2. Case Study: Prezzybox.com Prezzybox.com is a UK online retailer in a very competitive market: gifts and gadgets. With many other players in the market competing for the same customers, Prezzybox.com runs a successful affiliate program that sees them leading the way in performance marketing. Affiliate marketing has played a sizeable role in the growth of Prezzybox.com and now accounts for about 35 percent of sales. Affiliate marketing has contributed on two levels, namely, brand growth and sales generation. In fact, Prezzybox.com has won several industry awards for its affiliate program. In 2008, these awards included "Best Use of Creative" and "Best Merchant Innovation." A substantial element of affiliate marketing is managing relationships with affiliates. The Prezzybox.com affiliate program and its affiliate managers have been voted best by affiliates, and its affiliate managers are regularly invited to speak at industry events and conferences. How have they achieved this? Prezzybox.com has a wide affiliate base and constantly recruits new affiliates via affiliate get- togethers, affiliate forums and blogs, and through keyword searches on Google. Its super affiliates, those affiliates that drive the majority of affiliate sales, account for about 1 percent of all affiliates. Zak Edwards, managing director of Prezzybox.com, says, "We tend to offer all affiliates the same opportunities for promotion, but obviously focus a lot of our attention on our super affiliates."Zak Edwards, personal communication via e-mail with Sarah Blake. Super affiliates can be given extra commission as an incentive, and the affiliate managers ensure that these affiliates are up to date with all the latest offers, new products, and promotions. Prezzybox.com communicates these details to all their affiliates as well. However, they use mass communication for all their affiliates and one-on-one communication, such as phone calls or instant messages, with their super affiliates. One of the features of the affiliate program is an affiliate resource center, which has extensive support information for affiliates such as real-time product bestseller reports. In 2007, Prezzybox.com launched a brand-new content item for its affiliates: Vidibox. These are video content units-banners that contain a product video and a link to that product on the Prezzybox.com Web site. These video content units were very successful because the content was unique in the affiliate arena and so had a large take-up among affiliates. Being a more interesting way of displaying content, the Vidiboxes attracted a higher click-through rate, which again made them more appealing to affiliates. Prezzybox.com's commitment to an innovative and successful affiliate program has seen it earn immense respect in the affiliate arena, which is translating into ongoing, healthy sales growth. In fact, Prezzybox.com has outgrown its offices twice in six years and looks set to maintain this successful track record. CASE STUDY QUESTIONS 1. Part of affiliate marketing involves marketing a company to affiliates. How has Prezzybox.com achieved this, and what are its effects? 2. Why does Prezzybox.com communicate differently to its super affiliates? 3. What made the Vidiboxes enticing to affiliates? 4. In a competitive market, how does affiliate marketing help build a company's success? Are there any additional considerations when a market is competitive?

2. Case Study: Prezzybox.com Prezaybox.com is a UK ooline retailer in a very competitive mazket: gifts and gadgets. With many other players in the market competing for the same customers. Prezabox com runs a successtul affiliate program that sees them leading the way in performance marheting. Afliate marketing has played a sizeable role in the growth of Prezrybox.com and now accounts for about 35 percent of saks. Affiliate narbeting has contabuted oa two kevels, namely, brand gnowth and sales generation. In fact, Prezabox.com has won several indestry awards for its affiliate program. In zoo8, these awards included "Best Une of Creative" and "Best Merchant fanovation." A substantial element of affiliate marketing is managing relationships with affiliates. The Prearybox.com affiliate program and its affiliate managers have beva voted best by affiliates, and its affilate managers are regularly invited to speak at industry events and coeferenoes. How have they achieved this? Prezrybox com has a wide affiliate hase and constantly recruits new affiliates via affiliate get-togethers, affiliate forums and blogs, and throogh keywoed scarches on Coogle, Its super affiliates, those affiliates that drive the majority of affiliate sales, ercoust for about 1 perceat of all affiliates. Zak Edwards, manaping director of Preaylvoseom, says, "We tend to offer all afiliates the same opportunities for promotion, but obwonsly focus a lot of our attention oa our super affiliates."Zak. Edwards, personal commurication via e-mail with Ssrah Illake. Super affiliates can be given extra comimissios as an incentive, and the afflite managers easare that these affiliates are up to date with all the latest offers, bew products, and promotions. Prezzybox cam coumunicates thrse details to all their affiliates as well. Howere, they roe mass communication for all their affiliates and one-an-abe communication, such as phone calls or instant messages, with their super affiliates. One of the features of the affiliate program is an aftiliate resource center, which has extensive sapport information for affiliates such as real-time product bestseller reports In 2007 , Prem box.com lausched a beand-hew content itein for its affilates: Vidibox. These are video content units - baniners that contain a product video and a link to that product on the Prezyhorcom Web site. These vidvo content arits were wery sacessful because the coatent was aniue in the affiliate arena and so hed a larse take-up amoos affiliates. Being a more interesting way of displaying content, the Vidiboxes attnacted a hicher click-throegh rate, which atain made them more appealing to affiliates. Prezzybox.eom's commitment to an innovative and sucressful affiliate program has seen it earn immense respect in the affiliate areal, which is translating into ongoing healthy sales growth. In successfil track recond. CASE STUP QUESTES 1. Part of affiate marketing inwolves marketine a compary to affilates. How has Premborcom achieved this, and what are its effects? 2. Why does Prestaber com conmuricate differently to is super affiates? 3. What mace the Vid boxes enticing to afhilates? 4. In a competitive market, how does affiliate marketing help build a cocmpany's success? Are there amy additiond considerations when a market is competive