The Truth About Cookie OverwritingOwen HewitsonClient StrategistDigital Window

Agenda

• Methodology• Caveats• Advertiser promotions

o Overview of promotiono How many affiliates are involved in a sale?o How is the AOV affected by a promotion?o How is the latency affected by a promotion?o How does the path to purchase change?

• General conclusions

Methodology

• Five retailers across four sectors – 1x fashion, 1x mobile, 2x electricals, 1x health and beauty

• Data gathered from major brands – all the advertisers studied have high levels of transactions and high numbers of affiliates for each promotional type

• Data benchmarked - before vs during promotions, with comparison to all affiliates on a programme, and other affiliates with same promotional method

• The ‘daisy chain’ – the path to purchase, the number of affiliates involved in a sale, and where they sit within that path

Caveats

• Data has been anonymised for both advertisers and affiliates

• Figures are expressed as percentages• Reliant on affiliates having properly categorised

their primary method of promotion• Advertisers’ and affiliates’ other marketing

activities should be borne in mind• Data only relates to the affiliate channel

Advertiser A - Fashion Retailer

Promotion: Exclusive voucher code - Extra 15% off sale items

Promo Period: 10th – 12th August 2010Comparison Period: 3rd – 5th August 2010Performance: 163% uplift in sales volume, 142%

in sales value

Involvements – Before the Promo

76%

17%4% 2%1%0%

Across the programme as a whole, number of affiliates involved per transaction

123456

Involvements – During the Promo

82%

14% 3% 1% 0% 0%

Across the programme as a whole, number of affiliates involved per transaction

123456

Involvements – Before the Promo

64%

25%

6%4% 2%

Of the transactions promo affiliate was involved in, number of affiliates per transaction

12346

Involvements – During the Promo

90%

8%2% 0% 0%

Of the transactions promo affiliate was involved in, number of affiliates per transaction

12345

What effect did the promotion have on AOV?

Before promotion During promotion

£19.73£22.15

£15.02

£25.03

All affiliatesPromotion affiliate

Latency rates: How quickly do our advertisers convert? - Before the promo period

0 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser A: 92%

Latency rates: How quickly do our advertisers convert? – During the promo period

0 1 2 3 4 5 6 7 9 101112131415161718192021222324252627282930310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser A: 87%

What effect did the promotion have on latency rates? – Before the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All affiliatesVoucher code affiliatesPromo affiliate

What effect did the promotion have on latency rates? – During the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

10%

20%

30%

40%

50%

60%

70%

80%

90%

All affiliatesVoucher code affiliatesPromo affiliate

Who did the affiliate overwrite? – Before the promo

79%

18% 3%

Promotional type overwritten by the affiliate

Voucher codesLoyalty & RewardTrue Content

Who did the affiliate overwrite? – During the promo

78%

14% 7%1%

Promotional type overwritten by the affiliate

Voucher codeLoyalty & RewardTrue ContentPPC

Advertiser B - Mobile Retailer

Promotion: Added points reward exclusively to a loyalty & reward affiliate

Promo Period: 7th – 21st May 2010Comparison Period: 16th – 30th April 2010Performance: 232% uplift in overall sales on two

weeks previous to the promotion; 655% uplift in contract sales on two weeks previous to the promotion

Involvements – Before the Promo

92%

7%2% 0%

Across the programme as a whole, number of affiliates involved per transaction

1234

Involvements – During the Promo

89%

9%1% 0% 0%

Across the programme as a whole, number of affiliates involved per transaction

12345

Involvements – Before the Promo

92%

4% 4%

Of the transactions promo affiliate was involved in, the number of affiliates per transaction

123

Involvements – During the Promo

89%

11%

Of the transactions promo affiliate was involved in, the number of affiliates per transaction

12

Latency rates – How quickly do our advertisers convert? – Before the promo period

0 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser B: 83%

Latency rates – How quickly do our advertisers convert? – During the promo period

0 1 2 3 4 5 6 7 9 101112131415161718192021222324252627282930310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser B: 84%

What effect did the promotion have on latency rates? – Before the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

20%

40%

60%

80%

100%

120%

All affiliatesLoyalty & Reward affiliatesPromo affiliate

What effect did the promotion have on latency rates? – During the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

20%

40%

60%

80%

100%

120%

All affiliatesLoyalty & Reward affiliatesPromo affiliate

Who did the affiliate overwrite? – Before the promo

56%

44%

Promotional type overwritten by the affiliate

Loyalty & RewardVoucher Codes

Who did the affiliate overwrite? – During the promo

67%

20%

13%

Promotional type overwritten by the affiliate

Loyalty & RewardVoucher CodePPC

Advertiser C - Electronics Retailer

Promotion: Added points reward exclusively to loyalty & reward affiliate (same promo with same affiliate as Advertiser B)

Promo Period: 12th – 26th March 2010Comparison Period: 12th – 26th February 2010Performance: 9.7% increase in sales volume,

126.5% increase in sales value

Involvements – Before the Promo

85%

12% 2%0%0%

Across the programme as a whole, number of affiliates involved per transaction

12345

Involvements – During the Promo

89%

10%1%0%0% 0%

Across the programme as a whole, number of affiliates involved per transaction

123459

Involvements – Before the Promo

85%

13% 1% 1%

Of the transactions the promo affiliate was involved in, the number of affiliates per transaction

1234

Involvements – During the Promo

91%

8%1%

Of the transactions the promo affiliate was involved in, the number of affiliates per transaction

129

What effect did the promotion have on AOV?

