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A Web of Relationships: – Accurate Tracking and Reporting the Key to profitable long-term relationships
By Gregory Stoltz
Direct Response Technologies, Inc.

Today’s Internet really is a web – a web of interconnected web sites and a tangle of relationships.  When those relationships are monetary tracking, the click patterns and actions of web users is vital to the maintenance of those relationships.  This tracking needs to be accurate and extremely unobtrusive to both the web user and those paying for the traffic.  Balancing the needs for being both unobtrusive and accurate is a challenge faced by Internet marketers every day and a struggle being fought by the various technology providers in very similar ways.  This article will explain those methods and provide the benefits and drawbacks of the various approaches.

Methods of Tracking

The challenge facing Internet marketers and supporting technology providers is to use methods that impact the user as little as possible and yet provide a great deal of accuracy in reporting the results of the relationships.

Challenges

  • Need for loose integration to support easy implementation
  • Privacy concerns and the blocking of cookies

Click Tracking Methods

There are two primary methods of tracking a click on an advertisement – either the web user is redirected through a tracking system that records the click or the web user is sent to a web page that contains JavaScript that makes an external call to a tracking system to record the click.

  • Redirects
  • JavaScript embedded within a landing page
  • Pixels embedded within a landing page

The positive aspect of redirects is there is no requirement on the advertiser’s part to modify the contents of their landing page.  Although the changes required are minimal, this requirement can pose a serious headache for very large sites with numerous landing pages.  This is particularly true if the traffic that is being tracked originates from a PPC (pay per click) search engine and the advertiser is using hundreds or even thousands of keywords that land at different places.  The benefit of using JavaScript is the elimination of the redirect that, depending upon the web user’s Internet connection and the reliability of the tracking system, could result in the user abandoning the click and therefore never actually landing at the desired location.

Within the Direct Response Technologies family of product offerings, both methods are used.  Within the system designed primarily to support the tracking of affiliate relationships which are typically compensated on a CPA (cost per action) basis, the primary method is the use of redirects.  Within the system used for tracking the results of PPC (pay per click) search engines, the JavaScript method is used.  This is to ensure the highest degree of accuracy between the results reported by the search engines and the results reported and acted upon within the keyword management system.

Action Tracking – Pixels, an industry standard

Pixel tracking has been a standard method of loose integration within the lead generation business for several years.  The DirectLeads™ network pioneered this method when it began tracking leads driven by affiliated partners in 1997.  The benefit of this method of tracking a lead is that the requirements placed on the advertiser are minimal – advertisers simply place an image tag representing a 1x1 pixel on the page displayed immediately after the action that needs to be tracked.

The process is really quite simple.  A web user clicks a link that references an advertisement.  The user is then sent to the web site of the tracking system; the tracking system places a cookie on the web user’s computer, records the click and then immediately redirects the web user to the advertiser’s web site.   In the case of using JavaScript in place of a redirect, the web user is sent directly to the advertisers landing page, where JavaScript embedded within that page places a cookie and makes an external call to the tracking system to record the click.   The web user then completes a lead form and is taken to a thank you page.  Within this thank you page, the tracking pixel is embedded.  This pixel is really a call to a script running on the tracking system.  This script requests the cookie from the web user’s computer and credits the proper affiliate with the lead and then returns a 1x1 image.

The benefits of using cookies to track these interactions is that the cookie lifetime can be set to extend the period of time during which the affiliate will be provided with credit for the action.  This time typically varies from a day to a week to, in the case of the DirectLeads network, an entire month.  This means that once an affiliate is given credit for the click, if the person returns to the advertiser’s web site and completes the process any time during the lifetime of the cookie, the affiliate will be credited with the lead.

The tracking of leads typically involves the placing of a static pixel.  In the case of the DirectTrack™ system this pixel typically looks like this:

<IMG SRC=http://secure.directtrack.com/lead/demo/1>

What appears to be a normal image source representing a file named “1” in the /lead/demo directory of the web server is in actuality a call to a piece of software contained within the tracking system, this software is passed two parameters – “demo” representing to which client the lead will be tracked and “1” representing the advertising campaign.

In the case of an advertiser wishing to compensate their affiliated partners based upon the amount of a given sale, a static pixel does not provide the tracking system with enough information.  For  DirectTrack™ this requires the merchant to dynamically generate the tracking pixel within their thank you  page to include additional information, for example: 

<IMG SRC="https://secure.directtrack.com/sale/demo/2/10.00/9999">

In this case the number 10.00 represents to value of the sale upon which the partner will be compensated and the 9999 is a unique identifier for the transaction.  Typically this will be the order number, and by passing it into the tracking system the advertiser can very easily back out any sales that end up being returned or otherwise voided.

Alternative methods to boost accuracy

With the growing privacy concerns of Internet users and privacy control features included with modern web browsers, the number of users either deleting their cookies or blocking their placement has grown and will continue to do so.  This results in discrepancies between the actual sales or leads generated by an advertiser and the results recorded within an external tracking system.  Independent tests of the DirectTrack™ pixel tracking method report an accuracy range of between 93% and 97%.  To improve these results to approach 100% accuracy requires tighter integration from what can be achieved with cookies. DirectTrack™ supports a number of alternative methods that can be employed.  These methods include:

  • Combining the lead tracking process with the actual capture of the lead
  • A Transactional API based upon SOAP(simple object access protocol)
  • The passing of additional parameters to the landing page, these parameters can then be either imported into the system or passed back to the system via a dynamically generated pixel

By combining the lead tracking and capture process, partners can be assured that they will be properly credited with every lead they have delivered.  There is simply no margin for error and no reliance upon cookies to attribute the transaction to the proper partner.  DirectTrack™ supports this method.  The lead capture forms can be customized to meet the needs of the advertiser and edit checks easily put into place to filter out bad information during the capture process.

Making use of a transactional API provides for much tighter integration with an advertisers sales or lead capture system.  The advertiser’s system makes a programmatic call to the tracking system; the tracking system records the transaction and returns an acknowledgment back to the advertiser’s system.  This increases the accuracy of the tracking over a simple pixel which may or may not have been loaded properly because of the variables involved in making a simple HTTP call off the Internet. 

Another method of increasing the reliability of the tracking process while not relying on the presence of cookies is the passing of additional information via the pixel.  For example, within the DirectTrack™ system, the advertiser can capture a unique ID which can be passed via the query string and then pass this unique ID back to DirectTrack™ within the pixel.  If this ID is passed, the system makes use of it instead of requesting the same information from the user’s computer.  This ensures that the transaction will be properly credited without relying on the user accepting cookies.

Accurate Tracking the Key to Successful Partnerships

It’s hard to argue with the fact that accurate tracking and reporting of partner relationships is one of the keys to building lasting, long-term and profitable relationships.  When choosing which methods to make use of it’s important for advertisers to understand the pros and cons of the various methods and to choose the one that best meets their needs when it comes to both accuracy and implementation.  The very common pixel method provides the easiest implementation with the drawback of only being able to provide 93% to 97% accuracy, while more complex methods require additional effort and expertise but can boost the accuracy of the tracking much closer to 100%.

DirectTrack™ like some competing solutions provides advertisers with many options, allowing them to make the choice based upon their needs and not the limitations of the tracking solution.

By Gregory Stoltz
Direct Response Technologies, Inc.

  Also on the Confidential:

There Is No Autopilot For Successful Affiliate Marketing

A Web of Relationships – Accurate Tracking and Reporting the Key to profitable long-term relationships

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