Our advanced marketing field cannot improve without white-label benefits. This article will analyze the essence of white label ad exchange services and why companies or brands need this expansion and development.
Here’s a simple and actionable definition of white labeling and its main business benefits. We will also give you some good reasons to look closer (if you haven’t already).
At the end of the article, we will also offer answers to frequently asked questions about company brands sold under another company’s name.
Definition of a white label in marketing: what is it?
In marketing, a white label is a product or service created by one company but sold under another company’s brand name.
This allows companies to offer products and services without creating them from scratch.
What does the term “white labeling” even mean? Let’s figure it out first.
The word is an allegory for the physical stickers on fruit or any product you see daily in stores. That is, this is how the brand notices its products. The digital world has also borrowed this practice to sell their creations as their products.
Now, it is not just bananas or apples with stickers, but white labeling of software providers’ products, IT solutions, and virtual services, which can be sold and integrated on the client’s website as a widget.
Discover the benefits of white labeling
- Significant savings in company resources: Using a white-label solution is vital for a business that seeks to increase its sales because, without it, it is impossible to cope with numerous orders. The white-label solution allows you to provide a product that is not made from scratch every time for new users. Thus, the quality and all the functionality will be kept in their original form, with updates at your request.
- Your brand recognition. Advertising: Find any reason not to put your logo and name on your clients’ resources. That’s right, there are no such reasons for legal sales. Place your brand right on the product you buy.
- Adaptability: White Label is not only about recognition and saving time and money. It’s also about being able to update products in your customers’ databases promptly. In this way, you improve the experience of your customers, encourage new ones, and always provide access to relevant information.
Explore the role of white labeling
With white labeling opportunities, companies can outsource certain steps in the product development process. There is a way to save a lot of money and time.
We at SmartHub are convinced that this marketing concept also allows companies to quickly enter new markets with private-label products, allowing them to expand their reach and increase profits.
Three specific examples of companies that use white labels in their marketing strategy
- Nike previously used a white-label strategy when collaborating with the fashion store H&M to create an exclusive clothing line. The clothes had the iconic Nike logo as a tick but were sold under the H&M brand.
- Burger King also uses white labeling in partnership with other companies, such as Subway and KFC. Burger King has allowed these companies to use their products, such as buns and sauces, in exchange for a white label ad network and branding of the partner company.
- Apple is another example of a company that uses a white-label strategy; Apple allows third-party companies to license its technology to make products compatible with Apple devices and software. This allows Apple to expand its reach into markets that it would not be able to enter without the help of its partners.
Simply contact SmartHub specialists to find white label ad exchange and for any questions on implementing a white-label service to increase your company’s sales.
FAQs
Why do people choose to sell white labels?
White-label marketing is a great choice for businesses that don’t have the resources or desire to create their brand. It allows companies to sell and promote products without having to worry about building a brand from scratch.
This concept can also be more cost-effective than creating and maintaining a full brand identity.
White labels provide an easy way to enter new markets and test different marketing strategies without having to spend additional resources.
In addition, since the products are already established, companies can benefit from the recognition of the product’s value by existing customers.
In summary, white labels offer businesses a great opportunity to quickly enter new markets and test different marketing strategies with minimal upfront costs.
What benefit does the reseller get from using the white label in this case?
The essence of white labeling (when the company does not develop products from scratch, using its existing developments, methodologies, and technologies), allows trading intermediaries to save both their time and money, as well as the client.
After all, the company will only place its logo and name on the sold product. This is a significant advantage.
In addition, we want to emphasize one more advantage: it makes it easier for the company to monitor its own sales strategy, and pricing, and to facilitate the adaptation of its products to the client. And the sales representative will only benefit from this.
Moreover, there are no risks with delays and unreasonable expectations about some products, as it could be in scenarios of continuous development of a product from scratch. Here, not only the company but also the sales representative are parties to the risk.
What types of products can be sold with white labels?
White-label products are products that were manufactured by one company and then renamed and sold by another.
These can be physical items such as furniture, electronics, or clothing, or digital products such as software and services.
Common white labels include consumer products such as the following:
- food and beverages
- cleaning products
- toys, and cosmetics
- industrial products such as tools and machinery
- business services such as website design, SEO optimization, marketing campaigns, and customer support
What are the benefits of choosing a white-label solution?
A white-label solution offers businesses some advantages.
- It enables organizations to swiftly initiate sales of their products and services without the need for significant time and financial investment in their creation. This makes it faster and cheaper to develop and lets companies concentrate on other parts of their business.
- Also, these products are usually cheaper than making customized solutions because the company has already spent money to make the product for other customers. Therefore, businesses can save money by picking a ready-made solution.
- Utilizing white-label solutions often entails receiving guidance, training, and promotional resources to better comprehend and utilize the product.
Conclusion
In conclusion, white labeling presents a strategic advantage for businesses aiming to expand their market presence and product offerings without the inherent complexities and investments of new product development.
By leveraging existing solutions, companies can save significant time and resources, enhance their brand visibility, and swiftly adapt to market demands.
This approach not only streamlines the process of entering new markets but also facilitates a focus on core business competencies, driving growth and competitiveness in an ever-evolving business landscape.