attribution for online and offline channels

20
The Importance of Attribution in Performance Marketing CAPTURING LIGHTNING IN A JAR 1 Karl Norelius LeadsPedia Inc. Vice President of Sales

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Page 1: Attribution for Online and Offline Channels

The Importance of Attribution in Performance Marketing

CAPTURING LIGHTNING IN A JAR

1

Karl NoreliusLeadsPedia Inc.

Vice President of Sales

Page 2: Attribution for Online and Offline Channels

2

END

Page 3: Attribution for Online and Offline Channels

3

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

Page 4: Attribution for Online and Offline Channels

4

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.

Page 5: Attribution for Online and Offline Channels

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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

Email

Display Ads

Search Engine Affiliate

SocialPhone

Customer Journey

Conversion

Page 8: Attribution for Online and Offline Channels

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Page 9: Attribution for Online and Offline Channels

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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

Page 10: Attribution for Online and Offline Channels

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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

Page 11: Attribution for Online and Offline Channels

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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

Page 12: Attribution for Online and Offline Channels

12

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

Page 15: Attribution for Online and Offline Channels

15

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

Page 16: Attribution for Online and Offline Channels

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 [email protected]

615-988-9200