Trends Report: Lights. Camera. (Cost Per) Action!
by Jay Weintraub 

I recently called CPA the ugly duckling of online advertising. It spent its early years hearing reasons why people didn’t want it. Due, in no small way, to those who read this publication, CPA no longer evokes a response akin to a four-letter word. Those that worked to keep CPA down now must accept its prominent role in online marketing while those who believed in it are now in a strong position to benefit, having had all this time to understand and work with CPA ads. At the heart of the CPA ad is something both overlooked and so commonplace that we take it for granted, the pixel.


https://www.lynxtrack.com/signup.php

            Those new to the internet and internet advertising often find the pixel to be among the more abstract, difficult and/or frightening concepts. When you think of the word pixel, you might think of the components of a screen. Those familiar with web graphics are familiar with the pixel as a unit of measurement for web design. A standard web page is often 800 pixels wide by 600 pixels high. Those who have some familiarity with internet advertising, speak in term of pixels anytime they talk about pop-unders, emails, and banners, among other things. A banner, for example, is most often 468 pixels wide by 60 pixels high. It just so happens that when we speak of the smallest possible unit, we’re talking about our pixel – a 1x1 image or piece of html.

            The CPA tracking pixel, this image, does one thing, it acts as a beacon. This image, our pixel, gets displayed on the web page just like any other image, except that being one unit by one unit and containing no graphical elements, it is clear, invisible if you will. A pixel by itself doesn’t do anything; the pixel needs an accomplice to succeed in its role as a beacon, the cookie.

For any that have struggled with the cookie and pixel concept, I conceptualize it like this. Cookies sit on computers and are part of the web browser; they can collect anonymous information on where that user goes; they are the internet stenographer. Pixels sit on web sites and provide a means for information contained in the cookie to be shared with home base. Cookies are often used to help remember users’ preferences for a page. Web browsers request elements of the page from a web server. With images, the web browser requests that the web browser display an image. When a web browser requests information from a web server, that web server can read what to display based off information contained within the cookie. In the case of internet advertising companies, the cookie and corresponding pixel exist not to make a web page look right but to make sure the advertiser and/or ad network receives the necessary information to know which partner to credit. They are the publishers’ best friends.

            In their ubiquity and necessity, the placement of pixels raises many questions, namely, what should count as an action? Ever read “no scrub” along with an ad? That implies that the advertiser will show the pixel every time the action occurs. As the pixel is an image, web sites can easily choose to show or not show the pixel on a page based on certain criteria. Take an email address only offer. For an advertiser, they certainly care whether an email is a valid address or whether the user already exists in their database. In these cases, what is the right thing to do? Should the advertiser show the pixel - which has no intelligence and will announce anything, anytime - when the email is not valid and/or the user already exists? I really don’t think there is a correct answer.

To argue whether a pixel should be shown or not misses the point of CPA advertising. CPA advertising is all about advertisers and publishers operating on the level most connected with the advertisers’ needs. Thus the rules behind the pixel come down to semantics. The best answer in my opinion is transparency. Advertisers should share information about what action specifically benefits them and pay accordingly. I do not dislike the notion of “no scrub,” which in the case of the email address only offer implies that both duplicate email addresses and invalid email addresses would get counted as payable actions.

In reality no scrub acts as a marketing tool. It exists to lure publishers to run the ad and in some ways to legitimize cost per action by highlighting the fairness and ease of a particular action. One downside though, “no scrub” adds inefficiencies into the system as it no longer has publishers and advertisers focused on the valued action. In fairness to the no scrub ,though, it normalizes the payout, giving a point of reference for publishers to compare easily otherwise equivalent offers. Continue using it for that purpose, but I would still push for payouts to be based on the valued action. Is a US, unique user what you want? Then pay for it. Is a sale what you desire but duplicate sales only mean refunds? Then, pay for that initial sale. Are you a retail store where multiple purchases count as multiple actions? Then, pay for all.

Pixels and cookies are nothing new. Like the CPA they’ve seen their ups and downs, primarily at the hands of the end-users who make incorrect assumptions about what they do. Using and displaying tracking pixels certainly doesn’t count as a trend, but the ever increasing role they play and reliance we have on them in internet advertising made it the right time to highlight this VIP.  The pixel should be the “P” in CPA. Hard to believe something so small could be so powerful. One little square and when it gets shown literally determines the success of an entire advertising format.

 

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

Top Offers from Top Networks

Breaking News and Industry Headlines