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D A T A - D R I V E N A T T R I B U T I O N
U N D E R T H E H O O D
PRESENTED BY: SIMON PO ULTON
SE N IOR D IR E CTOR OF DIGITAL IN TELLIGENCE, WPROMOTE
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 2
THE NEW ZEALAND ALL BLACKS
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 3
THE NEW ZEALAND ALL BLACKS
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 4
DAN CARTER
112 Matches Played
88% of Games Won
1,598 Points Scored
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 5
OWEN FRANKS
100 Matches Played
88% of Games Won
0 Points Scored
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 6
OWEN FRANKS
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 7
OWEN FRANKS
Why continue
having Owen Franks
in the starting line
up when he is not
productive?
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 8
JUST HURRY UP & EVOLVE ALREADY
We’re judging a fish
based on its ability
to climb a tree.
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 9
WORLD’S STRONGEST SCRUM PACK
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 10
RUGBY AT-TRY-BUTION
+ =
Given their different skill sets, it’s easy to justify the
need to have both players on the team!
A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 11
RUGBY AT-TRY-BUTION
Facebook
View-Through Conversion
Affiliate
Last-Click Conversion
+ =
T H E C H A L L E N G E O F
A T T R I B U T I O N
T H E C H A L L E N G E O F A T T R I B U T I O N 13
FUNDAMENTAL COMPONENTS
CUSTOMER JOURNEY MAPPING APPLIED ATTRIBUTION MODEL
T H E C H A L L E N G E O F A T T R I B U T I O N 14
L A S T C L I C K F I R S T C L I C K L I N E A R
P O S I T I O N - B A S E D T I M E D E C AY
ATTRIBUTION EVOLUTION
T H E C H A L L E N G E O F A T T R I B U T I O N 15
"Rules-based attribution is
inherently biased and drives
poor decision making.”
Me - Right Now
ATTRIBUTION EVOLUTION
T H E C H A L L E N G E O F A T T R I B U T I O N 16
D ATA - D R I V E N
ATTRIBUTION EVOLUTION
T H E C H A L L E N G E O F A T T R I B U T I O N 17
INCOMPLETE STORIES
T H E C H A L L E N G E O F A T T R I B U T I O N 18
THE GREAT DATA SILOS
T H E C H A L L E N G E O F A T T R I B U T I O N 19
5 0 0
C O N V E R S I O N S
G O O G L E
7 0 0
C O N V E R S I O N S
F A C E B O O K
+ =
1 0 0 0
C O N V E R S I O N S
T O TA L
FUNNY MEASUREMENT MATH
T H E C H A L L E N G E O F A T T R I B U T I O N 20
FROM COOKIES TO PEOPLE
0%
29%
71%
Desktop Mobile All Devices
45%
7%
48%
C O O K I E - B A S E D M E A S U R E M E N T P E O P L E - B A S E D M E A S U R E M E N T
T H E C H A L L E N G E O F A T T R I B U T I O N 21
INTELLIGENT TRACKING PREVENTION
Cookies can be used
in a 3rd-party context
Cookies can’t be used
in a 3rd-party context
Cookies
purged
0 Days 1 Day 30 Days
Days after the most recent interaction with the website
T H E C H A L L E N G E O F A T T R I B U T I O N 22
CLICKS VS. VIEWS
CLICK-THROUGH
CONVERSION
VIEW-THROUGH
CONVERSION
CLICKS
VISIT SITE
CONVERT
SCROLL PAST
???
CONVERT
T H E C H A L L E N G E O F A T T R I B U T I O N 23
CLICK-TO-SALE
"There is no significant correlation between clickthrough rate
(CTR) and sales. Correlation is less than 1%.”
