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The State of
Marketing
Measurement,
Attribution and
Data Management
IN PARTNERSHIP WITH:
PREPARED DECEMBER 2018
Section 1. Executive summary . . . . . . . . . . . . . . . . . . . . .01
Section 2. Scope and methodology . . . . . . . . . . . . . . . . .03
Section 4. Foreword from Fospha . . . . . . . . . . . . . . . . 07
Section 6. More technology
creates more complexity . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Section 8. How businesses
are approaching this today . . . . . . . . . . . . . . . . . . . . . . . .27
Section 3. Key findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 05
Section 9. The data maturity model . . . . . . . . . . . . . . . .35
Section 10. Key trends and tips . . . . . . . . . . . . . . . . . . . .39
Section 11. Better data for better
decisions: The Fospha solution . . . . . . . . . . . . . . . . . . . . .43
Contents
Section 7. The business impact of
ineffective consumer understanding . . . . . . . . . . . . . . . 21
Section 5. The data challenge today. . . . . . . . . . . . . . . . 09
1 2
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
More data is created
now than ever before as
consumers interact with
brands in increasingly
complex ways across a
range of interconnected
devices.
With each new interaction
between a consumer and
a website, app, or mobile
payment system, a new
data point is added to the
collective stock.
If businesses can turn this
data into knowledge about
their audience, they can
deliver highly personalized
experiences that exceed
expectations.
On the other hand, data
without an effective strategy
is meaningless.
In an attempt to seize
the unprecedented data
opportunity before them,
businesses have invested
heavily in a variety of
marketing technology
Executive
summary
(martech) software packages.
Forrester projects1
that
investment in martech will
top $122 billion per year by
2022 in the US alone.
However, these tools can
ultimately add to the complex
data challenge brands already
face, rather than reducing
their workload. A tool is only
as useful as its application,
after all.
Furthermore, broader
market trends will continue
to shape the relationship
between brands and
consumers. Developments
such as the launch of the
General Data Protection
Regulation (GDPR) in
the European Union, and
the announcement of the
California Consumer Privacy
Act (due to launch on January
1, 2020), point to a future
where access to data must
be earned rather than simply
bought.
Concurrently, the impatient
modern consumer prefers
a dynamic, personalized
experience when they
interact with brands online.
Google reports a 60%
growth2
in searches for “__ for
me” in the last two years. A
one-size-fits-all approach to
marketing will not cut it with
such a demanding public.
Of course, without access to
reliable data, brands cannot
create and deliver these
experiences.
There is a paradox here, but
it is one that businesses can
resolve. That starts by taking
control of their current
data and deriving accurate,
accessible insights about
their audience.
In partnership with Fospha,
ClickZ presents The state
of marketing measurement,
attribution and data
management a report based
on a survey of 370 marketing
professionals.
This report finds that many
marketers are overwhelmed
by the sheer complexity of
the martech ecosystem, and
at times even by their own
organization’s martech stack.
First, we will look at how
companies -- specifically
brands and marketing
agencies -- are managing
their data to get a better view
of their current and potential
customers. Next, we analyze
how they are operationalizing
this data to generate
insights across marketing
measurement and attribution
to drive business value.
Within this report, we will
dive into the sometimes
murky waters of data
attribution, measurement,
and management in the hopes
of providing clear solutions
for marketers moving
forward.
Gone are the days of gushing
money into software that
creates more questions than
it answers.
We hope this report will paint
a clear picture of data-driven
attribution and lead a puzzled
marketer toward effective
solutions.
Clark Boyd,
Author of The state of marketing
measurement, attribution and data
management
No matter their level
of data maturity,
any brand can draw
a line in the sand,
take stock of where
they are today, and
start making more
profitable, data-
driven decisions.
1
https://www.forrester.com/report/The+US+Marketing+Technology
+And+Services+Outlook+2017+To+2022/-/E-RES137651
2
https://www.thinkwithgoogle.com/advertising-channels/
search/search-strategy/
3 4
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Scope and
methodology
The core purpose of this report is
to uncover the challenges brands
face today in taking control of
their own data to make better
marketing decisions.
Next, the report aims to provide clear
recommendations to help businesses
develop their level of data maturity
through technology, data, and the right
personnel.
The fulcrum of the report is a survey of
370 marketing professionals, undertaken
in September 2018.
Respondents to the survey were split
between brand/client-side marketers
(63%) and marketing agency professionals
(37%).
The survey was comprised of 30 questions,
covering respondents’ current technology
solutions and the challenges they believe
the digital marketing industry currently
faces.
These questions were used to collect
quantitative data on a range of marketing
measurement technologies. Qualitative
data was added through a variety of open
questions throughout the survey.
These findings have been supplemented by
interviews with Fospha.
5 6
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Businesses are using 7 separate technologies to extract
insights from their data, on average.
Over one third (34%) of survey respondents believe that
their company analyzes less than 20% of all consumer data
available to them.
Just 33% of brands believe that their current measurement
solutions perform accurate attribution of all media and data.
Only 32.5% of businesses have a clear view of the customer
lifetime value (CLV) of their customers.
43% are “likely” or “very likely” to invest in a new marketing
measurement technology in the next 12 months.
The most important feature of a marketing measurement
technology for brands is “quick access to actionable insights.”
29% of survey respondents use attribution technology on all
digital marketing campaigns.
A very small minority (just 9%) of marketers believe their
organization has an “excellent” understanding of multi-touch
attribution.
Key
findings
7 8
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Fospha has a long
history of helping
marketers unlock
insights from their data.
We often ask ourselves why,
in a heavily congested space
of ad platforms and martech
giants, anyone else has a right
to play in the space.
Two main themes validate
why:
1. The Pain: The rate of
evolution in the market is
incredible, but, with every
new ad platform, tool and
device added to a business,
new silos are created making
it almost impossible to
make sense of your data.
The irony here is that with
each new technology, you
are often adding a new
set of data points to help
optimize performance and
Foreword
from Fospha
understand your customers
better. But, this data is often
trapped or hidden in the
silo and not surfaced to be
operationalized.
2. The Opportunity: For the
first time, we’re observing
that the realities of what
can be done with machine
learning and AI are matching
expectations. It wasn’t long
ago that the compute cost to
run data-driven multi-touch
attribution models made it
not worth the ROI.
Now, however, we’re able
to measure the impact the
precise contribution of
the weather on marketing
performance, rank customers
based on their individual ROI
and likelihood to convert and
integrate the data with the ad
platforms to turn insights into
action at scale.
Data science is offering
marketers the chance to
move faster, build IP around
how they engage their
audiences and develop real
competitive advantage.
However, the absolute
requirement for any of this
is a foundation of joined
up customer data all in one
place.
We believe this is still the
perfect place to ‘start small
and grow” on the journey to
embracing data science to
drive LTV at scale. This will
unlock the data from silos
for a joined up view of what’s
working across the marketing
mix… and then using the
data as the foundation
for changing the way you
not only assign budget to
channels but also the way you
treat your customer, define
your content and creative
strategy.
This document, surveying a
broad range of marketers, is
a fascinating report on the
biggest challenges marketers
have today on this journey
and we are excited to share it
with you.
About Fospha
Fospha delivers marketing
effectiveness and drives ROI
through agile and affordable
multi touch attribution,
audience, and brand
solutions. We build customer
data platforms and use AI and
data science to organize data,
unlock insights, and integrate
them with the marketing
technologies that matter.
We partner with clients to
deliver better experiences for
their customers and better
outcomes for their business.
Get in touch with Fospha:
Fay Miller,
Marketing Director, Fospha
Website: www.fospha.com
Email: fay.miller@fospha.com
9 10
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
The data
challenge for
brands today
It is estimated that 2.5 quintillion
bytes of data are created every
single day3
, which is impressive in
its scale but only meaningful if it
has a useful application in the real
world.
Theoretically, this creates a digital
ecosystem where everything becomes
measurable.
From the impact of brand advertising
on digital performance through to the
effectiveness of display advertising
impressions, objectives such as planning,
forecasting, and reporting can be achieved
with pinpoint accuracy if businesses are
able to capture and use relevant data.
In the process, brands can learn a
significant amount about their audience,
all of which feeds into better, more
profitable business decisions and customer
engagements.
Many brands are already aware of the
potential contained within their data, but
for too long that potential has remained
untapped.
In fact, 33% of respondents to the ClickZ
advertiser survey undertaken for this
report cite “data complexity” as their
biggest challenge today.
3
https://www.forbes.com/sites/bernardmarr/2018/05/21/how-much-data-do-we-
create-every-day-the-mind-blowing-stats-everyone-should-read/#71ec1e660ba9
11 12
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Moreover, while 51% of
responding brands say they
use a specific technology to
extract insights from their
data, 64% of brands cite
that less than 40% of their
consumer data is processed
and analyzed to inform
marketing decisions.
A very sizeable 34% of
respondents believe they
extract insights from less
than 20% of the consumer
data available to them.
Figure 1. How much of your
company’s consumer data
do you believe is processed
and analyzed, with the aim
of improving marketing
performance?
With only 11% of brands
believing that they process
and analyze 80% or more of
their consumer data, there
is clearly ample room for
improvement.
Fortunately, recent
developments in data science
and artificial intelligence (AI)
mean we are now at a point
where accessible, actionable
insights are within the grasp
of any business.
Getting there means taking
stock of where we are
today, drawing a line in the
sand, and working toward
a more mature, informed
approach to data, powered by
technology that cuts through
the complexity.
The rewards for those
who achieve this goal are
unprecedented in their
scale and, at last, they are a
realistic aim.
Barriers to effective data
usage
Brands need access to and
understanding of their own
data across all platforms.
This will allow them to
have a transparent view of
their audience’s behavior,
creating a mutually beneficial
relationship between brand
and consumer.
There is a multitude of
technologies out there that
aim to do precisely this and
they come with multiple
names such as analytics,
attribution, intelligence,
activation, loyalty, and
insights platforms.
For reference, in this report
we categorize this group of
technologies as ‘Marketing
Intelligence’ and will specify
any sub-categories within this
area as applicable.
Undoubtedly, there is a
widespread understanding
of how crucial martech is to a
modern business.
