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Whitepaper



               Contents        Attribution Analysis–Best Practices for Finding Your
              Quick Links
                               Path to Success
                               One of the persistent challenges marketers face is how to most effectively manage
               Introduction    their marketing spend to achieve the best outcome for their advertising programs.
                     [PG. 1]
                               This is further compounded when independently managing multiple online channels

       Track and Manage        (e.g., display, paid search, natural search, affiliate, social, mobile and email
   Marketing Channels on       marketing programs) with little to no visibility into how these programs may
        a Single Platform
                               impact each other. How can marketers better understand how each component
                    [PG. 2]
                               of their marketing program is really affecting conversions to make truly informed
  Path to Conversion Data      decisions? While managing to the true Return on Ad Spend (ROAS) across marketing
Combined with Intelligent,     channels is the desired outcome, how can marketers do this in both a cost-
         Ongoing Analysis
                               effective and meaningful way to achieve the results they desire?
                    [PG. 3]


Path to Conversion Studies:    These challenges illustrate the importance of understanding how each component
           Client Examples     of your marketing activity impacts desired conversion activity. After all, without
                     [PG. 5]
                               these insights, how can you make the informed decisions to drive optimal results?
      Conclusion and Key       In a recent report on the value of integrating search and display channels,
 Takeaways for Marketers       eMarketer further underscores this sentiment, explaining:
                  [PG. 11]

                                           “Most conversions occur as a result of long-term, complex interactions
                                            among a variety of ads and marketing channels. However, even after
                                            years of research, some marketers still give more weight to the
                                            consumer’s last click – often on search results, both ads and organic
                                            listings- than any other step in the purchase funnel leading to conversion.
                                            That mistaken notion makes it hard to effectively blend search and display
                                            advertising into an overall campaign and allocate spending based on
                                            true performance.”1


                               This whitepaper reviews best practices to help you understand what is really driving
                               conversion activity across all your online marketing channels and sites, and how these
                               valuable insights can help you make better decisions around marketing spend allocation
                               for optimal ROAS. You will learn the importances of the following practices:


                                           ✓ Track and manage all your marketing programs through one system


                                           ✓ Gather and identify the Path to Conversion data you will need to answer
                                              your questions

                               1
                                   Hallerman, D. (2011, April). Integrating Search and Display: Tactics for More Effective Advertising.
                               Retrieved from eMarketer database.




                               www.mediaplex.com                                    © 2011 Mediaplex, Inc. All Rights Reserved       1
✓ Identify the right questions to put you on the road to success


        ✓ Apply both data and analysis to deliver your specific formula
           for success


        ✓ Commit to ongoing data collection, analysis and refinement




Track and Manage Marketing Channels on a
Single Platform
Before marketers can even begin to understand how their marketing channels
influence each other and impact conversion activity, they must first ensure they
are properly tracking and managing all of their marketing channels in unison –
using a single system. Even if marketers are using various, independent solutions
for managing paid search or email, for example, those marketing channels should
still use a unified analytics platform for tracking clicks and impressions. Moving to
a single, comprehensive platform allows marketers to accurately track conversions
and view consumer interaction data from ALL online channels and sites, as well as
establish the baseline for how they will define the data for any future analysis.



Path to Conversion® Data

Now that a solid foundation for consistently tracking and managing all the
data across online activity has been established, the next step is to take a look
at identifying all the different paths, or sequence of events, a user took that
led to the conversion event. This view into the entire path of events leading
up to a conversion plays a critical role in helping marketers understand the
true performance of their marketing efforts across all the different programs
and channels they are now tracking. This data delivers the critical information
necessary to understand how the advertising campaigns work together with a
single marketing objective, rather than as channels in silos competing against
each other.


The sequence of events leading up to a conversion is known as Path to Conversion
data. Examples of these events include impressions, clicks and any other tracked
event within a marketing channel. Path to Conversion data allows advertisers
to view and analyze their media buys beyond the last click event - giving them
greater insight into their data by revealing the entire path of events leading up to
a conversion.




www.mediaplex.com                          © 2011 Mediaplex, Inc. All Rights Reserved   2
Path to Conversion Data Combined with
                  Intelligent, Ongoing Analysis
                  Once the foundation for the data has been established, and the relevant data paths for
                  the conversion activity have been gathered, the next step is to establish the questions
                  marketers want answered in order to achieve their goals. Years of experience
                  demonstrate there is no one size fits all approach to understanding the Path to
                  Conversion. Marketers should evaluate their specific business goals and objectives
                  alongside their Path to Conversion data in order to develop a customized solution
                  that they can then continue to optimize and refine.


