Influencers peddling crappy and sometimes dangerous products
In recent newsletters we often times talked about Instagram Ads and also about influencer marketing.
A lot of influencers don’t know enough about the products that they’re promoting, which makes them attractive for companies (and maybe for affiliates?).
It’s not really new that some people are fine with shilling useless products, but the reach of such people has drastically increased with social media. And a bad product can have a bigger and stronger impact because of it.
In this article, Cara Curtis, talks about her Instagram feed showing Clear Blue pregnancy tests, period tracking apps, and apps like Natural Cycles.
The Swedish app, Natural Cycles, markets itself as a noninvasive type of contraception and became controversial after 37 out of the 668 women who had an abortion in Stockholm had been using Natural Cycles to prevent pregnancy.
With their high credibility among their followers, influencers can make people buy things they don’t fully understand themselves, or even trick them into buying products they don’t even like or use themselves.
This brings up the question if influencers should be held accountable if they promote products that cause a negative user experience and if Instagram will tighten their policies. Probably yes.
With its new influencer hub, Facebook is trying to do exactly that: take control (and a financial share) of the advertising agreements between companies and influencers.
Bid for Minimum ROAS on FB
Depesh Mandalia got a pretty significant update from Facebook yesterday and shared it in the Facebook Ad Buyers group.
There’s a new bid model – minimum return-on-ad-spend for value optimization.
This feature will be rolling out through August and everyone should have it available by early September at latest.
It’s certainly a useful feature but always depends how good it actually works. Facebook media buyers are no strangers to things not working the way Facebook advertises them.
Even in this share, some people are sceptical of sending Facebook too much info about their revenue.
Facebook rips Marketing Partner agreement with Criteo
This is an inside scoop, that we haven’t seen posted in the news, yet at least – so no link, just our source’s word.
It seems the company did not manage to keep up certain standards Facebook expects in the Marketing Partners program, which has to do with helping businesses achieve and maintain a certain level of service and success.
The good news is that they will maintain API access (at least for the time being) so whoever is using them can keep their campaigns going.
So what is the issue?
In short, the quality of the service. Criteo measures return on last-click sales and optimizes only for clicks. As an affiliate, you already know that clicks are not ideal to measure success, it’s all about the ROI/ROAS.
That’s also Facebook’s main issue with the former Marketing Partner. As Criteo optimizes to lowest CPC, they remove high-quality traffic (that is also more expensive), sometimes taking out mobile completely for example.
This has the biggest impact if you run Dynamic Product Ads (DPA), where Facebook takes extra-care of all signals across all platforms.
And Criteo does not deliver results anymore.
On average, advertisers that don’t use Criteo get 15x ROAS, 8x more sales, 3x lower CPC, 50% higher CTR and 50% lower CPA for DPA.
So, seems like you should at least test something else, because Criteo might be costing you a bunch in sales.
Apple is ending its App Store Affiliate Program
Apple has just announced that its iTunes Affiliate Program will no longer include apps for iOS or macOS. These changes will go live on October 1st, 2018.
Previously the Affiliate Program was used by individuals, blogs, YouTubers, etc. to link to the app store and earn a small cut if a purchase was made.
Initially, affiliates made 7 percent of any app purchase, in April of last year the commission got reduced to 2.5 percent. With this news, the commission is gone completely.
This is especially bad news for review sites, which rely on affiliate links in their reviews for a substantial chunk of their revenue.
Seems you don’t need affiliates anymore when your market cap is…
Is the affiliate industry in danger?
Lorenzo Green, one of the co-founders of STM Forum, shared his latest thoughts on the state of our industry.
We can’t say we’re surprised that the last 12 months seem to have been rough.
More regulations both on the traffic and the offer side of things and affiliate companies built on exploiting temporary tricks are struggling.
This doesn’t mean that companies are not profitable, but they have to take much closer care than compared to the “golden years”.
The shift Lorenzo sees, and many people who commented on the post is towards higher quality. E-Commerce, lead generation, and generally becoming a performance-based agency for strong brands.
It seems that affiliate networks need to innovate to keep their role as valuable as it was over the past years.
There’s a thorough discussion still going, so we recommend you check it out. Big names like Bonnie D’Amico from Shopify, James Petrelis, Paul Jeyapal and more are all part of it, and they go very in depth towards solutions as well.
It’s not just complaining that things aren’t as good as before…
Live Q&A with Dimitris Skiadas and Depesh Mandalia
Depesh sat down with Dimitris for a live Q&A in the Facebook Ads Experts Academy group.
They talk about how Dimitris got to where he is now, Google Ads, Facebook Ads, how to use them together, future conferences they are attending and a bunch of other good stuff, including very specific questions about optimizing your conversion rates and ROI based on analytics.
That’s where Dimitris shines, so of course, he talked about that.
It’s something you could certainly just put on instead of a podcast on the weekend, and listen while you relax and gather your strength for the upcoming week. Check it out!
Cool tech, (funny) business, lifestyle and all the other things affiliates like to chat about while sipping cocktails by the pool.
PS: That didn’t take long…
We told you about McAfee’s latest recommendation, the Bitfi crypto wallet… Well, as you’d expect, it got hacked.
OverSoft got root access to the wallet…
Bitfi posted weird tweets that it is putting up a second bug bounty, without confirming any claims from OverSoft.
McAfee said that the wallet hasn’t been hacked because money wasn’t stolen.
We don’t know about you, but if someone has full access to our phones, we wouldn’t call that exactly private and secure.
Oh, and OverSoft added that you don’t need the device to run the wallet. That’s the risk when dealing with a hot wallet.
In their words:
“You don’t need a BitFi device to run a BitFi wallet. I repeat: there’s nothing in that device that is required for the BitFi app to function. There’s NO secure element. They could’ve released it on the Play Store as an app.”
It also seems Bitfi doesn’t plan on paying for the bounty, at least according to OverSoft, it’s just a marketing ploy.
Oh well, yet another day in cryptoland…