What are the benefits and challenges of using pixel-based tracking for affiliates?

Pixel-based tracking offers real-time, accurate conversion data, but its effectiveness can be hindered by ad blockers, privacy regulations, and technical complexities in implementation.

Pixel-based tracking offers precise data on user behavior, allowing for detailed performance analysis and optimization. It supports cross-device tracking and helps in retargeting campaigns. However, challenges include potential privacy concerns, the need for technical implementation, and issues with ad blockers that can prevent tracking. Ensuring compliance with privacy regulations is crucial.

An advantage that makes pixel tracking compliant with privacy regulations (like GDPR) is that it doesn't collect personal Identifiable Information (PII) on the user, but rather assigns a "click ID" to be able to track the user journey. This is done via first-party cookies, which store this click ID among other parameters.

In 2024, setting up a third-party cookie mechanism is something to be avoided. There are multiple reasons for this, detailed in several articles (such as ITP, CMP, Google, etc.). Most networks will offer a setup using subdomains to enable first-party cookies. It's relatively simple to implement and only requires the creation of a subdomain by the merchant. This approach allows for more precise tracking of information compared to server-to-server, which is more complex to implement.

You can track the conversion accurately by placing a pixel or tracking code on specific pages, you can accurately measure actions such as purchases, form submissions, or sign-ups. This data helps you understand the effectiveness of your campaigns and optimize them accordingly.

Benefits of Using Pixel-Based Tracking for Affiliate Marketing Real-Time Tracking: Pixel-based tracking allows for real-time data collection, providing immediate insights into clicks, conversions, and other user actions. This helps affiliates and advertisers make timely adjustments to their strategies. Detailed Analytics Cross-Device and Cross-Platform Tracking Attribution Models Retargeting Capabilities Easy Integration Commission Accuracy Challenges of Using Pixel-Based Tracking for Affiliate Marketing Privacy Regulations Browser Restrictions Ad Blockers Cross-Device Tracking Limitations Fraud Risk Data Accuracy Increased Page Load Time

Another challenge of pixel tracking is that it doesn't allow you to assess channel incrementality, in the sense that it doesn't attribute other channel conversions and therefore does not offer a full channel view. There are certain tools and paid services that can help getting this full channel view in order to assess channel incrementality.

The ease at which pixel based tracking can be removed from merchant sites is a challenge. Often times the team in control of all tracking on site, are likely different to the Affiliate team. Meaning that it's very easy for tracking to be removed incorrectly or for a change to impact this. Given pixel based is entirely reliant on this technology, processes must exist to stop this being impacted, and clear compensation in place to ensure if it is removed partners still get commission paid for their efforts during the down time.

Pixel-based tracking does work well with the ad-blockers. It raises privacy concerns as it involves placing a tracking pixel or code on a user's device to collect data.

If you are going to use server-to-server tracking (S2S), be sure to disable pixel tracking in order to avoid duplication of events (and therefore, commission duplication in the back end). Pretty much all networks offer S2S tracking, which is relatively easy to integrate to your tech stack via APIs.

To overcome cross-device or cross-browser conversions, consider using additional tracking methods, such as device fingerprinting or user identifiers, to bridge the gap between devices and browsers. These techniques help connect user interactions across different platforms.

If you are considering pixel tracking, check cookieless options as well. This is essentially an option to track the usage of coupon codes at check out, which is identified by the network pixel and allows to attribute a commission back to a publisher without the need of a tracking link usage. This is achieved by building exclusive or semi-exclusive coupon codes for publishers, which are identified as such and therefore attributed to the specific publisher the coupon was built for.

Focus on events that drive conversions, such as purchases, sign-ups, or form submissions. Avoid tracking excessive events that may clutter your data and make analysis challenging.