The Deloitte CMO Survey
20184
reported that
marketing analytics spend
will increase by over 200%
within the next three years.
It also noted, “While
marketing analytics is on
the rise, a lack of trained
professionals as well as tools/
processes to measure the
impact of marketing analytics
are the biggest obstacles
to marketing leaders using
marketing analytics within
companies.”
This certainly tallies with
findings from the ClickZ
survey. In particular, the fact
that increased investment in
technology does not always
mean better access to data-
driven insights is one that
permeates this report.
Brands identify numerous
barriers between them
and effective use of data,
from ‘data complexity’ and
‘difficulty proving the ROI of
attribution’ to simply a lack of
budget, time, or skills.
As is shown below in figure
2, there is an interconnected
set of reasons why brands
are struggling to unlock the
power of their data today.
Figure 2. What are the
biggest obstacles to more
effective usage of marketing
intelligence technology at
your organization? (Select up
to three.)
35%
20%
10%
0%
0%-20% 21%-40% 41%-60%
5%
15%
25%
30%
61%-80% 81%-100%
Percent
Amount of data processed and analyzed for marketing
A very sizeable
34% of
respondents
believe they
extract insights
from less than
20% of the
consumer data
available to
them.
40%
0%
20%
Datacomplexity
Lackofbudget
Concernthatwewon'tusethe
insightstomakerealchanges
Internalpolitics
Lackoftime
Limitationsof
existingtechnologies
Lackofknowledge/skills
Lackofmeasurement
culturewithinthebusiness
Don’ttrustthedata
30%
10%
4
https://cmo.deloitte.com/xc/en/pages/articles/the-
cmo-survey-fall-2018-report.html#CMOSurveyFall
13 14
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Navigating the martech
ecosystem
These survey results confirm
what we already know:
navigating the martech
ecosystem is an increasingly
challenging pursuit.
In this data-driven age,
brands are finding it difficult
to make the right decisions
with the vast array of
attribution technologies and
tools available, so much so
that some brands seem to
freeze under the pressure of
deciding what to do. After all,
the martech ‘5000’ has long
since outgrown its moniker --
this year’s total rose to a very
lofty 6,8295
.
A further 29% use this
technology on all campaigns
today, 31% use it on just
some campaigns, and 8% have
the technology set up but do
not look at the results.
Figure 3. Do you use
marketing attribution on
your digital advertising
campaigns?
This survey finds that most
companies do have marketing
attribution set up (63% of
respondents use Google
attribution products), but this
is of course just a first step on
the road to data maturity.
These challenges all broadly
relate to the core theme
that an abundance of data
and marketing technology
solutions can create
complexity, rather than
simplicity.
Furthermore, there
are obstacles within
organizations, such as
‘internal politics,’ that can
stand in the way of progress
in this field. As such, there is
more to this situation than
the purely technological and
mathematical questions that
typically take the headlines.
It is also clear that businesses
are unsure of the role
marketing intelligence
software should play, or
even what they should call
this technology. That lack of
definition is a hindrance to
progress, as it makes it almost
impossible to prove the
effectiveness of a solution if a
company does not even know
which question it is trying to
answer.
In summary, without the right
technology in place -- and
the processes, people, and
skills to make optimal use
of it -- brands will continue
to struggle with these
challenges.
The aim is not only to
attribute credit for
conversions across marketing
channels; businesses need
to evolve beyond attribution
modeling toward accessible
marketing intelligence.
As we will discuss in the
following section, the current
approach to martech is
leading businesses further
from their goal of attaining
reliable, actionable insights
from their data.
According to
our survey
results, 27% of
brands do not
use marketing
attribution
technology on
their digital
advertising
campaigns, but
“would like to
do so.”
Yes, all campaigns
28.3%
Yes, some campaigns
30.9%
We have attribution set
up, but do not analyze
the results
7.9%
No, but would like to
27%
No plans to do so
5.9%
5
https://chiefmartec.com/2018/04/marketing-
technology-landscape-supergraphic-2018/
15 16
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
More technology
can create more
complexity
The most frequently-cited feature
that brands wish their marketing
intelligence technology could
have is easier access to actionable
insights.
At a surface level that seems rather
obvious, but it is revealing when we
recall that these same companies have
significantly increased their technology
spending in this area.
Even after so much investment, that
deceptively difficult goal remains out of
reach.
By beginning with a clear concept of the
challenges a brand wants to solve by
using marketing intelligence software, the
partnership between vendor and client
can start on a solid foundation. Still, with
so many vendors to choose from, brands
require guidance to ensure they partner
with the right technology solutions.
The gap between data and insights
According to the ClickZ study carried
out exclusively for this report, businesses
are using seven separate technologies
to extract insights from their data, on
average.
However, there are no guarantees that
using these technologies means that
brands are making sense of all this data.
In some cases, it may mean entirely the
contrary: more data and more martech
solutions only add to the complexity.
In fact, just 33% of survey respondents
believe that their current measurement
solutions perform accurate attribution of
all marketing campaigns.
The true potential of
multi-touch attribution
and sophisticated data
analysis lies in solving
brand and marketing
challenges, but these
opportunities are often
missed.
17 18
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Moreover, just 8% of
responding brands believe
that their use of third-party
data is “very effective,” while
14% go as far as stating
their use of this data is “very
ineffective.”
Figure 4. How effective
is your company’s use of
third-party data to develop
an understanding of your
consumers?
If brands have extensive
customer data but don’t
know how best to use it for
everyone’s benefit, what good
does it do taking up server
space?
The data that is being
collected must be converted
into applicable knowledge
in order for brands to
take better-informed and
ultimately more profitable
actions. That is a continuous
process, rather than a one-off
action.
By taking control of
your data, you can drive
improvements from any
starting point and start to see
the impact of using consumer
information to provide better
experiences.
The metrics that matter
Another challenge among
brands that adds to this
complexity is that of
business-wide agreement on
performance metrics.
The definition of success will
need to be adjusted for each
individual brand, with metrics
selected or created to guide
the business toward its goals.
It is important to conceive
of metrics in that sense;
they have a practical use in
directing a business toward
the outcomes it wants to
achieve. This is in contrast
with the one-size-fits-all
approach that sees brands
attempting to fit their
strategy into someone else’s
definition of success.
From this position, it is
possible to understand where
a marketing intelligence
software vendor can enable
more effective strategic
decisions.
Consumer data can be used
to surface qualitative insights
about an audience through
quantitative means, but
only if the brand in question
knows what it is looking for.
The ClickZ survey asked
respondents whether their
company uses a shared
metric, such as Customer
Lifetime Value (CLV),
to measure marketing
effectiveness.
Figure 5. Do you use a
shared metric across
departments (such as
Customer Lifetime Value) to
measure the effectiveness of
marketing campaigns?
According to our survey, only
17.5% of brands claim to use
shared metrics for measuring
the impact of marketing
activities and 29.2% say
they’re “working on it.”
A whopping 21.4% of brands
report that their companies
simply doesn’t use shared
metrics and 18.2% admit,
“No, but we should.”
For example, one team might
measure success through
increased social media
engagement, while another
measures success based on
website bounce rate. This
inconsistency makes it too
easy for companies to lose
sight of what success means,
and it also makes it much
more difficult to make use
of a marketing intelligence
platform.
Furthermore, of the brands
surveyed, only 32.5% are
reported to have a clear
view of their customer
lifetime value (CLV). That
means 67.5% of brands out
there don’t have a company-
wide understanding of how
valuable a new or current
customer will be.
Figure 6. Does your business
have a clear view of your
customer lifetime value
(CLV)?
Without a clear agreement on
customer habits and identity
or metrics of marketing
activity, companies are
unable to market and see ROI
to its fullest potential.
If brands want to see
continued success and stay
on par with or ahead of
competition, they will need
to reckon with this internal
inconsistency and inability
to properly utilize customer
data.
Access to impartial data is
essential
Some brands report finding it
difficult to trust the data that
they do acquire. And some,
even if they do trust it, find
it hard to believe that using
the data will make any real
difference to their overall
success.
Very effective
7.8%
Somewhat effective
33.8%%
Not sure
27.9%
Somewhat ineffective
16.9%
Very effective
13.6%
Yes
32.5%
No
67.5%
Yes
17.5%
We’re working on it
29.2%
No
21.4%
Not sure
11.7%
No, but we should
18.2%
Other: Write in
2%
19 20
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
In particular, these brands
referred to the significant
level of control that vendors
have over their data.
Companies like Google
and Facebook are data
businesses, after all. Relying
strictly on online activity,
these brands acquire
tremendous amounts of user
data daily. Protecting this
data, their most valuable
asset, is extremely important
to their ambitions.
However, over-protecting
could lead to a more
fragmented future where
data sits in walled gardens to
an even greater extent than it
does today.
Brands need access to their
own data, across social media,
search marketing, display
advertising, and offline
campaigns. There is clearly
a concern that when a brand
is wedded to one particular
suite of marketing products,
they may not gain access to
the full picture of how their
audience behaves.
Figure 7. Do you believe
that the data from your
marketing intelligence
platform is impartial?
Challenges with
understanding attribution
The term “attribution” in
regards to marketing refers
to the process of identifying
user actions that contribute
to a larger desired outcome,
assigning value to these
actions. When asked to rate
the overall understanding
of data-driven attribution
in their companies, results
varied:
Figure 8. How would you
rate your organization’s
current understanding of
data-driven attribution?
Of the brands surveyed, 9.1%
report an excellent overall
understanding of attribution
and 29.2% report a good
understanding. That puts
61.7% of brands at “Neutral”
or below. This could pose a
potential problem for this
61.7%.
Excellent
9.1%
Good
29.2%
Neutral
27.3%
Below average
22.7%
Very poor
11.7%
In the ClickZ
survey, 21% of
respondents
stated that they
do not believe
the data from
their marketing
measurement
platform is
impartial.
Through understanding and
analyzing attribution, brands
can see what is causing
user activity and can create
hypotheses to potentially
explain the “why” behind that
user activity.
Without understanding
data-driven attribution,
brands are left with an
increasingly opaque image
of the consumer, unable to
adequately cater and market
to fit consumer needs and
habits.
