The Great Debate – Last Click?
One of the hot topics at last week’s A4U Expo was the last click model and since the Expo I have been discussing this with others, reading blogs etc. so thought I would add to the debate as it is something that I think is open to wide debate.
So, let’s have a think about how to attack this one. I think we need to look at this in two sections. Last click model within the online mix and last click model within affiliate.
Last Click within the Online Mix
Most clients will run a variety of activity through online, including but not limited to affiliate, PPC, display, email and social media. Generally the sale is attributed to the last click. So at the end of each month when I as a client am looking at what channels delivered what sales, I base this on last click.
Does this reflect the true value of each channel? Well no, but as long as we understand the impact of each channel then this is fine. Display media for example tends to be the first click in most scenarios as it is used to introduce the customer to the brand / product / offer and customers will then go to find out more through other mediums. Display generally in this kind of scenario would come out at a high CPA because less sales are allocated on last click but the reality is that some of the sale attribution is within display so the “real” CPA would be lower.
So, we should be considering the influence each channel has on a sale in order to see its true value within the CPA. The payment models in these channels are very different so I don’t believe you would consider changing this but you should understand the value of each channel within the mix to understand how to allocate spend.
Last Click within the Affiliate Channel
The affiliate channel is much more complex than most channels and in many cases there will be more than one affiliate involved in the path to sale, and perhaps most importantly, affiliates are only paid on sale which is defined through last click. So unlike display or PPC where the commission is paid on impression or click the affiliates are directly affected financially by the last click model. There has been much debate around the last click model and at this year’s Expo highlighted that.
So, should we be looking past the last click model? I think yes, however I don’t think everyone should. If we think about the path to sale it differs vastly between sectors, clients and products as depends on the customer’s decision making process. A short decision making process will have a lot less touch points than a more considered purchase. For example, I’m buying some flowers, this product is straight forward and there is not much differentiation in the market so I simply look for the cheapest or those that will deliver on time. I wouldn’t have many touch points, potentially just one. However, if I was buying broadband this is a much more considered purchase and I’m likely to look at a number of sites before I get to my purchase. I think it is mis-leading to take one client’s stats to be indicative of any other client as they will be very different.
I am yet to see a proposal where I think the last click model will work. The problem is that no client is going to pay a higher CPA so the only answer is to carve up the CPA and this leads to a lack of visibility over what an affiliate will earn from day to day, there are additional difficulties across dual network and incentive sites will not be able to determine how much they can pay their customers, therefore negatively affecting their model. The more I think about this the more I think it will not work, however, am open to ideas.
I’m starting to think that perhaps the current issue is around visibility. If affiliates had data to show where they were in the path to sale would this enable them to understand better how their site interacts with the customer and what part of the decision making process they fit into? And, if affiliates did know this could they adapt their strategy to become the last click? Perhaps the emphasis should be on affiliates to solve this issue rather than the Client?