Before promotion During promotion

£117.79

£129£130.85

£109.3

All affiliatesPromotion affiliate

Latency rates – How quickly do our advertisers convert? – Before the promo period

0 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser C: 73%

Latency rates – How quickly do our advertisers convert? – During the promo period

0 1 2 3 4 5 6 7 9 101112131415161718192021222324252627282930310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser C: 72%

What effect did the promotion have on latency rates? – Before the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

20%

40%

60%

80%

100%

120%

All affiliatesLoyalty & Reward affiliatesPromo affiliate

What effect did the promotion have on latency rates? – During the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

20%

40%

60%

80%

100%

120%

All affiliatesLoyalty & Reward affiliatesPromo affiliate

Who did the affiliate overwrite? – Before the promo

92%

8%

Promotional type overwritten by the affiliate

Loyalty & RewardVoucher Codes

Who did the affiliate overwrite? – During the promo

81%

13% 6%

Promotional type overwritten by the affiliate

Loyalty & RewardVoucher CodeTrue Content

Advertiser D - Health & Beauty Retailer

Promotion: Exclusive code: 10% off £50 spend on particular product range. Offered to a loyalty & reward affiliate, rather than a voucher code site.

Promo Period: 2nd – 25th JulyComparison Period: 2nd – 25th June 2010Performance: 8% increase in sales volume, 5%

increase in sales value.

Involvements – Before the Promo

90%

8%1% 0% 0%

Across the programme as a whole, number of affiliates involved per transaction

12345

Involvements – During the Promo

91%

7%

1% 0% 0%

Across the programme as a whole, number of affiliates involved per transaction

12345

Involvements – Before the Promo

93%

7%

Of the transactions the promo affiliate was involved in, the number of affiliates per transaction

12

Involvements – During the Promo

95%

5%

Of the transactions the promo affiliate was involved in, the number of affiliates per transaction

12

What effect did the promotion have on AOV?

Before promotion During promotion

£37.83 £39.79

£55.60£59.16

All affiliatesPromotion affiliate

Latency rates – How quickly do our advertisers convert? – Before the promo period

0 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser D: 91%

Latency rates – How quickly do our advertisers convert? – During the promo period

0 1 2 3 4 5 6 7 9 101112131415161718192021222324252627282930310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser D: 90%

What effect did the promotion have on latency rates? – Before the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All affiliatesLoyalty & Reward affiliatesPromo affiliate

What effect did the promotion have on latency rates? – During the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All affiliatesLoyalty & Reward affiliatesPromo affiliate

Who did the affiliate overwrite? – Before the promo

43%

29%

14%

14%

Promotional type overwritten by the affiliate

Voucher CodesTrue ContentLoyalty and RewardEmail Marketing

Who did the affiliate overwrite? – During the promo

85%

8% 8%

Promotional type overwritten by the affiliate

Loyalty & RewardVoucher CodesTrue Content

Advertiser E - Electricals Retailer

Promotion: Competition with cashback site (no cashback increase)

Promo Period: 14th – 27th July 2010Comparison Period: 14th – 27th June 2010Performance: 32% increase in sales, 58%

increase in sales value

Involvements – Before the Promo

82%

14% 3% 0% 0%

Across the programme as a whole, number of affiliates involved per transaction

12345

Involvements – During the Promo

83%

14% 2%0%0%

Across the programme as a whole, number of affiliates involved per transaction

12346

Involvements – Before the Promo

84%

15% 2%

Of the transactions the promo affiliate was involved in, the number of affiliates per transaction

123

Involvements – During the Promo

82%

15% 3%

Of the transactions the promo affiliate was involved in, the number of affiliates per transaction

123

What effect did the promotion have on AOV?

Before promotion During promotion£0.00

£50.00

£100.00

£150.00

£200.00

£250.00

£300.00

£350.00

£400.00

£282.00

£348.63

£227.03£261.03

All affiliatesPromotion affiliate

Latency rates – How quickly do our advertisers convert? – Before the promo period

0 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser E: 92%

Latency rates – How quickly do our advertisers convert? – During the promo period

0 1 2 3 4 5 6 7 9 101112131415161718192021222324252627282930310%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Advertiser AAdvertiser BAdvertiser CAdvertiser DAdvertiser E

Advertiser E: 90%

What effect did the promotion have on latency rates? – Before the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

20%

40%

60%

80%

100%

120%

All affiliatesLoyalty & Reward affiliatesPromo affiliate

What effect did the promotion have on latency rates? – During the promo

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 240%

20%

40%

60%

80%

100%

120%

All affiliatesLoyalty & Reward affiliatesPromo affiliate

Who did the affiliate overwrite? – Before the promo

86%

14%

Promotional type overwritten by the affiliate

Loyalty & RewardVoucher Codes

Who did the affiliate overwrite? – During the promo

57%

43%

Promotional type overwritten by the affiliate

Loyalty & RewardVoucher Code

Conclusions

• Most transactions have only one referrer• Most transactions take place in 24 hours• Of those, most take place within the hour

• Some evidence that where a code is offered customers spend more anyway – AOV rises during the promotion for an affiliate with a code

Conclusions

• Shows affiliates in a good light – affiliates are click winners, not ‘click stealers’

• Implications for the debate on multi-attribution – if vast majority of sales are single referrer, what might be a better way to ascertain the value of your affiliates?

• Taking this research further – benchmarking affiliate channel across online marketing as a whole