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What is the role of the White Label Model in Digital Marketing Strategies?

What is the role of the White Label Model in Digital Marketing Strategies?
If you are planning to start your own digital or IT business, you probably already know: these areas are as fruitful and rapidly evolving as they are demanding and resource-heavy. At the stage when you create your own product or service platform, you’ll have to assemble a team of developers that involve designers and tech/integration specialists. As your business expands, you’ll have to hire more staff to maintain the platform functioning and commission servicing part to customer support representatives.  Even if you’re fully ‘amped up,’ no one can guarantee that the tech solution you develop will at least be able to measure up to the well-promoted ones. The good news is that lately, the market has been giving go-to new business decisions and opportunities that white label reseller programs deliver.

White label: outsourcing with a known result

Let’s imagine a simple scenario: a renown tech developer uses its proprietary platform to sell services directly to its clients. Now, let’s imagine a more ingenious one: the same tech developer uses its own technology as a product; a basis on which other businesses can build their own platforms. In simple words, it is the purchasing of a ready-made solution, which is then branded, labeled and promoted individually by the freshly-baked reseller. Although such a solution is a ready-made, working and plugged-in product, it is not the same as, e.g., acquiring an already positioned platform.  Marketing, branding, reputation, website, payment model and client base accumulation will be completely your own task. This eliminates the chance that you overpay for such “package deal” bonuses and gives you the freedom to modify the product as you need. White-label platforms are also flexible and, unlike finished ones, can constantly adapt and scale to your business. Cost-saving property (59%), capacity (47%), quality (32%) and the ability to meet transformation (17%) are among the main reasons why companies strive to outsource efforts. For this, the majority chooses the white label model, which is especially popular in advertising, software development, SEO, SMM, and email marketing.

Advertising

The online advertising market and algorithmic buying technology share, in particular, show the best growth dynamics among all other digital business areas. Thanks to the growth of audiences throughout all content consumption channels (mobile, desktop, Smart TV, etc.), and the rise of automatic media-trading tools, the effectiveness of this business is constantly increasing. By 2020, more than 90% of overall ad spending will belong to algorithmic buying technologies (programmatic). The value of this market will reach $220.38 billion before we see the end of this year. The secret to success in the advertising business is the ability to get ahead of your competitors. Spotify music streaming service generates 20% of revenues using their proprietary programmatic audio platform. Big companies, like Spotify, create entire advertising in-house departments [4] to handle work with advertisers. Smaller enterprises usually give preference to White Label advertising solutions, such as white-label demand-side platform (media buying), supply-side platform (media-selling) or, most often, white-label ad exchange (open marketplace). After deployment, the new owner can start reselling services to direct clients: media-buyers, media-sellers or both.

Advantages:

  • The quickest way to launch an ad platform
  • No money needed for platform development, installation, design, licensing and maintenance
  • Ability to customize the solution before installation and scale when needed
  • A chance to apply software to your own advertising needs and resell it to media buyers and sellers
  • Secure ecosystem: certain companies that deploy white-label ad platforms create an exclusive network of partners they already know to achieve trading transparency and safety
 

Applications

No matter if you’re a developer, a web designer or an independent entrepreneur who has not written a line of code, building your own app today is no longer a naive idea. The hardest part of the task will not be coding but finding the niche or idea that will give your app a competitive edge over similar ones.  There are numerous vacant app category niches in which you can build the app: games, travel maps, social networks, news, music or video service, personal utilities and so on. Taken that over 90% of time users prefer to spend on mobile, playing games, this category may be considered the most promising. Game development is typically more resource-consuming than creating an app with static content. Furthermore, back-end and front-end will demand the involvement of additional professionals: even if you’ve made a website yourself, the mobile ecosystem is completely different from the web.  Just as with ad platforms, apps can be developed by third-party vendors who then resell the software to one or multiple resellers (according to the plan). Advantages:
  • Ability to launch own app without inventing a unique idea but with unique positioning (e.g. free subscription but paid in-app purchases; low cost of subscription, etc.)
  • No money invested in developing, design, testing, etc.
  • Ability to modify the application in the future as preferences of your audiences change
  • Support with app management in the App Store or Google Play markets
  • A chance to request integration on demand
 

