Rebranded Affiliate Cookie Stuffing 2.0 - Squarespace · 301 Arizona Ave, Suite 400 T 800.797.0176 [email protected] Santa Monica, CA 90401 F 888.308.9895 1 Affiliate Cookie Stuffing

301 Arizona Ave, Suite 400 T 800.797.0176 [email protected] Santa Monica, CA 90401 F 888.308.9895 www.convertro.com

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Affiliate Cookie Stuffing 2.0

CONVERTRO definition of cookie stuffing 2.0

Throughout this report, we refer to cookie stuffing 2.0 as an action by an affiliate whereby the affiliate inserts their tracking code into a link in an attempt to get affiliate sale credit although the user would likely have converted anyway (without any payment to an affiliate). We typically consider a cookie to have been “stuffed” when the end user “appears” to have visited the client site from the cookie stuffer and another marketing channel in a window of five seconds or less (having studied over 50 different cookie stuffers, we see that 98.7% of cookie stuffing happens in five seconds or less); however, in the interest of added conservatism for this analysis, we used a maximum window of two seconds (it is virtually impossible to visit a site from two different sources in two seconds or less). Where does the “2.0” come in? A new breed of affiliates is sharing affiliate commissions with end users via rebates, social gaming credits or donations to causes. Cookie Stuffing 1.0 relied on ignorance of users to get the cookie stuffed. In Cookie Stuffing 2.0, end users are given an incentive to download browser toolbars and plugins, which allow the affiliate to stuff a cookie when the user visits sites that participate in affiliate programs. Based on our analysis, we present below what we have found to be the Top Ten Cookie Stuffers. At least eight of the ten of the Cookie stuffers incentivize the end user to install plugins/toolbars. To our knowledge, Cltrda.com is the only top Top Ten Cookie Stuffer that provides no apparent benefit to the end user and may be relying on lack of user knowledge.

Top TEN cookie stuffers Convertro started with over 50 cookie stuffing affiliates as candidates for this whitepaper. We narrowed the list to the Top Ten Cookie Stuffers based on the following criteria:

1. Size – minimum of 30 cookie stuffings per day per URL 2. Reach – at least three or more different clients have this affiliate cookie stuffer 3. Traceability – ability for Convertro to identify the Cookie Stuffer; many Cookie Stuffers have

blank referring URLs, making it impossible to identify the stuffer by name (only Publisher ID is available)

These toolbar/plugin cookie stuffers sniff to see what URLs the browsers are going to. When the URL is associated with an affiliate program they will do one of two things:


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1. Automatically stuff their cookie 2. Encourage users to click on a banner that loads affiliate cookie

A common theme among the toolbars is that the user is already on the merchant website and affiliate program cookie can be added without the user ever leaving (and then subsequently returning to) the merchant site. Volume

Rank Domain Cookie

Stuffing 2.0? Primary URL for Cookie Stuffing

#1 ShopAtHome.com Yes http://www.shopathome.com/frameset.aspx #2 We-Care.com Yes http://plugin.we-care.com/Redirect/Store/ #3 Socialingot.com Yes http://api.socialingot.com/click/cb/?widget=&key=EB_TOOLBAR_ID #4 Free-Causes.com Yes http://s3pr.freecause.com/ #5 Interesting.cc ??? media.interesting.cc #6 Cltrda.com No http://s04.cltrda.com/sc?p= #7 DropInSavings.com Yes http://display.srv2trk.com/r.html #8 RebateGiant.com Yes http://www.rebategiant.com/eredir.aspx #9 DeedorGreed.com Yes api.deedorgreed.com

#10 ExtraBux.com Yes http://alot.bargainmatch.com/cashbackapp/?rd_id=

Who is IMPACTED by cookie stuffing? If online marketers are utilizing last click attribution model cookie stuffers are the biggest attribution winner. When looking at the prior click (before the cookie stuffing) we see that other affiliates are impacted more than any other channel (32%); that is to say, cookies stuffers take away credit from other affiliates using a last click attribution model. Other channels that experience diminished attribution as a result of cookie stuffers include Direct Traffic (29%) and Organic Search (14%). Paid channels such as Display, PPC, Biz Dev, and Comparison Shopping Engines combined account for 20% of the cannibalized traffic.