Working to not only better
understand but also protect
all of this data is no longer
optional for brands. The
General Data Protection
Regulation (GDPR),
California Consumer Privacy
Act (CCPA), and Cambridge
Analytica scandal are
bellwethers of a changing
relationship between
individuals and their personal
data.
With all of this data, brands
should be able to build more
accurate models of their
audience’s behaviors.
This report finds that brands
struggle with the challenge
of synthesizing the various
components of a martech
stack to create a single view
of their audience.
Having a foundational layer
upon which all marketing
activities and data should
be created is an essential
component of a marketing
stack.
Data-driven
attribution
is crucial in
creating a clear
image of the
consumer for the
brand.
Yes
79.9%
No
21.1%
21 22
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
The business
impact of
ineffective
consumer
understanding
The consequences of ineffective
consumer understanding on the
business are numerous.
To begin with, when a brand does not fully
understand their consumers, it cannot fully
understand how to effectively allocate
marketing dollars.
Without a clear picture of the consumer,
the brand marketer creates plans with
incomplete information, potentially
wasting marketing dollars on ineffective
campaigns or other marketing efforts.
Facing fierce competition, brands need to
know exactly who their consumers are in
order to appropriately plan and market,
otherwise brands stand to lose customers.
In fact, over the next five
years, brands are expected
to increase their allocated
funds for digital marketing
from 44% of their budgets
to 54%6
.
6
https://www.slideshare.net/christinemoorman/the-cmo-
survey-highlights-and-insights-report-august-2018
23 24
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
As prices go up, brands
absolutely cannot afford to
waste funds on marketing
that doesn’t work.
And yet, the 2018 Global
Data Management Benchmark
Report7
from Experian finds
that a huge 89% of executives
believe poor data quality is
currently undermining their
ability to deliver exceptional
consumer experiences.
This aligns with the findings
from the ClickZ survey
undertaken for this report.
When asked to agree or
disagree on whether insights
from marketing intelligence
platforms directly inform
digital strategy, 22.7% of
brands answered, “Agree,”
and 44.2% of responded
with “Somewhat agree.”
That leaves 33.1% of brands
reporting “Neutral” or below,
meaning that 33.1% of brands
are overspending in areas
that do not necessarily drive
performance.
Figure 9. Please agree or
disagree with the following
statement: Insights from
our marketing intelligence
platform directly inform our
digital strategy.
Brands plan to invest in new
attribution technology
To follow up, brands were
asked how likely they were to
implement new attribution
technology to their company
within the next year. 18.9%
reported “Very likely” and
25% reported “Likely.”
Figure 10. How likely are
you to implement a new
planning, measurement,
or attribution technology
within the next 12 months?
This question refers explicitly
to new technology, so this
is not to say that the other
56.1% that answered “Not
sure” or below won’t step
up their game with the
technology that they already
have. However, this is
generally still an indication
that many companies still are
not prioritizing finding real
results through attribution
technology.
Spending without regard
to the insights of marketing
intelligence is an easy way
for brands to lose money and
customers.
If building marketing
strategies is not directly allied
with a clear understanding
of consumer information
from marketing intelligence
platforms, making the case
for ROI is debatable. As
martech spending continues
to rise, so does the risk of
misallocating funds. Brands
need to be hyper-aware of
who their customers are in
order to spend effectively.
Marketing attribution
directly affects strategy
As Figure 11 shows, a
significant 45.7% of all
responding brands have
changed their cross-channel
marketing budget allocation
as a result of marketing
attribution findings.
27.8% are unsure and
just 26.5% say marketing
attribution has not affected
channel investment plans.
Figure 11. Has marketing
attribution influenced your
spend allocation across
online channels?
A company’s
misunderstanding of their
consumers also ultimately
takes up significant time and
resources, as staff are forced
to work to gain value from
technology that does not
automate tasks for them.
The impact of this is under-
achievement against business
metrics -- but it also weakens
the case for further spending
in this area. There is a need
for marketers to enable
better decisions through
data, quickly.
It is telling that among
respondents who have
altered their marketing
budget plans based on
data-driven insights, the
majority have increased
their investment in digital
marketing.
This is particularly true in the
areas of content marketing,
paid search, and organic
search.
After using attribution
technology to understand
campaign performance,
65% of brands increased
their investment in content
marketing, 61% did so for
paid search, and 57% of
brands spent more on organic
search.
This occurs when a brand
realizes that they have
undervalued the impact their
activity through each channel
has had, or when they identify
further room to grow by
allocating more budget to
specific areas.
Agree
22.7%
Somewhat agree
44.2%
Neutral
16.2%
Somewhat disagree
9.1%
Disagree
7.8%
Yes
45.7%
No
26.5%
Not sure
27.8%
Very likely
18.9%
Likely
25%
Not sure
32.8%
Not likely
15%
Very unlikely
8.3%
6
https://www.slideshare.net/christinemoorman/the-cmo-
survey-highlights-and-insights-report-august-2018
7
https://www.edq.com/resources/data-management-
whitepapers/2018-global-data-management-benchmark-report/
25 26
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Figure 12. The impact of
attribution technology on
marketing budget allocation
across channels.
100%
50%
25%
0%
75%
Contentmarketing
Paidsearch
Organicsearch
Video
Display
Paidsocial
Organicsocial
Email
Increased Remained the same Decreased
Content marketing 64.7%
Paid search 10%
Organic search 56.6%
Video 3%
Display 51.5%
22.1% 13.2%
Walmart 10%
30.4% 13%
Target 3%
27.9% 20.6%
Increased Remained the same Decreased
Paid search 60.9%
Video 54.4%
23.2% 15.9%
38.2% 7.4%
Paid social 48.5%
Organic social 47.1%
Email 45.6%
Affiliates 36.7%
30.9% 20.6%
39.7% 13.2%
45.6% 8.8%
47.1% 16.2%
Across all digital marketing
channels, brands are
significantly more likely
to increase than decrease
their budget once they have
conducted a thorough review
of their performance data.
Accurate multi-touch
attribution is essential as
an exercise in diagnostic
or descriptive analytics,
as it shines a light on the
consumer engagements that
mattered most in the run-up
to a conversion.
However, as these new
findings demonstrate, it is
just as crucial for future
planning. If a brand knows
where and when they can
reach their audience most
effectively, they can spend
accordingly and closely
monitor the impact.
As a result, this marketing
intelligence exercise becomes
a driver of performance,
rather than just a
performance dashboard.
27 28
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
How businesses
are approaching
this today
According to ClickZ data, Google
Analytics is the second most
popular solution to the attribution
problem, often giving brands a
basic and important understanding
of user activity and habits.
The most popular software is Google
Attribution 360, used by 51% of
respondents.
Many businesses are still using
predetermined criteria and do not have an
attribution model of their own that reveals
deeper analyses and insights.
According to ClickZ data, Google
Analytics is the second most
popular solution to the attribution
problem, often giving brands a
basic and important understanding
of user activity and habits.
The most popular software is Google
Attribution 360, used by 51% of
respondents.
Many businesses are still using
predetermined criteria and do not have an
attribution model of their own that reveals
deeper analyses and insights.
On the following page, we display the
out-of-the-box attribution models that a
significant number of businesses still use
as standard today. Each of these models
has its benefits, but none are perfect and
it remains surprising to learn that just 9%
of marketers feel their business has an
“excellent” understanding of multi-touch
attribution.
29 30
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENTFigure 13. ‘Out-of-the-box’ attribution models that
many businesses use today
Last Click
All credit is attribution to the
last channel interaction.
Con: You don’t know where
your customer comes from
Last Click
First AdWords Click
Assigns 100% value to last
Google Ads click
Con: Google Analytics
telling you how well Google
AdWords are performing
First AdWords Click
First Click
All credit is attribution to the
first channel interaction.
Con: The majority of
purchases don’t happen on
the first visit
First Click
Time Delay
Value credited relative to
proximity to conversion
Con: Still optimising for last
clicks
Time Delay
Linear
Assigns equal value to every
interaction, regardless of the
role they actually played in
the conversion
Con: Rewarding all channels
equally is like everyone
winning first prize -
unrealistic
Linear
Position based
Default value attributed 40%
to first touch, 40% to the last
and 20% spread across all
others
Con: Still not a reflection of
the actual customer journey
Position Based
31 32
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Another solution that
companies often turn to
are standalone attribution
providers or all-in-one
platforms.
These platforms often
promise to provide what
they call a ‘single customer
view.’ Chasing this objective
does not lead to better
decisions today and often
leads companies further
from their stated objective.
In fact, it can make company
goals unachievable and
impede them from building
better models with the data
available to them.
Others can see the value in
the insights their platform
delivers, without being fully
convinced of its exactness:
“Our data is directionally
correct, but I don’t believe it
is as accurate as it could be.”
The aim of the company
through the use of this
technology should be not
to create a perfect model
of attribution, but rather to
create the most accurate,
transparent, and useful model
of real customer journeys,
wherever they are.
Though tools like Google
Analytics are excellent in
painting an image of the
consumer using broad brush
strokes, brands really need
the nitty-gritty details.
These solutions pose other
challenges for brands as well.
For example, impartiality is
far from guaranteed when
using larger third-party
solutions.
79% of surveyed brands
believe that the data from
their current technology is
impartial, which is a healthy
majority but still leaves a
sizeable 21% of brands who
are skeptical of their own
data’s objectivity.
There are subtle but still
notable distinctions across
the major technology
providers. 39% of current
customers believe Google
Attribution 360 is working
well for them and 41% of
Adobe Marketing Attribution
users felt the technology
provides accurate analysis of
all campaigns.
While these tools may work
for brands in many ways, they
ultimately cannot provide
the single customer view that
they promise to deliver.
Adding to the list of
challenges, using third-party
data doesn’t always sit well
with brands.
Having the proper tools to
acquire and understand their
own data puts the power back
into the hands of the brands.
Ultimately, brands need
marketing intelligence
software that is reliable,
According to a
survey respondent,
“Most technologies
have one or two
brilliant core
functionalities,
but the rest is
there to dress up
the package as
something more
robust than it
actually is.”
