Less than an hour ago HasOffers has announced the launch of Adtribution, its new development called to fix what’s “broken” in present-day “online advertising” [source]. Intrigued I reached out to Peter Hamilton, Partner and CMO at HasOffers, and asked him a few questions about their new development… Here is an exclusive interview on the subject:
GP: First of all, congratulations on the launch of Adtribution! Excellent name idea, by the way. I have three follow-up questions for you.
You’re using some strong language in your today’s press release. Do you really believe the current affiliate marketing model to be “broken” or was that more of a PR technique?
PH: We truly believe that online advertising (especially affiliate marketing) has been operating on old technology that can’t provide enough insight to everyone involved. Otherwise, why wouldn’t every advertiser be pouring money into performance advertising. In theory they should only be paying for real sales and leads right? There should be no end to there budgets, but we know that’s not the case.
Furthermore, if several publishers influenced a user to purchase something, why should only the last one be compensated and the others left out in the cold? Or worse, if each publisher is on a different network (with separate cookies), why should the advertiser pay out 2 or 3 times on top of the pay per click, SEO, and display budgets they’re already shelling out? In order for online advertising budgets to grow, advertisers must be able to compensate publishers based on their contribution to the user’s buying decision. The greatest barrier to moving forward with this idea has always been tracking technology.
GP: I agree with the premise that many more than one affiliate participate in the pre-sale process, and when we compensate just one (be it the one who sent the first click, or the last click), we’re essentially making a judgement saying “ok, you’re the one who influenced the customer most; therefore, you deserve the full remuneration”. Your press release said that the “new cookie-less technology” will actually enable merchants “to see the true influence of multiple affiliate and publisher relationships on a single user.” How exactly? How do you measure “the true influence”?
PH: We can’t really give away our secret sauce yet, but I can tell you that we have developed a way to very accurately track users across publisher/affiliate domains. This serves as the building block for applying our own attribution algorithms, based on a number of criteria. Measuring the “true influence” will certainly be an art and science to be perfected over time, but we are able to get really close already. I can’t wait to see how it continues to develop as we have more data to work with.
GP: Lucas has mentioned the fact that merchants “are often double and triple paying for acquisitions while some of the most valuable publishers are losing out big on commissions”. Let me turn that statement around, and look at it from a different angle. Will your new platform/technology work with merchants’ other channels (e.g.: display, paid search, retargeting efforts, etc)?
PH: Clever you…
In fact yes, this new technology will account for influence from external channels and apply that influence to the compensation model. Again, you’ll have to wait for more details on that, but I’m really excited about this facet of Adtribution because it allows merchants to better take into account their overall CPA’s and increase their budgets accordingly.
We do not intend to become an aggregation tool to manage all of these external advertising channels, but we do plan to provide analytics and adjustments based on the influence of those additional channels.
Wishing HasOffers luck with this. It’s always good to see progress in our industry.