David and Goliath Affiliate Marketing for SMEs A4uexpo London 2008 14 th October

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).

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).

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

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

What can Affiliate Marketing bring to the party? Tactical marketing Strategic marketing Brand building

Tactical marketing

Strategic marketing

Brand building

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

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

Case Study: Gift Merchant

Case Study: Gift Merchant

What can Affiliate Marketing bring to the party? Tactical marketing Strategic marketing Brand building

Tactical marketing

Strategic marketing

Brand building

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,

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,

Case Study: Niche Retailer

Case Study: Niche Retailer

What can Affiliate Marketing bring to the party? Tactical marketing Strategic marketing Brand building

Tactical marketing

Strategic marketing

Brand building

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,

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,

So What? Affiliate Marketing is efficient for SMEs because: No wastage - only pay for actual sales Low risk channel Free branding Budget can grow with sales Easy and inexpensive access to Network affiliate base Can rely on Network account managers

Affiliate Marketing is efficient for SMEs because:

No wastage - only pay for actual sales

Low risk channel

Free branding

Budget can grow with sales

Easy and inexpensive access to Network affiliate base

Can rely on Network account managers

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

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

Don’t get it wrong!

What can Affiliate Marketing bring to the party? Tactical marketing Strategic marketing Brand building

Tactical marketing

Strategic marketing

Brand building

Questions?

Hero Grigoraki: Effective Discount Voucher Code Wed 15 th , 11 – 12 pm Platinum 5 & 6 David Crystal: Website Linguistics, Wed 15 th , 16.30 – 17.30 Platinum 5 & 6

Hero Grigoraki: Effective Discount Voucher Code Wed 15 th , 11 – 12 pm Platinum 5 & 6

David Crystal: Website Linguistics, Wed 15 th , 16.30 – 17.30 Platinum 5 & 6