As many of you are aware, there have been several threads throughout this forum regarding the impact of closed PPC groups on merchant brands and the impact this has on overwriting previous affiliate cookies when returning visitors type the brand into a search engine and click the affiliate sponsored brand link.
Woolworths have been conducting a trial with a specific affiliate namely eConversions on the viability of running their paid search through the affiliate channel. Aside from the obvious benefits a move like this would entail for affiliate marketing certain questions have been raised as to the benefits of allowing any affiliate to have closed brand rights for PPC.
In order to address the main opening point and the effect this will have for any similar AWin programme, I feel it necessary to highlight some of the mechanics surrounding the Woolworths and eConversions arrangement.
Firstly the key decision behind bringing brand PPC into the affiliate channel is to secure a much larger market share of the ‘generic’ keyword market. To this end eConversions have been closely monitored and performance from this ‘generic’ keyword pool is separated and has been the gauge of success. Commissions for brand PPC were greatly reduced in order to achieve Woolworths desired CPA overall for affiliate PPC against other paid search channels. Both brand and generic elements were separated allowing full transparency on performance with AWin monitoring the referrer data to ensure clarity.
The campaign ran pre-Christmas and then again for March and the indications have been strong that eConversions were able to achieve both the volume for generic keyword based sales and the overall CPA for this channel.
However in order to look at the longer term strategy for this activity we have worked closely with Woolworths and eConversions to ensure pre-existing affiliate cookies are not overwritten if a visitor returns via the affiliate sponsored brand link. A solution is now in place and has been active since the end of last week.
We recognise that many affiliates help bring this issue to the attention of all networks and merchants and we would like to thank you for your patience whilst a solution was developed and tested. Whilst controlled brand PPC is strictly limited to a handful of merchants on the AWin network, the above process will now be considered standard practice for affiliates. We are working on implementing these changes as soon as possible.
As a final note AWin feel that affiliate brand bidding in isolation adds no value to any merchant programme, however controlled PPC activity with or without brand can add significant value if carefully monitored within set parameters. Every merchant programme is different and assessed on a case by case basis as the factors governing suitability and performance vary. Likewise, any affiliate wishing consideration for closed PPC activity need only liaise with
AW and be able to demonstrate a track record of generic keyword performance within suitable sectors and ideally with the merchant in question. Final choice however, generally lies with the merchant and may entail face to face meetings, presentations, forecasts and as we all know an element of risk.
Kind Regards
Mark
