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"The 'last ad clicked' is an outdated and flawed approach because it essentially ignores all prior interactions the consumer has with a marketer's message," said Brian McAndrews, senior vice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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Back in 1999 I founded affiliates4u to facilitate relationships between members of the affiliate marketing community. A community which helped shape the industry in a positive light.
Starting like many affiliates at home, by building a vast array of websites in sectors including gaming, finance and retail, I partnered with a number of freelancers which help to build value –add websites, often working through the night whilst juggling jobs, ranging from customer service at Orange to the local abattoir!
My work included organically listed SEO driven websites which were listed well within both Google and MSN search engines. We were once listed no.1 for the terms ‘shopping’ ‘loans’ ‘flights’ ‘computers’ and ‘finance’.
Through partnerships with those who complemented my skills we also developed in-house paid search technology to facilitate automated Google Adwords activity way before the Google API was established.
After dabbling with consultancy for start-ups in Affiliate Marketing, where I helped establish the first dedicated telephone tracking solution to stop leakage in 2002 and driving affiliates sales for one business to over 70% I founded Existem Ltd in early 2003. By the end of that year we moved into serviced offices in central Bristol.
Here we developed more technology driven websites within the loyalty sector and have steadily and organically grown the team to eight in our Bristol office.
In 2006 we established our affiliate marketing agency, Existem Affiliate Management. Later that year we partnered with Mark Russell and Bruce Clayton and still hold a good investment and involvement.
In 2007 we invested a six figure sum in the launch of a4uexpo.com, Europes very own Affiliate Marketing Conference & Exhibition. We still organise local networking events across the UK and Europe for the community, and look forward to exapnding these to Europe and possibly further afield.
As an entrepreneur and Managing Director I look after the talented team at existem who continue to develop value add websites, and are currently expanding our social networking sites across many niche verticals.
Company: Existem Ltd
Matthew Wood has written 61 articles
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.