Digital Thoughts: C is for Cookie, and E is for eBay
by Jay Weintraub 

Those in the email world largely missed a small but temporary surge in internet advertising. I bring it up certainly not because of its time relevancy – this particular incident ended in July – but due to its contextual relevancy with this issues’ Trends Report. In it, I spent time discussing the interaction between a pixel and a cookie, the how of the CPA pixel / cookie equation. We touched on when a pixel could show but could not make any hard and fast rules on when. One thing we didn’t address was the “when” of the cookie.


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Those of us that run CPA ads have become, in most cases, accustom to an action occurring within a short time span from when the user first interacted with that particular site. In some cases, users do not act until days even weeks after visiting the site. In cases such as these the cookie plays a vital role in tracking the user and sending back what the advertiser, network, and publisher hope is accurate information regarding who should get credit. The integrity of the program and reputation of the advertiser depend on accurate information.

This brings us back to the overall indiscriminant nature of the cookie and pixel. They don’t think; they record and report. They don’t assess, interpret, extrapolate, empathize, or understand. They are perfect… perfectly ripe for errors to occur. So long as we can keep the margin for error low, the integrity of the program remains high. Add time into the equation, specifically the time between cookie being placed and action occurring, along with high visibility for an ad, and the margin for error increases.

EBay’s campaign, run through Commission Junction, is the perfect example. Publishers got paid primarily when a user not only set up a new account but also became an active user by either placing a bid or purchasing with 30 days of account creation. This isn’t the same as filling out an online education lead. The complexity of the action almost dictates that the time it takes for a user visiting the site to the action occurring will exceed one browser session or even one day. For that reason, eBay kindly and wisely set their cookie to last for 30 days upon the visit to the page.

A unique thing about eBay though is its reach and activity. The probability that someone would interact with eBay within 30 days of the cookie being set was pretty close to the chances of someone doing a Google search. What enterprising internet marketers discovered was that the more cookies they set, the greater their earnings were. And, given that they could choose the creative to run, it meant they could in essence launch the landing page and not worry whether users did anything right then. Chances were good that they would do something within the next 30 days.  All that mattered was whether you had the most recent cookie.

As an ad network, you had the possibility of showing millions of impressions, setting millions of cookies and almost guaranteeing that you’d see large returns because of eBay’s popularity. The problem here being that you may or may not have played a role in that user’s activity. That user may have searched for concert tickets for a particular show, saw an eBay affiliate’s ad on Google, clicked on it and reviewed the bids. They may have decided to keep surfing around, aware though of that auction. In their surfing though, they are served a pop of the eBay homepage from an ad network (or affiliate advertising on an ad network), the user’s cookie information gets modified, and when they return, to join, in order to purchase the tickets, the “wrong” affiliate gets credit. The integrity of the system dictates that the one who earned the action should get paid for it. The pop affiliate did not truly earn it. They weren’t in any violation though, so eBay made the wise and simple solution. It said that all affiliates could only show pops that eBay made and could not launch a non-pop ad as a pop – they can’t force the cookie onto users’ machines.

EBay was a unique scenario, fueled by its popularity as a whole and the time it takes for an action to occur. In the end, it’s up to the advertiser or ad network to determine how the cookie gets placed and for how long it lasts. Say you click on an ad but don’t convert right away. It could be a big purchase and you aren’t ready to do it just that second, so you bookmark the page and after clearing it with the better half you go back the following day and make the purchase. Upon purchase, the pixel shows. If the cookie still exists, i.e. it has a time interval associated with it longer than one day, the affiliate whose link you click on will get credit for your action.

What happens in cases where the user might not click on the ad but goes to the site later and makes that purchase? The pixel might show, but the publisher in most cases, given the current technology constraints of the majority of advertisers and ad networks, doesn’t get credit. There was no ad click, no cookie set, and thus no way for the pixel, were it to load, to have anything to announce. These are difficult problems to solve. You as the ad network want to get credit for the action, but you also want to make sure that if you record it you have the information necessary to give it to the right affiliate.

The pixel may have the power, but the glue that holds it together comes in the form of the cookie. If the pixel is the “P” in CPA, it’s fair to say that the cookie is the “C.”

Jay Weintraub

  Also on the Confidential:

Digital Thoughts: C is for Cookie, and E is for eBay

Trends Report

Overture 101

May's Take - The Trip D

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