Channel Source Prior to Cookie Stuffing

Affiliates 32% Direct Traffic 29% Organic Search 14% Display 9% PPC 8% Email 4% Biz Dev Deals 2% CSE 1% Social Media 1%


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Top TEN cookie stuffers ranked by cookie stuffing volume

#1 SHOPATHOME (http://www.shopathome.com/frameset.aspx) Known Cookie Stuffing Method:

1. User logs in at Shopathome.com and downloads a toolbar

2. The toolbar opens whenever a user goes to a site that is part of the affiliate network, even if they enter the site by directly typing the domain into the browser or through a search of any kind

3. The toolbar offers coupons for products on the site—sometimes they are true coupons, other times they are merely standard offers that the user would get without the so-called coupon

a. For TrueCar.com, the coupon offers Haggle-Free Pricing (and no cash back) – Haggle-Free Pricing is TrueCar.com’s standard offer

4. On some sites, if the user clicks to reveal the coupon without even committing to using the coupon or buying anything, their browser is automatically redirected to a URL containing the affiliate ID.

5. Other times, the user clicks to reveal the coupon and has to click a second time to “use” the coupon. The user is then redirected back to shopathome.com to browse the coupons or offers and then must click on one to return to the original site or close out and restart the process manually

a. This is not true cookie stuffing, but it is taking free direct or already-paid-for search traffic and redirecting the user away from the site only to come back through the affiliate, possibly without an actual coupon

6. In addition, the Shopathome toolbar often interferes with site functionality by auto-scrolling down the page and re-launching on each new page as the user browses until they choose to close the application

7. Affiliate claims to “not drop an affiliate cookie when shopper’s last click is a Google Paid Search” – what about when Google paid search was the first click? What about when the user comes from any other paid channels such as Display or a Comparison Shopping Engine?

Referring URL: http://www.shopathome.com/frameset.aspx Is User Aware of Cookie Stuffing? Yes. User installs toolbar/plugin. Is Traffic Incentivized? Yes. User sometimes receives cashback rewards in addition to some real coupon savings depending on the merchant’s site.


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Known Affiliate Networks & Publisher IDs: Available only to Convertro clients.

Principal: Marc Braunstein Corporation: Belcaro Group, Inc Conclusion: Merchants are paying for clicks they probably would have received without the help of the affiliate. Many of the coupons are bogus click bait in order to get user to click on the link that stuffs the affiliate cookie.

ShopatHome Toolbar Download & Signup Page:

TrueCar.com with the ShopatHome Toolbar installed:

TrueCar “coupon” is just the site’s official marketing tagline, no extra savings1:

1 www.shopathome.com


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Shopathome.com toolbar inserting a banner on Google Search:


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#2 WE-CARE (http://plugin.we-care.com/Redirect/Store/) Known Cookie Stuffing Method:

1. User becomes a member and downloads the toolbar

2. If the user buys through this toolbar, affiliate will donate a percentage of the user’s purchase to a charity of the user’s choice

a. The We-Care toolbar hijacks brand and non-brand searches as well as direct traffic, urging users to click on the toolbar to give

b. The toolbar also inserts hearts and an animated dog on the Google search page next to the brand’s organic listing, and if this link is clicked the we-care affiliate program receives commission

c. The toolbar scrolls down the page with the user, following them until they either acknowledge the ads in the toolbar or close the application

d. On some sites, a pop-up appears and darkens the site so users feel compelled to click on the We-Care ad rather than continue regular browsing

Referring URL: http://plugin.we-care.com/Redirect/Store/

Is User Aware of Cookie Stuffing? Yes. User sees a toolbar load on the top of the screen, which was previously downloaded onto the user’s system.

Is Traffic Incentivized? Yes. User assumes part of their purchase will be donated to a cause of their choice.


Principal: Bryan Cockerham

Company: We-Care Inc.

Conclusion: The We-Care toolbar and popups force users to move in a browsing path that benefits we-care.