“Google has too
much control over
our data,” one
ClickZ respondent
admits.
accurate, agile, and impartial.
Brands need to be focused
on delivering and sharing
knowledge within their
organization to enable better
long-term decisions across all
marketing activities.
Figure 14. What do you
look for when assessing
marketing intelligence
vendors? (Please select
up to three.)
0% 10% 20% 30% 40%
Accessible, actionable insights
through user interface
Affordable access to
simple, effective tools
Ability to identify
cost savings
Enablement of better
marketing decisions through data
Helps calculate the ROI
of digital marketing
Accurate performance
forecasts
Transparency on the effectiveness
of each marketing channel
Accessible, actionable insights through user interface
Paid search 10%
Ability to identify cost savings
Video 3%
Helps calculate the ROI of digital marketing
37%
Walmart10%
31.5%
Target 3%
29.5%
Value Percent
Affordable access to simple, effective tools
Enablement of better marketing decisions through data
15.9%
7.4%
Accurate performance forecasts
Transparency on the effectiveness of each marketing channel
Integration ofonline and offline data
20.6%
20.5%
8.8%
Accessible, actionable insights through user interface
Paid search 10%
Ability to identify cost savings
Video 3%
Helps calculate the ROI of digital marketing
Walmart10%
Target 3%
Affordable access to simple, effective tools
Enablement of better marketing decisions through data
34.9%
29.5%
Accurate performance forecasts
Transparency on the effectiveness of each marketing channel
Integration ofonline and offline data
22.6%
17.1%
Customer support team
Paid search 10%
Single view of the customer
Video 3%
Integreations with other software packages
15.8%
Walmart10%
13.7%
Target 3%
11.6%
Value Percent
Calculation of metrics such as customer lifetime value
The agility to adapt to changing user behaviours
14.4%
13.7%
Independent, reliable view of your data
Dedicated data protection team
11%
8.9%
33 34
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
When asked what they
consider when choosing
marketing intelligence
software, above all, brands
said accessible, actionable
insights through user
interface. Marketers want to
see the data clearly and glean
actionable next steps through
it.
Following that, brands
said they consider both a
software’s simplicity and
its ability to identify cost
savings.
While these are certainly
important things to keep
in mind, the true purpose
of marketing intelligence
software is to identify
how and where brands
can be making better and
more accurate marketing
decisions via consumer data.
However, this falls behind
the three aforementioned
considerations, signaling that
brands may need a general
mental overhaul on their
understanding of consumer
data in relation to marketing
goals.
35 36
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
The data
maturity model
There is an evolutionary process at
play here.
All brands can take stock of their current
maturity and use this to plan their
development. In other words, brands
can use what they already have to grow
even further. The key point here is that
no matter where a company sits on
this spectrum, there is always room for
improvement.
A company’s first step in improving data
maturity is adding a new analytics platform,
which can have a huge, immediate
impact. When used properly, an analytics
platform will provide brands with clarity,
transparency, and a better performance
analysis. Businesses can then build off of
this by investing in attribution software
and marketing automation, streamlining
strategies based on understanding the
data and enabling informed, data-based
decisions.
To take it one step further, brands should
implement an all-in-one customer data
platform to incorporate more data sources
into the analysis of their customers and
the effectiveness of their marketing. A
clearer strategy should emerge from using
this technology, but brands should have
their antennas up because the opposite
can often occur. With so much information
and so many directions to take it in, it’s
easy for companies to lose sight of goals
and metrics. However, with effective
data software and a clear, company-wide
strategy, brands will be set up for a world
of success.
37 38
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Decision-Making and Data
Maturity
Ultimately, the quality of
a brand’s decision-making
is directly correlated with
the level of data maturity.
Brands need to be careful to
make thoughtful decisions
about the technologies and
marketing strategies they
invest in. To make these
thoughtful decisions, brands
need to have a clear and
transparent understanding of
their data.
According to ClickZ research,
we’ve found that the average
brand invests in seven tools
that are specifically designed
to extract insights from
customer data. Inevitably,
there is crossover in
functionality, a sense of
unkept promises, and a waste
of company resources.
Technologies that are more
expensive and more complex
don’t necessarily offer more
benefits, nor can they offer
the same initial boost that
an analytics platform can
provide. Additionally, new
tools may simply tell a brand
what they already know
or worse, contradict and
confuse a brand’s goals and
ideas.
Rather than spending more
money on more tools, brands
can and should unlock the
potential of their current
data by engaging with an
independent data analysis
platform. The insights from
such an analysis will better
shape company decisions,
creating data-based goals
and motives. This is the
next evolutionary step
and provides a tangible
improvement in decision-
making, similar to the boost
provided by implementing an
analytics package.
By partnering with Fospha,
brands have the power to
take control of their current
data, opening the door
to better strategies and
marketing decisions based
on clear and transparent
insights. Within these
strategies, brands can
develop success metrics
like customer lifetime value
to measure what really
matters to the business and
to maximize the potential of
marketing campaigns.
For example, more brands
can start thinking about and
strategizing for how they can
gain control of their first-
party data rather than relying
strictly on third party. Though
this certainly will take time,
money, and serious effort, the
results could be astronomical.
Figure 15. The data maturity
model.
Stage 1: Stage 2: Stage 3: Stage 4: Stage 5:
Implement a new
analytics package
Invest in new marketing
channels
Customer data platform
and new automation
technologies
Add more digital
marketing channels to
strategy
Implement Fospha
standalone data layer
Sharp increase in
quality of decision
making
Adoption of out-of-
the-box attribution
models
Some clarity is added,
but use of data is
reactive and not based
on accurate audience
insights
Start to work with
data specialists
Standards and
processes established
for data management
and reporting
New technologies
no longer improve
decision making
quality and can add
to confusion
Standalone data layer
that brings agile,
actionable insights.
This cuts through
the noise and helps
marketers make more
profitable decisions
Quality of
decision
making
39 40
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Key trends and tips
Focus on value:
Data is ultimately a brand’s support system. When used effectively, it will add tremendous value to your brand. When not, it will only be a
huge missed opportunity.
Even if you’re still working out how to process and understand user data, you can take your first steps in the right direction by defining
what success looks like for your brand. From there, determine the metrics that will help your brand measure this success and create a
dashboard that charts it all.
64% of survey respondents believe their company analyzes under 40% of all consumer data.
Before working to incorporate third-party data sources, extract maximum value from the customer data you already have.
Making sure teams and players across the board agree on the terms of your brand’s success is key in keeping the vision for your brand
streamlined and your eyes on the prize.
Be directive with your technology strategy
Clearly identify and articulate your brand’s challenges that need solving. Ensure that the data companies you work with -- whether
that is attribution providers, DMP’s, CRM vendors, or otherwise -- are using the data to help you find the answers you need and create
sustainable solutions.
If your attribution and data vendors aren’t effectively using your data to help you solve problems, you have the choice to make a change
and find partners that actually can create change and growth.
The ClickZ survey found that brands invest in 7 separate technologies to tackle data analysis and insights, and 44% plan to invest in at
least one more over the next year. Without a strategy, this investment will not necessarily deliver positive returns.
Use the data maturity model in the previous section of this report to understand how your business stacks up. The good news is that no
matter your current level of maturity, partnering with a standalone marketing intelligence vendor can instantly unlock previously unseen
opportunities.
The following are the key tips brands can follow to directly
address some of the challenges our survey answers highlighted:
41 42
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Key trends and tips
Identify partners that can make your life easier
Data solutions and partners need to be able to integrate and evolve with your business. Look for partners and vendors that simplify the
complexity, consolidate fragmented data from within the business, and integrate it with your internal business systems and marketing
technologies. Data-driven insights should be accessible and practical, and they should enable more effective decisions.
Identify the partners that can educate your business in the crucial areas of data science and multi-touch attribution. Just 9% of marketers
believe their organization has an “excellent” understanding of this discipline, so there is a competitive advantage to be gained by making
this a priority.
Connect this intelligence to the people that matter in your organization and watch your business grow.
Find appropriate measures for success
Marketing measurement should not be a restrictive force. Instead, it should provide a healthy perspective on the success of
marketing strategy over time.
One approach to this is to work towards customer-focused metrics, such as customer lifetime value (CLV). It is therefore
surprising that just 32.5% of businesses have a clear view of the CLV within their data set.
Moreover, only 17.5% of responding brands use a shared metric like CLV to judge the success of marketing strategies.
Uniting efforts around such measures can keep teams focused on delivering for the business, rather than just their channel
performance. Technology partners can help you both calculate and track these numbers within a tailored reporting dashboard.
43 44
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Better data for
better decisions:
The Fospha solution
Brands need a standalone data
layer that informs all online and
offline marketing.
While third-party data can certainly be
valuable, insights from specific user actions
and data sets will -- at the very least --
direct brands toward clear, measurable
metrics.
Fospha delivers by putting companies
in control of their first-party data as a
foundational layer upon which strategies
are built and measured. By being in charge
of customer data, brands can set clear
success metrics and create plans to meet
and exceed those metrics.
45 46
THE STATE OF MARKETING MEASUREMENT,
ATTRIBUTION AND DATA MANAGEMENT
Figure 16. The data sources
that typically inform a
marketing strategy
These data sources can be,
but are not limited to:
Fospha achieves this by
Markov chain models,
identifying patterns in past
consumer data to predict
their future actions. A
Markov chain describes
a sequence of possible
events, the probability of a
each event depending on a
previous event.
Using this model leads to a
greater understanding of not
only the potential impact of
each action and channel, but
also clusters of channels and
how they work in specific
sequences for the consumer.
Channel-specific models:
Look at real visitor data
to determine the role an
individual channel has played
in a conversion.
Do not consider the
interaction between various
channels.
Lead to inaccurate attribution
of marketing spend.
Data-driven models:
Look across all visitors’
entire journeys and assign
real values to each of the
touchpoints.
Do consider the interaction
between various channels.
Leads to accurate attribution
of marketing spend.
