The record result of this Christmas season is like an additional Christmas gift for us," - says Alexander Bachmann, founder and CEO of admitad. Above all, the growth in cross-border e-commerce shows us how great the opportunities of affiliate marketing are in this area. This applies to marketers and publishers alike and is a great motivation boost at the beginning of the year. In the Christmas season of 2018, of course, we want to surpass the record result."
 
Express Payments via PayPal & Complete Disabling of Domain Parking
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The admitad team is constantly working on developing its own platform. We develop technologies and tools to make work for publishers and advertisers much easier and optimize existing processes. We are going to issue the “Technology Digest” by admitad to help our partners always be aware of any events, be first to learn about innovations, and make informed, well-argued decisions to get high earnings!

Roman Barkholenko,

Chief Technology Officer, admitad


In 2017 the admitad’s development department completed many tasks of diverse complexity regarding different topics. One of the most recent implementations was an introduction of Express payments via PayPal in December, as well as the complete disabling of the Domain Parking tool.

Express Payments via PayPal

In 2017 admitad improved the system of payments, providing publishers with the opportunity to order express payments through epayments and PayPal.

Available currencies in epayments and PayPal include RUB, USD and EUR. The limit for a one-time payment in epayments is RUB 250,000, USD 5,000 and EUR 4,000. The PayPal limits are: RUB 139,999, EUR 3,499 and USD 4,500. In both cases, the admitad’s commission is 5% of the payment amount regardless of the currency.

Complete Disabling of Domain Parking

In October-November 2017, admitad decided to disable the Domain Parking tool for the following reasons:
First, many social networks, such as Vkontakte and Odnoklassniki, cut domains in the redirect chain, so that users go directly to the final URL. As a result, the action is not fixed in the system, and a publisher loses his money.

Second, when redirecting through a parked domain, admitad cannot send its cookie to the user, which is used as a backup option for identifying the publisher. Therefore, in the event of an integration failure on the advertiser’s side, tracking became impossible.

Moreover, some advertisers, for technical reasons, could not work with parked domains, and if the user, at first, clicked the standard link of one publisher, and then – the link of the other publisher with the parked domain, then the action counted for the first publisher, as the system did not see the last transition cookie.
 
Actual Trends of Travel Industry in 2018–2020
Here are trends of travel industry which, in our opinion, will be actual in 2018–2020.

First of all, please note that in 2018 travel industry will continue its stable growth. According to the preliminary forecast, the amount of holiday costs per person will make up USD 940. As for the sales volume, booking of places of accommodation and purchase of air tickets will remain far ahead.
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According to Google and Phocuswright, a leading travel industry research company, 55% of tourists go on holiday one or two times a year, planning a trip beforehand. 59% start looking for information about the forthcoming trip one or two months before. The tendency to prepare beforehand will persist. However, 30 % said that they are ready to spontaneous trips if they get a favorable offer.

The growth of search queries and bookings from mobile phones became an impressive trend of 2017. According to Google, 70% of users entered search queries about tourism from smartphones, 79% made their bookings after searching on mobile devices. Mobile channel has become a popular way of getting information. Thus, 50% of millennials found new travel companies from mobile phones. 30% of search queries were related to objects’ location.

In 2017, inhabitants of China traveled more often, in 2018 this tendency will persist. According to forecasts of Mastercard, the number of traveling people in the Celestial Empire will increase by 8.5%. Last year, Russian destinations started gaining ever-greater popularity. Thus, for the first 9 months of 2017, 900 thousand Chinese tourists visited Russia, which is 24% more than for the same period in 2016. Despite the fact that for most Chinese travelers Moscow is the main purpose of travel to Russia, the largest tourist flow is noted in the Amur Region (36% increase). There are some changes in preferences of the Chinese that are worth mentioning — if in previous years they did shopping during most of the time, in 2017 they became interested in touristic activities and entertainments (excursions, short tours).

In 2018–2020, the market of travel services will face the growth of blockchain technologies. Thus, in 2017 Lufthansa Group declared cooperation with Winding Tree — a non-commercial Swiss blockchain startup. With a decentralized B2B platform for booking transactions, based on blockchain technologies, srartups and companies will have a direct access to offers of tourism providers. Thus, there is no more need in noneffective cooperation with lots of mediators like travel agents, aggregators or distribution systems.

TUI, the largest German travel company, is developing its own project BedSwap — all hotel rooms of the company will be included in the blockchain. The Russian company S7 Airlines together with Alfa-Bank have partnered with Ethereum with the purpose of business automation. Thanks to the technology, the time of money receipts from agents for S7 tickets purchased has reduced dramatically — the process used to take about two weeks, whereas now it is about 23 seconds.

