Attribution 101

Attribution 101Giving Credit Where Credit Is Due

November 8, 2012

Aruna Thota, Director of Product Management, Adometry

© Copyright 2012 Adometry, Inc. All Rights Reserved. Confidential. 2

The Attribution Problem


Timberland


Timberland

•Who gets the credit?

•?


What Is Attribution?

•Attribution is a way to assign value to each channel or marketing touch point that played a role in influencing the consumer to make a purchase.

•Currently Attribution focus is mostly on online media


Types Of Attribution Models


Current State Of Attribution

Sources:6. Digital Attribution Comes Of Age

http://www.iab.net/digitalattribution


But, Wait…

Total Revenue

= +Offline Revenue

Online Revenue


And….

Offline Revenue

Online Revenue

Offline Advertising

Online Advertising

Advertising Revenue


There Is More…


Types Of Attribution

Offline Revenue

Online Revenue

Offline Advertising

Online Advertising

Advertising Revenue

1. Digital Attribution

2. Online to Offline3. Offline to Online

4. Multi Device


Why Is Attribution Important?


Marketers Want To Be Data Driven

Source: http://www.iab.net/media/file/2012-BRITE-NYAMA-Marketing-ROI-Study.pdf

•91% of high level decision makers believe successful brands use data to drive decisions

•When it comes to CMO’s 100% believe data and measurement is key to driving decisions

http://www.iab.net/media/file/2012-BRITE-NYAMA-Marketing-ROI-Study.pdf



But, Marketers Struggle With Data





And They Fail To Measure ROI


•57% do not tie marketing budgets to ROI

•37% don’t include financial metrics in measurement of ROI

•82% don’t include both spend and returns to evaluate ROI

•22% use brand awareness as the sole measure for marketing

•Wrong metrics Wrong marketing investments




Benefits Of Attribution

I Measure, I Optimize, Therefore I am

What you do not measure does not exist


Other Benefits

1. Understand true CPA’s and negotiate CPA with Affiliates

2. Reduce and eventually eliminate wasted spend

3. Understand non-linear performance of marketing

4. Improve planning


Example Using Display Impact On Search


Display Refines Search Queries

Sources1.Display Advertising Impact: Search Lift and Social Influence (A field experiment by researchers at Stanford university)

Exposed to Display Ad

5 – 25% more relevant search queries1

No Display Exposure More generic search terms• More expensive• More long tail keywords• Increased PPC complexity

http://ilpubs.stanford.edu:8090/993/2/displayadinfluenceTR.pdf




Other Studies3 Indicate Positive Lifts Across Multiple Kpis

• For consumers exposed to brand display campaigns

Sources:3. The Silent Click: Building Brands Online

1 in 5Conduct related search

1 in 3Visit

brands web site

50% More Time on

site

10% More Money Online

Higher Order Value

$

Higher Repeat

$$

More Loyal

$$$

Better Advocates

$$$$

http://onlinepubs.ehclients.com/images/pdf/1059_W_TheSilentClick_OPA.pdf






Startup Steps For Attribution


What Level Of Attribution Do You Need?

•Depends on the complexity of your business – start by analyzing your referrer data


Identify The Right Metrics

•If you start measuring something you start optimizing it, even if it is wrong – example CTR


Test Things To Gain Confidence

•Start with digital first


Bring Everyone Onboard

•Change Organizational Structures and Incentive Mechanisms


The Adometry Attribution Solution


Data Driven Attribution

•Adometry uses a bottom-up approach to attribution by first assigning fractional credit at the most granular impression level.

•Allow the data to point out the hidden correlations and insights within your marketing efforts.


The Adometry Attribution Methodology


Looking backward, a user had events E1, E2, E3, E4

& then converted.

What fractional credit goes to each Ei?

$E1 E3 E4E2



Looking backward, a user had events E1, E2, E3, E4

& then converted.

What fractional credit goes to each Ei?


ConversionEvent

E1 E3 E4E2


How important is each event in driving conversions?

Adometry’s Advanced Attribution

% Conversion

E1 E3 E4E2

% Conversion

E1 E3 E4E2


Making incremental changes to media spend, to maximize lift in a target KPI

Search Display

Acrosschannels

Site/Placements

emailSocial

Withinchannels

Offline

What Is Optimization?


Average vs Incremental Metrics

Optimization requires a non-linear model

Marginal eCPA

≠ Average

eCPA


Superior Advanced Optimization

34

Training Data

KPI’s•# Conversions•# Unique visitors•$ Revenue/Profit•Custom

Exogenous data•Economic Indices•Weather•Custom

Daily ad spend

• Social• TV• Offline• Affiliate

• Display• Search• Email

Planned Budget Allocations

Constraints

Starting Point Optimization Results

Non-Linear Model Constraint Driven More Accurate

Optimal SpendReallocation

Max Projected KPI Lift


Comprehensive, Data-Driven Methodology | End-to-End Service | Ease of Integration

Input Automation from Media Partners Ad & Audience Verification

Frequency Capping

Media Modeler

Report Labs

Funnel Stage Analysis

Exclusive Reach

Output Automatically to DSPs & Search Management

Viewability

Advanced Attribution


• Ensure viewability• Target the right audience• Protect your brand

MONITORCAMPAIGNSTO MITIGATE

WASTE

IMPACT: Immediate 10-20% waste reduction

Viewability & Brand Safety:

• Am I getting what I paid for?

• Is the target audience seeing my ad?

• Are my ads placed on brand damaging sites?



“Easy Button” to optimize campaign performance based on constraints and key performance indicators

IMPROVE PERFORMANCE AND PREDICT SUCCESS

IMPACT: Immediate 20-40% aggregate ROAS lift through optimization

Multiple Channels + Multiple Campaigns = More Work than Time:

• How do I get more out of my ad spend?

• Where do I start to make adjustments?



• Determine what is and isn’t working

• Cycle the improvements

GLEANINSIGHTSTO BUILD

BETTERCAMPAIGNS

IMPACT: Longer term 25-75% aggregate ROAS lift throughbetter campaign development & strategies through attribution

Making Decisions Based on the Wrong Metrics:• How do I know what is really

influencing customer conversions?

• How are the channels interacting with each other?



Selecting An Attribution Vendor


What To Look For In An Attribution Solution

•Quality & completeness of data

•Data driven & self learning model

•Flexible and customizable

• Insights & recommendations

•“Easy button”

•Best practices guidance

•Vendor as a partner

Thank you

Aruna Thota, Director of Product Management, [email protected]

Documents

Attribution 101