Source: Facebook Nielsen Study, 2017
AD RECALL BRAND AWARENESS PURCHASE INTENT
D A T A - D R I V E N
A T T R I B U T I O N
D A T A - D R I V E N A T T R I B U T I O N 25
SHAPLEY VALUES - EXAMPLE
EXAMPLE
• 3 “Players”
• Player 1 Receives A Left-Hand Glove
• Players 2 & 3 Receive A Right-Hand Glove
TASK
• Form A Pair
• Credit Assigned To Each Player After Forming
A Pair
PLAYER 1 PLAYER 2 PLAYER 3
PLAYER 1 & PLAYER 2
PLAYER 1 & PLAYER 3
D A T A - D R I V E N A T T R I B U T I O N 26
SHAPLEY VALUES - GOOGLE ADS EXAMPLE
B R A N D S H O P P I N G N O N - B R A N D
3 GOOGLE ADS
CAMPAIGNS
MINIMUM 15,000 CLICKS
& 600 CONVERSION
ACTIONS IN PAST 30
DAYS
D A T A - D R I V E N A T T R I B U T I O N 27
PROBLEM
3 Google Ads Campaigns had 4 sales of $1. How can we distribute the total credit of $4 to
the individuals?
$4
B R A N D S H O P P I N G N O N - B R A N D
D A T A - D R I V E N A T T R I B U T I O N 28
STEP 1
Compute Normalizing Factors (NF) For Different Sizes Of Sub-Teams
S H O P P I N G N O N - B R A N D
Number of
Campaigns
NF Formula NF Team Permutations
1 NF: (o!*2!)/3!=2/6=1/3 33%
2 NF: (1!*1!)/3!=1/6=1/6 16%
3 NF: (2!*o!)/3!=2/6=1/3 33%
B R A N D
D A T A - D R I V E N A T T R I B U T I O N 29
STEP 2
Performance Data Points For Individuals
B R A N D S H O P P I N G N O N - B R A N D
S A L E S
$ 2
S A L E S
$ 1
S A L E S
$ 0
D A T A - D R I V E N A T T R I B U T I O N 30
STEP 3
Brand’s counterfactual gain, i.e. what Brand brings
as a value add, is therefore the total sales, minus
what Shopping would have achieved on its own.
Performance Data Points For Campaigns As Part Of Teams
Brand’s counterfactual gain, in a group with
Shopping, is $4 - $1 = $3.
Similarly Shopping’s counterfactual is the total sales, minus
what Brand would have had on its own.
Shopping’s counterfactual gain, in a team with
Brand, is $4 - $2 = $2.
+ $4
B R A N D S H O P P I N G
COUNTERFACTUAL GAIN
$ 2 $ 1
D A T A - D R I V E N A T T R I B U T I O N 31
STEP 3
Brand Shopping Non-Brand
Shopping +
Non-Brand
Non-Brand +
Brand
Shopping +
Brand
Brand +
Shopping + Non-
Brand
Sales $2 $1 $0 $2 $1 $4 $4
Brand $2 - - - $1 $3 $3
Shopping - $1 - $2 - $2 $2
Non-Brand - - $0 $0 $0 - $0
Performance Data Points For Individuals As Part Of Teams
CounterfactualGain
D A T A - D R I V E N A T T R I B U T I O N 32
STEP 4
Group of 1 Group of 2 Group of 3 Attributed Payout
NF 33% 16% 33% 100%
Brand $2 $2+$3=$5 $3
33%*$2 + 16%*$5 + 33%*$3 =
$2.5
Shopping $1 $1+$2=$3 $2
33%*$1 + 16%*$3 + 33%*$2 =
$1.5
Non-Brand $0 $0 $0 $0
Computing Payoff For Individuals From Counterfactual Gains Using Normalizing Factors (NFs)
D A T A - D R I V E N A T T R I B U T I O N 33
DATA-DRIVEN ATTRIBUTION
Adjusts to the changing weights and journeys
of users over time.
Informs on performance associated with top-
of-the-funnel initiatives.
Allows for a gap analysis with regards to
underinvested areas of the funnel.
D A T A - D R I V E N A T T R I B U T I O N 34
CONVERSION SHIFTS TO NON-BRAND
WHAT HAPPENED?
Attribution weight shifted from
remarketing and brand to non-brand
upper funnel terms, allowing for a focus
on non-brand to drive growth.