                  The following attribution framework is useful in helping marketers identify the
                  marketing mix variables (sites, creatives, channels, etc.) and conversion types
                  (e.g. number of orders, number of sales, number of registrations, etc.) that apply
                  to their current business in order to identify which pieces are most relevant. The
                  subsequent Path to Conversion analysis then shines a light on the process through
                  which the marketing mix variables generate conversions. It shows how the
                  marketing mix variables interact, where adjusting spending on the marketing mix
                  variables can lead to more efficient conversion generation, and how marketers can
                  create more conversions. For example, marketers looking to achieve maximum




 SITES
                                      ATTRIBUTION FRAMEWORK

   Site 1


   Site 2                                                                                      ROI 1
                                                                                                 orders
   Site 3



CREATIVES     CUSTOMER PROFILE

    Size                   New
                                       Introducers    Influencers       Converters
  Content                 Return

                                           Profile & Event Data                                ROI 2
 Rich Media             Attribute 1                                                              sales

                                       Broad Search   Fuzzy Search      Exact Search
  Dynamic
 Messaging               Profile 1



       CHANNELS
              Natural
  Display     Search

               Paid
   Email      Search
                                                                                               ROI 3
                                                                                              registrations
  Offsite     Social


  Affiliate   Mobile




  Marketing Mix                                                                           Conversions


                  www.mediaplex.com                                  © 2011 Mediaplex, Inc. All Rights Reserved   3
scale with their marketing investment will often focus as much attention toward
the top of the funnel as the bottom of the funnel, and optimizing the significant
role introducers play in generating conversions. Path to Conversion provides the
insights to support these sophisticated goals, enabling marketers to make the
most effective adjustments to the marketing mix and achieve the desired results.


After the attribution framework has been identified, marketers can begin to define
the key questions they want answered by their Path to Conversion model. Once
they have selected the right questions, they can then set out to determine the
time frame during which they need their activities to run and be measured before
beginning to analyze the data. When phrasing each question, they should try to
do so in the form of a testable hypothesis. An example of this might be stated as:
True or false? Display and paid search can be proven to perform better with users
who have interacted with both. Oftentimes, when first approaching the process,
the advertiser may not realize that the answers are not always black and white,
but more like shades of grey. Framing a question as a hypothesis helps the marketer
focus the study. Once a marketer has identified the questions, the data and
analysis will reveal if the answers to the questions are statistically significant.


After establishing the questions for the study, the following is recommended:


• Track and analyze Path to Conversion data for one month. This timeframe is an
 average which may vary depending on the volume of the data.


• For each conversion, include up to the last 10 impression (14 day window), last
 10 click (120 day window), and last 10 natural search (30 day window) events.


• Path to Conversion data should include all media exposures within the utilized
 marketing channels.


• All Path to Conversion data should be tracked and managed in a single
 technology platform.


Once Path to Conversion data has been captured for the established time period,
the analysis can begin.




www.mediaplex.com                           © 2011 Mediaplex, Inc. All Rights Reserved   4
Path to Conversion Studies: Client Examples
Let’s review how a few advertisers framed successful Path to Conversion studies
to not only ensure they were properly crediting conversions, but also using the
information to better allocate marketing spend across all relevant sites and
marketing channels for the best possible performance.


The following five questions provided these advertisers with the right mix of data
and actionable insights to better understand what drove conversions, as well as
how to use this information to refine their media decisions and spend to most
positively impact their bottom lines.



1) Which marketing channels are influencing response rates?

To answer this question, the following two types of analysis were performed:


Channel Analysis: This shows the number of conversions credited to each
channel based on single attribution (conversions won), and how many conversions
were influenced by the channel (conversions influenced).


Cross-Channel Analysis: This shows how one channel is having an impact on
another channel’s conversions. This type of analysis may reveal that one channel
is simply self-sufficient in converting users while another channel is heavily
influenced by other channels.
                                                                                Source: Mediaplex

Convert      Media       Conversions   Conversions   Paid     Affiliate   Display      Email
Channel      Exposures   Influenced    Credited      Search
 Paid        110,293     97,270        96,347        96,347   548         11,327        232
 Search
 Affiliate   44,754      28,364        27,669        504      27,669      3,456         82
 Display     130,118     34,246        17,491        281      56          17,491        50
 Email       11,674      9,058         8,694         138      91          1,971         8,694
 Total       296,838     168,938       150,202       97,270   28,364      34,246        9,058



                                                     Influence % of Conversions Credited

 Convert     Media       Conversions   Conversions   Paid     Affiliate   Display      Email
 Channel     Exposures   Influenced    Credited      Search
 Paid        37%         65%           64%           100%     1%          12%          0%
 Search
 Affiliate   15%         19%           18%           2%       100%        12%          0%
 Display     44%         23%           12%           2%       0%          100%         0%
 Email       4%          6%            6%            2%       1%          23%          100%




www.mediaplex.com                                © 2011 Mediaplex, Inc. All Rights Reserved         5
Answer

As a result of this analysis, the advertiser learned the following:


• The most valuable insight in this study is that display has a much bigger impact
 on conversions than is obvious from the standard last click attribution. It
 influenced nearly twice as many conversions (23%) as it was credited (12%).


