the rise of b2b - lessons from dell - sanjit atwal
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Sanjit AtwalUK Network Director
TradeDoubler
The Rise of B2B in Affiliate
|the Rise of B2B In Affiliate|
Market Overview
Publisher Considerations
Dell SMB Email Case Study
Business Class Travel
Office Supplies
Computer & Electronics
|the Rise of B2B In Affiliate|
A few stats…
In August 2010, TradeDoubler delivered over £5m of order value for B2B or business-class advertisers
|the Rise of B2B In Affiliate|
A few stats…
In August 2010, TradeDoubler delivered over £350k of publisher commission over B2B or Business Class programmes
Market Overview
|the Rise of B2B In Affiliate|
“There are around 4 million small and medium enterprises in the UK…..
That’s more than the population of Ireland!
Market Overview
|the Rise of B2B In Affiliate|
…They are hugely important to the health of the nation in the number of people they employ and their contribution to the economy….
Market Overview
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…In fact they make up a half of all the jobs in the UK and account for half of our GDP….”
Where is B2B right now...?
|the Rise of B2B In Affiliate|
% increase in B2B advertiser order value in affiliate (August 2009- August 2010) 142%
% increase in online ad spend by top 50 B2B advertisers 2008 - 2009
25.1%
Overall B2B ad spend down…. 2.8%
Annual growth in US online B2B market is forecast at 8% in 2010 and is set to reach 14% by 2012
|the Rise of B2B In Affiliate|
B2B ad spend on social media and lead generation sites is forecast to grow at an annualized rate of 21% and 17% respectively to 2013
Online accounted for 7% of the B2B marketing mix in 2008. This is set to reach 12% by 2013
|the Rise of B2B In Affiliate|
Publisher Considerations
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Less Volume Higher EPC
Less competition (for now….)Traditionally less affiliate focus from advertisers
Advertiser engagement growing
Untapped strategies
|the Rise of B2B In Affiliate|
Dell Small Medium Business | Case Study
|the Rise of B2B In Affiliate|
Dell Small Medium Business | Case Study
• Shift in focus from Dell affiliate team
• Programme ‘split-out’ from consumer and given own KPI’s
• Required all publishers to carry both consumer & business links
• Change happened simultaneously over 12 markets
|the Rise of B2B In Affiliate|
Dell Small Medium Business | Case Study
SMB sales since ‘split’…
212% increase in
sales volume
|the Rise of B2B In Affiliate|
EPC comparison – Dell Consumer vs. Business
• SMB peak corresponds to DHS low point
• Cross-over of user inevitable but overall customer quality not
compromised
• Higher EPC allows recruitment of high-
value publishers
Dell Small Medium Business | Case Study
“In today’s mobile society, it is becoming quite unusual for someone to hold the same (work) position for more than five years so it follows that the database of target customers is need of constant weeding and correction.“
Advertising Amongst SMEsBy Paul Hague and Matt Powell of B2B International Ltd
Key Drivers
|the Rise of B2B In Affiliate|
|the Rise of B2B In Affiliate|
Email Case Study
• Quality of email database key
• Qualified that 24% of leads were looking for immediate purchase
|the Rise of B2B In Affiliate|
Email Case Study
• How many computers do you want?
• Opportunity to target high-value 3% with
special offers
|the Rise of B2B In Affiliate|
Email Case Study
• How many computers do you have?
• Opportunity to up-sell qualified for sales team
|the Rise of B2B In Affiliate|
Email Case Study
+ 2000 qualified Small Medium Business leads
+ 300 qualified leads for Small Business Servers
Campaign now forecasted to deliver over 900 leads per quarter
Results….
|the Rise of B2B In Affiliate|
Business ClassTravel
|the Rise of B2B In Affiliate|
Business Class Travel
• Comparing top Business-Class airlines to consumer oriented airlines we see different
seasonal peaks in customer conversion
• April shows a higher comparative conversion rate in Business-class
|the Rise of B2B In Affiliate|
Office Supplies
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Office/Work Supplies
• Merchants hit by a previously unseen dip in April
• Higher overall year on year trend
• Many merchants have updated sites to enhance conversion and consumer journey
|the Rise of B2B In Affiliate|
Computer & Electronics
|the Rise of B2B In Affiliate|
Computer & Electronics
• 2009 Conversion rates overall higher than 2010
• 2010 saw a strong March
• 2010 continuing to press and now overtaking 2009 CR
“For B2B software, Q4 is typically the highest quarter in terms of revenue”, Mark Wilson, VP Corporate Marketing, Sybase
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Summary
B2B engagement in affiliate is on the rise and will prove a commercially significant
part of publishers businesses over the next 12 months
|the Rise of B2B In Affiliate|
Questions?