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.

1. LUXURY AFFILIATE
MARKETING

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. WHAT IS LUXURY &
FASHION?

4. “something that is considered an
indulgence rather than a necessity”

5. “the latest style of clothing, hair,
decoration, or behaviour.”

6. “10.7 billion pounds is spent on fashion
online in the UK and a huge proportion is
due to the luxury fashion industry”

14. THEY ARE GETTING YOUNGER…..

15. THEY EARN LESS THAN YOU THINK…..

16. THEY ARE SAVVY…..

17. MALE SHOPPING IS BOOMING…..

18. 1 IN 5 LUXURY PURCHASES HAPPEN
ONLINE
SOURCE: GOOGLE – HOW AFFLUENT SHOPPERS BUY ONLINE

19. 100% OF LUXURY CONSUMERS HAVE A
MOBILE
SOURCE: MCKINSEY

20. 75% CONSUMERS JUGGLE MORE THAN 1
DEVICE
SOURCE: MCKINSEY

21. LUXURY CONSUMERS EXPECT A MOBILE
SITE OR APP
SOURCE: FORRESTER RESEARCH/GOOGLE

22. 85% OF LUXURY CONSUMERS USE
SOCIAL MEDIA
SOURCE: MCKINSEY

23. 2/3 GENERATE CONTENT AT LEAST ONCE
PER MONTH
SOURCE: MCKINSEY

24. FOR EVERY BRAND POST – THERE ARE
ON AVERAGE 10,000 CONSUMER POSTS
SOURCE: MCKINSEY

25. LUXURY AND DIGITAL?

26. CONTENT (WAS AND) IS KING

27. WHO ARE THE AFFILIATES?

28. VOUCHERS HAVE GROWN UP

29. CASHBACK BECOMES CONTENT

30. BLOGGERS Vs. AFFILIATES

31. THE LUXURY AFFILIATE MARKETING
PARADOX

32. “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”

34. HOW TO MANAGE A LUXURY AFFILIATE
MARKETING PROGRAMME

35. 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

36. 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?

37. 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

38. 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

39. 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

40. fin.Confidential Information
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All information contained herein will be treated as confidential material with no less care than afforded by your own company’s confidential material.
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Copyright © 2016 7thingsmedia LTD.