• Paid search accounted for 37% of all media exposures but influenced 65% of
 conversions and was credited with 64% of conversions.


• Display accounted for 44% of all media exposures but influenced 23% of
 conversions and was credited with only 12% of conversions.


• 12% of the conversions that were credited to the paid search channel were
 influenced by display.


• Email played a significant role only in conversions credited to that channel.



2) How does a channel’s ROAS change when that channel’s
impact on non-credited conversions is included?


To answer this question, standard conversion metrics, along with path to
conversion (influence) metrics, were collected and analyzed to more effectively
evaluate performance of the entire media plan. Standard conversion metrics help
identify which media buys are effective “converters.” Path to Conversion metrics
and analysis help identify and quantify the value of “influencers” on conversions.
The following Path to Conversion performance metrics were then applied to
answer this question:


• Conversions influenced


• Cost per conversion influenced


• Average revenue per conversion influenced




www.mediaplex.com                          © 2011 Mediaplex, Inc. All Rights Reserved   6
Source: Mediaplex

Media Buy      Conversions   % Total       Total Cost   Cost Per     Conversions   % of Total    Total P2C   Avg. # of    Cost Per     Avg.
               Won           Conversions                Conversion   Influenced    Conversions   Media       P2C Media    Conversion   Revenue
                             Won                        Win                        Influenced    Exposure    Exposure     Influenced   Per
                                                                                                             per                       Conversion
                                                                                                             Conversion                Influenced
                                                                                                             Influenced

Advertising.   201           9.70%         $20,000      $99.50       301           14.60%        1220        4.1          $66.45       $115.23
com

AOL.com        246           11.90%        $25,000      $101.63      299           14.50%        814         2.7          $83.61       $134.56

Google.        301           14.60%        $20,500      $68.11       378           18.30%        822         2.2          $54.23       $138.22
com

MSN            211           10.20%        $20,000      $94.79       239           11.60%        1083        4.5          $83.68       $111.55

Yahoo.com      263           12.70%        $30,000      $114.07      426           20.60%        1878        4.4          $70.42       $147.30

Other          846           40.90%        $115,500     $136.52

Total          2068          100%          $231,000     $111.70




                     Answer

                     Including the supporting role of a media exposure in leading to a conversion can
                     have a dramatic impact on valuing the benefits of media spending. At first glance,
                     analysis shows us when using standard metrics that the MSN buy appears to be
                     the better performing media buy with a $94.79 cost per conversion. But when
                     the Path to Conversion metrics are incorporated, one will notice that the Yahoo
                     buy may be the more efficient and effective media buy in the overall impact on
                     all conversions.


                     • Yahoo was credited with 12.7% of total conversions but had an influence on
                      20.6% of total conversions.


                     • Yahoo interacted 4.4 times with the conversions that it influenced (slightly less
                      than MSN at 4.5).


                     • Yahoo had a lower “cost per conversion influenced” than MSN ($70.42 vs. $83.68).


                     • Yahoo also influenced conversions that had a higher revenue value than MSN
                      ($147.30 vs. $111.55).




                     www.mediaplex.com                                             © 2011 Mediaplex, Inc. All Rights Reserved                    7
3) What are the effects of generic search terms on branded
   search terms?

To answer this question, the advertiser first identified branded keywords. An
example of a branded keyword would be the name of the company or product.
Next the advertiser reviewed the conversion path data to identify how many times
a relevant, non-branded keyword preceded a branded keyword in the conversion path.

                                                           Source: Mediaplex

Search Type               Wins                    Share of Wins
Branded                   14,495                  71%
Not Branded               6,023                   29%
Total                     20,518                  100%


Number of Generic         Number of Search Wins   Number of Search Wins
Search Words Before
First Branded Search
Event in Branded
Search Win
0                         9,453                   65%
1                         4,220                   29%
2                         800                     6%
3                         12                      0%
4                         4                       0%
5                         4                       0%
7                         1                       0%
8                         1                       0%




Answer

• 29% of the search channel wins were based upon keywords that were not
 brand specific. This is a significant lift above an earlier study where they only
 accounted for 10% of the keyword wins.


• Non-branded keywords had a noticeable influence on branded search wins. 35%
 of brand keyword search wins had a non-branded search event occur somewhere
 earlier in the Path to Conversion.


• 9,453 of the 20,518 Search channel wins (46%) were based upon someone
 already searching for the client, using search as more of a navigational rather
 than influential tool.




www.mediaplex.com                             © 2011 Mediaplex, Inc. All Rights Reserved   8
4) What are the most common multi-site paths to conversion?