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Screenshot of We-Care Toolbar, Hearts and Dog on a brand search on Google:


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Screenshot of We-Care Toolbar above Merchant site[2]:

Screenshot of We-Care Popup Takeover on merchant website[3]:

2 http://bestbuyeyeglasses.com 3 http://www.kohls.com


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#3 Socialingot (http://api.socialingot.com/click/cb/?widget=&key=EB_TOOLBAR_ID) Known Cookie Stuffing Method:

1. Users download a toolbar, loading apps and more through the toolbar

2. The toolbar provides popup blocking and coupons for some favorite sites

3. Socialingot partners primarily with virtual currency social gaming sites which provide virtual currency credits to toolbar users

Referring URLS:

• http://api.socialingot.com/click/cb/?widget=&key=EB_TOOLBAR_ID • http://fwdaff.com/click/r/ • http://siaff.com/click/cb/?widget=

Is User Aware of Cookie Stuffing? Yes, User sees a toolbar load on the top of the screen, which was previously downloaded onto the user’s system. Is Traffic Incentivized? Yes, users receive virtual credits to browse and play apps via the toolbar.


Principal: Paul Capriolo Corporation: Social Growth Technologies, Inc. Conclusion: Merchants are paying for clicks they probably would have received without the help of the affiliate. Screenshot of Social Ingot Toolbar[4]:

4 http://socialingot.ourtoolbar.com/


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Screenshot of Social Ingot Toolbar branded by IMVU [5]:

#4 FREECAUSE.com (http://s3pr.freecause.com/) Known Cookie Stuffing Method:

1. User downloads a branded toolbar with an expectation that contributions earned from shopping will be made to the charity or school of their choice

a. There are multiple brands that are part of this toolbar program, e.g. onecause.com

2. If a purchase is made with the toolbar installed, the affiliate receives credit for the sale

Referring URL: http://s3pr.freecause.com/ Is User Aware of Cookie Stuffing? Yes. User sees a toolbar load on the top of the screen, which was previously downloaded onto the user’s system.

Is Traffic Incentivized? Yes, users are rewarded with the expectation that donations will be made to their chosen cause.


Principal: Ren Aldo Coporation: Rakuten, Inc. Conclusion: Merchants are paying for clicks they probably would have received without the help of the affiliate

5 http://www.imvu.com/toolbar/


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FreeCause.com Toolbar Overview:

Toolbar installed with savings bar [6]:

6 http://www.sears.com


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#5 interesting.cc (http://media.interesting.cc/r.html) Known Cookie Stuffing Method: The Interesting.cc privacy policy and terms of service [7] suggest that a “plugin” is the primary mechanism being utilized for stuffing. According to the Interesting.cc terms of service, “In Some Cases, Information Collected By The Plugin May Be Personally Identifiable, And Information (Including Information From Or About Pages Of Social Media Websites You Visit) May Be Used Or Shared With Third Parties For Purposes Of Displaying Targeted Advertisements To You.” How a user installs an interesting.cc plugin in unknown. Referring URL: media.interesting.cc Is User Aware of Cookie Stuffing? Unknown

Is Traffic Incentivized? Unknown


Principal: Unknown

Company: International Web Services, LLC

Conclusion: Merchants are paying for conversions they probably would have received anyway since the user has already gone to the merchant’s website and then is presented with the plugin.

#6 cltrda.com (http://s04.cltrda.com/sc?p=) Known Cookie Stuffing Method: Appears to be a rootkit that is best described by Anvisoft.com, “S04.cltrda.com is classified as a browser hijacker that will redirect you to random pages while you are surfing on the Internet. This browser virus is mainly spread by free music and movie download, or pornographic related web links. With the help of some trojan horse, it can enter the computer...

[8]” Another Google forum user describes the experience as follows, “When I open websites, a popup site directs a new window to s04.cltrda.com. This then redirects to many other websites trying to sell me things; this happens sometimes several times a minute! [9]” There are several different affiliate IDs in different networks that have http://s04.cltrda.com/sc?p= in the referring URL. Referring URL: http://s04.cltrda.com/sc?p= Is User Aware of Cookie Stuffing? No. The user doesn’t know that this rootkit is being installed nor do they appear to want to have it installed.

