Wednesday, June 22, 2011

Affiliate Marketing Tracking Failure Points

Based on the critical Internet functionality outlined in the previous section, cookies are extremely powerful and valuable tracking tools. However, cookies and cookie tracking are not perfect. In fact, there are several pitfalls to cookie usage of which affiliates need to be aware. Cookie Expiration Date The cookie's duration plays a critical role in affiliate marketing. The longer the cookie duration  for example, 90 days as opposed to 30 days the more likely it is for a conversion to occur and, in turn, for a commission to be paid.



Cookie Deletion and Blockage

Although their concerns are unwarranted, many web users believe cookies compromise their personal privacy and therefore pose a security risk. As a result, many web surfers overzealously delete cookies from their browser and/or use aggressive cookie-blocking software. These two operations can greatly impact your affiliate commissions.

One estimate from comScore suggests the following: Three out of every 10 cookies are deleted from browsers monthly.

Therefore, potentially 30% of the traffic that you send to a merchant is sent without a cookie. More importantly, the lack of cookies prevents you from collecting commissions on sales to that 30%. Additionally, an intriguing study conducted by industry veteran Ben Edelman on behalf of super affiliate Vinny Langham revealed that cookie blockage by third-party software applications can vary widely across affiliate programs and affiliate networks. These cookie blockage estimates range from zero to a high of 41% of cookies!

Cookie Redundancy

Many affiliates will run advertisements across many media outlets. This could result in the same advertisement being viewed by the same browser multiple times. An advertiser typically will pay for a sale or lead only once. Therefore, precedence logic for the campaign needs to be established. This precedence specifies whether the affiliate’s ad that was displayed first or last is given the commission for the sale or lead. regardless of how many times the web browser encounters an identical ad served by multiple affiliates;

· If a network or campaign sets the precedence as the first to click the ad, the first affiliate will be paid the commission for the resulting conversion.

· Conversely, if the network sets the precedence defined as the last to click the ad, the most recent affiliate serving the advertisement will be paid the commission.

Due to the potential of lost commissions and tracking discrepancies between the affiliate and the advertiser and/or network, you need to be aware of the precedence defined for either the network or advertiser sponsoring the campaign.

Browser Limitations

Browsers can hold a maximum of 300 cookies. This limitation could impact the length of time a cookie remains in the browser. This limitation is of less consequence in most affiliate programs because conversions will typically occur prior to the time of quantity-related cookie removal.

Service Interruptions

This cookie related tracking limitation is related not necessarily to cookies, but rather to Internet technology in general. Connection issues between the cookie placing code and the browser will likely inhibit the cookie's ability to be added to the browser.

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