As a result, for example, it
is possible for brands to
understand the relationship
between Google and
Website visitor
data
CRM data
Display advertising
data
Affiliate cost data
Phone call data
Google merchant
centre
Paid search data
Point of sale data
Data from
customer service
Data from internal
order system
Financial data
Google Webmaster
tools
Facebook when it comes to
user experience and habits,
beyond the simplistic, third-
party studies in today’s
market.
Our preferred Data-Driven
Model: The Markov Model
All the channels are ‘states’,
and the probability that a
customer moves from one
channel to another is a
‘transition probability.’
Looking through all the
customer journey, and their
various paths to conversions,
gives the channels ‘transition
probability.’
Remove a channel and seeing
how many conversions are
expected.
The difference between the
actual number of conversions
and expected conversions
without that channel is the
channel’ value!
At the end of the day, what
brands need to remember
is that the direct financial
impact of accurate attribution
goes well beyond simply more
efficient spending in display
and paid search.
Gone are the days of pushing
money into a channel and
hoping it works. To stay
ahead, brands need to
understand how to make
more effective investment
decisions through predictive
analytics, ultimately giving
the brand a transparent
understanding of why they’re
spending the way they are.
For example, this could also
take the shape of setting
company-wide Customer
Lifetime Value calculations,
giving brands clearer
metrics for consumer
success. Through making
marketing decisions that
better fit the needs of the
consumer, brands can identify
and maintain the lifelong
customer.
Marketing attribution
software can sometimes
seem flashy and complicated,
luring brands in with
large, shiny promises of
‘opportunity’. However, a
business doesn’t necessarily
become successful by using
the flashiest product.
Rather, it will see substantial
success when using the most
effective product. Software
and service mean using the
best technology, but also
getting the most out of said
technology.
This is where Fospha comes
in. Through our innovative
software, your company can
finally gather and organize
the first-party customer data
it needs, equipping you with
actionable tools to find and
retain the lifelong customers
you seek.
It’s time to take control of
your data, transform the
impact of your marketing, and
improve your ROI by using
Fospha’s attribution tools.
Allow us to be your marketing
intelligence partner. Learn
more and get in touch at
www.fospha.com.
Notes
Notes
51
IN PARTNERSHIP WITH:

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ClickZ/Fospha: The State of Marketing Measurement, Attribution, and Data Management

  • 1. The State of Marketing Measurement, Attribution and Data Management IN PARTNERSHIP WITH:
  • 3. Section 1. Executive summary . . . . . . . . . . . . . . . . . . . . .01 Section 2. Scope and methodology . . . . . . . . . . . . . . . . .03 Section 4. Foreword from Fospha . . . . . . . . . . . . . . . . 07 Section 6. More technology creates more complexity . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 8. How businesses are approaching this today . . . . . . . . . . . . . . . . . . . . . . . .27 Section 3. Key findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 05 Section 9. The data maturity model . . . . . . . . . . . . . . . .35 Section 10. Key trends and tips . . . . . . . . . . . . . . . . . . . .39 Section 11. Better data for better decisions: The Fospha solution . . . . . . . . . . . . . . . . . . . . .43 Contents Section 7. The business impact of ineffective consumer understanding . . . . . . . . . . . . . . . 21 Section 5. The data challenge today. . . . . . . . . . . . . . . . 09
  • 4. 1 2 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT More data is created now than ever before as consumers interact with brands in increasingly complex ways across a range of interconnected devices. With each new interaction between a consumer and a website, app, or mobile payment system, a new data point is added to the collective stock. If businesses can turn this data into knowledge about their audience, they can deliver highly personalized experiences that exceed expectations. On the other hand, data without an effective strategy is meaningless. In an attempt to seize the unprecedented data opportunity before them, businesses have invested heavily in a variety of marketing technology Executive summary (martech) software packages. Forrester projects1 that investment in martech will top $122 billion per year by 2022 in the US alone. However, these tools can ultimately add to the complex data challenge brands already face, rather than reducing their workload. A tool is only as useful as its application, after all. Furthermore, broader market trends will continue to shape the relationship between brands and consumers. Developments such as the launch of the General Data Protection Regulation (GDPR) in the European Union, and the announcement of the California Consumer Privacy Act (due to launch on January 1, 2020), point to a future where access to data must be earned rather than simply bought. Concurrently, the impatient modern consumer prefers a dynamic, personalized experience when they interact with brands online. Google reports a 60% growth2 in searches for “__ for me” in the last two years. A one-size-fits-all approach to marketing will not cut it with such a demanding public. Of course, without access to reliable data, brands cannot create and deliver these experiences. There is a paradox here, but it is one that businesses can resolve. That starts by taking control of their current data and deriving accurate, accessible insights about their audience. In partnership with Fospha, ClickZ presents The state of marketing measurement, attribution and data management a report based on a survey of 370 marketing professionals. This report finds that many marketers are overwhelmed by the sheer complexity of the martech ecosystem, and at times even by their own organization’s martech stack. First, we will look at how companies -- specifically brands and marketing agencies -- are managing their data to get a better view of their current and potential customers. Next, we analyze how they are operationalizing this data to generate insights across marketing measurement and attribution to drive business value. Within this report, we will dive into the sometimes murky waters of data attribution, measurement, and management in the hopes of providing clear solutions for marketers moving forward. Gone are the days of gushing money into software that creates more questions than it answers. We hope this report will paint a clear picture of data-driven attribution and lead a puzzled marketer toward effective solutions. Clark Boyd, Author of The state of marketing measurement, attribution and data management No matter their level of data maturity, any brand can draw a line in the sand, take stock of where they are today, and start making more profitable, data- driven decisions. 1 https://www.forrester.com/report/The+US+Marketing+Technology +And+Services+Outlook+2017+To+2022/-/E-RES137651 2 https://www.thinkwithgoogle.com/advertising-channels/ search/search-strategy/
  • 5. 3 4 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Scope and methodology The core purpose of this report is to uncover the challenges brands face today in taking control of their own data to make better marketing decisions. Next, the report aims to provide clear recommendations to help businesses develop their level of data maturity through technology, data, and the right personnel. The fulcrum of the report is a survey of 370 marketing professionals, undertaken in September 2018. Respondents to the survey were split between brand/client-side marketers (63%) and marketing agency professionals (37%). The survey was comprised of 30 questions, covering respondents’ current technology solutions and the challenges they believe the digital marketing industry currently faces. These questions were used to collect quantitative data on a range of marketing measurement technologies. Qualitative data was added through a variety of open questions throughout the survey. These findings have been supplemented by interviews with Fospha.
  • 6. 5 6 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Businesses are using 7 separate technologies to extract insights from their data, on average. Over one third (34%) of survey respondents believe that their company analyzes less than 20% of all consumer data available to them. Just 33% of brands believe that their current measurement solutions perform accurate attribution of all media and data. Only 32.5% of businesses have a clear view of the customer lifetime value (CLV) of their customers. 43% are “likely” or “very likely” to invest in a new marketing measurement technology in the next 12 months. The most important feature of a marketing measurement technology for brands is “quick access to actionable insights.” 29% of survey respondents use attribution technology on all digital marketing campaigns. A very small minority (just 9%) of marketers believe their organization has an “excellent” understanding of multi-touch attribution. Key findings
  • 7. 7 8 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Fospha has a long history of helping marketers unlock insights from their data. We often ask ourselves why, in a heavily congested space of ad platforms and martech giants, anyone else has a right to play in the space. Two main themes validate why: 1. The Pain: The rate of evolution in the market is incredible, but, with every new ad platform, tool and device added to a business, new silos are created making it almost impossible to make sense of your data. The irony here is that with each new technology, you are often adding a new set of data points to help optimize performance and Foreword from Fospha understand your customers better. But, this data is often trapped or hidden in the silo and not surfaced to be operationalized. 2. The Opportunity: For the first time, we’re observing that the realities of what can be done with machine learning and AI are matching expectations. It wasn’t long ago that the compute cost to run data-driven multi-touch attribution models made it not worth the ROI. Now, however, we’re able to measure the impact the precise contribution of the weather on marketing performance, rank customers based on their individual ROI and likelihood to convert and integrate the data with the ad platforms to turn insights into action at scale. Data science is offering marketers the chance to move faster, build IP around how they engage their audiences and develop real competitive advantage. However, the absolute requirement for any of this is a foundation of joined up customer data all in one place. We believe this is still the perfect place to ‘start small and grow” on the journey to embracing data science to drive LTV at scale. This will unlock the data from silos for a joined up view of what’s working across the marketing mix… and then using the data as the foundation for changing the way you not only assign budget to channels but also the way you treat your customer, define your content and creative strategy. This document, surveying a broad range of marketers, is a fascinating report on the biggest challenges marketers have today on this journey and we are excited to share it with you. About Fospha Fospha delivers marketing effectiveness and drives ROI through agile and affordable multi touch attribution, audience, and brand solutions. We build customer data platforms and use AI and data science to organize data, unlock insights, and integrate them with the marketing technologies that matter. We partner with clients to deliver better experiences for their customers and better outcomes for their business. Get in touch with Fospha: Fay Miller, Marketing Director, Fospha Website: www.fospha.com Email: fay.miller@fospha.com
  • 8. 9 10 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT The data challenge for brands today It is estimated that 2.5 quintillion bytes of data are created every single day3 , which is impressive in its scale but only meaningful if it has a useful application in the real world. Theoretically, this creates a digital ecosystem where everything becomes measurable. From the impact of brand advertising on digital performance through to the effectiveness of display advertising impressions, objectives such as planning, forecasting, and reporting can be achieved with pinpoint accuracy if businesses are able to capture and use relevant data. In the process, brands can learn a significant amount about their audience, all of which feeds into better, more profitable business decisions and customer engagements. Many brands are already aware of the potential contained within their data, but for too long that potential has remained untapped. In fact, 33% of respondents to the ClickZ advertiser survey undertaken for this report cite “data complexity” as their biggest challenge today. 3 https://www.forbes.com/sites/bernardmarr/2018/05/21/how-much-data-do-we- create-every-day-the-mind-blowing-stats-everyone-should-read/#71ec1e660ba9