7 http://interesting.cc/terms 8 http://www.anvisoft.com/tag/S04.cltrda.com_browser_hijacker/ 9 http://productforums.google.com/forum/#!topic/chrome/hnq0CFapV4o


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Is Traffic Incentivized? No


Principals: Unknown

Company: Unknown

Conclusion: There is no apparent added value to the user or merchant.

#7 dropsavings (http://display.srv2trk.com/r.html) Known Cookie Stuffing Method:

1. This coupon site offers a free toolbar that provides coupons and lends a sense of community if a user continues to utilize it for search and purchasing

2. Also available is a desktop notification system of “important news” and coupons

Is User Aware of Cookie Stuffing? Yes, the user sees a toolbar load on the top of the screen, which was previously downloaded onto the user’s system. Referring URL: http://display.srv2trk.com/r.html Is Traffic Incentivized? No Known Affiliate Networks & Publisher IDs: Available only to Convertro clients.

Principal: Unknown Corporation Name: Unknown Conclusion: Merchants are paying for clicks they probably would have received without the help of the affiliate. Screenshot of dropsavings.com toolbar “how it works” page [10]:

10 www.dropsavings.com


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#8 Rebategiant (http://www.rebategiant.com/eredir.aspx)

Known Cookie Stuffing Method:

1. User signs up for a membership at rebategiant.com

2. User downloads the “rebate informer” toolbar or may receive it as part of a download bundle with other software

3. As the user browses search engines, he/she is notified of rebates and can view details directly on search results

4. Users earn cash back and learn about merchant promotions by staying logged in on the toolbar at all times

Referring URL: http://www.rebategiant.com/eredir.aspx Is User Aware of Cookie Stuffing? Yes, User sees a toolbar load on the top of the screen, which was previously downloaded onto the user’s system

Is Traffic Incentivized? Yes, users receive cashback and rebates


Corporation Name: Unknown Principal: Unknown Conclusion: This affiliate is overlaying alerts of rebates on top of major search engine organic and branded search traffic, taking the conversion as their own if the user clicks on the cash back alert.

Screenshot of Rebate Informer’s integration with large search engines [11]:

11 http://rebateinformer.com/features.aspx


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Screenshot of Rebate Informer’s integration with Google.com Organic Listings


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Screenshot of Rebate Informer’s on Sears.com Homepage:

#9 deedorgreed.com (api.deedorgreed.com) Known Cookie Stuffing Method:

1. User downloads a toolbar to help him/her receive cash back at any affiliated merchant’s website

2. If a user wants cash back, he/she must click on the toolbar reminder in order to receive it; this actions sends a cookie to give Deed or Greed credit for the sale even if the user navigated organically to the website

Referring URL: api.deedorgreed.com Is User Aware of Cookie Stuffing? Yes, the user sees a toolbar load on the top of the screen, which was previously downloaded onto the user’s system. Is Traffic Incentivized? Yes, the user receives cash back by making purchases after clicking on the toolbar reminder. Known Affiliate Networks & Publisher IDs: Available only to Convertro clients.

Company: Jutera Labs Principal: Surojit (Roj) Niyogi Conclusion: Merchants are paying for clicks they probably would have received without the help of the affiliate.


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Screenshot of deedorgreed toolbar [12]

Screenshot of deedorgreed explanation on getting cashback rewards [13]:

12 http://deedorgreed.ourtoolbar.com/ 13 http://www.deedorgreed.com/page/faq


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#10 Extrabux (http://alot.bargainmatch.com/cashbackapp/?rd_id=) Known Cookie Stuffing Method:

1. The user downloads the ALOT toolbar or Firefox extension and adds apps to the bar to allow them to check multiple programs from one place.

2. The user receives cash back on the Bargainmatch app and is encouraged to use it for all shopping needs

3. Toolbars can be customized for non-profit organizations which receive a percentage of the purchases

Is User Aware of Cookie Stuffing? Yes, the user sees a toolbar or Firefox extension, which was previously downloaded onto the user’s system, load on the top of the screen Referring URLS:

• http://alot.bargainmatch.com/cashbackapp/?rd_id= • http://alot.bargainmatch.com/toolbar/index.html?rd_id=

Is Traffic Incentivized? Yes, users receive cash back and may also donate to a cause while shopping Known Affiliate Networks & Publisher IDs: Available only to Convertro clients.

