david vs goliath - robert glasgow - webgains
DESCRIPTION
Robert Glasgow, Webgains, Affiliate Marketing, SME, SMEsTRANSCRIPT
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David and GoliathAffiliate Marketing for SMEs
A4uexpo London 2008
14th October
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What is a SME?
• An enterprise which employs less than 500 people; has an annual turnover of less than €100m and/or balance sheet assets of less than €86m; and has no more than 25% of its capital or voting rights owned by a larger firm or public body (European Commission definition).
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Characteristics of a SME?
• Typically small marketing budget
• Lack of in-house resource
• No scale advantages
• ‘Hands-on’ approach
• Quicker decision-making processes
• Often niche retailers
• Often high-growth
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What can Affiliate Marketing bring to the party?
• Tactical marketing
• Strategic marketing
• Brand building
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Tactical marketing - characteristics
• Short Term in nature
• Focus on market share (or brand building)
• Akin to trade marketing
• Tools employed: high commission rates, discounted prices, competitions with high-value prizes, open ppc policy, discount vouchers
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Case Study: Gift Merchant
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Case Study: Gift Merchant
Period Comm(£) Sales(£) Num Sales Imps Clicks CTR(%) Conv Rate(%) EPC38,961.00 263.92 1,458.18 40.00 73,424.00 7,680.00 0.10 0.01 3.44 38,991.00 1,156.97 7,556.11 149.00 103,327.00 10,893.00 0.11 0.01 10.62 39,022.00 4,423.06 29,481.55 730.00 435,661.00 17,057.00 0.04 0.04 25.93 39,052.00 7,011.62 46,584.93 1,128.00 778,920.00 19,270.00 0.02 0.06 36.39 39,083.00 1,265.05 8,535.68 243.00 528,470.00 9,084.00 0.02 0.03 13.93 39,114.00 1,320.63 8,657.64 246.00 54,706.00 7,280.00 0.13 0.03 18.14
15,441.25 102,274.09 2,536.00 1,974,508.00 71,264.00 7.07%(avg) 3.01%(avg) 18.07(avg)Totals 15,441.25 102,274.09 2,536.00 1,974,508.00 71,264.00 0.00%(avg) 3.56%(avg) 21.67(avg)
Program
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What can Affiliate Marketing bring to the party?
• Tactical marketing
• Strategic marketing
• Brand building
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Strategic Marketing - characteristics• Long Term
• Ongoing partnership between merchant and affiliate
• More Focus on niche and bespoke optimised sites
• Tools employed: SEO, Flexible ppc policy, competitions, discount vouchers, email offers, tiered affiliate commission rates,
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Case Study: Niche Retailer
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Case Study: Niche RetailerProgram Period Comm(£) Sales(£) Num Sales Imps Clicks CTR(%) Conv Rate(%) EPC
01/01/2007 733 13,864 410 74,062 4,014 0.054 0.102 18.270 01/02/2007 786 14,523 422 538,891 4,726 0.009 0.089 16.620 01/03/2007 1,132 21,127 603 303,840 6,129 0.020 0.098 18.480 01/04/2007 1,162 22,075 654 142,733 7,446 0.052 0.088 15.610 01/05/2007 1,375 25,812 741 195,449 7,511 0.038 0.099 18.310 01/06/2007 1,626 30,382 965 109,582 8,416 0.077 0.115 19.320 01/07/2007 2,008 37,876 1,207 100,203 7,496 0.075 0.161 26.790 01/08/2007 2,332 43,319 1,406 79,281 8,515 0.107 0.165 27.390 01/09/2007 2,667 48,529 1,546 115,644 9,106 0.079 0.170 29.280 01/10/2007 3,124 58,150 1,721 152,799 10,079 0.066 0.171 31.000 01/11/2007 3,216 57,476 1,722 489,425 9,335 0.019 0.185 34.450 01/12/2007 2,735 50,258 1,488 306,660 7,628 0.025 0.195 35.850 01/01/2008 4,841 83,382 2,341 217,803 11,717 0.054 0.200 41.320 01/02/2008 4,335 58,939 1,710 211,929 11,942 0.056 0.143 36.300 01/03/2008 4,539 82,391 2,448 296,661 15,627 0.053 0.157 29.050 01/04/2008 6,106 98,417 2,985 318,598 14,324 0.045 0.208 42.630 01/05/2008 7,407 106,957 3,360 677,735 16,172 0.024 0.208 45.800 01/06/2008 8,148 114,524 3,469 846,238 21,528 0.025 0.161 37.850 01/07/2008 10,150 130,688 3,995 856,605 21,643 0.025 0.185 46.900 01/08/2008 14,421 144,224 4,496 1,059,685 20,464 0.019 0.220 70.470 01/09/2008 13,875 138,846 4,369 1,139,062 21,939 0.019 0.199 63.250
96,720 1,381,758 42,058 8,232,885 245,757 4.49%(avg) 15.80%(avg) 33.57(avg)
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What can Affiliate Marketing bring to the party?
• Tactical marketing
• Strategic marketing
• Brand building
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Branding - characteristics• Short - medium Term• Focus on making the brand known
Reach to target demographic Agreed brand attributes Agreed contextual associations Agreed promotional methods
• Free for Merchants• Tools employed: Open PPC policy, semantic
targeting on content, pops,
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So What?
• Affiliate Marketing is efficient for SMEs because:No wastage - only pay for actual salesLow risk channelFree brandingBudget can grow with salesEasy and inexpensive access to Network
affiliate baseCan rely on Network account managers
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Key Success Factors!They sound simple but you would be amazed!
• Plan with your account manager
• Understand the economics of your business
• Communicate with your affiliates
• Stick to your agreements (really!)
• Pay your affiliates (yes, really!)
• Introduce changes with appropriate warnings
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Don’t get it wrong!
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What can Affiliate Marketing bring to the party?
• Tactical marketing
• Strategic marketing
• Brand building
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Questions?
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• Hero Grigoraki: Effective Discount Voucher Code Wed 15th, 11 – 12 pm Platinum 5 & 6
• David Crystal: Website Linguistics,Wed 15th, 16.30 – 17.30 Platinum 5 & 6