Privacy is an enormous concern for internet users, especially given the rise of cybercrime. The use of an affiliate tracking cookie has changed with Google driving stricter regulations on data tracking. But what does that mean for your affiliate program?
In the early days of affiliate marketing, cookies were used to track which sales came from which website. This allowed marketers to see which websites were driving traffic and sales. However, later on, Google implemented a ban on cookies, which had a profound impact on the affiliate marketing industry.
This article will explore the impact of Google’s cookie ban on affiliate marketing. We’ll look at how the ban changed the landscape of online advertising and how affiliate marketers have adapted to the new rules.
Google’s Statement on the ban of Cookies
When Google implemented its ban on cookies, it sent shockwaves through the affiliate marketing industry. Here’s what it said:
“Google is committed to protecting the privacy of our users. As part of this commitment, we do not allow third-party sites to set cookies on Google properties for the purpose of tracking users across the web.
Google allows first-party sites to set cookies on Google properties for a limited number of purposes, such as to measure website audience, improve site performance, and enable personalization features. We do not allow these cookies to be used for ad personalization or behavioral advertising.
We have recently made changes to our cookies policy. These changes will help to protect users’ privacy by ensuring that cookies are only set for the services that users explicitly visit.
We will continue to work with publishers, advertisers, and other third parties to ensure that users have a consistent and high-quality experience across the web.”
Following Google’s ban, other browsers followed suit. Firefox implemented one in 2002. Microsoft’s IE6 browser did the same in 2003. Safari introduced a cookie blocker in 2005.
How the Cookie ban Affected the affiliate tracking cookie
Prior to Google’s cookie ban, affiliate marketing was a largely unregulated industry. Marketers could set cookies without the knowledge or consent of their users. This allowed them to track users across the web and collect data on their behavior. The ban changed all of that.
Now, affiliate marketers must get explicit consent from their users before setting cookies. This has made it much harder to track user behavior and collect data. Without cookies, affiliate marketers could no longer track which sales came from which website. This made it difficult to determine which websites were driving traffic and sales. Also, without cookies, affiliate marketers could not track which ads users were clicking on. This made it difficult to determine which ads were effective and which ones were not.
In response to Google’s cookie ban, many affiliate programs implemented their own tracking systems. These systems use different methods to track users. However, there are still some ways to work around these issues.
Run an in-house affiliate marketing program
The most effective way to tackle the cookie ban for companies is to run an in-house affiliate marketing program. In this type of program, the merchant controls the tracking through first party cookies. This means that the merchant can track which sales come from which website.
You will, however, need to have a way to track your affiliates. One option is to use affiliate codes.
Affiliate codes are unique identifiers that each affiliate gets. When a user clicks on an affiliate link, they attach the code to the end of the URL. This allows the merchant to track which affiliate referred the user.
Running an in-house affiliate program has a few advantages:
- They’re more accurate than third-party tracking systems. This is because the merchant has complete control over the tracking.
- You’re not reliant on third-party cookies. This allows you to avoid any potential issues with cookies being blocked.
- They’re more cost-effective. In-house programs don’t require you to pay a third party for tracking services.
- There’s more privacy because the merchant is not sharing any user data with third parties.
- Greater flexibility as the merchant can change the tracking methods at any time.
- The merchant has control over their own partner base unlike using networks where there is no direct communication with the affiliates.
There are, however, also some disadvantages to in-house programs:
- They’re more work. The merchant has to set up and manage the program. They require more resources. The merchant needs to have the staff and infrastructure in place to support the program.
- There’s a risk that the affiliate program will not be as successful. In-house programs are less established and may not have the same reach as third-party networks.
You can find more information about running an successfull in house affiliate program here.
Affiliate tracking cookie – use first-party cookies
First-party cookies are cookies that are set by the website you are visiting. In comparison, third-party cookies come from a domain other than the one you are visiting. For example, if you visit example.com, ads.example.com could set a third-party cookie. Google’s cookie ban does not affect first-party cookies.
