It appears that TradeDoubler are finding market conditions tough in the UK after releasing Q1 results this morning. Although William Cooper described it as a ‘Good Quarter’ the heading “ European markets achieving solid growth. Group results impacted by weak UK affiliate business and currency effects’.
This has strong warnings for them and potentially other networks as they continue to lower margins in a fight to secure clients and embrace relationships with agencies and other third parties.
TradeDoubler report that Travel and Electrical were strong verticals with a visible impact on current financial conditions as the finance sector sees poor results.
Consolidation is still strong, with the recent purchase of buy.at by AOL, who infamously had their bid for TradeDoubler rejected by major shareholders could still be on the cards. There continues to be firm rumours that other networks are ‘for sale’.
Would I be the only person to say that perhaps TradeDoubler has lost their way slightly with the affiliate market in recent months? Have they forgot that relationships matter with the publisher?
Some of the quotes from the presentation and Q1 Report:
“Weak UK affiliate market compensated by strong continental Europe”
“European markets achieving solid growth. Group results impacted by weak UK affiliate business and currency effects”
“Business in the UK declined during the quarter on the back of weaker affiliate business”
“Tougher market conditions and weakness within the finance sector in the UK’
“The business is seeing increased competition and a softer retail market’
Overall TradeDoubler saw a good growth in gross profit, but cite their reliance on the UK market at 39% of gross profit as a risk and they continue to develop their German and European markets and roll out to Japan.
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