Lawsuits Filed Against CJ/BF/ValueClick on Behalf of Affiliates and Merchants

Affiliatefairplay.com blog recently published news that 2 separate class action lawsuits were filed on April 20, 2007 against Commission Junction, BeFree and ValueClick. One names CJ and BeFree publishers (affiliates) as the plaintifs. The other names CJ and BeFree merchants as the plaintiffs.

The lawsuits are around the ongoing issues in relation to adware. The lawsuits allege breach of contract, negligence and unfair business practices on CJ/BF’s part by allowing adware affiliates to operate within their Network. It states that CJ/BF have knowingly allowed adware affiliates within their Network which commit commission theft and fraudulent transactions through adware applications. The suit is seeking monetary damages to both affiliates and merchants. This may also see a move in ValueClick’s corporate policy related to adware and compliance.

This could set the way for other networks to be in the line of fire.

DirectLine - Were They Threatened By Affiliate Sites?

Directline have gone all out on their latest TV campaign to slate comparison websites. Some say that comparison systems were really created by the affiliate community. DL warn consumers to be wary of these sites and branding them 'middle men'. Of course the comparison sites have hit back, with big players like moneysupermarket.com, confused.com and gocompare.com all commenting on the campaign.

(telegraph quote) Richard Mason, a director of moneysupermarket.com, says Direct Line's tactics smack of sour grapes. "Sites such as ours have changed the way people shop for insurance and as a result Direct Line has lost market share," he says, pointing out that websites such as moneysupermarket.com would be happy to include Direct Line's prices in their searches. "We have the technology to access a Direct Line quote for every consumer. But when we try to include them for comparative purposes we are threatened with legal action." He adds: "Consumers can draw their own conclusions about why Direct Line refuses to participate with the various comparison sites. It may be that they don't want consumers to see how uncompetitive their prices really are."

The simple fact is these sites help bring the majority of insurers into one search. The consumer has to then be savvy enough to contact the other insurers if necessary. Tigerstep recommend you shop around, check out the back of national newspapers, comparison sites and other known brands.

Directline conducted a survey which showed that 1/3rd of consumers did not realise that sites received a bounty payment for referring a consumer. Personally since its a comparison site, the owner cannot influence the quote price, in turn giving the customer what they want a comparison!

So will more insurance companies drop their partnerships with comparison based websites. As companies are forced to compete on price they may want to take it out of the public eye and move away from comparison sites. With most sites reliant on the bounty payment as revenue then this could bring the comparison market to a head very quickly.

I recall back to the days when affiliates were allowed opened bidding on brand names on paid search engines. Affiliates had a good run, but this came to a head quickly once big brand retailers realized the reality of the situation. This Directline example could be the start of a seachange in attitudes towards direct comparison sites. Only time will tell!

I want to shop online NOT by a catalogue!

I am a girl on a mission!

I have a few weeks in the UK before I head back out to France & Italy. Now apart from the fact I have 101 things to do while I am here, my new wardrobe is high on the agenda. For those of you who haven't shopped in rural France & Italy, the fashion trends are some what behind the times. So with time against me of course I go online.

I know what I want and where I can get it. So next on my list was Next, who happen to be the only place who stock my fiance's slinky black hipster trunks.

So I visit the site. I do a search and great the items I want are there and I add them to my basket. So then I checkout - but wait I have no account. I then spend the next 5 minutes filling in all my account details, feeling a little apprehensive that Next want date of birth. I am in no mood to question anything I need these pants and I need them quick!

So I've registered and then go through to the checkout. However unlike other retailers, Next WON'T let me pay online. Oh no, whats gone wrong? When I get a confirmation email I am told my goods will be delivered on X, with no word about when I pay for them.

So I call Next customer service to see whats going on. Apparently the online store is nothing more than a virtual next catalog and even when my first order arrives I cannot pay online I have to call the Next customer service to pay over the phone. The reason I was not asked for any money was that they ran a credit check on me and I can have £300 credit on account, balance payable in 28 days. The Next customer service rep could not understand why I was had a problem with this. I explained clearly that I want to pay for my goods now and get it over with. My goods arrive and yet I can still not pay online, I have to call the customer service line who put my account into credit.

Once you have an account with Next you are them bombarded with their print catalogue, something I personally DON'T want. I want to shop ONLINE not via a catalogue.

So are Next loosing out on Customers? Half of Next Directory orders are placed online, however I think there will be an element of disappointment for savvy online shoppers like myself. I personally think Next need to get their act together and make their online site like every other retailer - one where I pay for the goods at time or ordering.

Royal Mail Sells Items On Ebay!

It's no wonder Royal Mail customers are up in arms, but this time its not about post office closures. News has it that the Post Office auctions off the contents of 75,000 undelivered packages that become "lost in the post" each year.

A Royal Mail spokesman said: "Each year 500,000 parcels are undeliverable because they are either incorrectly addressed or have no address or the intended recipient has moved.

"We do all we can to reunite them with their owners at a cost of £10 million a year."
The spokesman said around 15 per cent of lost items were sold off, "a very small part of the cost of running the centre".

Customers who have seen rare items on the ebay site have claimed that items were correctly labeled and claim the post office do not make every effort to return the goods to the rightful owner.

As a customer who has had several items 'stolen' while in transit with the post office, i cannot say i am surprised by this news. After all how else will they pay Adam Crozier that £370k bonus!

The Success of Banner Ads

Written by Helen Porter - New Media Marketing Consultant

Further to my post yesterday about the value of branding online, I wanted to explain why banners are far from a dying format and they should be considered as a brand-building channel both now and in the future.

A recent study in the Journal of Consumer Research suggests that banner ads not only register with users on a subliminal level, but that the effect is positive.

More and more companies are justifying their online media spend through old metrics like CTR and sales. The new research backs up that just because a user didn't click on a banner ad, doesn't mean the ad was wasted. The researchers found that an increase in the exposure rate lead to a corresponding increase positive feelings toward the brand.

The average CTR on a banner is now less than 0.2% leading many marketeers to believe that banners can no longer reach consumers. We are now in the age of interactivity leading generic flash banners to be thrown out and new concepts to be developed. Banners should be used to build a relationship between a consumer and their brand, banners have moved on from simply being a traffic driver.

As consumers interact with ads they can be measured. Marketeers need to co-ordinate campaigns more effectively. The banners need to encompass rich media allow them to be more personal, timed and relevant to the audience. Interaction rates, time spent engaged with ads, video play rates and completion rates are all new ways to really measure your campaign effectiveness.

Here are some benchmarks




In short banners are not dead and can build brand and retain consumers.

Online Shopping Soaring...but are they building brands online?

Written by Helen Porter
TigerStep Online Marketing Consultancy.

Recent statistics from the IMRG show that shoppers in the UK have spent in excess of £100 billion online in the 12 years. April 2007 saw the largest annual rise since December 2003. Companies including New Look, House of Fraser, Baugur, Whistles & Karen Millen are all going transactional for the first time.

While most of these companies enter into the digital marketplace they are not investing to build their brand in the online environment. Most high street retailers tap into their existing shoppers by promoting the online channel within the stores and communication channels like store cards or leaflets. Most simply opt to extend their existing offline campaigns to carry their website address. Some retailers will be savvy enough to enter into paid search and affiliate marketing yet most will not be pushing money into essential online branding.

So why should retailers be building a brand online? High-street stores will only have a limited number of competitors therefore can corner the market for their given product. Online there is an open market, and retailers need to remember that they will have that increased competition. Investing in an online branding campaign will ensure retailers raise their profile to online shoppers and can build loyalty amoungst new shoppers.