Coupon Affiliates Under Scrutiny

by Scott Jangro on 30 October 2007

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Kellie Stephens at AffiliateFairPlay has published a study on the use of forced clicks on affiliate coupon websites.

Forced Clicks

The definition of “forced click” varies a bit, but for this study is any affiliate tracking click that was initiated without any use action whatsoever when visiting a coupon site. No gray areas there.

Discussions have been happening recently at the ShareASale client conference a few weeks ago along with continuing discussions at ABestWeb. I’m glad to see Kellie tackling this with a no frills study that sets a baseline on what’s really going on. Too often we have these discussions without having any insight into statistics on what’s happening, and whether it is a big problem or a small one.

You can read the full details at AFP, but the results are as follows:

We found the incident of forced clicks to range from 0.8% – 4.4% on coupon sites. We found the incident of what could be considered a deceptive link on the merchant specific page listing the coupons to be slightly higher at 6.6%.

The detail of these numbers show that of 245 tests on Google search results, there were 2 incidents of forced clicks. On 180 tests on Google PPC ads, 3 forced clicks. And on 91 tests of direct navigation through affiliate sites, there were 6 incidents.

Since Kellie didn’t publish this on a blog entry, I can’t ask questions. I’ll ask them out loud here knowing that she’ll be by at some point.

Of those 2, 3, and 6 sites with forced clicks, what’s the unique number of affiliate sites? Were they the same sites with a total of 6 unique sites?

And if not, did some of the sites behave differently depending on the source of the traffic?

Deceptive Clicks

Kellie also covers the more gray area of deceptive clicks, meaning links that beg for a click to see a coupon code or close a pop-up but end up clicking over to a merchant site through an affiliate link.

The study demonstrates an increase in this practice, which makes sense given that affiliate networks have presumably been cracking down on forced clicks.

So many questions

As the coupon affiliates will point out, this practice is not limited to coupon websites. It is a way, however, to capture sales that they will argue they deserve when consumers come by hunting for coupon codes and find them on their website.

Forced clicks or not, this also raises another question about conflict between affiliates who have primed the pump, so to speak, with a product review only to lose that buyer in the shopping cart as the buyer goes off hunting for a coupon code.

Who deserves credit for the sale in that case?

One merchant at the SAS conference shared with me that through their own tracking they have determined that as much as 10% of sales are snatched up in the last few minutes of the buying process by a coupon affiliate.

Regardless of whether another affiliate was involved on the front-side of that referral, does the coupon affiliate deserve all or even some of this sale?

Many blame the merchant for driving this consumer behavior by placing a coupon field in the checkout process, prompting the consumer to make a last ditch effort to go off and save a few bucks. Even if there are no actual coupons to be found, the merchant is handing this sale to one of many affiliates who may be found on the search term, “merchant-name coupons”.

I’d bet my house that a big empty coupon code field in a checkout process is a bigger leak than any 800 number and cross-promotional links to other merchant properties combined.

Update: I missed it earlier, but Kellie did make a blog post to accompany this study, in which she presents the AFP position on what designates a commissionable action.

  • Thanks for sharing the valuable Information
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  • I certainly don't agree with forces clicks, there are a number and one large affiliate in particular who blatantly does this and claims to have be responsible for merchant sales of over £30 million in the past year.

    The choice of issuing discount or voucher coupons really should come down to the individual merchants, i certainly agree that any box placed at checkout is a recipe for enticing searches etc.
  • Ridiculous that someone would put software on their site to click the links automatically. I like to hope that things like this don't become widespread, but with the money that can be made, I feel eventually it will become a major problem. The end of PPC will eventually come.
  • I'm surprised this isn't more widespread. I've seen software working that you can install on your website to secretly "click" a url without the users knowledge.

    Basically it just opens up an invisible iFrame in the background somewhere and navigates to the site in question, setting the cookie in the process. Job done.
  • As someone who runs a number of Comparison websites I feel that the main issue for me is merchants that bid on their own brand term & purposely overwrite the Affiliate Cookie after we've done all the hard work.

    This is especially prevaliant with Search Marketing companies outsourced to increase PPC revenues & they rely heavily on the brand term to bump up their figures.
  • While I think losing 10% of customers who go off in search of a coupon code is definitely reasonable (if they wanted that customer, they should offer a few coupon codes), the forced clicks aren't - just dirty play really.
  • For our affiliate program, we don't even allow coupon code affiliates. While it's definitely tough to keep them out (and we're constantly finding some that slip through), we feel like the bad aspects of using them far outweighs the benefits. In general, if someone is searching for the company name + coupon codes or promotional codes, they're already completely brand aware. The sale would likely go through whether they searched or not.

    Since we don't even release coupon codes for our affiliates, it's even worse - they just take our standard free shipping over $X and get people to click through to our site.
  • Since I manage a number of programs I get lots of feedback from all sides- affiliates and merchants. At CJU 2006, CJ admitted that 60-70% of all sales were being generated by PPC affiliates. And, I know a lot of them didn't worry about coupon codes, so the sales were pretty straight up (a whole other line of discussion).

    This year across all of my programs I have seen a huge surge/success in coupon sites. I would say that couponers have gone from 20% of sales volumes to 30% and higher of my sales volumes. PPC affiliates are still extremely important, but couponing has really gained marketshare. Hence I am giving them much more attention.

    I have not seen a corresponding surge in content sites.

    Going along with all of this is I am hearing lots of squawks from my merchants that their Google campaigns are not converting as well as in the past. I am getting more emphasis on what I am doing and contributing to the online success of my merchants than ever before as they try to "replace" sales being lost in their PPC campaigns.

    So a question.

    1. Have other merchants been complaining about Google conversion rates going down recently? (I have one PPC affiliate that won't use Google analytics in some verticals because he thinks they can control the quality of the traffic that gets sent to his sites and conversions as a result.)

    2. Have PPC affiliate conversions gone down lately?
  • Scott
    I agree Durk, trying to lay down "sharing" rules would be very, very difficult if not impossible.

    Technically, it's very possible. The networks have the data. Though it would be no small task to build in the features. And to do that only to have it fall on it's face because the practice is too difficult would be tragic.

    It may have back of the house, but I heard that loud and clear all around the table.

    Essentially, the suggestion is to turn all affiliates into "coupon" affiliates. Someone made the very shallow statement, "don't be so lazy. Post some coupons".

    Personally, I think that's a bad solution. Why hand out a discount to every single customer that comes through when most are perfectly happy to purchase without one?

    The only reason they go hunting is that they feel like they're missing out because they see the big coupon field there.

    For that matter, the merchant could pre-populate the coupon field if it came through an affiliate link.

    Sounds absurd, but that's my point. So is the argument that all affiliates should push coupons.

    What really needs to happen is what this discussion always comes back to... the merchants need to get rid of that coupon/promo field and find another way to allow the coupon-loving consumers to use them.
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