  • 9. 11 12 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Moreover, while 51% of responding brands say they use a specific technology to extract insights from their data, 64% of brands cite that less than 40% of their consumer data is processed and analyzed to inform marketing decisions. A very sizeable 34% of respondents believe they extract insights from less than 20% of the consumer data available to them. Figure 1. How much of your company’s consumer data do you believe is processed and analyzed, with the aim of improving marketing performance? With only 11% of brands believing that they process and analyze 80% or more of their consumer data, there is clearly ample room for improvement. Fortunately, recent developments in data science and artificial intelligence (AI) mean we are now at a point where accessible, actionable insights are within the grasp of any business. Getting there means taking stock of where we are today, drawing a line in the sand, and working toward a more mature, informed approach to data, powered by technology that cuts through the complexity. The rewards for those who achieve this goal are unprecedented in their scale and, at last, they are a realistic aim. Barriers to effective data usage Brands need access to and understanding of their own data across all platforms. This will allow them to have a transparent view of their audience’s behavior, creating a mutually beneficial relationship between brand and consumer. There is a multitude of technologies out there that aim to do precisely this and they come with multiple names such as analytics, attribution, intelligence, activation, loyalty, and insights platforms. For reference, in this report we categorize this group of technologies as ‘Marketing Intelligence’ and will specify any sub-categories within this area as applicable. Undoubtedly, there is a widespread understanding of how crucial martech is to a modern business. The Deloitte CMO Survey 20184 reported that marketing analytics spend will increase by over 200% within the next three years. It also noted, “While marketing analytics is on the rise, a lack of trained professionals as well as tools/ processes to measure the impact of marketing analytics are the biggest obstacles to marketing leaders using marketing analytics within companies.” This certainly tallies with findings from the ClickZ survey. In particular, the fact that increased investment in technology does not always mean better access to data- driven insights is one that permeates this report. Brands identify numerous barriers between them and effective use of data, from ‘data complexity’ and ‘difficulty proving the ROI of attribution’ to simply a lack of budget, time, or skills. As is shown below in figure 2, there is an interconnected set of reasons why brands are struggling to unlock the power of their data today. Figure 2. What are the biggest obstacles to more effective usage of marketing intelligence technology at your organization? (Select up to three.) 35% 20% 10% 0% 0%-20% 21%-40% 41%-60% 5% 15% 25% 30% 61%-80% 81%-100% Percent Amount of data processed and analyzed for marketing A very sizeable 34% of respondents believe they extract insights from less than 20% of the consumer data available to them. 40% 0% 20% Datacomplexity Lackofbudget Concernthatwewon'tusethe insightstomakerealchanges Internalpolitics Lackoftime Limitationsof existingtechnologies Lackofknowledge/skills Lackofmeasurement culturewithinthebusiness Don’ttrustthedata 30% 10% 4 https://cmo.deloitte.com/xc/en/pages/articles/the- cmo-survey-fall-2018-report.html#CMOSurveyFall
  • 10. 13 14 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Navigating the martech ecosystem These survey results confirm what we already know: navigating the martech ecosystem is an increasingly challenging pursuit. In this data-driven age, brands are finding it difficult to make the right decisions with the vast array of attribution technologies and tools available, so much so that some brands seem to freeze under the pressure of deciding what to do. After all, the martech ‘5000’ has long since outgrown its moniker -- this year’s total rose to a very lofty 6,8295 . A further 29% use this technology on all campaigns today, 31% use it on just some campaigns, and 8% have the technology set up but do not look at the results. Figure 3. Do you use marketing attribution on your digital advertising campaigns? This survey finds that most companies do have marketing attribution set up (63% of respondents use Google attribution products), but this is of course just a first step on the road to data maturity. These challenges all broadly relate to the core theme that an abundance of data and marketing technology solutions can create complexity, rather than simplicity. Furthermore, there are obstacles within organizations, such as ‘internal politics,’ that can stand in the way of progress in this field. As such, there is more to this situation than the purely technological and mathematical questions that typically take the headlines. It is also clear that businesses are unsure of the role marketing intelligence software should play, or even what they should call this technology. That lack of definition is a hindrance to progress, as it makes it almost impossible to prove the effectiveness of a solution if a company does not even know which question it is trying to answer. In summary, without the right technology in place -- and the processes, people, and skills to make optimal use of it -- brands will continue to struggle with these challenges. The aim is not only to attribute credit for conversions across marketing channels; businesses need to evolve beyond attribution modeling toward accessible marketing intelligence. As we will discuss in the following section, the current approach to martech is leading businesses further from their goal of attaining reliable, actionable insights from their data. According to our survey results, 27% of brands do not use marketing attribution technology on their digital advertising campaigns, but “would like to do so.” Yes, all campaigns 28.3% Yes, some campaigns 30.9% We have attribution set up, but do not analyze the results 7.9% No, but would like to 27% No plans to do so 5.9% 5 https://chiefmartec.com/2018/04/marketing- technology-landscape-supergraphic-2018/
  • 11. 15 16 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT More technology can create more complexity The most frequently-cited feature that brands wish their marketing intelligence technology could have is easier access to actionable insights. At a surface level that seems rather obvious, but it is revealing when we recall that these same companies have significantly increased their technology spending in this area. Even after so much investment, that deceptively difficult goal remains out of reach. By beginning with a clear concept of the challenges a brand wants to solve by using marketing intelligence software, the partnership between vendor and client can start on a solid foundation. Still, with so many vendors to choose from, brands require guidance to ensure they partner with the right technology solutions. The gap between data and insights According to the ClickZ study carried out exclusively for this report, businesses are using seven separate technologies to extract insights from their data, on average. However, there are no guarantees that using these technologies means that brands are making sense of all this data. In some cases, it may mean entirely the contrary: more data and more martech solutions only add to the complexity. In fact, just 33% of survey respondents believe that their current measurement solutions perform accurate attribution of all marketing campaigns. The true potential of multi-touch attribution and sophisticated data analysis lies in solving brand and marketing challenges, but these opportunities are often missed.
  • 12. 17 18 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Moreover, just 8% of responding brands believe that their use of third-party data is “very effective,” while 14% go as far as stating their use of this data is “very ineffective.” Figure 4. How effective is your company’s use of third-party data to develop an understanding of your consumers? If brands have extensive customer data but don’t know how best to use it for everyone’s benefit, what good does it do taking up server space? The data that is being collected must be converted into applicable knowledge in order for brands to take better-informed and ultimately more profitable actions. That is a continuous process, rather than a one-off action. By taking control of your data, you can drive improvements from any starting point and start to see the impact of using consumer information to provide better experiences. The metrics that matter Another challenge among brands that adds to this complexity is that of business-wide agreement on performance metrics. The definition of success will need to be adjusted for each individual brand, with metrics selected or created to guide the business toward its goals. It is important to conceive of metrics in that sense; they have a practical use in directing a business toward the outcomes it wants to achieve. This is in contrast with the one-size-fits-all approach that sees brands attempting to fit their strategy into someone else’s definition of success. From this position, it is possible to understand where a marketing intelligence software vendor can enable more effective strategic decisions. Consumer data can be used to surface qualitative insights about an audience through quantitative means, but only if the brand in question knows what it is looking for. The ClickZ survey asked respondents whether their company uses a shared metric, such as Customer Lifetime Value (CLV), to measure marketing effectiveness. Figure 5. Do you use a shared metric across departments (such as Customer Lifetime Value) to measure the effectiveness of marketing campaigns? According to our survey, only 17.5% of brands claim to use shared metrics for measuring the impact of marketing activities and 29.2% say they’re “working on it.” A whopping 21.4% of brands report that their companies simply doesn’t use shared metrics and 18.2% admit, “No, but we should.” For example, one team might measure success through increased social media engagement, while another measures success based on website bounce rate. This inconsistency makes it too easy for companies to lose sight of what success means, and it also makes it much more difficult to make use of a marketing intelligence platform. Furthermore, of the brands surveyed, only 32.5% are reported to have a clear view of their customer lifetime value (CLV). That means 67.5% of brands out there don’t have a company- wide understanding of how valuable a new or current customer will be. Figure 6. Does your business have a clear view of your customer lifetime value (CLV)? Without a clear agreement on customer habits and identity or metrics of marketing activity, companies are unable to market and see ROI to its fullest potential. If brands want to see continued success and stay on par with or ahead of competition, they will need to reckon with this internal inconsistency and inability to properly utilize customer data. Access to impartial data is essential Some brands report finding it difficult to trust the data that they do acquire. And some, even if they do trust it, find it hard to believe that using the data will make any real difference to their overall success. Very effective 7.8% Somewhat effective 33.8%% Not sure 27.9% Somewhat ineffective 16.9% Very effective 13.6% Yes 32.5% No 67.5% Yes 17.5% We’re working on it 29.2% No 21.4% Not sure 11.7% No, but we should 18.2% Other: Write in 2%
  • 13. 19 20 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT In particular, these brands referred to the significant level of control that vendors have over their data. Companies like Google and Facebook are data businesses, after all. Relying strictly on online activity, these brands acquire tremendous amounts of user data daily. Protecting this data, their most valuable asset, is extremely important to their ambitions. However, over-protecting could lead to a more fragmented future where data sits in walled gardens to an even greater extent than it does today. Brands need access to their own data, across social media, search marketing, display advertising, and offline campaigns. There is clearly a concern that when a brand is wedded to one particular suite of marketing products, they may not gain access to the full picture of how their audience behaves. Figure 7. Do you believe that the data from your marketing intelligence platform is impartial? Challenges with understanding attribution The term “attribution” in regards to marketing refers to the process of identifying user actions that contribute to a larger desired outcome, assigning value to these actions. When asked to rate the overall understanding of data-driven attribution in their companies, results varied: Figure 8. How would you rate your organization’s current understanding of data-driven attribution? Of the brands surveyed, 9.1% report an excellent overall understanding of attribution and 29.2% report a good understanding. That puts 61.7% of brands at “Neutral” or below. This could pose a potential problem for this 61.7%. Excellent 9.1% Good 29.2% Neutral 27.3% Below average 22.7% Very poor 11.7% In the ClickZ survey, 21% of respondents stated that they do not believe the data from their marketing measurement platform is impartial. Through understanding and analyzing attribution, brands can see what is causing user activity and can create hypotheses to potentially explain the “why” behind that user activity. Without understanding data-driven attribution, brands are left with an increasingly opaque image of the consumer, unable to adequately cater and market to fit consumer needs and habits. Working to not only better understand but also protect all of this data is no longer optional for brands. The General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and Cambridge Analytica scandal are bellwethers of a changing relationship between individuals and their personal data. With all of this data, brands should be able to build more accurate models of their audience’s behaviors. This report finds that brands struggle with the challenge of synthesizing the various components of a martech stack to create a single view of their audience. Having a foundational layer upon which all marketing activities and data should be created is an essential component of a marketing stack. Data-driven attribution is crucial in creating a clear image of the consumer for the brand. Yes 79.9% No 21.1%
