Fashion brands turn to affiliate marketing for ROI
posted by Sumayyah Hussain • 15 Jul 2013
In Q1 2013 according to Bloomberg, one of the biggest UK online fashion retailer announced a 37% increase in sales over three months ending February, irrespective of the current challenging economic climate . Fashion brands are now thinking of robust ways to replicate this positive turnover in which the IAB has illustrated that online performance marketing constitutes currently nearly 5-6 per cent of all UK e-commerce retail sales.
Mintel reports that Fashion has been slower to go online than other sectors. The Fashion market in the UK is estimated to be worth £44bn with 11% of sales coming from Online. This market is predicted to grow by 3.4% year on year and it is essential to develop a profitable strategy in digital advertising. With a network like Tradedoubler, fashion advertisers are able to build a better digital strategy with key affiliate partnerships.
Fashion runway for success
Fashion brands are aware that about 60% of online consumers turn to an array of content sites and style blogs for research and that several million online savvy customers go to reputable price comparison and discount sites to buy apparel. Sites such as loyalty, cash back and voucher illustrate new traffic and vital access to influential shoppers which is a rewarding stream for all stakeholders. Working on a cost per acquisition model to run promotional activity is ultimately an efficient way to increase ROI, as the ability to negotiate CPA terms against margin is less risk for advertisers.
Respectable publishers in return have become more open to working under the CPA model and are willing to sensibly place campaign exposure on their sites, for both PC and mobile devices. Mobile device performance in retail sales have soared year on year by 243% , demonstrating new channels to market successfully for fashion conscious consumers who are on-the-go. Fashion brands strive to track all these sales as a measurable way of planning what to do next with affiliate marketing.
Fashion wardrobe of choice
The Tradedoubler network consists of innovative publishers types for affiliate marketing. Fashion brands are able to provide key technologies and resources to secure relationships in affiliate marketing. Above all they aim to assist and guide publishers to provide quality service regarding customer choice and customer value. In order to increase ROI and improve the user journey, numerous fashion brands provide affiliates product feeds, promotional exclusives, co-branded pages, regular voucher codes, booking of tenancies, CPA/CPC hybrid models, pushing social, competitions, bespoke creative and share video content. This assortment of activity and working with content partners closely collectively reveals higher customer trust via affiliates.
Fashion super model
Most fashion brands look to price comparison sites to list products who usually work on CPC basis but Tradedoubler has been able to tackle this and work back to a CPA with partners who can arbitrage with fashion products. Tradedoubler has numerous retargeting partners who are able to push key campaigns with fantastic display adverts off the products feeds to bring users back to the online store. Again this can be done working on a CPA to increase ROI instead of the usual CPM/CPC metric. The current average basket item abandonment for fashion lies between 60-70% and Tradedoubler has worked with remarketing partners who have been able to produce algorithmic tools to best target and re-engage these users effectively with special appealing emails on a CPA model. This can effortlessly bring up to 7% of lost revenue back if the container tags are already there on the advertiser’s site.
Fashion future trends
Sequentially, with the plethora of affiliate opportunity available for fashion advertisers, it is vital to comprehend that in summary for every £1 spent on affiliation fashion merchants can expect a ten-fold ROI. Digital strategy can be executed easily and efficiently as the number of quality bespoke affiliates are increasing and these partners have become accustom to using resources and tools to stand out from one another. Fashion brands therefore have an even better digital channel scope using affiliate marketing in order to benefit an increase in ROI.