    To answer this question, the full path to conversion data for the last 20 events
    prior to conversion was analyzed.

                                                                                                                 Source: Mediaplex

Top 6     Conversions   Events   Winning   Entire    Last Event      2nd Last       3rd Last       4th Last       …    10th
Paths     Won           In       Timelag   Path                                                                        last
                        Path     (Median   Length
                                 Hours)    (Median
                                           Hours)

1         358           10       1.39      19.71     Advertising.    Right Media    Right Media    Right Media    …    Right Media
                                                     com Display     Display        Display        Display             Display

2         346           2        0.77      0.93      Advertising.    ValueClick                                   …
                                                     com Display     Display

3         202           2        0.04      0.38      Yahoo           Advertising.                                 …
                                                     Search          com Display

4         151           3        0.04      0.35      ValueClick      Advertising.   Advertising.                  …
                                                     Display         com Display    com Display

5         141           3        0.22      7.82      ValueClick      ValueClick     Advertising.                  …
                                                     Display         Display        com Display

6         140           10       0.31      0.33      Advertising.    ValueClick     ValueClick     ValueClick     …    ValueClick
                                                     com Display     Display        Display        Display             Display

...2000




    Answer

    • Long path conversions (3+ events) are driven by either Right Media or
        ValueClick.com impressions. Advertising.com is involved in shorter
        path conversions.


    • Time lags between the last event and the conversion are also identified,
        as well as the time taken for the entire conversion path.




    www.mediaplex.com                                               © 2011 Mediaplex, Inc. All Rights Reserved                      9
5) What is the impact of changing the attribution model from
                            last click to first click?

                                                                        1st Click Events
                                                                          Not Credited
                                                                        with Conversions

                                                                                                                                   Source: Mediaplex

Convert    Conversions   Conversions   Media    $ Per        Display   Email   Social     Natural   Paid     Re-Scored     Re-Scored      Re-Scored
Channel    Credited      Credited      Spend    Conversion                     Networks   Search    Search   Conversions   Conversions    $ Per
                         Share                                                                               Credited      Credited       Conversion
                                                                                                                           Share

Display    2000          44%           $2,000   $1.00                  20                 30        400      2,450         54%            $0.82
Email      300           7%            $600     $2.00        (20)                                   75       355           8%             $1.69
Social     500           11%           $1,000   $2.00                                                        500           11%            $2.00
Networks

Natural    200           4%            -        -            (30)                                            170           4%             -
Search

Paid       1500          33%           $750     $0.50        (400)     (75)                                  1,025         23%            $0.73
Search

Total      4,500         100%          $4,350   $0.97        (450)     (55)    -          30        475      4,500         100%           $0.97




                         Answer

                         • Display gets credit for 20 email attributed conversions, 30 natural search
                           attributed conversions and 400 paid search attributed conversions. This
                           increases its conversion share from 44% to 54%, a 22% increase.


                         • Paid search gives 400 attributed conversions to display and 75 attributed
                           conversions to email, dropping its share by 30%, from 33% to 23%.


                         • Re-scoring the cost per conversion drops the display cost per conversion from
                           $1.00 to $0.82, and increases paid search from $0.50 to $0.73.


                         These questions and resulting answers are great examples of how advertisers
                         were able to frame successful Path to Conversion studies in order meet their
                         specific goals and objectives. These examples also further demonstrate that Path
                         to Conversion data is unique to each organization, so marketers need to decide
                         the questions that will be most actionable for them based on their own marketing
                         channels and sales cycles. This should also be approached as a continuous process
                         on the path to achieving the greatest ROAS. The following are examples of some
                         other potential questions marketers may want to ask:




                         www.mediaplex.com                                              © 2011 Mediaplex, Inc. All Rights Reserved                10
• What are the effects of display on search (both paid search and natural search)?


• How many times is your advertising interacting with users prior to their conversion?


• Is a long haul campaign with multiple media exposures over a long time or short
 intense bursts of media more rewarding?


• How many different creatives do customers usually see before they convert?


• How do channels differ in latency (time between media exposure and
 conversion)?


• How does the conversion lift from display ads diminish over time?




Conclusion and Key Takeaways for Marketers
Finding the right formula for attribution success will certainly vary from business
to business, but by following the fundamentals outlined above, marketers can be
confident they are moving in the right direction. While many takeaways may be
gleamed from this whitepaper, the following key benefits of attribution analysis
further underscore the importance of getting started now if you haven’t already:


1. Achieve better ROAS – Reviewing your conversion path data will reveal the
  true role of all your sites and channels in the conversion process, yielding
  significant insights you cannot gleam from a single attribution model. This will
  allow you to confidently and successfully allocate marketing spend to the sites
  and channels that will yield the best ROAS.