Search engine optimization

We’ve heard a lot of inadequate speculations considering the future of SEO during the past couple of years. Search engine optimization has really changed, and now it is much less keyword-dependent than before. Nevertheless, it became more sophisticated, and the demand for good quality SEO services only grows. In fact, 61% of digital marketers deem a robust SEO strategy as a pillar on which their online presence is based. Thus, a progressive SEO platform that follows the newest industry practices could be an excellent and competitive business idea. With White Label in SEO, you have two options to monetize your platform: first, a standalone, self-service platform that you purchase from the vendor and resell to brands and agencies; second, a managed service that is the most widely adopted option represented at the market of SEO services. The managed service also outsources the staff (account managers), who manage campaign flow on your behalf. Worth pointing out is that managed services can be found among all white label tech providers, including ad tech, SMM, email and app development. Even though such plans are more expensive, they provide your customers with the necessary support. This means the reputation of your business will never be at stake in case you experience a shortage of employees.

Advantages:

  • No need to hire professionals for platform development, design, installation, as well as managers who will supervise workflow for your clients
  •  SEO is complex and rapidly growing. You don’t need to constantly educate your staff to keep up with the latest trends
  • Centralization of all SEO tools in one interface
  •  The transparent system that enables clear measurement and aligned reporting for your future clients
 

Social Media Management

Even if you have a fully functional corporate website, active communication on social media is a must for maintaining decent public relationships. B2B and B2C companies, of all industries and specializations, open corporate accounts on Facebook, LinkedIn, Twitter or Instagram. These channels can work as additional generators or leads, sales and website traffic overall (up to 25.6% ). More than 50 million corporate website pages on Facebook testify to this evident trend. Social media enables brands to communicate with their customers directly and more aptly react to suggestions and feedback via comments. As a result, the brand is positioning itself as more human and customer-oriented. No wonder, services for automatic scheduling, posting and social media analysis are in high demand. The custom platform that unifies these functionalities may work as a great business solution that simplifies the management of the fragmented social media landscape. Furthermore, such automated platforms can be used without substantial SMM knowledge. Running on AI and ML, they can even provide real-time writing suggestions based on smart phrase broadening.

Advantages:

  •     Ability to resell platform and use it for own corporate SMM
  •     You pay for a ready-made product; no money invested in development, integration, design, payrolls
  •     Ability to use a platform – even by newbies
  •     100% automation resolves challenges associated with constant trend following, measuring, reporting and posting
 

Email Marketing

Around 281 billion letters – this is the total number of sent and received emails per day in 2018. By 2020, this number will grow to 333 billion. Such numbers testify to the fact that email marketing will still be there in the near future. Email marketers are also aware of this trend; this is why 52% of companies actively invest money in email automation software. According to email survey participants, such tools deliver service improvement (45.9%) and more leads (34.9%).  Sure, there are a great variety of email automation tools that work on paid and free subscription basis (Hubspot, MailChimp, Zoho or Drip, etc.), but the white label platform helps develop a unique solution tailored for narrow niche companies.  If you purchase such a platform from a white-label tech vendor, you can function as an agency and resell it to email marketers. Such a system will centralize the data about customers in order to personalize their user experience and provide them with relevant offers. Advantages:
  • Email message personalization for different user segments
  • No starting capital needed to develop, install, deploy and tune the platform
  • 100% automated workflow: segmenting audiences, scheduling emails, etc.
  • Chance to conduct cross-selling and upselling campaigns
  •     The platform will scale, along with customer base growth
 

To wrap it up

No matter who you are – whether an entrepreneur who decided to start a small business or a representative of a large company that strives to diversify – your decision making is no longer limited by building everything from scratch. Just 5-10 years ago, this would have been different. In case you enjoy strategic thinking and know-how to run your business, there’s no need to reinvent the wheel in order to successfully capitalize your project. Enter the new niche, find new target audiences and unexplored opportunities. With the White Label model, coding and the rest of the ‘building’ work can be commissioned to professionals who guarantee sustainability to your project.

Author:

Irina Kovalenko, CMO of SmartyAds ad tech company.
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