NON-BRAND
Conversions Cost/Conversion Click Conv. Rate
244 $190 0.7%
+64% +12% -13%
BRAND
Conversions Cost/Conversion Click Conv. Rate
69 $111 0.7%
-63% +58% -24%
*Date Range: 30 days Pre & Post Attribution Model Change.
CLIENT TYPE:
Auto-Parts Client with a complex path to
purchase.
D A T A - D R I V E N A T T R I B U T I O N 35
CONVERSION SHIFTS TO BRAND
1,246 $31 2%
-7.1% -12.1% +13.4%
1,450 $1 12%
+8.4% +0.2% +4.8%
*Date Range: 30 days Pre & Post Attribution Model Change.
CLIENT TYPE:
Wedding Personalization Company with
a strong focus on brand search.
WHAT HAPPENED?
Brand campaign has started to see more
credit. May be an indicator of over-
reliance on lower funnel activity.
NON-BRAND
Conversions Cost/Conversion Click Conv. Rate
BRAND
Conversions Cost/Conversion Click Conv. Rate
D A T A - D R I V E N A T T R I B U T I O N 36
CONVERSION SHIFTS TO MOBILE
551 $86 1%
+10.4% -32.4% +52.2%
522 $60 3%
-13.4% -6.1% +6.7%
*Date Range: 30 days Pre & Post Attribution Model Change.
CLIENT TYPE:
Furniture Store with a long consumer
research phase pre-purchase.
WHAT HAPPENED?
Heavier weighting of earlier touch points
(on mobile devices) drove a number of
mobile bid optimizations and increases.
Conversions Cost/Conversion Click Conv. Rate
Conversions Cost/Conversion Click Conv. Rate
MOBILE
Desktop/Tablet
W H A T C A N W E D O
T O D A Y ?
W H A T C A N W E D O T O D A Y ? 38
GOOGLE LEADS THE WAY
Google Analytics Premium (360): August 2013
DoubleClick (GMP): February 2016

AdWords (GoogleAds): May 2016

Google Attribution: ~Q1 2019
W H A T C A N W E D O T O D A Y ? 39
THE CHALLENGE PERSISTS
5 0 0
C O N V E R S I O N S
G O O G L E
7 0 0
C O N V E R S I O N S
F A C E B O O K
+ =
1 0 0 0
C O N V E R S I O N S
T O TA L
W H A T C A N W E D O T O D A Y ? 40
MATCHED CONTROL EXPERIMENTAL DESIGN
W H A T C A N W E D O T O D A Y ? 41
THE GOD PIXEL
W H A T C A N W E D O T O D A Y ? 42
WPROMOTE ATTRIBUTION
DBM - WpromoteDBM - Wpromote
W H A T C A N W E D O T O D A Y ? 43
WHAT ABOUT AMAZON?
Sign Up: https://www.amazon.com/amazonattribution
W H A T C A N W E D O T O D A Y ? 44
KEY TAKEAWAYS
Rules-based models are still
very useful, but inherently
contain bias and limit
actionable insights.
VISION MODELS
DDA
Uses Shapley Values and
counterfactual gains to
constantly adjust based on
new information available.
Attribution modeling is about
looking forward to determine
how to grow, not about
looking back.
EDUCATE
Real attribution change can
only occur when everyone is
educated on the “why” and
“how.”
W H A T C A N W E D O T O D A Y ? 45
THE BEST TIME TO PLANT A TREE
1 Y E A R 5 Y E A R S 1 0 Y E A R S 1 5 Y E A R S 2 0 Y E A R S
W H A T C A N W E D O T O D A Y ? 46
IT’S ONLY GOING TO GET MORE COMPLEX
W H A T C A N W E D O T O D A Y ? 47
IT’S THE WILD WEST OF DATA OUT THERE
W H A T C A N W E D O T O D A Y ? 48
ABOUT ME
Simon Poulton
Senior Director of Digital
Intelligence at Wpromote
Website: www.spoulton.com
Twitter: @SPoulton
Email: simon@wpromote.com

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Data-Driven Attribution Under the Hood - Simon Poulton

  • 1. D A T A - D R I V E N A T T R I B U T I O N U N D E R T H E H O O D PRESENTED BY: SIMON PO ULTON SE N IOR D IR E CTOR OF DIGITAL IN TELLIGENCE, WPROMOTE
  • 2. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 2 THE NEW ZEALAND ALL BLACKS
  • 3. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 3 THE NEW ZEALAND ALL BLACKS
  • 4. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 4 DAN CARTER 112 Matches Played 88% of Games Won 1,598 Points Scored
  • 5. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 5 OWEN FRANKS 100 Matches Played 88% of Games Won 0 Points Scored
  • 6. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 6 OWEN FRANKS
  • 7. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 7 OWEN FRANKS Why continue having Owen Franks in the starting line up when he is not productive?
