Changes to cashback and reward cookie classification have focused the industry on tech solutions and rollout plans. Here we understand the actions companies are taking to enforce the changes.
The Information Commissioner’s Office (ICO), the UK’s data regulator, recently responded to a question about using cookies for specific functions, specifically the tracking of rewards and cashback.
Cookie classification is decided according to their function, which directly impacts whether websites need to ask their users for permission to track them.
As the ICO doesn’t provide explicit guidance on every type of cookie and, by default, every type of affiliate, they offered guidance to the industry by addressing this question: “Can the use of cookies for providing a reward service qualify the cookies as ‘strictly necessary’, exempting them from the consent requirement under PECR?”.
For more information on cookie classification, consent requirements and PECR, we’ve included links at the end of this article.
Given this decision’s significant impact on the affiliate industry, we asked our members for their views and what they plan to do next.
Awin
We’re pleased that the ICO guideline is in alignment with that of other EU regulators and makes it clear that cookies used to reward customers are ‘strictly necessary’ and therefore exempt from needing consent. Awin’s own Consent Signals product supports advertisers in managing this, and we look forward to helping advertisers ensure their affiliate activity is accurately measured in light of the ICO update.
Webgains
This is a very sensible update from the ICO. Cashback and loyalty publishers are key growth drivers for a huge number of our clients, and that performance is only going to improve with this welcome clarification.
Webgains also understands that it is the responsibility of the advertiser to control whether to store first party cookies against a user.
This is an independent decision of an advertiser on how to interpret, handle or store affiliate cookies on their site/service. However, as a network, we recognise the importance of this update within the channel and are fully supportive of the optimisation of data privacy positions in the UK.
If any retailer, either currently using or considering Webgains, would like more information on how their affiliate-driven sales are tracked by us, please contact your Webgains Account Manager directly or email us.
Partnerize
Partnerize recognises that brands control whether to store cookies against the end-user, therefore, brands must make an independent decision to determine how to interpret, handle, and store affiliate cookies on their own sites.
Accordingly, it is the brand’s responsibility to determine how they wish to comply if a customer opts out of cookie consent, however, it should be noted that Partnerize relies on the use of cookies to track conversions referred by partners. In the absence of affiliate-related cookies due to consent management opt-outs, affiliate tracking could be disrupted.
With this in mind, to support advertisers in equably rewarding partners that provide loyalty, points or cash back to consumers that opt into their services, Partnerize enables advertisers to append partner type to tracking. As a result, advertisers ensure persistent tracking by overriding cookie acceptance opt-in exclusively for cashback and loyalty partners.
CJ
CJ is very pleased with the ICO’s findings. The ICO statement further supports CJ’s interpretation of, what we call, the loyalty exemption for loyalty and reward publishers.
We will use this to continue to engage with our advertisers on the education and adoption of our loyalty exemption solution as well as for new advertisers launched on our network.
Together with the statement from CNIL in France last year and now from the ICO, we hope brands and their Data Privacy teams will have more confidence in aligning with CJ’s position.
Optimise
We’re excited that the ICO has confirmed the cookie classification for reward sites and they are considered strictly necessary, meaning users on these platforms are exempt from consent capture requirements. This is great news for the affiliate marketing industry, particularly for brands leveraging reward sites to drive engagement and conversions.
At Optimise, we’ve anticipated this change and have been working closely with our clients to prepare for this update.
We are rolling out our innovative Consent Signal Tool allowing advertisers to easily manage consent requirements by partner type. The tool means advertisers can more easily exempt reward site traffic from consent capture, but still ensure full compliance for other types of traffic.
This tool gives brands greater control, streamlining the consent process while optimising the user experience. We’re encouraging our clients to engage with our Performance and Traffic teams to get support in integrating the consent signal tool, as quickly as possible, or to review their current set-up if they are unsure. There are significant benefits for brands, partners, and customers with this updated guidance, including improved tracking reliability, greater accuracy in attribution, and rewards being delivered to customers without delays. We’re excited to help our clients maximise these opportunities and ensure their affiliate programmes continue to thrive under this new framework.
Genie Ventures
This update is great news for cashback and rewards sites but we add a note of caution for the rest of the industry.
Cashback sites represent 25% of all affiliate spend and they do a great job empowering consumers, but a consequence of this exemption could be their data now over-indexes against other affiliate types whose value remains but whose contribution may not be tracked.
We need to avoid a two-tier affiliate ecosystem and want to work with all parts of the industry to create solutions that benefit all parties across the performance marketing channel.
TAMA
A well-deserved win for cashback and reward sites. We already advise clients to invest in value-adding incentives such as higher cashback for above-average basket value spends and this decision will ease our concerns about untracked sales and cut down on administrative work to process transaction queries.
Rakuten Advertising
We’re encouraged and excited that the ICO has confirmed that cookies for purposes of providing cashback or rewards may be considered “strictly necessary”. This is further positive news for the affiliate industry, following similar views previously published by the French CNIL. Rakuten Advertising supports our cashback and loyalty partners and continues to provide information and education that allows advertisers to optimise working with these partners. Our experts are on hand to support clients in adapting their affiliate tracking to reflect the newly published guidelines.
In a nutshell
Cookie classification is an evolving topic in affiliate marketing. Regulators will want to ensure they’re covering all bases and inevitably approach the interpretation of the law with caution.
There is always due diligence and stress testing that needs to be done and will continue to be done by individual companies. This clarification helps to add a high degree of certainty to the specific mechanic of a cashback or reward cookie tracking a sale that a consumer expects to be recorded.
The guidance recognises that cookies continue to do a variety of things and any cookies used to track a sale are essential, but not all cookies used by cashback or reward sites are, unless the user has also agreed to be tracked for that service too.
Further reading on cookie classification
ICO exempts affiliate and reward sites
APMA cookie consent and affiliate marketing
ICO PECR update
CNIL – French regulator outlines cookie classification
