Why Coupon Code Aggregators are Costing you more than just Revenue

As we navigate through 2024, the question isn't just about whether influencer marketing is still relevant; it's about executing influencer campaigns that offer genuine ROI. A significant area of concern? Coupon code aggregators. Read to find out about the risks of these sites, the implications of Google's latest policy changes, and how Squaredance addresses these concerns.

Squaredance team

May 6, 2024

In the ever evolving world of DTC brands, leveraging influencers has become a cornerstone of digital marketing strategies. As we navigate through 2024, the question isn't just about whether influencer marketing is still relevant; it's about executing influencer campaigns that offer genuine ROI without falling prey to the pitfalls of the industry. A significant area of concern? Coupon code aggregators. 

In March 2024, Google announced a series of pivotal updates aimed at enhancing the quality of content on its search engine. Among these, the introduction of a new policy against Site Reputation Abuse is set to be enforced starting May 5th, 2024. This marks a momentous shift in how content, particularly third-party coupon sites, is vetted for authenticity and value. 

The policy states, “We’ll now consider very low-value, third-party content produced primarily for ranking purposes and without close oversight of a website owner to be spam.” Source: Google

This crackdown on manipulative practices underscores the need for stringent content governance, aligning with the broader aim of enhancing users' search experience by delivering more meaningful, high-quality content.

The Reliance on Coupon Code Aggregators

Coupon code aggregators have become a regular occurrence in the brand-and-influencer partnership. These platforms collect and display discounts from various brands, offering a one-stop shop for consumers seeking deals. 

When DTC brands work with influencers, coupon codes seemingly present a win-win: brands increase sales and visibility, while consumers enjoy savings. But why do brands rely on them so heavily? The answer lies in their perceived efficiency and reach, providing an accessible means for customers to find discounts all in one place.

The Drawbacks of Using Coupon Code Aggregators

However, this reliance is not without its significant drawbacks. Brand dilution, code misuse, and a lack of control over distribution have emerged as critical issues.

Brand dilution occurs when your carefully crafted brand image is lumped together with countless others in a bargain bin scenario.

Code misuse and sharing on unauthorized platforms can lead to loss of revenue and an inability to accurately track the performance of marketing campaigns.

The lack of control over distribution means that highly discounted offers intended for a specific audience can quickly become widespread, undermining pricing strategies and hurting the brand's perceived value.

More recently, the pitfalls of coupon code aggregators have become increasingly evident in light of Google's new Site Reputation Abuse policy. Google even highlights the issue of “a news site hosting coupons provided by a third-party with little to no oversight or involvement from the hosting site, and where the main purpose is to manipulate search rankings” as a classic example of site reputation abuse. Source: Google

This development adds a critical layer of complexity for brands utilizing coupon codes as part of their marketing strategy. The reliance on aggregators could significantly diminish the effectiveness of coupon codes as a marketing tool, given the potential for decreased visibility in search results.

Effective Use of Coupon Codes

To leverage coupon codes effectively without these drawbacks requires a strategic approach favoring precision over jumbled distribution. This involves:

Targeted Distribution: Sharing codes with audiences that demonstrate high engagement and interest in your brand.

Exclusivity and Scarcity: Creating a sense of exclusivity and scarcity can increase the perceived value of your offer.

Performance Tracking: Using unique coupon codes for different influencers or campaigns to precisely monitor which strategies are driving sales.

Squaredance Does Coupon Codes Differently

Enter Squaredance’s new coupon code feature. Designed to address these common pain points directly, here’s what you can expect: 

  • High-Quality Affiliate Network: By cultivating a network of high-quality affiliates, Squaredance ensures your coupon codes are distributed responsibly, preserving your brand's integrity.
  • Measurable Performance: Influencers can generate their own unique codes, allowing for precise tracking of each partner's performance. This data-driven approach empowers brands to allocate resources effectively, optimizing ROI.
  • Custom Payouts: Squaredance allows brands to set custom payouts for each coupon code to create alignment with business objectives.

In an era where DTC brands are keen on refining their marketing mix with influencer partnerships, the importance of strategic coupon code management cannot be overstated, especially now. Squaredance’s solution not only mitigates the risks associated with coupon code aggregators but also enhances the effectiveness of your influencer marketing campaigns.

Explore the potential of coupon codes on Squaredance and witness the transformative impact on your influencer marketing campaigns.

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