Understanding Affiliate Networks and Ad Hijacking

What are Affiliate Networks?

1. Advertisers join the network and list their Advertisers join the network and list their affiliate programs. These programs offer various commission structures and creatives (banners, text ads, etc.) for paid search campaigns.
2. Affiliates, including those specialising in paid search, browse the available programs. They can filter based on their niche, target audience, and preferred commission type (CPA, CPC, etc.).
3. Once they find a relevant program, affiliates can access dedicated tracking links and creatives. These elements are specifically designed for paid search campaigns and allow for accurate tracking of clicks and conversions.
4. Affiliates then create PPC campaigns on platforms like Google Ads using the provided tracking links and creatives. They bid on relevant keywords related to the advertiser's products or services.
5. When users click an affiliate ad and land on the advertiser's website, the tracking link records the conversion. If the user completes the desired action (e.g., purchase), the affiliate earns a commission.

What is Ad Hijacking?

Ad Hijacking, also referred to as brand poaching, direct linking, or URL jacking, occurs when an affiliate attempts to imitate a brand by running ads that closely resemble the brand’s own ads.  They use similar headlines, descriptions, and display URLs to deceive users into clicking on their ads instead of the authentic brand.

There are two common types of “Ad Hijacking:”

• Affiliate ad hijacking - When an affiliate redirects directly to a brand's landing page with an affiliate link to earn commissions fraudulently.
• Imposter ad hijacking - When someone advertises ads which lead to a fake landing page which mimics authentic brands by using similar domain names that closely resemble the official pages of the impersonated business.

What happens when you click on an ad and what are the implications?

The Brand’s Ad

This is the brand’s ad that leads directly to their own site via their own tracking link. The brand pays a few cents per click.

The Affiliate Hijacker’s Ad

The affiliate places an ad that goes immediately through their tracking link to the brand’s site. They therefore are stealing the commission on any subsequent purchase and are increasing the cost-per-click on branded search terms.

The Sophisticated Hijacker’s Ad

The affiliate places an ad and masks its referral through a series of redirect URLs. The affiliate hijacker receives an unearned commission and uses evasive techniques to avoid detection. This is particularly damaging to a brand’s affiliate marketing program because it is virtually impossible to determine who the affiliate is without the help of a paid search monitoring tool.

Ad hijacking is a deceptive strategy leads to conversions and subsequent purchases, enabling the affiliate to earn a commission of 5-10% resulting in a financial loss for your brand on two fronts:

• Affiliates illicitly acquire unearned commissions from your brand
• Affiliates are inflating CPCs on your brand terms

Glossary

1. Advertiser: The owner of the product or service being promoted. They use affiliate partnerships to expand their reach and drive sales without incurring the costs of traditional advertising. E.g. Currys
2. Affiliate: An independent entity that promotes the products or services of advertisers through various channels, earning a commission on successful conversions. E.g. The individual who is running ads
3. Affiliate ID: A unique identifier assigned to each affiliate within a network. It allows networks and advertisers to monitor and track outcomes.  E.g. 57697
4. Affiliate Network: The platform, acting as a bridge between advertisers and affiliates. E.g. Awin
5. Affiliate Program: A structured plan offering affiliates commission for promoting the company's products or services.
6. Affiliate Network ID: A unique identifier for each affiliate network
7. Subnetwork ID: A unique identifier assigned to an affiliate within a parent affiliate network. Allows tracking referrals generated through multiple sub-affiliates under the same main network.
   • Example: Joe (Main Affiliate) partners with an "Top Affiliate Network." He refers Jane (Sub-affiliate) to the network, who joins with Subnetwork ID "TAN123." Any sales Jane generates are tracked under Joe’s affiliate account but with her unique Subnetwork ID.
8. Publisher: This differs when talking about more traditional affiliate advertising or paid search affiliates. 
   • Traditional affiliate publisher: Generates organic content and might include affiliate links within it
   • Paid search publisher: This can mean the same as an affiliate. Someone who partners with an advertiser to promote their product or service and then receives a commission from the advertiser whenever agreed-upon outcomes occur.