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'Last Click Wins' takes a hit with Microsoft's Engagement Mapping by Matthew Wood

Posted in Affiliate Marketing on 26/02/2008 at 7:45pm

Interesting news from Microsoft...

"The 'last ad clicked' is an outdated and flawed approach because it essentially ignores all prior interactions the consumer has with a marketer's message," said Brian McAndrews, senior vice president of the Advertiser & Publisher Solutions (APS) Division at Microsoft.

"Our Engagement Mapping approach conveys how each ad exposure -- whether display, rich media or search, seen multiple times on multiple sites and across many channels -- influenced an eventual purchase. We believe it represents a quantum leap for advertisers and publishers who are seeking to maximise their online spends."

This is an interesting move as it will see Microsoft's newly purchased Atlas start looking at which ads have been exposed to the consumer along the purchase trail before the conversion took place and reward them accordingly.

"Engagement ROI evaluates and assigns measurable value to a consumer's interaction with ads, giving advertisers and publishers a more complete picture of online behavior."

Part of me is thinking this is just an avenue to help agenices maximise spend through Microsoft (see the bold quote above) will advertisers really care who gets rewarded? surely it will be based on the pure ROI and how that sits against other channels such as ours truly.

At present in my mind with SMEs and some larger brands the 'last click' is often the 'Brand' term in either search or affiliate marketing activity. One would think that anything that helps to reward previous interaction, pre-sell or the initial prompt for the conversion must be a step forward.

Though the main factor for me is how you can 'measure' engagement with an ad? is it the size, position, format or recency, more likely a combination. Additionally how it can be attributed to each channel fairly?

Interestingly there could there be positive or negative consequences for the Affiliate sector depending on individual strategies and how this evolves going forward.

We should be watching the beta and the results which become available before the end of the second quarter very closely.

Thankfully for us Affiliate Marketers we are all about the ROI, and as a channel we should always measure up very well against others.

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2 Comments

  • Comment added by lauriebred on 02/03/2008 13:11:17
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    I was always taught in the old days that there are salesmen (we didn't have saleswomen in those far off days!) who produce business and order takers who don't. In affiliate marketing it is generally the first site visited which 'sells' the idea to the client of buying a particular merchant's product, the sites that he/she visits in between consolidate this decision and the final site merely takes the order. Any move to reward those who actually produce the business, at the expense of those who merely get the credit/commission for it, will be to the advantage of merchants as well as affiliates because we will push those products that give us the best returns.
    Updated on 03/03/2008 13:32:44
  • Comment added by Mike on 07/04/2008 12:05:37
    Atlas have had the capability to do this for a while - as do a lot of the big adservers out there but it costs a little extra to track. Few merchants/agencies use it to redistribute commission (according to where an affiliate comes in the purchase cycle), most I believe use this data simply to support the results they send to the client (e.g. affiliates drove so many last-click sales at such a cost, but they also played some part in another so many sales free-of-charge).

    The main difficulty in using it as a means of redistributing comission is, as you point out, its so complicated. Designing a suitable commission model or attributing ROI along the conversion path fairly is very difficult particularly if you deal with hundreds or thousands of affiliates! Therefore I think the main way it is useful at the moment is in justifying higher commissions for certain affiliates on a last-click basis or additional budget for prizes and rewards.

    I think cashback sites, discount code affiliates and brand-term bidders do ok out of the last-click rule but the more informative sites (review forums, niche sites etc) perhaps don't get the credit they deserve for contributing to the purchase cycle.

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Article written by Matthew Wood

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