2. Deliver more effective messages – Path to Conversion helps you to
  understand the role each site and channel plays in the conversion process.
  Knowing which one plays the role of “the introducer” or “the influencer” or
  “the converter” allows you to most effectively message to you audience
  based on the site’s specific role in the conversion path.


3. Understand true ROI behind search activity – Reviewing the conversion
  paths within paid and natural search clearly separates branded keywords from
  non-branded ones. This allows you to identify what really generates new
  recruitment of users to your site from online advertising activities versus those
  users who are strictly clicking on branded keywords as a means of site
  navigation.




www.mediaplex.com                          © 2011 Mediaplex, Inc. All Rights Reserved   11
About Mediaplex


Mediaplex provides cross-channel advertising technology solutions and services that enable
marketers to achieve one-to-one messaging, greater efficiencies and a competitive edge through
insightful reporting and analytics. Our team of industry experts focuses on putting the customer first,
providing advanced technology solutions alongside consulting services for the greatest return on
their marketing spend. Our ability to blend technology, campaign experience and customized expert
analysis gives our clients more than just a product or service but a true partnership. Since 1996,
Mediaplex has serviced more than 20,000 marketers and currently manages more than $1 billion
in annual digital ad spend for its clients, which include AccuQuote, eBay, Shutterfly, Sirius, United
Airlines and Wells Fargo.


Contact Us to Learn More


Mediaplex Headquarters
160 Spear Street, 15th Floor, San Francisco, CA 94105
415.644.1400 direct | 1.877.402.7539 toll free
info@mediaplex.com


Visit us online at www.mediaplex.com




www.mediaplex.com                                   © 2011 Mediaplex, Inc. All Rights Reserved       12

