Post on 22-Aug-2015
The Importance of Attribution in Performance Marketing
CAPTURING LIGHTNING IN A JAR
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Karl NoreliusLeadsPedia Inc.
Vice President of Sales
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END
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What is Attribution?
Attribution is the process of identifying a set of user actions, or events, that contribute in some manner to a desired outcome, and then
assigning value to each of these events.
-Interactive Advertising Bureau
Performance-based AttributionFor online and offline marketers
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The Future of Digital MarketingStill growing through 2015
3 billion Internet Users
2 billion Smart-Phone Users
600 billion in Ad Spend
Programmatic to Double by 2016
Market expansion and device variation is leading to increased opportunities for profit, while creating additional complexities in tracking the consumer journey from end to end.
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Overview
Methodologies
Attribution
Challenges
Tactics
01020304
The foundation of marketing attribution and why it’s important to address in the current market
Key challenges and where they are faced
Tactics and recommendations for addressing attribution effectively
The various methods of attribution as they relate to online and offline channels
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Why focus on Attribution?
18%53%54%58%65% Understanding customer behavior
Understanding where to apply spendJusifying marketing budgetOptimizing campaign performanceFinding the most accurate CPA/CPI
Understanding
Australian study conducted in October 2014 by AdRoll, State of the Industry Australia
Optimization
Compensation
Accurately measure the ROI of various campaigns
Optimize campaign performance based on clear data
Determine payment for key channels to further drive performance
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Attribution and the Customer JourneyManaging a myriad of touch-points
Display Ads
Search Engine Affiliate
SocialPhone
Customer Journey
Conversion
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9
Methodologies
Last Interaction / Last Click
Challenges
Tactics
100%
Last Non-Direct Click
First Interaction / First Click
Methodologies
Linear
Time Decay
Position Based
TacticsCustomized
Digital Attribution MethodologiesManaging a myriad of touch-points
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Methodologies
Last Interaction / Last Click
Challenges
Tactics
Last Non-Direct Click
First Interaction / First Click
Methodologies
Linear
Time Decay
Position Based
TacticsCustomized
100%
Digital Attribution MethodologiesManaging a myriad of touch-points
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Methodologies
Last Interaction / Last Click
Challenges
Tactics
Last Non-Direct Click
First Interaction / First Click
Methodologies
Linear
Time Decay
Position Based
TacticsCustomized
100%
Digital Attribution MethodologiesManaging a myriad of touch-points
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Methodologies
Last Interaction / Last Click
Challenges
Tactics
Last Non-Direct Click
First Interaction / First Click
Methodologies
Linear
Time Decay
Position Based
TacticsCustomized
14.3% 14.3% 14.3% 14.3% 14.3%14.3% 14.3%
Digital Attribution MethodologiesManaging a myriad of touch-points
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Methodologies
Last Interaction / Last Click
Challenges
Tactics
Last Non-Direct Click
First Interaction / First Click
Methodologies
Linear
Time Decay
Position Based
TacticsCustomized
15%17%
26%19%
23%
Digital Attribution MethodologiesManaging a myriad of touch-points
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Methodologies
Last Interaction / Last Click
Challenges
Tactics
Last Non-Direct Click
First Interaction / First Click
Methodologies
Linear
Time Decay
Position Based
TacticsCustomized
40%40%
4% 4% 4% 4% 4%
Digital Attribution MethodologiesManaging a myriad of touch-points
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Methodologies
Last Interaction / Last Click
Challenges
Tactics
Last Non-Direct Click
First Interaction / First Click
Methodologies
Linear
Time Decay
Position Based
TacticsCustomized
14%
4%
21%8%
30%
6%
17%
Digital Attribution MethodologiesManaging a myriad of touch-points
MultiChannel (All influencing touchpoints)
Last Touch (Conversion)
First and Last Touch (Lead source and conversion)
First Touch
Other
Don't have an attribution model in place
Percentage of attribution Model Used16
2014 Attribution Modeling Usage
21%
19%
15%
9%
18%
38%
Attribution models used by B2B and B2C Marketers to measure ROI, Nov 2014
Source: Webmarketing123 “2015 State of Digital Marketing” Feb 10,2015
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Driving FactorsAdditional criteria when defining your attribution model
PathThe journey of the consumer towards conversion
Engagement DepthEach type of event has its own level of engagement per user
Timing & RecencyThe amount of time between
events or the number of intervening events prior to
conversion
FrequencyHow many times a particular
event occurs
Sequence PositionThe point at which a particular
event took place through the marketing funnel
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Attribution ChallengesMaking the most out of the data you have available
The funnel is inherently complicated
Conversion pathways are inconsistent
Incomplete Data and Identifiers
• Incomplete Data Sets• Coverage• Time
• User Identifiers• Multiple Devices/Screens• Multiple Media Types
• Offline/Online
How do you recognize and track digitalcustomer journeys while taking into accountthe myriad touch points?
How do you efficiently and accurately manageyour budget to take advantage of your best performing channels?
How do you effectively determine which channels get credit?
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ConsiderationsAttribution modeling for your business
IntegrationFrom call tracking to affiliate management and lead distribution to reporting analytics, utilizing
data in a centralized location has its benefits
Protect yourselfDetermine and automate fraud controls
Pay for the traffic you wantEnsure you are driving the right type of actions from the right sources
Close the loopIntegration back with internal CRM data or client metrics to better understand top channels
Multi-pronged approachEvery business is different. Use a
combination of marketing mix modeling and attribution based on your needs
Establish parametersDefine your ideal approach
Clear reporting for analysisIncreased data transparency allows
for quick decisions and optimization
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Thank you!If you would like to discuss anything covered in this presentation
further, or learn more about the services LeadsPedia provides, please stop by our table or contact me directly.
Karl NoreliusVice President of SalesKarl@LeadsPedia.com
615-988-9200