  • 8. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 8 JUST HURRY UP & EVOLVE ALREADY We’re judging a fish based on its ability to climb a tree.
  • 9. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 9 WORLD’S STRONGEST SCRUM PACK
  • 10. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 10 RUGBY AT-TRY-BUTION + = Given their different skill sets, it’s easy to justify the need to have both players on the team!
  • 11. A T T R I B U T I O N : N O T A 4 - L E T T E R W O R D 11 RUGBY AT-TRY-BUTION Facebook View-Through Conversion Affiliate Last-Click Conversion + =
  • 12. T H E C H A L L E N G E O F A T T R I B U T I O N
  • 13. T H E C H A L L E N G E O F A T T R I B U T I O N 13 FUNDAMENTAL COMPONENTS CUSTOMER JOURNEY MAPPING APPLIED ATTRIBUTION MODEL
  • 14. T H E C H A L L E N G E O F A T T R I B U T I O N 14 L A S T C L I C K F I R S T C L I C K L I N E A R P O S I T I O N - B A S E D T I M E D E C AY ATTRIBUTION EVOLUTION
  • 15. T H E C H A L L E N G E O F A T T R I B U T I O N 15 "Rules-based attribution is inherently biased and drives poor decision making.” Me - Right Now ATTRIBUTION EVOLUTION
  • 16. T H E C H A L L E N G E O F A T T R I B U T I O N 16 D ATA - D R I V E N ATTRIBUTION EVOLUTION
  • 17. T H E C H A L L E N G E O F A T T R I B U T I O N 17 INCOMPLETE STORIES
  • 18. T H E C H A L L E N G E O F A T T R I B U T I O N 18 THE GREAT DATA SILOS
  • 19. T H E C H A L L E N G E O F A T T R I B U T I O N 19 5 0 0 C O N V E R S I O N S G O O G L E 7 0 0 C O N V E R S I O N S F A C E B O O K + = 1 0 0 0 C O N V E R S I O N S T O TA L FUNNY MEASUREMENT MATH
  • 20. T H E C H A L L E N G E O F A T T R I B U T I O N 20 FROM COOKIES TO PEOPLE 0% 29% 71% Desktop Mobile All Devices 45% 7% 48% C O O K I E - B A S E D M E A S U R E M E N T P E O P L E - B A S E D M E A S U R E M E N T
  • 21. T H E C H A L L E N G E O F A T T R I B U T I O N 21 INTELLIGENT TRACKING PREVENTION Cookies can be used in a 3rd-party context Cookies can’t be used in a 3rd-party context Cookies purged 0 Days 1 Day 30 Days Days after the most recent interaction with the website
  • 22. T H E C H A L L E N G E O F A T T R I B U T I O N 22 CLICKS VS. VIEWS CLICK-THROUGH CONVERSION VIEW-THROUGH CONVERSION CLICKS VISIT SITE CONVERT SCROLL PAST ??? CONVERT
  • 23. T H E C H A L L E N G E O F A T T R I B U T I O N 23 CLICK-TO-SALE "There is no significant correlation between clickthrough rate (CTR) and sales. Correlation is less than 1%.” Source: Facebook Nielsen Study, 2017 AD RECALL BRAND AWARENESS PURCHASE INTENT
  • 24. D A T A - D R I V E N A T T R I B U T I O N