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Attribution Analysis

  • 1. Whitepaper Contents Attribution Analysis–Best Practices for Finding Your Quick Links Path to Success One of the persistent challenges marketers face is how to most effectively manage Introduction their marketing spend to achieve the best outcome for their advertising programs. [PG. 1] This is further compounded when independently managing multiple online channels Track and Manage (e.g., display, paid search, natural search, affiliate, social, mobile and email Marketing Channels on marketing programs) with little to no visibility into how these programs may a Single Platform impact each other. How can marketers better understand how each component [PG. 2] of their marketing program is really affecting conversions to make truly informed Path to Conversion Data decisions? While managing to the true Return on Ad Spend (ROAS) across marketing Combined with Intelligent, channels is the desired outcome, how can marketers do this in both a cost- Ongoing Analysis effective and meaningful way to achieve the results they desire? [PG. 3] Path to Conversion Studies: These challenges illustrate the importance of understanding how each component Client Examples of your marketing activity impacts desired conversion activity. After all, without [PG. 5] these insights, how can you make the informed decisions to drive optimal results? Conclusion and Key In a recent report on the value of integrating search and display channels, Takeaways for Marketers eMarketer further underscores this sentiment, explaining: [PG. 11] “Most conversions occur as a result of long-term, complex interactions among a variety of ads and marketing channels. However, even after years of research, some marketers still give more weight to the consumer’s last click – often on search results, both ads and organic listings- than any other step in the purchase funnel leading to conversion. That mistaken notion makes it hard to effectively blend search and display advertising into an overall campaign and allocate spending based on true performance.”1 This whitepaper reviews best practices to help you understand what is really driving conversion activity across all your online marketing channels and sites, and how these valuable insights can help you make better decisions around marketing spend allocation for optimal ROAS. You will learn the importances of the following practices: ✓ Track and manage all your marketing programs through one system ✓ Gather and identify the Path to Conversion data you will need to answer your questions 1 Hallerman, D. (2011, April). Integrating Search and Display: Tactics for More Effective Advertising. Retrieved from eMarketer database. www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 1
  • 2. ✓ Identify the right questions to put you on the road to success ✓ Apply both data and analysis to deliver your specific formula for success ✓ Commit to ongoing data collection, analysis and refinement Track and Manage Marketing Channels on a Single Platform Before marketers can even begin to understand how their marketing channels influence each other and impact conversion activity, they must first ensure they are properly tracking and managing all of their marketing channels in unison – using a single system. Even if marketers are using various, independent solutions for managing paid search or email, for example, those marketing channels should still use a unified analytics platform for tracking clicks and impressions. Moving to a single, comprehensive platform allows marketers to accurately track conversions and view consumer interaction data from ALL online channels and sites, as well as establish the baseline for how they will define the data for any future analysis. Path to Conversion® Data Now that a solid foundation for consistently tracking and managing all the data across online activity has been established, the next step is to take a look at identifying all the different paths, or sequence of events, a user took that led to the conversion event. This view into the entire path of events leading up to a conversion plays a critical role in helping marketers understand the true performance of their marketing efforts across all the different programs and channels they are now tracking. This data delivers the critical information necessary to understand how the advertising campaigns work together with a single marketing objective, rather than as channels in silos competing against each other. The sequence of events leading up to a conversion is known as Path to Conversion data. Examples of these events include impressions, clicks and any other tracked event within a marketing channel. Path to Conversion data allows advertisers to view and analyze their media buys beyond the last click event - giving them greater insight into their data by revealing the entire path of events leading up to a conversion. www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 2
  • 3. Path to Conversion Data Combined with Intelligent, Ongoing Analysis Once the foundation for the data has been established, and the relevant data paths for the conversion activity have been gathered, the next step is to establish the questions marketers want answered in order to achieve their goals. Years of experience demonstrate there is no one size fits all approach to understanding the Path to Conversion. Marketers should evaluate their specific business goals and objectives alongside their Path to Conversion data in order to develop a customized solution that they can then continue to optimize and refine. The following attribution framework is useful in helping marketers identify the marketing mix variables (sites, creatives, channels, etc.) and conversion types (e.g. number of orders, number of sales, number of registrations, etc.) that apply to their current business in order to identify which pieces are most relevant. The subsequent Path to Conversion analysis then shines a light on the process through which the marketing mix variables generate conversions. It shows how the marketing mix variables interact, where adjusting spending on the marketing mix variables can lead to more efficient conversion generation, and how marketers can create more conversions. For example, marketers looking to achieve maximum SITES ATTRIBUTION FRAMEWORK Site 1 Site 2 ROI 1 orders Site 3 CREATIVES CUSTOMER PROFILE Size New Introducers Influencers Converters Content Return Profile & Event Data ROI 2 Rich Media Attribute 1 sales Broad Search Fuzzy Search Exact Search Dynamic Messaging Profile 1 CHANNELS Natural Display Search Paid Email Search ROI 3 registrations Offsite Social Affiliate Mobile Marketing Mix Conversions www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 3
