22nd December 2007

Santa Clause 4.6

posted in Affiliate Marketing, Closed Groups, PPC Brand Name Bidding |
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Brand bidding is a senstive area, but unquestionably responsible for being one of the main contributing factors for the initial growth of the affiliate marketing industry, which wouldn’t be where it is today, however one has to consider whether any networks are sending out mixed messages.

For example if you find time, on Tradedoubler go to the search policy section on a number of merchant’s information pages & scroll down to a particular clause.

4.6 You are allowed to show adverts on trademarks, or variations, of advertiser’s competitors?

The merchant has an option for yes or no. With enough opting to permit affiliates to bid on competitor trademarks & variations.

What is your interpretation of this? Realistically what kind of mixed message does this send out not only to their clients, but may encourage some affiliates to do? Consequently, potentially contributing to allow the affiliate marketing industry to be tarnished.

The phenomenal growth of the industry, from revenues generated, has been mainly in part due to the allowance of brand bidding, and by judging networks at the moment, some are & will still be thriving in 2008 with coffers being filled from the over-ride of closed brand bidding groups. Which in all completely skews the sales figures the affiliate channel is earning/producing.

A solution certainly needs to be found, which prevents the content affiliates cookie being over-written. Whether a seperate link, or the referring keyword (which can easily enough be hidden anyhow) cross referenced against a whitelist of actual trademarks to ascertain who gets credited with the commission from the sale. A technical solution needs to be found.

But going back to clause 4.6 … is this particularly ethical?

I am surpised it hasn’t been addressed for wider debate & can only assume both merchants, affiliates & other networks have been oblivious to it. Or a worse case scenario, people simply don’t care.

Whether you consider it scrupulous or unscrupulous, the decision is yours, but this clause is a licence to print money!

In 2008 I think we need to re-examine this area a whole lot more for each network. The AMC (Affiliate Marketing Council) at the IAB (Internet Advertising Bureau) could certainly contribute by implementing a code of practice for its members on competitor to competitor bidding, with the asssumed weight to clamp down on merchant & non-merchant members on unethical paid search practices, they get the necessaryinches in the publications, and if they are to prove they have any teeth, this one aspect which should be addressed.

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