R.O.EYE Blog | Our eye on the affiliate industry

TAG | tracking

I note that there is another affiliate solution that allows publishers and affiliates to connect without the need for open networks, as Impact Radius gets its launch in the UK. However it is the selection of effective tools behind any solution which needs to dictate the choice of technology for a merchant. Affiliates are developing at a significant rate and offering new ways to deliver qualified traffic for merchants and the demand is very real. API integration tools, RSS feeds and dynamic creatives all form part of the serious network contenders make up and are important for the new breed of affiliates.

These types of tools aren’t yet available on all open networks however the eBay Partner Network amongst others offer these types of solutions to their affiliates on an in-house programme or closed basis. It tends to be these networks that offer an enjoyable range of affiliate genres without the risk being too heavy on any one genre.

The entrepreneurial ethos that defines affiliate marketing is under risk if tools and new technological advances are not taken seriously and adopted by merchants. Bridging this with offline tracking potentially makes an interesting option.

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This month we’re preparing for the launch of a new merchant here at R.O.EYE. We will be running this on both a closed and open network, and I got to wondering… what is the general perception of this kind of strategy in the affiliate community? Are the benefits and drawbacks of both widely understood? To throw my two pence worth out there I’ve put together some observations which may help to explain some of the thought processes involved.

In my experience merchants face two very important considerations when deciding on which strategy to employ depending of course on the industry and product, and these are typically reach and control.

For example, a non-premium branded retail merchant will be more concerned with driving sales than brand compliance and have few reservations about allowing affiliates from as many different genres join the programme as possible. In contrast a premium-branded, FSA regulated finance merchant will need considerably more control over the programme as they need to consider compliance as well back-end quality if the programme is paying out per lead for example.

Closed networks offer the merchant a good degree of control because the affiliate manager or agency can keep affiliates close and develop mutually beneficial working relationships with them. Good communication then facilitates effective programme optimisation from a quality perspective and compliance management, ticking two very important boxes.

Another big box to tick is of course volume of sales (or leads) and for this it helps to have access to large numbers of affiliates. Open networks offer considerably more reach in terms of accessing affiliates and depending on the network can attract specialist affiliates in a variety of different verticals. Other benefits include the extremely valuable add-on services such as XML product feeds, widgets, APIs, etc which can be of huge benefit and often integral to making the programme a success.

However it is also true that these add-ons are not always required and in some instances are left completely redundant, which then brings into question the justifiability of the network override. This becomes a very important consideration where for example the programme objectives involve working to a cost-based KPI.

If only a standard tracking solution is required then a closed network is preferable as this eliminates the inflationary impact of network overrides and creates cost efficiencies. This means the programme is not inhibited in its ability to deliver to the cost based KPI and the maximum commissions can be passed on to attract, recruit, and nurture top performing affiliates.

In summary it’s very much ‘horses for courses’ but decisions whether to run an affiliate programme on a closed, open, or mixed strategy often stem from some of the considerations covered in this blog. In all instances however the decisions made must satisfy the merchant objectives and provided that is the case there will always be a successful programme for affiliates to be part of.

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This year has seen the development and implementation of various minor enhancements of the Icon integration system. Probably the most significant has been the addition of an automated validation process for our client DSGi, which has enabled us to standardise the downloaded transaction data from 5 different networks and automatically email sales lists to them for validation. The client updates the list via their internal systems then returns it to us so that we can compile comprehensive reporting and update the networks. This ensures good quality data, accurate sales information and also provides another important safeguard against fraud.

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I turned 25 a few months ago, and on checking my Facebook that morning, I was greeted with an unfamiliar sight. An ad which had once graced the right of my screen, which said something along the lines of “Hey there! 24 and single? There’s loads of hot girls just waiting for you…” had been replaced with a more sombre “25 and still single…?”

What had changed? Was it suddenly socially unacceptable for me to be single? Well no, I’d merely fallen into another demographic bucket.

Behavioural targeting is everywhere in various degrees. The ads shown during Coronation Street are based on the shows demographic. However there is an inherent logical flaw:

38 year old females watch Corrie. 38 year old females buy chocolate. Therefore, people who watch Corrie, buy chocolate.

Now I apologise to those of you who work in offline, and I do know that a bit more thought goes into it than that, but fundamentally, this is how offline ads get targeted. The online sector however is a different beast entirely. We browse, we communicate, we research and we shop, all though our internet browser, which handily records where we’ve been and what we’ve done. We also have the technology to trace backwards from a sale, and map out the complete customer journey, right back to their original search engine query.

Google have recently announced that they are delving into the world of behavioural targeting, and it has been met with trepidation from internet privacy groups, who are concerned about the amount of personal information which will be at Google’s disposal. To that, I say let Google have it, by all means, if it means that I stop getting Online Bingo adverts, and being ostracised for being 25 and single.

Advertising is everywhere, and I’d rather see relevant, targeted ads based on my interests and buying habits, than ones based on some marketing executive’s bright spark idea of the kind of demographic I fall into.

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