Affiliate

Brand Bidding

Protection from Brand Bidding with AI and Automations for Brands and Ad Networks

Competitors or affiliates may bid on your brand keywords, potentially driving up costs and diluting your brand’s presence. A comprehensive affiliate monitoring tool needs to be in place to safeguard your affiliate marketing spend and protect your brand reputation.  Identify affiliate and competition bidding on your brand keywords along with whitespaces across locations for own and competition keywords.    Brand bidding fraud costs approx. $1.3 billion each year as competitors bid on branded keywords. Over 60% of brand terms are targeted by competitors, inflating cost-per-click (CPC) by up to 30% and reducing conversion rates by 5-10%. This not only drives up advertising costs but also dilutes brand recognition, as 50% of users may click on a competitor’s ad when searching for a brand name. This leads to confusion and lost customers.   Businesses must actively monitor and optimize their paid search campaigns while implementing robust brand safety solutions to mitigate these risks.  What is Brand Bidding? Brand bidding refers to a practice that falls under paid search marketing. It’s a digital marketing strategy where brands bid on their own brand keywords in search engine advertising platforms like Google Ads and when someone searches for your brand name, your company’s sponsored listing is more likely to appear at the top of the search results page.   But this turns into a brand reputation threat and leads when aggressive affiliate bids, potentially aiming to capture traffic and drive sales through affiliate programs or competition bids on your brand keywords.    Why is affiliate monitoring needed for Advertisers? Affiliate monitoring ensures the integrity of campaigns, protects brand reputation, and optimizes performance.   Concerns in Brand Bidding:   – Campaign Integrity: Monitoring affiliate activities ensures that campaigns are running as intended. It helps to identify if affiliates are engaging in practices like brand bidding, misleading advertising, or promoting the brand inappropriately.  – Protecting Brand Reputation: When affiliates are bidding on brand-specific keywords (e.g., your company’s name or a competitor’s), it can confuse customers or misdirect them to other sites. Without monitoring, there’s a risk that your brand reputation could be damaged if affiliates don’t align with your brand values or make misleading claims.  – Optimizing Performance: By closely tracking affiliate performance, advertisers can identify high-performing affiliates and cut out low-performing ones. This ensures that advertising spend is allocated effectively, improving overall return on investment (ROI).  – Organic poaching: A major concern that brands should be careful about. It occurs when affiliates or competitors bid on a brand’s keywords, capturing traffic that would have naturally come to the brand’s website. This misappropriates organic leads and increases costs as the brand must pay commissions to affiliates for traffic that would have come organically.  Ensures unauthorized affiliates are not bidding on brand keywords or misdirecting customers. Prevent unnecessary commissions and preserve your organic search efforts.  Prevent affiliates from hijacking brand visibility, ensuring the brand stays front and center for potential customers without competitors benefiting from organic traffic.  Stopping organic poaching ensures that their customers are consistently directed to the brand, which enhances trust and customer loyalty.  Case Study 1: Brand Bidding for a Popular Shoe Brand Problem statement: Brand was facing challenges in ensuring effectiveness of keyword the brand bidding on across multiple geographies and wants to identify competitor bidding on their brand keyword.   mFilterIt Solution: mFilterIt analysis and insights into the effectiveness of brand bidding, we conducted a comprehensive analysis of a well-known shoe brand across major Indian cities.   We meticulously monitored 35 keywords related to the brand, including brand keyword variations across 35 cities. This allowed us to understand the search queries users were employing to find the brand.   The brand garnered a significant search volume across time slots. This indicated strong interest in and demand for the brand.   A substantial 50% of the total searches were Google Ads for the brand’s keywords. This demonstrated the competitive landscape and the efforts of various entities to capture search traffic.   We identified 28% were competitors count which were actively bidding on the brand’s keywords. This highlighted the intense competition for visibility and market share.    22% of the total came from affiliates and coupon websites who were also bidding on the bidding keywords. This revealed that affiliates were also using brand keywords and running ads.   mFilterIt Impact Here are some key observation and Findings:   – Organic Poaching by aggressive Affiliate Bidding: Affiliates & coupon websites were particularly active in bidding on brand keywords, potentially aiming to capture traffic and drive sales. They were capturing organic users. This is called organic poaching. The brand was having to pay commissions to affiliates where the customer would have come organically.   – Competition on Brand Keywords: Competitors were actively bidding on the brand’s keywords, which meant that competition keyword strategies needed to be built within the marketing approach.  AI based Optimization in Brand Bidding with mFilterIt LOCOKS LOCOKS (Location & Campaign Optimization Keyword Strategy) with AI-ML powered automation of brand bidding process can make identifying and bidding on brand keyword more efficient and controlled. It also prevents overspending on keyword bidding and can schedule when to start or stop the bidding and limit the budget spent for a particular time slot.   – Geo Based Tracking: Our tracker runs in different cities and analyses the different sources of traffic related to a set of keywords coming from various sources  – Intelligent Reporting: Identify when competitors invest more or less and on which keyword. Discover key periods when keyword competition increases or decreases and take action on the findings   – Time Based Tracking: Tracks on-the-basis of day – parting, hourly tracking, ad scheduling strategies of competitors and affiliates   – Seasonal Sales/ Discounts: As most frauds occur during the flash sales such as Black Friday, Prime day etc., we track the user journey to check the source.   Case Study 2: mFilterIt LOCOKS Solution for Optimizing Competition Keywords and Brand Visibility Problem Statement: An advertiser was struggling with white spaces in their campaign where both competition keywords and brand keywords were not targeted. They wanted to identify such whitespaces and explore

