Should Affiliates Be Worried By Capture?

Nov 6, 2010 by Jason Dale    3 Comments    Posted under: Affiliate Marketing

On Friday A4U announced the launch of a new service from Markco Media called Capture. According to the blurb Capture is “a new technology that allows you to recapture abandoned shopping baskets”. If a shopper decides to give up their order then they can be contacted and perhaps encouraged to complete their purchase.

First off let’s ignore the fact, at least for now, that Capture is being pushed by Mark Pearson and his Markco Media. Just the name creates polarity of views within the industry and encourages instant dismissiveness within discussion from both sides of the fence. At the end of the day it’s the technology that should be in the spotlight.

So why is it in the spotlight?

Capture works when, if implemented by a merchant, a customer leaves their shopping cart without completing a purchase. The technology grabs the user details, emails them and perhaps encourages them to return to finish shopping. The technology is provided in association with Ve Interactive.

Affiliates are concerned that the traffic they send will be lost to another affiliate. For example they think Joe Public is clicking on their link, setting a 30 day cookie and if they return to Merchant X (abandoned cart or not) that they will get commission.

Capture, however, encourages a much early return. Potentially via another affiliate link! In essence rapidly reducing the cookie life of the last referrer.

There are also data collection/contact issues. I don’t understand the legalities of this situation but if a company emails me without my consent (regardless of whether I’ve abandoned shopping with them) I regard that as intrusion. Perhaps even spam.

I’m also aware how a lot of people are quite worried about viruses, spyware etc so being emailed after failing to complete a sale may cause one or two flutters. Just worth considering if you’re a merchant.

And that’s basically all we know!

Now here’s the issue. Some affiliates are rightly concerned by new technology. How will it effect their business and their relationships with merchants. Will it damage their bottom line and will it ultimately aid A.N.Other.

You can argue as much as you like that “it’s innovation”, “moving forward”, “tough titties” or “just business”, but here’s the deal – no one has bothered to explain to affiliates how this could effect them, good or bad.

Kiddiecare, WHSmiths, M & Co, One Financial and Karen Millen apparently have already run trials, so it’ll be interesting to know how affiliate performance has changed – if at all. Comments on A4U suggest that the data has already been made available to networks. OK, so why not let affiliates in on the information?

So here’s some questions…

1. How many sales are “lost” by abandoned carts?
2. Of those “lost” how many are affiliates!
3. How many sales are made on a return to the cart without a prompt?
4. How many sales get made if prompted?
5. How will affiliates be effected (good or bad) by Capture?

If Capture or similar is going to impact the affiliate business then surely it’s right that information is made known so affiliates can make judgements (and indeed comment) with all the facts?

Whilst I appreciate there’s a line of people ready to attack/defend the company pushing this technology into the affiliate space (at least in this form, perhaps it’s around and working already?) – people must know that something new from that stable will cause issues?

So why not pre-empt that and give people the whole picture? By not doing so you have no grounds to complain when affiliates who have long memories and bigger concerns question things.

Should affiliates be concerned by this kind of technology?

I’d say “yes” be concerned. Be concerned until there’s definitive data to prove contrary. I’m probably going to upset some people in AM by saying I think they have a responsibility to be demonstrating quite clearly how technologies are effecting – or more importantly not effecting – potential for affiliates to generate commission.

There’s no point remonstrating with angry affiliates because they’re worried – they’re worried because they don’t have the information you do! They’re worried because affiliate commissions are their business and they’re concerned network/merchant decisions – not just on Capture, but PIs, Retargeting etc – will have an impact on them and their business!

Initially when Capture was mentioned on A4U I opted to overlook it. Part of me can’t be bothered to ask questions these days… a kind of “what’s the point?”. It’s a big fish game these days and not a place for ducks to stick their beaks in.

But someone has to ask questions – and as I’m more “grumpy” than “jealous” may be my questioning will be taken a bit more seriously. It could be Postman Pat for all I care behind Capture – I’d still want to know how it works and how it could be an issue for me and fellow affiliates.

A little bit of transparency could go a long way you know!

3 Comments + Add Comment

  • Hi Jason

    I would agree that affiliates should be concerned about this technology and also ask these questions. Capture technology isn’t that new but is becoming more prevalent in the online world and there should be transparency on how this is being used. I have just asked for some data internally on basket drop out as this is something that we are looking into (own technology however, not 3rd party) and I want to know the affect on affiliates before we do this. I’ll share this when I can.

    The biggest questions are around time lag & de-dupe. If a customer comes through an affiliate website, drops out of the basket for whatever reason, the client captures that and emails the customer the next day. If de-duping against this then the affiliate would lose that sale, which I think is unfair. However, look at it another way, if it isn’t de-duped then the affiliate is awarded that sale, helped by the client arguably so could be positive.

    The questions you ask above should be asked and should perhaps be included in the IAB Ethical Merchant Charter as relates to de-duping. Kevin Edwards, if you are reading this I think this should be raised at the next meeting.

    In terms of data protection, huge issue here, customers have to opt-in for any client / affiliate to be able to contact them. Additionally, I personally would be concerned about any 3rd party having access to this data.

    Helen

  • A further question that is always asked is how significant is an x day cookie anyway? I tend to stick with Amazon where possible these days as they convert well, the 24hr cookie keeps it simple, and the AWS advertiser API is comprehensive.

    I like the idea of marketing to the sort of people who are happy to pop over to Amazon and make the purchase there and then.

  • The cookie period will depend on the product being sold / industry / client etc. For example, unlikely that someone would make a decision to purchase a holiday immediately but a bunch of flowers could easily be purchased in just one session.

About One Little Duck

One Little Duck is the affiliate blog of Jason Dale - Managing Director of Loquax. I've been involved in affiliate marketing - now performance marketing - for over 10 years and use the blog to give my views from a hard working siteowner perspective.

Categories

Archives