  • 14. 21 22 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT The business impact of ineffective consumer understanding The consequences of ineffective consumer understanding on the business are numerous. To begin with, when a brand does not fully understand their consumers, it cannot fully understand how to effectively allocate marketing dollars. Without a clear picture of the consumer, the brand marketer creates plans with incomplete information, potentially wasting marketing dollars on ineffective campaigns or other marketing efforts. Facing fierce competition, brands need to know exactly who their consumers are in order to appropriately plan and market, otherwise brands stand to lose customers. In fact, over the next five years, brands are expected to increase their allocated funds for digital marketing from 44% of their budgets to 54%6 . 6 https://www.slideshare.net/christinemoorman/the-cmo- survey-highlights-and-insights-report-august-2018
  • 15. 23 24 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT As prices go up, brands absolutely cannot afford to waste funds on marketing that doesn’t work. And yet, the 2018 Global Data Management Benchmark Report7 from Experian finds that a huge 89% of executives believe poor data quality is currently undermining their ability to deliver exceptional consumer experiences. This aligns with the findings from the ClickZ survey undertaken for this report. When asked to agree or disagree on whether insights from marketing intelligence platforms directly inform digital strategy, 22.7% of brands answered, “Agree,” and 44.2% of responded with “Somewhat agree.” That leaves 33.1% of brands reporting “Neutral” or below, meaning that 33.1% of brands are overspending in areas that do not necessarily drive performance. Figure 9. Please agree or disagree with the following statement: Insights from our marketing intelligence platform directly inform our digital strategy. Brands plan to invest in new attribution technology To follow up, brands were asked how likely they were to implement new attribution technology to their company within the next year. 18.9% reported “Very likely” and 25% reported “Likely.” Figure 10. How likely are you to implement a new planning, measurement, or attribution technology within the next 12 months? This question refers explicitly to new technology, so this is not to say that the other 56.1% that answered “Not sure” or below won’t step up their game with the technology that they already have. However, this is generally still an indication that many companies still are not prioritizing finding real results through attribution technology. Spending without regard to the insights of marketing intelligence is an easy way for brands to lose money and customers. If building marketing strategies is not directly allied with a clear understanding of consumer information from marketing intelligence platforms, making the case for ROI is debatable. As martech spending continues to rise, so does the risk of misallocating funds. Brands need to be hyper-aware of who their customers are in order to spend effectively. Marketing attribution directly affects strategy As Figure 11 shows, a significant 45.7% of all responding brands have changed their cross-channel marketing budget allocation as a result of marketing attribution findings. 27.8% are unsure and just 26.5% say marketing attribution has not affected channel investment plans. Figure 11. Has marketing attribution influenced your spend allocation across online channels? A company’s misunderstanding of their consumers also ultimately takes up significant time and resources, as staff are forced to work to gain value from technology that does not automate tasks for them. The impact of this is under- achievement against business metrics -- but it also weakens the case for further spending in this area. There is a need for marketers to enable better decisions through data, quickly. It is telling that among respondents who have altered their marketing budget plans based on data-driven insights, the majority have increased their investment in digital marketing. This is particularly true in the areas of content marketing, paid search, and organic search. After using attribution technology to understand campaign performance, 65% of brands increased their investment in content marketing, 61% did so for paid search, and 57% of brands spent more on organic search. This occurs when a brand realizes that they have undervalued the impact their activity through each channel has had, or when they identify further room to grow by allocating more budget to specific areas. Agree 22.7% Somewhat agree 44.2% Neutral 16.2% Somewhat disagree 9.1% Disagree 7.8% Yes 45.7% No 26.5% Not sure 27.8% Very likely 18.9% Likely 25% Not sure 32.8% Not likely 15% Very unlikely 8.3% 6 https://www.slideshare.net/christinemoorman/the-cmo- survey-highlights-and-insights-report-august-2018 7 https://www.edq.com/resources/data-management- whitepapers/2018-global-data-management-benchmark-report/
  • 16. 25 26 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Figure 12. The impact of attribution technology on marketing budget allocation across channels. 100% 50% 25% 0% 75% Contentmarketing Paidsearch Organicsearch Video Display Paidsocial Organicsocial Email Increased Remained the same Decreased Content marketing 64.7% Paid search 10% Organic search 56.6% Video 3% Display 51.5% 22.1% 13.2% Walmart 10% 30.4% 13% Target 3% 27.9% 20.6% Increased Remained the same Decreased Paid search 60.9% Video 54.4% 23.2% 15.9% 38.2% 7.4% Paid social 48.5% Organic social 47.1% Email 45.6% Affiliates 36.7% 30.9% 20.6% 39.7% 13.2% 45.6% 8.8% 47.1% 16.2% Across all digital marketing channels, brands are significantly more likely to increase than decrease their budget once they have conducted a thorough review of their performance data. Accurate multi-touch attribution is essential as an exercise in diagnostic or descriptive analytics, as it shines a light on the consumer engagements that mattered most in the run-up to a conversion. However, as these new findings demonstrate, it is just as crucial for future planning. If a brand knows where and when they can reach their audience most effectively, they can spend accordingly and closely monitor the impact. As a result, this marketing intelligence exercise becomes a driver of performance, rather than just a performance dashboard.
  • 17. 27 28 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT How businesses are approaching this today According to ClickZ data, Google Analytics is the second most popular solution to the attribution problem, often giving brands a basic and important understanding of user activity and habits. The most popular software is Google Attribution 360, used by 51% of respondents. Many businesses are still using predetermined criteria and do not have an attribution model of their own that reveals deeper analyses and insights. According to ClickZ data, Google Analytics is the second most popular solution to the attribution problem, often giving brands a basic and important understanding of user activity and habits. The most popular software is Google Attribution 360, used by 51% of respondents. Many businesses are still using predetermined criteria and do not have an attribution model of their own that reveals deeper analyses and insights. On the following page, we display the out-of-the-box attribution models that a significant number of businesses still use as standard today. Each of these models has its benefits, but none are perfect and it remains surprising to learn that just 9% of marketers feel their business has an “excellent” understanding of multi-touch attribution.
  • 18. 29 30 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENTFigure 13. ‘Out-of-the-box’ attribution models that many businesses use today Last Click All credit is attribution to the last channel interaction. Con: You don’t know where your customer comes from Last Click First AdWords Click Assigns 100% value to last Google Ads click Con: Google Analytics telling you how well Google AdWords are performing First AdWords Click First Click All credit is attribution to the first channel interaction. Con: The majority of purchases don’t happen on the first visit First Click Time Delay Value credited relative to proximity to conversion Con: Still optimising for last clicks Time Delay Linear Assigns equal value to every interaction, regardless of the role they actually played in the conversion Con: Rewarding all channels equally is like everyone winning first prize - unrealistic Linear Position based Default value attributed 40% to first touch, 40% to the last and 20% spread across all others Con: Still not a reflection of the actual customer journey Position Based
  • 19. 31 32 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Another solution that companies often turn to are standalone attribution providers or all-in-one platforms. These platforms often promise to provide what they call a ‘single customer view.’ Chasing this objective does not lead to better decisions today and often leads companies further from their stated objective. In fact, it can make company goals unachievable and impede them from building better models with the data available to them. Others can see the value in the insights their platform delivers, without being fully convinced of its exactness: “Our data is directionally correct, but I don’t believe it is as accurate as it could be.” The aim of the company through the use of this technology should be not to create a perfect model of attribution, but rather to create the most accurate, transparent, and useful model of real customer journeys, wherever they are. Though tools like Google Analytics are excellent in painting an image of the consumer using broad brush strokes, brands really need the nitty-gritty details. These solutions pose other challenges for brands as well. For example, impartiality is far from guaranteed when using larger third-party solutions. 79% of surveyed brands believe that the data from their current technology is impartial, which is a healthy majority but still leaves a sizeable 21% of brands who are skeptical of their own data’s objectivity. There are subtle but still notable distinctions across the major technology providers. 39% of current customers believe Google Attribution 360 is working well for them and 41% of Adobe Marketing Attribution users felt the technology provides accurate analysis of all campaigns. While these tools may work for brands in many ways, they ultimately cannot provide the single customer view that they promise to deliver. Adding to the list of challenges, using third-party data doesn’t always sit well with brands. Having the proper tools to acquire and understand their own data puts the power back into the hands of the brands. Ultimately, brands need marketing intelligence software that is reliable, According to a survey respondent, “Most technologies have one or two brilliant core functionalities, but the rest is there to dress up the package as something more robust than it actually is.” “Google has too much control over our data,” one ClickZ respondent admits. accurate, agile, and impartial. Brands need to be focused on delivering and sharing knowledge within their organization to enable better long-term decisions across all marketing activities. Figure 14. What do you look for when assessing marketing intelligence vendors? (Please select up to three.) 0% 10% 20% 30% 40% Accessible, actionable insights through user interface Affordable access to simple, effective tools Ability to identify cost savings Enablement of better marketing decisions through data Helps calculate the ROI of digital marketing Accurate performance forecasts Transparency on the effectiveness of each marketing channel Accessible, actionable insights through user interface Paid search 10% Ability to identify cost savings Video 3% Helps calculate the ROI of digital marketing 37% Walmart10% 31.5% Target 3% 29.5% Value Percent Affordable access to simple, effective tools Enablement of better marketing decisions through data 15.9% 7.4% Accurate performance forecasts Transparency on the effectiveness of each marketing channel Integration ofonline and offline data 20.6% 20.5% 8.8% Accessible, actionable insights through user interface Paid search 10% Ability to identify cost savings Video 3% Helps calculate the ROI of digital marketing Walmart10% Target 3% Affordable access to simple, effective tools Enablement of better marketing decisions through data 34.9% 29.5% Accurate performance forecasts Transparency on the effectiveness of each marketing channel Integration ofonline and offline data 22.6% 17.1% Customer support team Paid search 10% Single view of the customer Video 3% Integreations with other software packages 15.8% Walmart10% 13.7% Target 3% 11.6% Value Percent Calculation of metrics such as customer lifetime value The agility to adapt to changing user behaviours 14.4% 13.7% Independent, reliable view of your data Dedicated data protection team 11% 8.9%
  • 20. 33 34 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT When asked what they consider when choosing marketing intelligence software, above all, brands said accessible, actionable insights through user interface. Marketers want to see the data clearly and glean actionable next steps through it. Following that, brands said they consider both a software’s simplicity and its ability to identify cost savings. While these are certainly important things to keep in mind, the true purpose of marketing intelligence software is to identify how and where brands can be making better and more accurate marketing decisions via consumer data. However, this falls behind the three aforementioned considerations, signaling that brands may need a general mental overhaul on their understanding of consumer data in relation to marketing goals.
