Affiliate Multi-attribution Model Discussed

July 3, 2009 by Evan

That the ’last click wins’ model that affiliate marketing is premised on continues to prevail underlines the inherent problems the industry faces in finding a credible alternative.
 
As affiliate marketing becomes more complex so industry players have been debating whether a multi-attribution model, that is apportioning parts of one overall commission amount to the affiliates involved in that sale, would better reward all touchpoints.
 
In theory this makes this sense. Understand the consumer’s path that leads them to the ‘buy now’ button and reward retrospectively for the multiple marketing efforts that influenced and guided their buying decision.

But delve a little deeper and a multi attribution model throws up more questions and subjective dilemmas than there are answers to.

An advertiser may find that two or three affiliates may be involved in a typical sale. Do you apportion the commission accordingly (by halving or dividing by three in this case) or do you weight it subject to a possibly arbitrary scoring system that attributes a ‘value’ to individual affiliates? What would then be the basis for this system; individual affiliate performance such as new customer acquisition numbers, average basket amounts, frequency of purchase?

From an affiliate’s perspective there are obvious concerns. If you run a cashback, loyalty or reward site and need to publish a commission rate what do you advertise when you don’t potentially know what you’re getting? What about affiliates working in the paid search space who need a guaranteed rate of return so they can account for their click costs and work their campaigns profitably?

By all means try to understand what value your individual affiliates contribute at various stages to your sales but rather than talk about dividing a commission according to an arbitrary click measurement why not just try to appreciate the value of each of your affiliates; both the volume drivers and by affiliate categorisation?

As multi-attribution continues to pose more questions than it answers many advertisers are getting on with the business of running their campaigns. The savvier are taking a step back, understanding the wider picture and apportioning commission rates that reflect the perceived or actual ‘value’ of their different affiliate types.

And ultimately that’s what performance based marketing is all about.

Guest Post by: Kevin Edwards of Affiliate Window.

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