  • 25. D A T A - D R I V E N A T T R I B U T I O N 25 SHAPLEY VALUES - EXAMPLE EXAMPLE • 3 “Players” • Player 1 Receives A Left-Hand Glove • Players 2 & 3 Receive A Right-Hand Glove TASK • Form A Pair • Credit Assigned To Each Player After Forming A Pair PLAYER 1 PLAYER 2 PLAYER 3 PLAYER 1 & PLAYER 2 PLAYER 1 & PLAYER 3
  • 26. D A T A - D R I V E N A T T R I B U T I O N 26 SHAPLEY VALUES - GOOGLE ADS EXAMPLE B R A N D S H O P P I N G N O N - B R A N D 3 GOOGLE ADS CAMPAIGNS MINIMUM 15,000 CLICKS & 600 CONVERSION ACTIONS IN PAST 30 DAYS
  • 27. D A T A - D R I V E N A T T R I B U T I O N 27 PROBLEM 3 Google Ads Campaigns had 4 sales of $1. How can we distribute the total credit of $4 to the individuals? $4 B R A N D S H O P P I N G N O N - B R A N D
  • 28. D A T A - D R I V E N A T T R I B U T I O N 28 STEP 1 Compute Normalizing Factors (NF) For Different Sizes Of Sub-Teams S H O P P I N G N O N - B R A N D Number of Campaigns NF Formula NF Team Permutations 1 NF: (o!*2!)/3!=2/6=1/3 33% 2 NF: (1!*1!)/3!=1/6=1/6 16% 3 NF: (2!*o!)/3!=2/6=1/3 33% B R A N D
  • 29. D A T A - D R I V E N A T T R I B U T I O N 29 STEP 2 Performance Data Points For Individuals B R A N D S H O P P I N G N O N - B R A N D S A L E S $ 2 S A L E S $ 1 S A L E S $ 0
  • 30. D A T A - D R I V E N A T T R I B U T I O N 30 STEP 3 Brand’s counterfactual gain, i.e. what Brand brings as a value add, is therefore the total sales, minus what Shopping would have achieved on its own. Performance Data Points For Campaigns As Part Of Teams Brand’s counterfactual gain, in a group with Shopping, is $4 - $1 = $3. Similarly Shopping’s counterfactual is the total sales, minus what Brand would have had on its own. Shopping’s counterfactual gain, in a team with Brand, is $4 - $2 = $2. + $4 B R A N D S H O P P I N G COUNTERFACTUAL GAIN $ 2 $ 1
  • 31. D A T A - D R I V E N A T T R I B U T I O N 31 STEP 3 Brand Shopping Non-Brand Shopping + Non-Brand Non-Brand + Brand Shopping + Brand Brand + Shopping + Non- Brand Sales $2 $1 $0 $2 $1 $4 $4 Brand $2 - - - $1 $3 $3 Shopping - $1 - $2 - $2 $2 Non-Brand - - $0 $0 $0 - $0 Performance Data Points For Individuals As Part Of Teams CounterfactualGain
  • 32. D A T A - D R I V E N A T T R I B U T I O N 32 STEP 4 Group of 1 Group of 2 Group of 3 Attributed Payout NF 33% 16% 33% 100% Brand $2 $2+$3=$5 $3 33%*$2 + 16%*$5 + 33%*$3 = $2.5 Shopping $1 $1+$2=$3 $2 33%*$1 + 16%*$3 + 33%*$2 = $1.5 Non-Brand $0 $0 $0 $0 Computing Payoff For Individuals From Counterfactual Gains Using Normalizing Factors (NFs)
  • 33. D A T A - D R I V E N A T T R I B U T I O N 33 DATA-DRIVEN ATTRIBUTION Adjusts to the changing weights and journeys of users over time. Informs on performance associated with top- of-the-funnel initiatives. Allows for a gap analysis with regards to underinvested areas of the funnel.