In the future, airlines, hotels and other tourism providers will be able to place their offers on the platform Winding Tree, which will make it possible to improve the service quality and will prevent extra charges.

There is a tendency in the travel market of the focus shifting to one’s own channels.Huge tourism providers (hotel chains, airlines) are becoming more interested in the development of own sales, especially resales. Another new trend is the growth of the market of excursions and impressions. For instance, Airbnb and Expedia have already launched services in this segment. The project Voyagin from Rakuten is gaining popularity, offering to the visitors a large number of activities (excursions, entertainments, unique tours, transfer) at an affordable price.

Let’s look in the direction of Russia

In 2018, the Russian market of travel services will continue its steady growth. In 2017, the sales of online tours increased by 60% compared with the previous year. The return of Turkey to the Russian market played a large part in this fact: the sales of tour packages to this country made up 30% of the total sales volume. The increase of online sales volume was also due to the actions of Onlinetours and Travelata — huge Russian tour operators, rapidly developing the online destination.

Besides, the growth of the air ticket market can be noticed. According to Aviasales, in 2017 the number of international flights increased. At the same time, the amount of an average bill began to increase — now it makes up RUR 22,077 for international flights and RUR 9,783 for domestic flights. According to the online travel agency Kiwi.com, the top international destinations of the summer 2017 were Cancun — Havana, Moscow — Milan, Bangkok — Phuket.

There are no dramatic changes in the hotel market and other variants of accommodations. According to Booking.com, the top-five of tourist cities remained the same in the last 5 years: Moscow, St. Petersburg, Adler, Kazan, Sochi. Today, there are 22 international hotel operators in Russia managing 179 hotels (38,705 rooms) in 38 cities. The largest market share (80%) is distributed among five companies: Accor Hotels, Hilton Worldwide, Marriott International, Carlson Rezidor Hotel Group, InterContinental Hotels Group.
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The distribution of the current hotel room capacity, managed by international hotel operators, over Russian cities (the data for October 2017):

One of the main events of 2018 will be the world football championship, which will give impetus to the development of Russian tourism and will provoke an increase of prices for tourism services. Admitad believes that first of all the price increase will concern air tickets and places of accommodation. According to Aviasales, as late as in November 2017 the prices for air tickets Moscow — St. Petersburg — Moscow increased by 40% and made up RUR 10,370 instead of regular 6,000. The tickets from Ekaterinburg went up by 5%, from Sochi — by 14%. The accommodation cost during the world championship 2018 has increased, too. For the duration of the championship, 40,000 rooms have been already booked in Moscow, which makes up 60% of the hotel room capacity of the capital. Hostels and cheap hotels are of the highest demand. At the same time, dwelling services may become a good alternative for the visitors of the capital, such as Sutochno.ru and Tvil.ru.

We will give you more information in a separate article about what programs are worth лить, to make money out of the world championship 2018.

The online sales market of travel services in the CIS countries is now at an early stage or thereabouts, but it is very likely to show a steady and strong growth from year to year. It is profitable to work with travel segment — with the correct approach it will bring you high profits not only in 2018.

The main travel news 2017 in brief:

  • Ctrip, the largest online travel agency of China, has bought Trip.com
  • Airbnb has launched 2 new services: “Impressions” and “Restaurants”
  • Emirates has been found the best airline of 2017 by the users of TripAdvisor
  • OZON.travel has started to sell dynamic tours. Other large online travel agencies are likely to follow their example (although, some of them has already tried)
  • In February 2017, a new airline appeared in Russia — Azimut. Since December 2017, its base airport is Platov in the Rostov Region.
  • OneTwoTrip will start selling bus tickets throughout Russia and Europe since 2018.
  • The hotel chain Hyatt (one of the largest in the world) has declared the intention to break off the cooperation with Expedia. To our mind, this is because service providers are seeking to get more sales (including resales) via their own channels rather than via ОТАs
  • Since January 1, 2017 the visa requirements between Russia and Japan has been relaxed. Before the introduction if this changes, a Russian citizen had to submit a letter from the invitor (guarantor) from Japan and other documents. As a result, a Japan entry visa has become easier and free of charge
  • Russian Railways will permit to buy tickets 90 days prior the departure of a train. The new ticketing rules entered into force on December 10, 2017.
  • German Lufthansa has got five stars in the rating of Skytrax, becoming the first airline in Europe with such a high mark. Thus, the total number of companies rated five stars has grown to 10.
Follow trends, choose profitable niches, test new ideas and find the best offers for your audience — and take your place in the world of online travel!

The report includes data of admitad, Google, Euromonitor International, Aviasales, Phocuswright, Skift, TripAdvisor, Ernst & Young, Kiwi.com.
 
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