Corporation: Extrabux, Inc. Principal: Jeff Nobbs Conclusion: The ALOT toolbar system offers users a convenient place to check all of their favorite websites and a provides a springboard for shopping. However, when users shop via the toolbar, the affiliate gets credit when the user may have actually gone to the site organically.


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Screenshot of ALOT Signup Page [14]:

Screenshot of Bargainmatch toolbar on drugstore.com [15]

14 http://alot.bargainmatch.com/ 15 http://www.drugstore.com


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Screenshot of Bargainmatch thank you page [16]:

16 http://www.bargainmatch.com


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Screenshot from parent company Inuvo detailing the rewards of having a toolbar [17]:

17 http://inuvo.com/bargainmatch


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Screenshot of ALOT toolbar shopping apps [18]:

OFFICIAL RESPONSES After this report was published Convertro met with key executives at several of the companies named in this report and received responses, which we have included here.

FREECAUSE.COM OFFICIAL RESPONSE At FreeCause, we follow a stringent number of procedures to ensure our leading rewards technology follows the highest level of standards. Our browser solutions recognize when inbound links to advertisers originate at other affiliate sites or from Paid Search listings – and in that instance – the FreeCause technology stands down and allows the proper attribution from the original affiliate to occur. Our dedication to respecting other affiliates is the primary reason why so many affiliate companies that attempted to build their own browser solutions have chosen FreeCause as their technology provider. We are the most compliant and respectful of our fellow affiliates and seen by many as a “white knight” in the industry.

18 http://www.alot.com/apps/shopping?camp_id=2130


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Affiliate Networks -‐ FreeCause works closely with all of the leading affiliate networks to ensure that our solutions pass network testing with regards to the affiliate code of conduct. We are tested against many standards, and one of the primary areas of focus is to ensure that our products do not interfere with affiliate cookies placed by other publisher websites. We pride ourselves in the discipline, testing, and resources we invest in building technology that respects affiliates – large and small.

Merchants & Advertisers -‐ FreeCause works closely with our valued merchants and advertisers to ensure our products create a win-‐win-‐win for all parties. We want our consumers earning their rewards – whether they be miles, points, cash back, or charitable donations – we want our merchants driving higher sales, and we want our clients and partners to benefit from the increases in conversion and engagement that our products and services provide. An independent research study conducted by Compete in February 2011 showed that when consumers see the FreeCause value proposition that they will be rewarded with for their purchases (via loyalty or social currency, cash back, or charitable donation) – their level of conversion skyrockets (an increase of 230% vs. no value proposition) – justifying the commission that retailers pay to FreeCause for these transactions.

Clients & Partners -‐ FreeCause works closely with our clients and partners to create products that offer value to users in the context of our clients' loyalty and incentive programs. Our founding principal is that consumers love to be rewarded for their online activities and that due to the higher levels of conversion driven by these incentives – we create a win-‐win-‐win solution.

Some publishers may disagree with this position, and we're OK with that. The millions of consumers that love our products and the hundreds of clients leveraging our technology indicate that rewards for online behavior is a tremendous driver of value.

Disclaimer

The information contained in this report is proprietary to Convertro, Inc. and is protected by United States copyright law (17 USC §106 et seq.). You may reproduce and distribute free copies of this report, in its entirety, or use quotes or excerpts, provided that you include this notice. While we have made good faith efforts to verify the information contained in this report as of the date of publication, we cannot guarantee, and do not make any representations or warranties, that the information will be reliable, current, accurate or complete. We disclaim all liability for damages or losses arising from any use of this report or any of the information herein, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. For further information about this report, or to learn more about our products and services, please fill out the contact us form on this page: http://www.convertro.com/contact-us CONVERTRO® is a registered trademark of Convertro, Inc. Copyright © 2012 Convertro, Inc. All rights reserved.

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Rebranded Affiliate Cookie Stuffing 2.0 - Squarespace · 301 Arizona Ave, Suite 400 T 800.797.0176 [email protected] Santa Monica, CA 90401 F 888.308.9895 1 Affiliate Cookie Stuffing