the case for conversion attribution: kenshoo and figaro digital seminar

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Smart Reinvestment:The Case for Conversion Attribution23 August 2012

Yossi Synett – Research Analytics Team Lead

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Agenda

History of Attribution

Reinvestment = Attribution

Types of Attribution Models

Viewing Data via Different Models

How to choose the right model

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History of Conversion Attribution

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The early days of PPC

2002 AdWords goes to PPC Model

2003 Yahoo! buys Overture

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The assumption: One Conversion = One Click

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Keyword 1

Green T-ShirtGreat PricesT-shirt.com

Blue T-ShirtGreat PricesT-shirt.com

Keyword 2

Red T-ShirtXL Size Available

T-shirt.com

Keyword 3

Last Click Attribution Model:•Solves conversion duplication issue•Assumes last click is most important

Discovering the need for conversion attribution

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Reinvestment = Conversion Attribution

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Reinvestment based on data

All strategic decisions in Paid Search are based on data

Forecasting & Scenarios

Algorithm Configuration

Algorithm Selection

Geographies

Devices

Sites and Content

Campaign Structure

Ad Copy & Testing

Keyword Selection

Attribution Model

Multi-Channel Data Connections

Multi-Source Data Reconciliation

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GroovyTravel.com investment strategy (with last touch attribution)

cheap flights to Mexico GroovyTravel.com

ROAS = 0.83 ROAS = 5

Total ROAS = 1.88

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GroovyTravel.com investment strategy (with last touch attribution)


ROAS = 0.9 ROAS = 2

Total ROAS = 1.63

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GroovyTravel.com path to conversion

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GroovyTravel.com investment strategy (with divide equally attribution)


ROAS = 1.54 ROAS = 2.88

Total ROAS = 1.88

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GroovyTravel.com investment strategy (with divide equally attribution)


ROAS = 1.38 ROAS = 2.33

Total ROAS = 1.64

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Last Click Attribution Undervalues FB Performance

Increase in Facebook ROI for RetailAdvertiser Based on Revenue Attribution

• Last Touch

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

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• Last Touch

• Prefer Last

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

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• Last Touch

• Prefer Last

• U-Shaped

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

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• Last Touch

• Prefer Last

• U-Shaped

• Distribute Evenly

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

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• Last Touch

• Prefer Last

• U-Shaped


• Prefer First

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

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20% 40% 60% 80% 100%

• Last Touch

• Prefer Last

• U-Shaped


• Prefer First

• First Only

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

2020

Types of Attribution

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Keyword 1



Keyword 2

Red T-ShirtXL Size

AvailableT-shirt.com

Keyword 3

Industry Default Model

Attribution Models: Last click

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Attribution Models: Linear

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Single Click Only (First or Last)

Keyword 1



Keyword 2

Red T-ShirtXL Size


Keyword 3

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Attribution Models: Non Linear

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly


Keyword 1



Keyword 2

Red T-ShirtXL Size


Keyword 3

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Attribution Models: Distribute evenly

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly


Keyword 1



Keyword 2

Red T-ShirtXL Size


Keyword 3

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Attribution Models: Single Point

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly


Keyword 1



Keyword 2

Red T-ShirtXL Size


Keyword 3

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Viewing Data via Different Models

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Considering multiple channels using the Kenshoo Attribution Model Simulator

Leading pet supply cataloger using last touch attribution

Brought data from various channels (e-mail, CSE, display) into Kenshoo

Using the Kenshoo Attribution Model Simulator, they were able see the best and worst case ROI for a given channel under different models

They could also determine which model was the best fit for their business by seeing how different channels would benefit or lose from changing models

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Case Study: Moving away from last click

U.S. national service center chain increases ROI by changing attribution model following a multi-model attribution analysis//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Key Lessons

• Different regions have different behaviors

• Last click model was holding back potential new to file customers

• Prefer last model better allocated money

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How to choose the right model

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Get insights

• Any single model will only show a single viewpoint, compare different models for the most comprehensive view

• Lower costs by pruning ads that have no touch-points in any conversion attribution model

• Expand assisting keywords to find new traffic generators and widen you market reach

• Don’t miss the forest for the trees, apply real world categories and use your own business logic to make attribution model decisions

❙[Don’t worry, Kenshoo can help with this]

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Thank you

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the case for conversion attribution: kenshoo and figaro digital seminar

Technology

click attribution model

attribution cheap flights

comtotal roas

facebook roi

investment strategy

revenue attributionfirstprefer

touch attributioncheap

conversion attribution23