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Digital Thoughts:  How Fresh is Your Cookie?
by Sam Harrelson 

Online direct response marketers take tracking for granted.  Sure, there are squabbles over the oft troublesome pixel, and occasionally charge backs get in the way of a good relationship.  However, it is the cookie, in all of its simplicity, that has become the overlooked backbone of tracking in the industry.  Today, the little piece of data that is under attack from a series of outside forces that have the potential to alter the way business is done in our industry. 

Cookies, much like their tasty offline namesakes, are favored because of their simplicity and ease of use.  Cookies require a minimal amount of programming and can perform their duty seamlessly without interrupting a consumer’s browsing experience.  Technically, a cookie is a small text file (on average no larger than around 4kb) that includes data such as consumer information and the referring affiliate who drove the consumer to the respective site where the cookie is being registered.  Cookies are durable and flexible enough to last as long as a merchant specifies.  Some can perform for years and some expire on a daily rotation, yet the user can clean them out at any time.  Often, affiliates are fonder of the longer cookie duration, since it is that model which rewards the affiliate who first drove the consumer to a site. 

It would seem that cookies would be the ideal and have enough inherit flexibility and durability to reign as the online direct response’s choice for tracking well into the future.  The cookie quickly gained its pre-eminence in the online world because of its simplicity, its relative obscurity and its long-term reach.  However, recent market forces are converging to form the perfect storm that threatens to make the simple cookie… well, crumble. 

Like any technology, those with questionable ethics are able to manipulate the cookie.  Recently, the issue became a matter of great debate in the affiliate marketing world with the Linkshare Titanium Award controversy and its cookie-stuffing allegations and implications.  Cookie stuffing is a greatly frowned upon practice that usually defines the actions of an affiliate who places hundreds of cookies on a consumers computer from one affiliate link.  Within all of these cookies are that affiliate’s id’s from various programs which ultimately show up when a user goes to a site, even if the affiliate didn’t send the consumer there through direct marketing.  Frequently, networks are the breeding grounds for such tactics.  Both advertisers and affiliates abhor the practice.  Ultimately, it reflects poorly on the poor cookie that it is able to be so easily manipulated.  Calls for a cookie replacement are frequently made because of the cookie-stuffing issue alone. 

On the other side of the coin, a consumer backlash has steadily grown from the grass-roots over the use of cookies as information-storing devices.  With little understanding of how harmless most cookies actually are, consumers can easily be led to believe that marketers are performing dastardly Orwellian practices by spying on them with cookies.  The consumer demand for “protection” from cookies has opened a fertile market for anti-spyware and anti-adware programs to come to the rescue.  These programs often target cookies from the major networks and from all levels of the online marketing industry.  This can mean a serious loss of tracking and revenue.  Along those same lines, the cookie has been hanging around the wrong crowd and is often included in offline news articles detailing adware and spyware.  Consumers who are familiar with the term “cookie” in relationship to the online world frequently know it from the anti-spyware or anti-adware programs offering consumers a sense of security.  Consequently future browsers, such as the eagerly anticipated new IE edition, may render the cookie an ineffective medium of tracking communication. 

Will there be a paradigm shift as tracking technology agencies continue to develop new metrics and systems to determine the benefits of publishers and affiliates in online marketing campaigns?  Will the external forces like cookie manipulation or consumer fears make the cookie distasteful in online marketing?  Will future browsers make the cookie ineffective?  Or, will the cookie’s weakness at determining valuable intangibles, such as branding, be the ultimate short-coming of the industry’s most overlooked ingredient?

Sam Harrelson is the Co-Editor of the Digital Moses Confidential. Send comments and questions to sam@digitalmoses.com

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