Woolworths - Opportunistic closed bidding group on brand just before Christmas

[Julie H]

Been monitoring Woolworths for the past couple of weeks and I’ve noticed my epc has taken a nosedive. Upon further investigation it would seem somebody has been BNB on the program, we’ve asked Awin and they’ve told us that yes, a trial has started on a closed PPC group.

I’m intrigued that no-one has told us that has been happening, I don’t want to line the pockets of other affiliates thank you very much. I don’t want to be in the closed group, but I reserve the choice to not be in competition on PPC with a closed group. I’m very surprised and disappointed that Awin haven’t notified affiliates that this is happening and I look forward to their response.

[John]

Our epc has also fallen off the cliff - Maybe related to this, or maybe not, but certainly six times less than it was last month.

I guess the drinks must be on the affiliate who is in a closed group of one allowed to bid on Woolies brand name during the xmas period -nice "work" if you can get it.

[renegade]

Hi Guys. Are you sure that's the problem?
I haven't ever really done much with Woolies but the recent changes to their program have encouraged me to up my activity so isn't it likely at least some of the EPC drop you're seeing is down to me and other affiliates actually promoting the program more actively?

[adamski]

Hi Julie,

Yes, a trial and I emphasise this is just a trial, has been implemented for a single affiliate to be allowed to bid on the Woolworths brand and this is coupled with a generic campaign.

Woolworths are reviewing other options outside of a 3rd party search agency and obviously this incorporates using the affiliate channel. Woolworths chose this particular affiliate themselves (it was not an option to tender) and after a meeting, felt satisfied with the agreed parameters which included a reduced commission for brand sales and a specified time limit to review the performance. As a network we too implemented additional elements to segregate sales and monitor performance.

Woolworths were already de-dupping their affiliate sales against brand PPC activity so I am surprised to note that your epc has dropped. Unrelated but relevant is the fact that Woolworths have also decided to work on a 100% validation system which I would have thought would have the opposite effect (i.e. increase your epc). Can I ask when your epc dropped?

Regarding announcing that a brand PPC affiliate is operating on the Woolworths programme, this would appear a bit pre-emptive considering this is just a trial. Our aim here is not to force the merchant's hand on whether they do or do not use affiliates for this type of paid search, but to let it run its course and allow both parties to analyse the results. If a decision is taken to run this for an extended period then we would ask the merchant if we could inform current affiliates.

The crucial point to note here is that the commission opportunity for content affiliates has not changed as a result of this as de-duplication was already in place on their paid search activity. As renegade rightly pointed out, there has been an influx of new affiliates wanting to work on Wooloworths since the positive changes made to the campaign and any fluctuations in EPC are probably related to this.

If anyone wishes to discuss this with me, don't hesitate to get in touch.

Adam

[Julie H]

Adam,

I'm in a rush to go out but a quick reply to yours.

I'm not satisfied you've answered my query on why affiliates were not notified, whether it be a trial for a day, a week or a month we should be notified. Transparency and all that! I will read & reply in full when I'm back in the office.

Jules

[Frostie]

Agree. Out of order. BNB & affiliate favouritism hits the headlines again?

I give up lol

[adamski]

Hi Julie

You have my assurance that if we ever implement something on a programme which we envisage will have an impact on the performance of its existing affiliate relationships, we will inform everyone in advance.

Many changes occur on merchant programmes, some of which may have an effect on the performance of existing affiliates but there is no obligation to announce these. In this instance, the introduction of a ppc affiliate on brand should have no impact whatsoever.

I would have thought that it would be a good thing for an affiliate (one you all know and respect) to have secured this trial away from a search agency. I truly thought this would be movement in the right direction for the affiliate channel and further proof of the power and transparency of CPA. Genuinely, am I wrong in thinking this? If this is about 'prior announcement' then I will raise concerns internally and see if we can revise our system to include a mandatory announcement for future situations.

Frostie - I understand we regularly supply you with voucher codes for your site. Is this also favouritism? Surely we favour all of our affiliates in one way or another but not to the detriment of each other.

Adam

[Frostie]

Originally Posted by adamski Frostie - I understand we regularly supply you with voucher codes for your site. Is this also favouritism? Surely we favour all of our affiliates in one way or another but not to the detriment of each other.

Nope as these codes are supplied to other affiliates too - not 1 single one!

Also, it helps keep us affiliates on your network, as when there are 2 networks to choose from, if network#1 doesnt get me a code, its likely that network#2 will so therefore you are keeping me, and my income, routing via your network. Although I appreciate the codes and the effort all network make in obtaining them (as some merchants can be stubborn), lets not forget that its also in your best interest at the same time.

PPC and BNB is a different kettle of fish. Always has been. Always will be.

But why not just communicate it? This is what I dont understand. I am not sure a network is in a position to say as to whether or not it will or may affect other affiliates - i believe the affiliates are in the position to decide this. Why not just email all affiliates saying you are trialing it, and you welcome any news on noticeable differences?

[adamski]

Frostie your reply is appreciated and whilst you may not receive bespoke codes we did initiate a voucher code protection system for both merchants and affiliates, ensuring that codes can't be stolen. There are further advances in this area scheduled for release shortly.

The point you make about service is equally valid for PPC and the decisions made by any merchant. Contrary to popular belief we're not always consulted and merchants do have the right to choose specific partners themselves. If they do, it is part of our service requirement to facilitate it.

As I have already said previously, I will discuss internally the possibility of prior announcement for future trials. Hind sight is a beautiful thing and we now have other options to consider but these may have to be balanced with the impact any announcement may have over the longer term if a trial were not to work and the programme were to revert back.

Your comment on whether a network is adequately placed to gauge whether it will affect affiliates concerns me as this implies we didn't give this enough thought. If any change has a negative impact on a programmes performance in one way or another then of course we will inform existing affiliates. But I still question whether this has affected performance since the programme was already being de-duped against paid search agency activity.

Adam

[Julie H]

Could do you elaborate on what you mean by de-duped. As my existing cookie was overwritten by the one used for the closed group ppc activity, so in effect it is actually effecting my sales.

Also, with regards to closed groups, anyone would have to be stuck on another planet not to realise the sensitivity on non disclosure of closed groups, so there has been plenty of hindsight