1	Understanding Spyware and Its Effects on Your Marketing Dollars and Your Brand Benjamin Edelman www.benedelman.org
2	Agenda What are we talking about? Examples - Affiliate programs funding spyware Protection “Loyalty” Programs Responses from advertisers, ad networks, and software developers Q&A
3	“Spyware”
4	A Typical Infected PC
5	Why Not “Adware”? Nonconsensual installations Exploits Huge bundles Poor disclosures Would anyone really agree?
6	Spyware-Delivered Ads
7	Direct Revenue Advertisement - Example
8	180solutions Advertisement - Example
9	Spyware Revenue Sources Ordinary graphical ads Affiliate commissions Syndicated pay-per-click ads
10	Spyware Revenue Sources Ordinary graphical ads Affiliate commissions Syndicated pay-per-click ads
11	180solutions Advertisement – Example
12	180solutions Serving Expedia Ads
13	Columbia House Promoted By Icannnews / MyGeek / Azoogle / Yfdmedia / aQuantive Atlas
14	Understanding the Chain of Redirects
15	Columbia House Promoted by Lengthy Chain
16	Spyware Revenue Sources Ordinary graphical ads Affiliate commissions Syndicated pay-per-click ads
17	TargetSaver & Affiliate Promoting HP via Performics
18	TargetSaver and Affiilate Promoting HP via Performics
19	Web Nexus & Aff. Wrongfully Seizing Dell Commissions via LinkShare
20	Web-Nexus and Affiliate Wrongfully Seizing Dell Commissions
21	Direct Revenue Promoting Citibank Through Azoogle & Commission Junction
22	Direct Revenue Promoting Citibank Through Azoogle & Commission Junction
23	Direct Revenue Promoting Citibank via Azoogle and Commission Junction
24	eXact Advertising & WSOnline Wrongfully Seizing Hickory Farms Commissions via LinkShare
25	Understanding the WSO Scheme
26	eXact Advertising and Affiliate Seizing Hickory Farms Commissions
27	“Loyalty Programs” The rebate “loyalty” concept Web-based shopping portals “Reminder” services Nonconsensual installations, just like spyware Revenue model much like spyware Incentive divergence between networks and merchants, much like spyware
28	“Loyalty Programs”: Installations Installations are not the only characteristic to care about!
29	“Loyalty Programs”: Installations
30	“Loyalty Programs”: Installations
31	“Loyalty Programs”: Operations Triggering on organic traffic. Triggering on PPC traffic. Triggering on other affiliates’ traffic. Why pay affiliate commissions on traffic you already have or already paid for?
32	“Loyalty Programs”: Recommendations Remember business objectives. Overall business profits Not merely making the affiliate program bigger Want loyalty to merchant, not to “loyalty program.” Consider effect on margins. Consider effect on other marketing channels. Push for flexibility. Consider: Web listings only. à e.g. Fat Wallet Exclusion from software download. If you can’t get that flexibility, consider why not.
33	What Can We Do? Affiliate Merchants Affiliate Networks Affiliates Banner ad buyers Pay-per-click advertisers
34	What Can Affiliate Merchants Do? Choose affiliate network carefully. Enforcement? Quality control? Accept affiliates carefully. “Know your affiliates.” Read online discussions with affiliates and with other affiliate managers. Run tests. Infect some PCs. Browse your site. Watch what happens. Investigate.
35	What Can Affiliate Networks Do? Revenue at any cost? Or some limits? Short-term revenue versus long-term quality. Know your partners, affiliates, and syndicators. Serious efforts at enforcement. Not just “See no evil, speak no evil.” Hands-on testing. Automation: Crawlers, robots. Performance guarantees: SLA contracts, bounties? Remember Yahoo in New York v. Intermix.
36	What Can Affiliates Do? Choose merchants and networks carefully. Look for cheaters. Warn merchants. Vmware testing Messages boards &afsrc=1
37	Agenda What are we talking about? Examples - Affiliate programs funding spyware Protection “Loyalty” Programs Responses from advertisers, ad networks, and software developers Q&A
38	Understanding Spyware and Its Effects on Your Marketing Dollars and Your Brand Benjamin Edelman www.benedelman.org