What’s New in Incentivized Marketing

For many reasons – another record year expected in online advertising, Google first hitting $600 per share, Bidu passing $300, multiple multi-billion dollar acquisitions, record-levels of investment, a blog being valued at $100 million, and/or the sub-prime implosion, just to name a few – 2007 will rank as one of the most eventful and memorable to date for the online space. It might also go down as the beginning of the end or at least the beginning of the change in incentive promotion marketing. The FTC inquiry into most notably Valueclick wasn’t intended to shut down the practice, but it did mean to temper the behavior and put a little fear into those who might have felt less than fully accountable to the consumer in the process. Our friends tell us that the incentive space has changed, that the FTC actions have, among other things, had a financial impact. Whether this plays a role in some of the newer tactics we spotlight today, we don’t know. Regardless, given Valueclick’s recent run up in their stock price to pre-FTC driven earnings adjustment announcement, it seemed like a good time to check-in on some of the current marketing tactics. For this, we thank Gmail.

Today’s trend in incentivized marketing focuses on domain names. Those in the domain name space have long dealt with issues surrounding trademarks. The same levels of acceptability have not flushed themselves out with respect to paid search, though. Google has generally made it easy for a company to leverage brand terms, even when not ones own brand. The brand owner must take responsibility for the protection of the terms if they wish for others not to use them. Even here, Google has often kept the market quite open, and can’t like when words become unavailable for monetization, such as the case with "geico." Google also has policies that ultimately limit the number of times a particular company can appear in a search result. They also, in theory, have mechanisms in place to insure that the url being promoted matches that which the user goes after clicking. That latter is an imperfect science and the two combined – use of brands and domain name differences – form the basis for what we highlight below. All examples leverage a well known mark in the ad text, but use different strategies with respect to the domain name.

Promoter’s Brand – here we find the display URL in the ad being one that the matches a brand owned and operated by the marketer.

Free Ben and Jerry’s
25 pints of Free Ice Cream Just enter your email address
Brandarama.com

• Root Landing URL – brandarama.com; going to the root landing page URL takes the user to a late 1990’s web site design cycling through various promotions offered.

• Landing Page – the page prompts a user to choose between their favorite ice cream brands, Ben and Jerry’s or Baskin Robbins. The promotion is for 25 free pints of ice cream.

Leverages Incentive’s Brand – here we find the display URL in the ad clearly using another’s brand but separating itself somewhat from the main site of the brand being used.

Dayton IKEA
Get $500 Free To Shop
At Dayton’s IKEA!
www.IKEA-Coupon.com/Dayton

• Root Landing URL – ikea-coupon.com; going here takes the user to the same landing page (although not location specific) as the actual landing page the visitor goes.

• Landing Page – the landing page is less polished than many. It lacks the usual disclosure text on the bottom, having only a one sentence privacy policy as part of the initial submit. Integrated on the page is an affiliate link that when clicked takes the user to an offer run by Opinion Research Panel (ConsumerBargainGiveaways, PartnerData, Acquisis); this model is really intended to build an email database and then have users go to the other offer as they do not run their own.

Appears as Incentive’s Brand- were this the domain name / direct navigation space, the below URL’s more than infringe; given the FTC’s sensitivities, I would imagine the below practice to cease; it certainly violates Google’s policies.

Free Oreo Cakesters
Get Your Free Oreo Cakesters Here. Free Oreo Cakesters On Us!
NabiscoWorld.com

• Root Landing URL – yourproductsamples.com; going here takes you to the same page as brandarama.com but with the yourproductsamples.com header.

• Landing Page – a finely executed site that could make you take a bite out of your monitor, or at the very least go grab some snacks unexpectedly; similar to the Ben and Jerry’s in overall design as it appears to share the same platform.

Free Oreos
Get Free Chocolate Covered Oreos. Free Chocolate Covered Oreos On Us!
Nabisco.com

• Root Landing URL – wholesomerewards.com; like yourproductsamples.com, this too leverages the brandarama template with a different logo

• Landing Page – not quite as delectable as the Oreo cakesters page, but still clean and obviously run by professionals.

Free 12-Pack of Gatorade
Get A Free 12-Pack of Gatorade Lemon Lime, Fruit Punch & Orange!
Gatorade.com

• Root Landing URL – yourproductsamples.com

• Landing Page – a design that makes you ask if it’s in you. With its black background the bottles burst off the page. The downside though, the background obscures the notice to consumers and general disclaimers.

One of the downsides in calling attention to the behavior comes from the follow-up. Those that feel they must rely on behavior that potentially goes against the best wishes of the client will take quick advantage of a new domain and obscuring their identity. Whether the tactics employed on the last segment abide by best practices, I respect the marketers for their transparency. Like mobile marketing, operating in the incentive space can’t be easy – it requires walking that fine line and having many factors stacked against you. We still believe in what it offers – the chance to obtain goods for one’s data and participation in marketing. How to do it will keep evolving.