Presented by Doug Bryan, VP, Analytics, iCrossing, on a Direct Marketing Association Webinar, February 22, 2012.
How many marketing touch points do your customers go through before they buy? Are you paying twice for customer conversions? Is your display advertising view-through ROI as good as your paid search click-through ROI? If you don't know the answers to those basic questions, then you are probably not allocating your advertising budget as well as you could.
The number of information sources that the average shopper comes across doubled in 2011, and 84% of all shoppers now use online information sources. Advertising is getting more complex, too. Social media and mobile now factor more heavily into the shopping experience. Advertisers are developing new tactics such as retargeting, real-time bidding, and demand-side and data management platforms. And yet, even as the tactics change, the needs of your business remain the same: understand the ROI of your marketing tactics, which is what conversion attribution modeling will help you do.
3. With you today
Doug Bryan
Vice President, Analytics, iCrossing
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4. What we’ll cover
• What is attribution modeling?
• How attribution modeling helps you allocate your
digital ad budget
• The type of lift you can expect from doing
attribution modeling
• Different approaches to attribution modeling
• Making the connection
• Q&A
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5. A few industry statistics to set the context
• 85% of the value of display ads is from 10
impressions, not clicks
• Display ad click-through rates have dropped to
0.06% and even lower on social sites
5
• 84% of all shoppers use online information
sources
• The number of information sources used by the
average shopper doubled last year
• Conversion funnel length for technology and 2010 2011
automotive products are 4 to 6 months Number of information
sources used by the
average shopper
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6. Measuring digital multi-channel conversions
“…the Internet is the
most measureable medium.”
- Josh Chasin, Chief Research Officer, comScore (2010)
“Digital… turned out to be the
least measurable.”
- Bob Liodice, CEO, Association of National Advertisers
(Advertising Age, September 19, 2011)
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9. Digital attribution modeling
What’s the ROI when customers are touched by multiple ads?
display non-brand SEO
non-brand SEM
display ad 1 ___%
display ad 2 ___%
brand brand non-brand SEM ___%
SEM SEO non-brand SEO ___%
brand SEM ___%
retargeting brand SEO ___%
retargeting ___%
$ $ SALE
Predictive modeling solves this
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10. The value of attribution modeling
Performance
• 15% lift when switching from last-click to multi-touch
• 35% – 65% lift with attribution modeling specific to
your brand and marketing tactics
• Measure the ROI of display ad view-throughs
• Measure the ROI of non-brand SEM and SEO
keywords
Marketing Intelligence
• Generate personas of multi-touch, multi-channel
customers
• Generate conversion funnel insights
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11. How it works
1. Metrics strategy and tagging assessment
Conversion types, metrics and web tags for each
channel
2. Collect multi-channel data
Cookie-level impressions, clicks, conversions, and costs
3. Analyze multi-channel data
Personas, funnel insights, and attribution model
4. Recommend ad spend changes
5. Rinse and repeat each quarter
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12. What you will need
People
• Web analyst, JavaScript programmer,
big data architect, data miner / non-
parametric statistician
Process
• Tag, collect, audit
Platform
• Big data collection, clustering,
multivariate regression, model
validation, reporting
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14. Multi-touch conversion funnel
SEM click, May 5, 9:43am
SEO click, May 8, 11:07pm
SEM click, May 18, 12:28pm
display view display click
May 2, 8:23pm May 15, 7:44pm
(fictional example)
$ $ SALE May 18, 2:33pm
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15. Multi-touch conversion funnel
What happened
display SEM SEO display SEM
view click click click click SALE
May 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
What you see with last-click
display SEM SEO display SEM
view click click click click SALE
May 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 May 18
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17. Different approaches to attribution modeling
100%
credit Last-click
Full credit goes to the last click
touch
By position
Each touch gets a fixed percentage
Industry averages by position
Same fixed percentages for all brands
? ? ? ? What’s the best fit for your brand?
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19. Different approaches to attribution modeling
Custom predictive modeling
Custom model for your brand and current
tactics to find the best fit
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20. Persona development
Help to understand your customers’ conversion funnel behavior
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21. Marketing intelligence
Channel overlap: non-
brand brand
30,000
Dotomi DART SEM SEM SEM
25,000
number of conversions
Dotomi --- 22% 38% 28% 9%
20,000
DART 24% --- 36% 28% 8%
15,000
SEM 15% 14%
10,000
36% of DART orders
5,000 brand SEM 14% 13%
had SEM clicks
-
non-brand
20% 16%
1 2 3 4 5 6 7 8 9 10 11 12 SEM
number of touches
100%
percent of touches for that length
90% 6%
80%
5%
conversion rate
70%
60% SEO 4%
50% SEM Brand 3%
40% Display
2%
30% eMail
20% SEM Non-Brand 1%
10% 0%
0% 1 2 3 4 5 6 7 8
12 11 10 9 8 7 6 5 4 3 2 1
touch (1 is last, 2 is 2nd to last...) number of touches
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23. Results: non-brand keyword performance in paid search
Challenge
• A retailer’s paid search non-brand keywords
had low ROI by last-click attribution
• They considered cutting spend 50%
Results
• Attribution modeling showed that the
keywords assisted many conversions and
had good ROI
• They maintained spend and achieved their
revenue and ROI goals
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24. Results: travel & recreation display ad view-through value
Challenge
• A multi-brand recreational activities company
couldn’t understand display ad ROI
• Last-click said they assisted 1% of sales
• View-through said 20% of sales
Results
• Attribution modeling showed that display ads
contributed 9% of sales
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25. Results: banking display ad view-through value
Challenge
• A national retail bank was told that their
display ads contributed to 80% of
conversions
Results
• Attribution modeling showed that display
ads accounted for 35% of new account
approvals
• That was used to optimize the bank’s $8m
display ad budget
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26. Conversion attribution modeling
• Accurately measure ad value in multi-touch
conversions
• Increase overall digital marketing ROI
• Gain conversion funnel insights
Getting Started
• Align metrics and conversion types across
channels
• Add tags to track across channels
• Collect cookie-level impression and click
To download a copy of “How CMOs
data Can Measure Return on Ad Spend with
Better Modeling and Conversion
Attribution,” visit www.icrossing.com
Questions? or email us at findout@icrossing.com
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