Discovering the Power and Potential of Downloadable Software Publishers (DSPs)

Among the many controversies, downloadable software publishers (DSPs)—commonly referred to as toolbars—remain one of the most polarizing subjects. Are they the unsung heroes of affiliate marketing, driving conversions and helping brands grow? Or are they villains, stealing commissions, creating confusion, and sometimes outright scamming both consumers and publishers?

In this blog post, we’ll break down both sides of the debate, dive into the recent Honey scam controversy, and discuss whether toolbars truly have a place in today’s affiliate marketing world.

The Honey Scandal: A Cautionary Tale

Before we delve into the broader debate about toolbars, let’s talk about the elephant in the room: the Honey scandal. Honey, a popular browser extension owned by PayPal, has come under fire for allegedly withholding discount codes from consumers while simultaneously harvesting influencer commissions.

The accusation? Honey reportedly deletes affiliate cookies when users click through influencer links, effectively stealing the credit for conversions that would have otherwise been attributed to those influencers. This practise undermines trust not only among influencers and publishers but also among consumers who rely on Honey for legitimate savings.

For a deeper dive into the Honey scam, you can check out Lifehacker’s investigation here. But the big takeaway? Not all toolbars or browser extensions are created equal, and the Honey scandal has only intensified the scrutiny surrounding downloadable software publishers.

Toolbar Publishers: Two Sides of the Coin

At ASW24, our panel of industry experts, hosted by the PMA, tackled the controversial topic of toolbars. We’re here to break down the key arguments for and against them to better understand their role in affiliate marketing.

The Villain Argument: Are Toolbars Stealing Commission?

On one side of the debate, Sarah Beeskow Bay, VP of North America,Silver Bean, raised some tough points about toolbars:

· Lack of Incrementality: According to Sarah, toolbars rarely drive incremental sales. She cited studies showing that customers using toolbars are already far down the purchase funnel, and the toolbar simply “claims” credit for sales that would have occurred anyway.

Example: A $20M retail program removed its toolbar partnerships, and while the affiliate program’s metrics took a hit, overall sales didn’t decline. This indicates that those conversions were driven by other channels or publishers, not the toolbar itself.

· Commission Hijacking: Toolbars have been known to override affiliate cookies, stealing commissions from other publishers who truly influenced the sale. Sarah cited a case where a toolbar overwrote commissions 83% of the time for one brand. This not only harms publishers but also muddies the attribution process.

Parallel to the Honey Scam: Tools like Honey have been accused of similar behaviour, erasing influencer cookies and unfairly taking credit for conversions.

· Poor User Experience: Toolbars often display expired or invalid coupon codes, leaving consumers frustrated. Worse, when codes don’t work, consumers blame the brand, not the toolbar, creating unnecessary customer service headaches.

The Hero Argument: Toolbars Boost Conversion Rates

On the other side, Jim Nichols, Founder, Exclamation Marketing made a compelling case for toolbars as a valuable tool for retailers:

· Higher Conversion Rates: Studies, like the recent CJ Affiliate and Namogoo report, found that toolbars can improve conversion rates by 65% on average. Even when no discount is offered, conversions can increase by 25%.

The Reason? For many consumers, toolbars simplify the shopping process by automatically applying coupons or offering cashback, creating a seamless experience that drives sales.

· Consumer Preference: Like it or not, many consumers actively choose to use toolbars. These tools cater to deal-seekers who enjoy finding coupons or cashback offers. As Jim points out, “You don’t get to decide whether I have an extension on my browser—consumers do.”

· Incremental Value for Brands: While not every toolbar may work for every brand, the right ones can help retailers increase their conversion rates and profits significantly. Jim argues that the real problem isn’t toolbars—it’s low

website conversion rates. With e-commerce averaging a dismal 3% conversion rate, any tool that improves this metric is worth exploring.

The Bigger Issue: Attribution and Transparency

One of the recurring themes in this debate is attribution. Who deserves credit for a sale?

Toolbars complicate this process by often being the last click in the conversion funnel. This raises important questions:

· Are they truly driving sales, or are they stealing credit from other affiliates and marketing channels?

· Without proper auditing and technology, how can brands differentiate between legitimate conversions and cookie stuffing?

The Honey scandal highlights the importance of transparency. If toolbars like Honey are withholding discount codes or manipulating affiliate cookies, they’re directly harming the trust between brands, publishers, and consumers.

Key Takeaways and Possible Solutions

Whether you’re a brand, affiliate, or network, here are some actionable steps to navigate toolbar partnerships:

For Brands:

· Audit Your Toolbar Partners: Don’t rely solely on network vetting. Regularly audit how toolbars interact with your website, affiliates, and consumers.

· Set Clear Publisher Agreements: Include clauses in your agreements outlining acceptable toolbar behaviour, like banning cookie overwrites or requiring approval for promotional codes.

· Use Stand-Down Technology: Many networks now offer tools to prevent toolbars from overwriting affiliate cookies or firing on traffic driven by other publishers. Make sure to use these.

For Networks:

· Educate Your Clients: Networks should proactively inform brands about stand-down tools, attribution models, and auditing options. Transparency builds trust.

· Regularly Vet Publishers: Ensure all DSPs in your network comply with ethical and transparent business practices.

For Affiliates:

· Advocate for Fairness: Publishers should advocate for split commissioning or other solutions that fairly distribute credit among all affiliates in the conversion funnel.

· Test Your Links: Regularly check whether your affiliate cookies are being overwritten by toolbars or extensions. Report any suspicious activity immediately.

So, Are Toolbars Heroes or Villains?

The answer isn’t black and white. The right toolbar partnerships, combined with proper attribution models, auditing, and consumer transparency, can be powerful tools for brands. However, as the Honey scandal shows, the wrong partnerships can erode trust and hurt the entire affiliate ecosystem.

As an industry, we must hold toolbars accountable while leveraging their potential to drive results. By focusing on transparency, education, and fairness, we can ensure that toolbars—and affiliate marketing as a whole—continue to thrive.

Want more where this came from? Be sure to grab your ticket for Affiliate Summit West 2025, heading to Las Vegas this February 3 - 5. This is not one to be missed! 

** This ASW24 debate was For or Against ToolBar Publishers