  • 4. scale with their marketing investment will often focus as much attention toward the top of the funnel as the bottom of the funnel, and optimizing the significant role introducers play in generating conversions. Path to Conversion provides the insights to support these sophisticated goals, enabling marketers to make the most effective adjustments to the marketing mix and achieve the desired results. After the attribution framework has been identified, marketers can begin to define the key questions they want answered by their Path to Conversion model. Once they have selected the right questions, they can then set out to determine the time frame during which they need their activities to run and be measured before beginning to analyze the data. When phrasing each question, they should try to do so in the form of a testable hypothesis. An example of this might be stated as: True or false? Display and paid search can be proven to perform better with users who have interacted with both. Oftentimes, when first approaching the process, the advertiser may not realize that the answers are not always black and white, but more like shades of grey. Framing a question as a hypothesis helps the marketer focus the study. Once a marketer has identified the questions, the data and analysis will reveal if the answers to the questions are statistically significant. After establishing the questions for the study, the following is recommended: • Track and analyze Path to Conversion data for one month. This timeframe is an average which may vary depending on the volume of the data. • For each conversion, include up to the last 10 impression (14 day window), last 10 click (120 day window), and last 10 natural search (30 day window) events. • Path to Conversion data should include all media exposures within the utilized marketing channels. • All Path to Conversion data should be tracked and managed in a single technology platform. Once Path to Conversion data has been captured for the established time period, the analysis can begin. www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 4
  • 5. Path to Conversion Studies: Client Examples Let’s review how a few advertisers framed successful Path to Conversion studies to not only ensure they were properly crediting conversions, but also using the information to better allocate marketing spend across all relevant sites and marketing channels for the best possible performance. The following five questions provided these advertisers with the right mix of data and actionable insights to better understand what drove conversions, as well as how to use this information to refine their media decisions and spend to most positively impact their bottom lines. 1) Which marketing channels are influencing response rates? To answer this question, the following two types of analysis were performed: Channel Analysis: This shows the number of conversions credited to each channel based on single attribution (conversions won), and how many conversions were influenced by the channel (conversions influenced). Cross-Channel Analysis: This shows how one channel is having an impact on another channel’s conversions. This type of analysis may reveal that one channel is simply self-sufficient in converting users while another channel is heavily influenced by other channels. Source: Mediaplex Convert Media Conversions Conversions Paid Affiliate Display Email Channel Exposures Influenced Credited Search Paid 110,293 97,270 96,347 96,347 548 11,327 232 Search Affiliate 44,754 28,364 27,669 504 27,669 3,456 82 Display 130,118 34,246 17,491 281 56 17,491 50 Email 11,674 9,058 8,694 138 91 1,971 8,694 Total 296,838 168,938 150,202 97,270 28,364 34,246 9,058 Influence % of Conversions Credited Convert Media Conversions Conversions Paid Affiliate Display Email Channel Exposures Influenced Credited Search Paid 37% 65% 64% 100% 1% 12% 0% Search Affiliate 15% 19% 18% 2% 100% 12% 0% Display 44% 23% 12% 2% 0% 100% 0% Email 4% 6% 6% 2% 1% 23% 100% www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 5
  • 6. Answer As a result of this analysis, the advertiser learned the following: • The most valuable insight in this study is that display has a much bigger impact on conversions than is obvious from the standard last click attribution. It influenced nearly twice as many conversions (23%) as it was credited (12%). • Paid search accounted for 37% of all media exposures but influenced 65% of conversions and was credited with 64% of conversions. • Display accounted for 44% of all media exposures but influenced 23% of conversions and was credited with only 12% of conversions. • 12% of the conversions that were credited to the paid search channel were influenced by display. • Email played a significant role only in conversions credited to that channel. 2) How does a channel’s ROAS change when that channel’s impact on non-credited conversions is included? To answer this question, standard conversion metrics, along with path to conversion (influence) metrics, were collected and analyzed to more effectively evaluate performance of the entire media plan. Standard conversion metrics help identify which media buys are effective “converters.” Path to Conversion metrics and analysis help identify and quantify the value of “influencers” on conversions. The following Path to Conversion performance metrics were then applied to answer this question: • Conversions influenced • Cost per conversion influenced • Average revenue per conversion influenced www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 6
  • 7. Source: Mediaplex Media Buy Conversions % Total Total Cost Cost Per Conversions % of Total Total P2C Avg. # of Cost Per Avg. Won Conversions Conversion Influenced Conversions Media P2C Media Conversion Revenue Won Win Influenced Exposure Exposure Influenced Per per Conversion Conversion Influenced Influenced Advertising. 201 9.70% $20,000 $99.50 301 14.60% 1220 4.1 $66.45 $115.23 com AOL.com 246 11.90% $25,000 $101.63 299 14.50% 814 2.7 $83.61 $134.56 Google. 301 14.60% $20,500 $68.11 378 18.30% 822 2.2 $54.23 $138.22 com MSN 211 10.20% $20,000 $94.79 239 11.60% 1083 4.5 $83.68 $111.55 Yahoo.com 263 12.70% $30,000 $114.07 426 20.60% 1878 4.4 $70.42 $147.30 Other 846 40.90% $115,500 $136.52 Total 2068 100% $231,000 $111.70 Answer Including the supporting role of a media exposure in leading to a conversion can have a dramatic impact on valuing the benefits of media spending. At first glance, analysis shows us when using standard metrics that the MSN buy appears to be the better performing media buy with a $94.79 cost per conversion. But when the Path to Conversion metrics are incorporated, one will notice that the Yahoo buy may be the more efficient and effective media buy in the overall impact on all conversions. • Yahoo was credited with 12.7% of total conversions but had an influence on 20.6% of total conversions. • Yahoo interacted 4.4 times with the conversions that it influenced (slightly less than MSN at 4.5). • Yahoo had a lower “cost per conversion influenced” than MSN ($70.42 vs. $83.68). • Yahoo also influenced conversions that had a higher revenue value than MSN ($147.30 vs. $111.55). www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 7