  • 21. 35 36 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT The data maturity model There is an evolutionary process at play here. All brands can take stock of their current maturity and use this to plan their development. In other words, brands can use what they already have to grow even further. The key point here is that no matter where a company sits on this spectrum, there is always room for improvement. A company’s first step in improving data maturity is adding a new analytics platform, which can have a huge, immediate impact. When used properly, an analytics platform will provide brands with clarity, transparency, and a better performance analysis. Businesses can then build off of this by investing in attribution software and marketing automation, streamlining strategies based on understanding the data and enabling informed, data-based decisions. To take it one step further, brands should implement an all-in-one customer data platform to incorporate more data sources into the analysis of their customers and the effectiveness of their marketing. A clearer strategy should emerge from using this technology, but brands should have their antennas up because the opposite can often occur. With so much information and so many directions to take it in, it’s easy for companies to lose sight of goals and metrics. However, with effective data software and a clear, company-wide strategy, brands will be set up for a world of success.
  • 22. 37 38 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Decision-Making and Data Maturity Ultimately, the quality of a brand’s decision-making is directly correlated with the level of data maturity. Brands need to be careful to make thoughtful decisions about the technologies and marketing strategies they invest in. To make these thoughtful decisions, brands need to have a clear and transparent understanding of their data. According to ClickZ research, we’ve found that the average brand invests in seven tools that are specifically designed to extract insights from customer data. Inevitably, there is crossover in functionality, a sense of unkept promises, and a waste of company resources. Technologies that are more expensive and more complex don’t necessarily offer more benefits, nor can they offer the same initial boost that an analytics platform can provide. Additionally, new tools may simply tell a brand what they already know or worse, contradict and confuse a brand’s goals and ideas. Rather than spending more money on more tools, brands can and should unlock the potential of their current data by engaging with an independent data analysis platform. The insights from such an analysis will better shape company decisions, creating data-based goals and motives. This is the next evolutionary step and provides a tangible improvement in decision- making, similar to the boost provided by implementing an analytics package. By partnering with Fospha, brands have the power to take control of their current data, opening the door to better strategies and marketing decisions based on clear and transparent insights. Within these strategies, brands can develop success metrics like customer lifetime value to measure what really matters to the business and to maximize the potential of marketing campaigns. For example, more brands can start thinking about and strategizing for how they can gain control of their first- party data rather than relying strictly on third party. Though this certainly will take time, money, and serious effort, the results could be astronomical. Figure 15. The data maturity model. Stage 1: Stage 2: Stage 3: Stage 4: Stage 5: Implement a new analytics package Invest in new marketing channels Customer data platform and new automation technologies Add more digital marketing channels to strategy Implement Fospha standalone data layer Sharp increase in quality of decision making Adoption of out-of- the-box attribution models Some clarity is added, but use of data is reactive and not based on accurate audience insights Start to work with data specialists Standards and processes established for data management and reporting New technologies no longer improve decision making quality and can add to confusion Standalone data layer that brings agile, actionable insights. This cuts through the noise and helps marketers make more profitable decisions Quality of decision making
  • 23. 39 40 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Key trends and tips Focus on value: Data is ultimately a brand’s support system. When used effectively, it will add tremendous value to your brand. When not, it will only be a huge missed opportunity. Even if you’re still working out how to process and understand user data, you can take your first steps in the right direction by defining what success looks like for your brand. From there, determine the metrics that will help your brand measure this success and create a dashboard that charts it all. 64% of survey respondents believe their company analyzes under 40% of all consumer data. Before working to incorporate third-party data sources, extract maximum value from the customer data you already have. Making sure teams and players across the board agree on the terms of your brand’s success is key in keeping the vision for your brand streamlined and your eyes on the prize. Be directive with your technology strategy Clearly identify and articulate your brand’s challenges that need solving. Ensure that the data companies you work with -- whether that is attribution providers, DMP’s, CRM vendors, or otherwise -- are using the data to help you find the answers you need and create sustainable solutions. If your attribution and data vendors aren’t effectively using your data to help you solve problems, you have the choice to make a change and find partners that actually can create change and growth. The ClickZ survey found that brands invest in 7 separate technologies to tackle data analysis and insights, and 44% plan to invest in at least one more over the next year. Without a strategy, this investment will not necessarily deliver positive returns. Use the data maturity model in the previous section of this report to understand how your business stacks up. The good news is that no matter your current level of maturity, partnering with a standalone marketing intelligence vendor can instantly unlock previously unseen opportunities. The following are the key tips brands can follow to directly address some of the challenges our survey answers highlighted:
  • 24. 41 42 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Key trends and tips Identify partners that can make your life easier Data solutions and partners need to be able to integrate and evolve with your business. Look for partners and vendors that simplify the complexity, consolidate fragmented data from within the business, and integrate it with your internal business systems and marketing technologies. Data-driven insights should be accessible and practical, and they should enable more effective decisions. Identify the partners that can educate your business in the crucial areas of data science and multi-touch attribution. Just 9% of marketers believe their organization has an “excellent” understanding of this discipline, so there is a competitive advantage to be gained by making this a priority. Connect this intelligence to the people that matter in your organization and watch your business grow. Find appropriate measures for success Marketing measurement should not be a restrictive force. Instead, it should provide a healthy perspective on the success of marketing strategy over time. One approach to this is to work towards customer-focused metrics, such as customer lifetime value (CLV). It is therefore surprising that just 32.5% of businesses have a clear view of the CLV within their data set. Moreover, only 17.5% of responding brands use a shared metric like CLV to judge the success of marketing strategies. Uniting efforts around such measures can keep teams focused on delivering for the business, rather than just their channel performance. Technology partners can help you both calculate and track these numbers within a tailored reporting dashboard.
  • 25. 43 44 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Better data for better decisions: The Fospha solution Brands need a standalone data layer that informs all online and offline marketing. While third-party data can certainly be valuable, insights from specific user actions and data sets will -- at the very least -- direct brands toward clear, measurable metrics. Fospha delivers by putting companies in control of their first-party data as a foundational layer upon which strategies are built and measured. By being in charge of customer data, brands can set clear success metrics and create plans to meet and exceed those metrics.
  • 26. 45 46 THE STATE OF MARKETING MEASUREMENT, ATTRIBUTION AND DATA MANAGEMENT Figure 16. The data sources that typically inform a marketing strategy These data sources can be, but are not limited to: Fospha achieves this by Markov chain models, identifying patterns in past consumer data to predict their future actions. A Markov chain describes a sequence of possible events, the probability of a each event depending on a previous event. Using this model leads to a greater understanding of not only the potential impact of each action and channel, but also clusters of channels and how they work in specific sequences for the consumer. Channel-specific models: Look at real visitor data to determine the role an individual channel has played in a conversion. Do not consider the interaction between various channels. Lead to inaccurate attribution of marketing spend. Data-driven models: Look across all visitors’ entire journeys and assign real values to each of the touchpoints. Do consider the interaction between various channels. Leads to accurate attribution of marketing spend. As a result, for example, it is possible for brands to understand the relationship between Google and Website visitor data CRM data Display advertising data Affiliate cost data Phone call data Google merchant centre Paid search data Point of sale data Data from customer service Data from internal order system Financial data Google Webmaster tools Facebook when it comes to user experience and habits, beyond the simplistic, third- party studies in today’s market. Our preferred Data-Driven Model: The Markov Model All the channels are ‘states’, and the probability that a customer moves from one channel to another is a ‘transition probability.’ Looking through all the customer journey, and their various paths to conversions, gives the channels ‘transition probability.’ Remove a channel and seeing how many conversions are expected. The difference between the actual number of conversions and expected conversions without that channel is the channel’ value! At the end of the day, what brands need to remember is that the direct financial impact of accurate attribution goes well beyond simply more efficient spending in display and paid search. Gone are the days of pushing money into a channel and hoping it works. To stay ahead, brands need to understand how to make more effective investment decisions through predictive analytics, ultimately giving the brand a transparent understanding of why they’re spending the way they are. For example, this could also take the shape of setting company-wide Customer Lifetime Value calculations, giving brands clearer metrics for consumer success. Through making marketing decisions that better fit the needs of the consumer, brands can identify and maintain the lifelong customer. Marketing attribution software can sometimes seem flashy and complicated, luring brands in with large, shiny promises of ‘opportunity’. However, a business doesn’t necessarily become successful by using the flashiest product. Rather, it will see substantial success when using the most effective product. Software and service mean using the best technology, but also getting the most out of said technology. This is where Fospha comes in. Through our innovative software, your company can finally gather and organize the first-party customer data it needs, equipping you with actionable tools to find and retain the lifelong customers you seek. It’s time to take control of your data, transform the impact of your marketing, and improve your ROI by using Fospha’s attribution tools. Allow us to be your marketing intelligence partner. Learn more and get in touch at www.fospha.com.
  • 27. Notes
  • 28. Notes