I had the pleasure of speaking with the twins from HasOffers during SeattleTweetup and they had some seriously interesting things to say about the affiliate world in general, how messed up it all is. Affiliate marketing right now is much like the world of SEO where it is considered black art and shrouded with people who are “scamming the system” to make a few bucks, lease a Ferrari and look like they are making it big.
Since this is the reputation that the industry has, many large advertising agencies who hold the real purse strings have been hesitant to drop the big dollars on affiliate/performance marketing and the beginners are all that is left standing because the big dogs need to move the needle more than a few hundred thousand. So how do you get more money infused into the industry? You give it transparency and make people accountable for their performance. An advertisers worst nightmare is spending X dollars to acquire a sale or lead that they would have nailed down anyway since it just increases their expenses and the customer ends up taking on the burden. They want nice, tight efficiency in their advertising spend and I think HasOffers may just have something to show for it.
Check out the press release below to read more about the latest Beta on how HasOffers hopes to shake things up by shinning a light on those who have been using shady practices to skim commissions off the top of the affiliate pool and sign up to see what’s new. I think you are going to be pleasantly surprised with what they have come up with, one of the things that Lucas mentioned to me is that this was the hardest decision they ever had to make because they had to “burn the house down and start over”. If someone is willing to take a successful ramp and burn it down to completely change the game, shouldn’t you at least check it out?
Full press release below:
HasOffers Admits Online Advertising Is Broken
Tracking technology provider announces development of “Adtribution”
SEATTLE – June 14, 2011 – HasOffers (www.hasoffers.com ), a two year old technology company tracking more than $300 million dollars in ad spend per year, admits online advertisers are forced to operate in a broken model. The industry is completely reliant on direct response campaigns which have no way of compensating the millions of other publishers providing valuable brand engagement before the user’s last interaction.
Today, HasOffers announced the development and beta application process of a new cookie-less technology enabling advertisers to see the true influence of multiple affiliate and publisher relationships on a single user. Apply to be among the first of a select group of advertisers, networks, and publishers with access to the AdtributionTM Beta (http://www.adtribution.com ), coming this summer.
“Everyone realizes buying habits are changing as users spend more time online, yet advertising platforms have stayed the same,” said John Marsland, User Acquisition at Zynga. “Each user influenced by multiple publishers, and advertisers need the ability to compensate those publishers based on the part they played. That’s why I’m excited to see what HasOffers has come up with.”
Performance advertising, also referred to as affiliate marketing, has become an $8 billion industry in the U.S. alone, making it the fastest growing advertising channel. Yet the disparity between increasing Internet usage and online advertising budgets remains tremendous. Even though performance advertising has laid the sales foundations for companies like Amazon.com, Netflix, and even Groupon, it is still very limited by the tracking technology available to support it.
“We hear from people all the time – my affiliate program sucks,” said Lucas Brown, CEO of HasOffers. “Frankly I’m not surprised. That’s the real reason we entered into the performance advertising space, because we believe technology needs to fill a gap. Advertisers have no transparency, and they are often double and triple paying for acquisitions while some of the most valuable publishers are losing out big on commissions. This makes it really difficult for advertisers to increase their online advertising budgets and allow the industry to grow. We’ve been working on a new way to measure influence on buying decisions and can’t wait to unveil the beta this summer.”
To support long-term growth in performance-based, online advertising, HasOffers is currently in production on a second edition that targets the need for more reliable, more transparent tracking technology to support advertisers, networks, and publishers in a quickly changing Internet landscape. Apply for access to the AdtributionTM Beta at www.adtribution.com
HasOffers ( www.hasoffers.com ) currently provides a software as a service for online businesses to track and manage their own affiliate programs. With more than $300 million in annual ad spend tracked by HasOffers, they positioned themselves as an industry leader in less than two years, being named “Service Provider of the Year” for 2010 by the Washington Technology Industry Association (WTIA). For more information, visit www.hasoffers.com or follow us on Twitter @hasoffers.
Illuminate Public Relations
Minou Nguyen Partner
Steve Stratz Partner