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Retail, luxury and fashion affiliate marketing

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Luxury Marketing is often seen as behind the times within digital and affiliate marketing specifically, but now with an influx of bloggers and content sites being thrown into the marketing mix, alongside increasing confidence in the channel means that luxury businesses are not only embracing affiliates but potentially leading the way.

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Retail, luxury and fashion affiliate marketing

  1. 1. LUXURY AFFILIATE MARKETING
  2. 2. • What is Luxury Affiliate Marketing • The Luxury Consumer • The Evolution of Affiliate Marketing • The Luxury Affiliate Marketing Paradox • Managing a luxury affiliate programme @7thingsmedia AGENDA
  3. 3. WHAT IS LUXURY & FASHION?
  4. 4. “something that is considered an indulgence rather than a necessity”
  5. 5. “the latest style of clothing, hair, decoration, or behaviour.”
  6. 6. “10.7 billion pounds is spent on fashion online in the UK and a huge proportion is due to the luxury fashion industry”
  7. 7. THEY ARE GETTING YOUNGER…..
  8. 8. THEY EARN LESS THAN YOU THINK…..
  9. 9. THEY ARE SAVVY…..
  10. 10. MALE SHOPPING IS BOOMING…..
  11. 11. 1 IN 5 LUXURY PURCHASES HAPPEN ONLINE SOURCE: GOOGLE – HOW AFFLUENT SHOPPERS BUY ONLINE
  12. 12. 100% OF LUXURY CONSUMERS HAVE A MOBILE SOURCE: MCKINSEY
  13. 13. 75% CONSUMERS JUGGLE MORE THAN 1 DEVICE SOURCE: MCKINSEY
  14. 14. LUXURY CONSUMERS EXPECT A MOBILE SITE OR APP SOURCE: FORRESTER RESEARCH/GOOGLE
  15. 15. 85% OF LUXURY CONSUMERS USE SOCIAL MEDIA SOURCE: MCKINSEY
  16. 16. 2/3 GENERATE CONTENT AT LEAST ONCE PER MONTH SOURCE: MCKINSEY
  17. 17. FOR EVERY BRAND POST – THERE ARE ON AVERAGE 10,000 CONSUMER POSTS SOURCE: MCKINSEY
  18. 18. LUXURY AND DIGITAL?
  19. 19. CONTENT (WAS AND) IS KING
  20. 20. WHO ARE THE AFFILIATES?
  21. 21. VOUCHERS HAVE GROWN UP
  22. 22. CASHBACK BECOMES CONTENT
  23. 23. BLOGGERS Vs. AFFILIATES
  24. 24. THE LUXURY AFFILIATE MARKETING PARADOX
  25. 25. “Affiliate marketing is dead” “Luxury customers don’t use loyalty sites” “Vouchers cheapen my brand” “Luxury customers don’t care about deals” “Black Friday is for discount brands” “Bloggers don’t work on a CPA” “I will lose control of my brand with affiliates” “Affiliates don’t care about brand identify” “Affiliates steal the last click”
  26. 26. HOW TO MANAGE A LUXURY AFFILIATE MARKETING PROGRAMME
  27. 27. CONTROL OF CONTENT • Ensure you have very clear content guidelines for your agency, affiliate networks and publishers – Board-level approval of what an affiliate is – What creative can be used for affiliates? – Can creative be amended? – Can you create bespoke creative? – Have you provided brand guidelines on typography? • Be flexible within reason • Regularly audit
  28. 28. VOUCHER, LOYALTY & CASHBACK • If you have reservations, explore the reasons why and any workarounds • Vouchers don’t need to be price reductions • Have clear guidelines in place for voucher usage/ invest in a management solution • Don’t miss out on where your consumers are based on your preconceptions • Have you openly reviewed the effectiveness of voucher/cash back publishers?
  29. 29. SET A REALISTIC BUDGET • Affiliate marketing is not “no win, no fee” – Agency to manage the programme – Network to do the tracking • Affiliates are not just CPA • Have you budgeted for product feeds? • Be prepared to invest in additional creative and technical costs • Have a budget for affiliate events, competition prizes & collateral
  30. 30. SUMMARY • Luxury & fashion affiliate marketing is happening…if you are not doing it, you are already losing out • Luxury consumers are savvy, switched on and impulsive – take advantage of their behaviours • Carefully select an agency, network and publishers that compliment your affiliate objectives
  31. 31. Sandra McDill Chief Digital Officer - 7thingsmedia sandra.mcdill@7thingsmedia.com 0207 017 3196 PS. This presentation is on your USB stick in your bag THANK YOU
  32. 32. fin.Confidential Information This document is the property of 7thingsmedia LTD. and is strictly confidential. It contains information intended only for the person(s) and or Company to whom it is addressed. All information contained herein will be treated as confidential material with no less care than afforded by your own company’s confidential material. All service and product names mentioned in this document may be trademarks or registered trademarks of their respective companies and are hereby acknowledged. Copyright © 2016 7thingsmedia LTD.

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