  • 34. D A T A - D R I V E N A T T R I B U T I O N 34 CONVERSION SHIFTS TO NON-BRAND WHAT HAPPENED? Attribution weight shifted from remarketing and brand to non-brand upper funnel terms, allowing for a focus on non-brand to drive growth. NON-BRAND Conversions Cost/Conversion Click Conv. Rate 244 $190 0.7% +64% +12% -13% BRAND Conversions Cost/Conversion Click Conv. Rate 69 $111 0.7% -63% +58% -24% *Date Range: 30 days Pre & Post Attribution Model Change. CLIENT TYPE: Auto-Parts Client with a complex path to purchase.
  • 35. D A T A - D R I V E N A T T R I B U T I O N 35 CONVERSION SHIFTS TO BRAND 1,246 $31 2% -7.1% -12.1% +13.4% 1,450 $1 12% +8.4% +0.2% +4.8% *Date Range: 30 days Pre & Post Attribution Model Change. CLIENT TYPE: Wedding Personalization Company with a strong focus on brand search. WHAT HAPPENED? Brand campaign has started to see more credit. May be an indicator of over- reliance on lower funnel activity. NON-BRAND Conversions Cost/Conversion Click Conv. Rate BRAND Conversions Cost/Conversion Click Conv. Rate
  • 36. D A T A - D R I V E N A T T R I B U T I O N 36 CONVERSION SHIFTS TO MOBILE 551 $86 1% +10.4% -32.4% +52.2% 522 $60 3% -13.4% -6.1% +6.7% *Date Range: 30 days Pre & Post Attribution Model Change. CLIENT TYPE: Furniture Store with a long consumer research phase pre-purchase. WHAT HAPPENED? Heavier weighting of earlier touch points (on mobile devices) drove a number of mobile bid optimizations and increases. Conversions Cost/Conversion Click Conv. Rate Conversions Cost/Conversion Click Conv. Rate MOBILE Desktop/Tablet
  • 37. W H A T C A N W E D O T O D A Y ?
  • 38. W H A T C A N W E D O T O D A Y ? 38 GOOGLE LEADS THE WAY Google Analytics Premium (360): August 2013 DoubleClick (GMP): February 2016
 AdWords (GoogleAds): May 2016
 Google Attribution: ~Q1 2019
  • 39. W H A T C A N W E D O T O D A Y ? 39 THE CHALLENGE PERSISTS 5 0 0 C O N V E R S I O N S G O O G L E 7 0 0 C O N V E R S I O N S F A C E B O O K + = 1 0 0 0 C O N V E R S I O N S T O TA L
  • 40. W H A T C A N W E D O T O D A Y ? 40 MATCHED CONTROL EXPERIMENTAL DESIGN
  • 41. W H A T C A N W E D O T O D A Y ? 41 THE GOD PIXEL
  • 42. W H A T C A N W E D O T O D A Y ? 42 WPROMOTE ATTRIBUTION DBM - WpromoteDBM - Wpromote
  • 43. W H A T C A N W E D O T O D A Y ? 43 WHAT ABOUT AMAZON? Sign Up: https://www.amazon.com/amazonattribution
  • 44. W H A T C A N W E D O T O D A Y ? 44 KEY TAKEAWAYS Rules-based models are still very useful, but inherently contain bias and limit actionable insights. VISION MODELS DDA Uses Shapley Values and counterfactual gains to constantly adjust based on new information available. Attribution modeling is about looking forward to determine how to grow, not about looking back. EDUCATE Real attribution change can only occur when everyone is educated on the “why” and “how.”
  • 45. W H A T C A N W E D O T O D A Y ? 45 THE BEST TIME TO PLANT A TREE 1 Y E A R 5 Y E A R S 1 0 Y E A R S 1 5 Y E A R S 2 0 Y E A R S
  • 46. W H A T C A N W E D O T O D A Y ? 46 IT’S ONLY GOING TO GET MORE COMPLEX
  • 47. W H A T C A N W E D O T O D A Y ? 47 IT’S THE WILD WEST OF DATA OUT THERE
  • 48. W H A T C A N W E D O T O D A Y ? 48 ABOUT ME Simon Poulton Senior Director of Digital Intelligence at Wpromote Website: www.spoulton.com Twitter: @SPoulton Email: simon@wpromote.com