Matt Bailey's affiliate blog

18 Mar, 2009

Post Impression Tracking in Affiliate Marketing

Posted by: admin In: Affiliate

The issue of PI tracking through the affiliate channel has died down recently, having been a big issue 3-4 years ago. However is it now time to revisit this?

Because of the last click wins model, many affiliates contribute to sales that they do not get rewarded for, and content affiliates are generally considered to be the worst affected category. With the advances that have occurred in cross channel tracking and deduplication, is there now an argument to reinstate PI as for affiliates?

Most large merchants nowadays utilise a third party tracking solution that automatically deduplicates between marketing channels and awards the sale to the party that generated the last action. In affiliate marketing this action is a click, in search a click but in display advertising it is a click or often simply a banner impression.

The argument in the display channel being that a consumer has seen this advert and this has influenced their decision. Why is the affiliate channel not treated the same? If we now have the ability to examine the journey of the consumer, and it can be demonstrated that they have had no other touchpoint with the brand apart from viewing a banner on an affiliate site, then there is a compelling argument that the affiliate has driven that sale.

sunitv_logo_1I often feel that in the online world we live and die by the same sword because what we do is so trackable. You don’t need to have this argument when selling radio, press or TV advertising. Sorry Mr ITV, we’re not going to pay you for that sale because the consumer saw our advert in The Sun after they saw the ad during Coronation Street.

Obviously this would have to be policed correctly. Previously affiliates have “bent” rules by hiding the ad at the bottom of a page or even reducing the image to make it invisible whilst allowing a cookie to be dropped. Maybe it should only be allowed to occur on certain high traffic affiliate sites? Would it only benefit certain affiliate sectors? Maybe the CPA should be lower for a PI sale rather than a click driven sale?

So there are things to be taken into consideration but I feel that this issue may have been ruled out too soon. Because we have complete visibility, why should affiliates miss out when they can demonstrate that they are driving awareness and value to a merchant?

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7 Responses to "Post Impression Tracking in Affiliate Marketing"

1 | J Lil

March 19th, 2009 at 9:32 am

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Some very good points Matt, but I strongly feel that PI tracking has no place in the Affiliate marketing world.

Why? Whilst it may well make networks and affiliates more money, I strongly believe that it goes against the ethos of affiliate marketing. Whenever we do training for merchants we make it clear that AM is *not* a branding exercise, it’s a way of getting additional sales or leads and PI tracking does not ensure that this is the case.

I think it also paints the wrong impression of what affiliate marketing is used for – if you look at where budget is being cut in times of a recession then typically it’s not the affiliate channel that is being affected whereas display has been hit quite hard. I met with a large publisher yesterday who 6 months ago wouldn’t entertain the idea of doing CPA on their sites (would have probably laughed at the idea of it) but are now almost forced into doing so as they just can’t sell the inventory like they once could.

I appreciate that for some merchants PI tracking may be what they are after but I would much prefer that networks educated them and send them to a display advertising agency for that activity and kept the ethos of affiliate marketing on CPA itself.

Just my 2p!

J Lil

2 | Adam Ross

March 19th, 2009 at 11:20 am

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Hi Matt

I fully agree with J Lil.

I am quite sceptical as to the effectiveness of display advertising in general. Impressions tell you nothing as they fail to measure engagement and CTRs are on an ever decreasing spiral.

Advertisers are increasingly questioning the value of display advertising and this is clear from the swathes of unsold inventory and the collapse of CPM rates.

All this leads to the conclusion that traditional banner advertising is becoming obsolete. Consumers are not interested in looking at or engaging with banners and that is the underlying fundamental problem.

It is certainly not the role of the affiliate marketing industry to resurrect banner advertising using a questionable tactic like post impression cookies.

We are incredibly fortunate to be in an area of online that is still growing, the reason for this growth is affiliate marketing’s total transparency. We should not do anything to jeopardise this and that’s exactly what PI tracking would do.

Adam

3 | Adam Ross

March 19th, 2009 at 12:09 pm

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Just to add to this as I’m conscious of the fact you’ve been shot down by two networks.

I think it’s important that someone is challenging the status quo and trying to think of ways to expand what affiliate marketing offers. I just don’t think PI is the way to go. Interested to hear other’s thoughts.

4 | Pete

March 19th, 2009 at 12:19 pm

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Interesting blog as always Matt and agree with your points.

Whilst I don’t believe in a widespread introduction I do feel there is a place for PI when used with the right technology and the right publishers. Publishers which have historically worked on a cpm basis are starting to look at performance based models and PI will help bridge the gap and bring new distribution to our channel. The progression of AM means that many sites could be classed as “brand” based and with more large, traditional sites entering the space this will only continue.

In terms of CPM there is still a healthy market there and our sister company often has more advertisers then inventory. I also know many large brands are looking at the combined role of search, display, email and affiliates as well as offline media’s effect online. From speaking to agencies and advertisers it’s a combination of all parts which help drive consumers and not down to one channel exclusively.

Pete

5 | HelenMarie

March 20th, 2009 at 12:51 pm

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Interesting points Matt and a subject that has very strong views either way. I think affiliate sites have developed significantly over the last few years. An affiliate site used to be a few landing pages but now many affiliate sites have hundreds of pages and have effectively built portal sites. There are very generally two types of affiliate sites; those that get the customer off the page as quickly as possible and those sites that are sticky and hope to keep the customer longer. In the latter sites I think there is a strong justification in using a PI cookie.

4 years ago we would have never expected clients to pay for tenancies on affiliate websites but now in many sectors this is a common practice amongst the larger affiliate sites. Many clients view these sites to be offering valuable branding as well as the traditional cost per sale model.

PI has had a bad name in affiliate marketing because networks and affiliates were guilty of not using it properly and demonstrating its value. The PI cookie period should be short, 2 days at most and it is important that the client is deduping or looking at a contribution model. Many aspects to consider but used in the right way, with the right client and the right affiliate I think the value can be proven a viable investment.

6 | Tom Rowlands

March 24th, 2009 at 5:52 pm

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Can’t see that coming in. We need to resize / crop banners and logos on most of our sites to fit in with the design… so we upload logos to our own servers and don’t have any impression stats in the networks.

7 | Silv

April 7th, 2009 at 8:39 am

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Matt – I am bit late coming in to this convo but you definately do have a point.

Regardless of what people think about PI effectiveness, being someone who works across all online channels – it 100% does have an impact and try telling the likes of TMobile, O2 and Sky it doesnt have any worth…(they all work to at least 14 day post impression windows)

There would definately be more scope to introduce this on the true content affiliate sites. Users are more engaged on these sites and with the content and as such, have a greater level of interaction (arguably), so the introduction of PI tracking could be worthwhile.

The reason however why it is difficult to begin looking at PI on affiliates is that is does not offer the scalability of an actual ad network.

But it kind of does begin opening the ‘moving beyond last click wins’ can of worms again…

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