  • 8. 3) What are the effects of generic search terms on branded search terms? To answer this question, the advertiser first identified branded keywords. An example of a branded keyword would be the name of the company or product. Next the advertiser reviewed the conversion path data to identify how many times a relevant, non-branded keyword preceded a branded keyword in the conversion path. Source: Mediaplex Search Type Wins Share of Wins Branded 14,495 71% Not Branded 6,023 29% Total 20,518 100% Number of Generic Number of Search Wins Number of Search Wins Search Words Before First Branded Search Event in Branded Search Win 0 9,453 65% 1 4,220 29% 2 800 6% 3 12 0% 4 4 0% 5 4 0% 7 1 0% 8 1 0% Answer • 29% of the search channel wins were based upon keywords that were not brand specific. This is a significant lift above an earlier study where they only accounted for 10% of the keyword wins. • Non-branded keywords had a noticeable influence on branded search wins. 35% of brand keyword search wins had a non-branded search event occur somewhere earlier in the Path to Conversion. • 9,453 of the 20,518 Search channel wins (46%) were based upon someone already searching for the client, using search as more of a navigational rather than influential tool. www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 8
  • 9. 4) What are the most common multi-site paths to conversion? To answer this question, the full path to conversion data for the last 20 events prior to conversion was analyzed. Source: Mediaplex Top 6 Conversions Events Winning Entire Last Event 2nd Last 3rd Last 4th Last … 10th Paths Won In Timelag Path last Path (Median Length Hours) (Median Hours) 1 358 10 1.39 19.71 Advertising. Right Media Right Media Right Media … Right Media com Display Display Display Display Display 2 346 2 0.77 0.93 Advertising. ValueClick … com Display Display 3 202 2 0.04 0.38 Yahoo Advertising. … Search com Display 4 151 3 0.04 0.35 ValueClick Advertising. Advertising. … Display com Display com Display 5 141 3 0.22 7.82 ValueClick ValueClick Advertising. … Display Display com Display 6 140 10 0.31 0.33 Advertising. ValueClick ValueClick ValueClick … ValueClick com Display Display Display Display Display ...2000 Answer • Long path conversions (3+ events) are driven by either Right Media or ValueClick.com impressions. Advertising.com is involved in shorter path conversions. • Time lags between the last event and the conversion are also identified, as well as the time taken for the entire conversion path. www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 9
  • 10. 5) What is the impact of changing the attribution model from last click to first click? 1st Click Events Not Credited with Conversions Source: Mediaplex Convert Conversions Conversions Media $ Per Display Email Social Natural Paid Re-Scored Re-Scored Re-Scored Channel Credited Credited Spend Conversion Networks Search Search Conversions Conversions $ Per Share Credited Credited Conversion Share Display 2000 44% $2,000 $1.00 20 30 400 2,450 54% $0.82 Email 300 7% $600 $2.00 (20) 75 355 8% $1.69 Social 500 11% $1,000 $2.00 500 11% $2.00 Networks Natural 200 4% - - (30) 170 4% - Search Paid 1500 33% $750 $0.50 (400) (75) 1,025 23% $0.73 Search Total 4,500 100% $4,350 $0.97 (450) (55) - 30 475 4,500 100% $0.97 Answer • Display gets credit for 20 email attributed conversions, 30 natural search attributed conversions and 400 paid search attributed conversions. This increases its conversion share from 44% to 54%, a 22% increase. • Paid search gives 400 attributed conversions to display and 75 attributed conversions to email, dropping its share by 30%, from 33% to 23%. • Re-scoring the cost per conversion drops the display cost per conversion from $1.00 to $0.82, and increases paid search from $0.50 to $0.73. These questions and resulting answers are great examples of how advertisers were able to frame successful Path to Conversion studies in order meet their specific goals and objectives. These examples also further demonstrate that Path to Conversion data is unique to each organization, so marketers need to decide the questions that will be most actionable for them based on their own marketing channels and sales cycles. This should also be approached as a continuous process on the path to achieving the greatest ROAS. The following are examples of some other potential questions marketers may want to ask: www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 10
  • 11. • What are the effects of display on search (both paid search and natural search)? • How many times is your advertising interacting with users prior to their conversion? • Is a long haul campaign with multiple media exposures over a long time or short intense bursts of media more rewarding? • How many different creatives do customers usually see before they convert? • How do channels differ in latency (time between media exposure and conversion)? • How does the conversion lift from display ads diminish over time? Conclusion and Key Takeaways for Marketers Finding the right formula for attribution success will certainly vary from business to business, but by following the fundamentals outlined above, marketers can be confident they are moving in the right direction. While many takeaways may be gleamed from this whitepaper, the following key benefits of attribution analysis further underscore the importance of getting started now if you haven’t already: 1. Achieve better ROAS – Reviewing your conversion path data will reveal the true role of all your sites and channels in the conversion process, yielding significant insights you cannot gleam from a single attribution model. This will allow you to confidently and successfully allocate marketing spend to the sites and channels that will yield the best ROAS. 2. Deliver more effective messages – Path to Conversion helps you to understand the role each site and channel plays in the conversion process. Knowing which one plays the role of “the introducer” or “the influencer” or “the converter” allows you to most effectively message to you audience based on the site’s specific role in the conversion path. 3. Understand true ROI behind search activity – Reviewing the conversion paths within paid and natural search clearly separates branded keywords from non-branded ones. This allows you to identify what really generates new recruitment of users to your site from online advertising activities versus those users who are strictly clicking on branded keywords as a means of site navigation. www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 11
  • 12. About Mediaplex Mediaplex provides cross-channel advertising technology solutions and services that enable marketers to achieve one-to-one messaging, greater efficiencies and a competitive edge through insightful reporting and analytics. Our team of industry experts focuses on putting the customer first, providing advanced technology solutions alongside consulting services for the greatest return on their marketing spend. Our ability to blend technology, campaign experience and customized expert analysis gives our clients more than just a product or service but a true partnership. Since 1996, Mediaplex has serviced more than 20,000 marketers and currently manages more than $1 billion in annual digital ad spend for its clients, which include AccuQuote, eBay, Shutterfly, Sirius, United Airlines and Wells Fargo. Contact Us to Learn More Mediaplex Headquarters 160 Spear Street, 15th Floor, San Francisco, CA 94105 415.644.1400 direct | 1.877.402.7539 toll free info@mediaplex.com Visit us online at www.mediaplex.com www.mediaplex.com © 2011 Mediaplex, Inc. All Rights Reserved 12