The benefits of using first cookies for your affiliate marketing program are twofold. First, you don’t need to get explicit consent from your users before setting them. Second, they are not subject to the same privacy concerns as third-party cookies. This means that you can still collect data on your users without violating their privacy.
However, there is a downside. For one, you can only set first-party cookies on the website that you are visiting. This means that you can’t use them for cross-site tracking. Second, it’s only stored in the browser’s memory. This means once a user clears the cookie, it gets deleted.
To use first-party cookies for your affiliate marketing program, you will need to implement them yourself. You can do this by setting a cookie on your website and then reading it when the user visits your affiliate’s website.
Affiliate tracking cookie – Use pixel tracking
Pixel tracking uses a small image that merchants place on a web page. When a user visits the page, the image is downloaded from the server. This allows the server to track which users have visited the page.
This form of tracking is not as accurate as first-party cookies. However, it is still useful for tracking website sales. In addition, pixel tracking does not require you to set up a separate cookie for each website. All you need is a single image that is placed on all the websites you want to track.
Some things to keep in mind if you use pixel tracking:
- Place the pixel in a visible location on all the pages that you want to track.
- Use a different image for each campaign you want to track. This will help you identify which campaign is driving sales.
Post-click attribution for affiliate tracking
Post Click attribution is often used by affiliate networks. And uses the click data from ad campaigns to track which sales come from which website. Here’s how it works: A user clicks on an ad from example.com and gets redirected to the advertiser’s website. The advertiser’s website records the click data and uses it to monitor which sales come from which website.
This method is not as accurate as first-party cookies or server-side tracking. However, it is still useful for tracking website sales. In addition, post-click attribution does not require you to set up a separate cookie for each website.
Some things to keep in mind if you use post-click attribution:
- Make sure the click data gets recorded accurately and stored securely.
- Use a different tracking URL for each campaign you want to track. This will help you identify which campaign is driving sales.
- Only use post-click attribution if you are tracking sales from a website that does not have first-party cookies or server-side tracking.
Use Google Analytics to track traffic sources
Google Analytics is a free service that can help you track traffic sources. It’s particularly useful in affiliate marketing for monitoring which sales come from specific websites.
Some things to keep in mind if you use Google Analytics:
- Make sure the tracking code gets placed on all the pages you want to track.
- Use a different Google Analytics property for each website you want to track. This will help you identify which website is driving sales.
- Only use Google Analytics if you are tracking sales from a website that does not have first-party cookies or server-side tracking.
The Google Analytics method is not as accurate as first-party cookies or server-side tracking. However, it is still useful for tracking website sales.
Additional Rule and Regulations Regarding Cookies
Google’s cookie ban is not the only regulation in place regarding cookies. Besides regulations on the affiliate tracking cookie, here are a few more regulations that marketers should be aware.
- The EU’s ePrivacy Directive: This directive, passed in 2009, regulates the use of cookies. It requires that websites get explicit consent from users before setting cookies.
- The California Online Privacy Protection Act (CalOPPA): This act, passed in 2013, requires websites to disclose their cookie policies. It also prohibits the use of cookies for certain purposes, such as marketing or advertising.
- The General Data Protection Regulation (GDPR): This regulation, passed in 2018, strengthens the EU’s ePrivacy Directive. It requires explicit consent from users before setting cookies. It also gives users the right to access, delete, and object to the use of their data.
- The FTC’s revised Guides Concerning the Use of Endorsements and Testimonials in Advertising: These guides, updated in 2009, prohibit the use of cookies to track consumer behavior without their knowledge or consent.
Make sure to always state your cookie and tracking policy in your affiliate terms and conditions. So you’re affiliate know what is tracked and what is not. You can find a template for affiliate terms and conditions here.
If you like more information on running an in-house affiliate program for Saas, check out this article.