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affiliate-monitoring

Affiliate Monitoring in the US Market

In the US market, affiliate marketing is flourishing as businesses lean on strategies based on affiliate marketing to attract followers, and revenues by escalating their sales and creating brand awareness. But the boom in affiliate marketing also leads to complex strategies to follow and invites fake and sham activities potentials. This is the point where the need for strong affiliate monitoring procedures is required which can guarantee authenticity and adequate practices. Affiliate Marketing is expected to reach a valuation of $32.3 billion in 2024 and $48 billion by 2027.  Let’s explore how affiliate monitoring can be an effective tool for venturing into affiliate marketing and its benefits. These strategies for affiliate marketing will aid us in enhancing our sales. It also includes a relevant case study based on relevant data to support our discussions. Why do brands need Affiliate Monitoring?  Affiliate marketing is collaborating with several networks and many affiliates. Thus, the advertisers must have a system of monitoring the activities of these networks and their affiliates. It involves looking at how each affiliate promotes, raising or lowering the commission paid to an affiliate, guaranteeing brand compliance and legal conformity with large, historical data analysis/monitoring, etc. 1. Safeguarding the brand’s reputation  To establish a reputation and brand name requires a lot of hard work and time. The customers are the main contributors to this process whereas the marketing teams improve the reputation of their brand as well as aid in increasing the followers and customers to escalate sales. Some of the malicious affiliates frequently reroute users and install cookies on the computers or browsers to increase sales. 2. Complying with Government Regulations and Brand Compliance  Marketing affiliates make strategies to promote their products and services for their advertisers to use. Many countries frame policies and guidelines to protect consumers from online fraud and hackers and the brands must adhere to these regulations. 3. Preventing the Hijacking of Customers’ Journey  Once the consumer accepts the cookies while opening an app or advertisement, they provide access to malicious affiliates of their data and searches they make on their system. It allows them to use this information to divert customers to rival brands and increase their profits. In this way, they deceive both the brands and the consumers. 4. Reducing the Marketing Budget of Advertisers  Frauds involving affiliate marketing were responsible for $1.4 billion loss in ad spending.  Brands should monitor their affiliate networks to ensure that they save resources of the marketing budget on these fraudulent strategies. Rather affiliates should use it wisely to prioritize strategies to attract more traffic to their brands’ websites. Impact of Affiliate Monitoring  Fraud Prevention Affiliate monitoring plays a critical role in detecting and preventing fraud in clickbait advertising, fake leads, and unauthorized content usage for instance. Through strong monitoring systems, brands can reduce their exposure to fraudulent activities thus protecting their investments. Improved ROI  Through the data-driven insights provided by affiliate monitoring, significant improvements in ROI can be made. For example, IAB’s report indicates that e-commerce sales driven through affiliate marketing amount to 16% in the US. The brand shall also have a good opportunity of identifying effective affiliates as well as tweaking its strategy correctly depending on how it monitors the situation. Maximizing their marketing investment enables brands to focus on unique traffic sources from reliable sites that have been proven to bring results. Compliance Assurance  Apart from this, another major advantage of using an affiliate monitoring program is that it ensures compliance with industry regulations and brand guidelines. It was federal policy that ensured consumer rights were protected during the dot-com boom. For instance, The Federal Trade Commission (FTC) has strict rules governing advertising disclosures and consumer protection. This means all affiliates should be aware. Upgrade Your Tracking Efforts for Better Performance  The information that affiliate monitoring provides in united states is helpful for various performance metrics. This can be seen by the available data from PMA, which shows that on average, it has a 1% conversion rate in affiliate marketing. Conversion rates, customer acquisition costs, and AOV (average order values) are some of the metrics that these monitoring tools can track in real time. Such insights help brands in making data-driven decisions as well as constant optimization of their affiliate programs to enhance their performance. What brands should do to optimize Affiliate campaigns?  Affiliate marketing has gained popularity as a means for firms to advertise their products or services and make profits. However, all affiliate campaigns are not successful, and many businesses find it difficult to optimize their campaigns to maximize returns on investments. Be Clear About Your Guidelines The success of an affiliate program depends on clear and comprehensive guidelines. CJ Affiliate’s survey reveals that 73% of publishers prefer working with brands that offer guidelines that are clear and transparent. Such guidelines should tackle how ads are promoted, copyright concerns, and compliance requirements to ensure the brand’s values and goals are respected by affiliate marketers. Employ Sophisticated Monitoring Tools  Modern tracking tools are essential in automating the tracking process. Tools such as Impact, Tune, etc. have features that include fraud prevention strategies, and detailed strategies among others. It not only reduces manual work but also increases accuracy hence allowing the brands to focus on building growth strategies. Monitor Your Affiliates Regularly  Regular performance reviews help in identifying both top-performing affiliates and poor performers. According to an eMarketer report 81% of marketers believe that Affiliate marketing is a key driver of customer acquisition. Brands can provide additional incentives to their best affiliates while resolving issues and boosting underperforming ones thus increasing overall effectiveness. Keep Up with Market Dynamics  Keeping pace with emerging trends and new processes in affiliate marketing is imperative. The study done by Statista reveals that there are prospects of developing at a CAGR (Compound Annual Growth Rate) of 10% in the industry by 2025. That shows how important it is to stay informed about industry changes so that strategies can be adapted and take note of any fresh opportunities. Conclusion  Affiliate

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