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