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The following article was published in our article directory on September 10, 2020.
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4 Ways To Model Your Marketing Attribution For Long Term Success

Article Category: Advice

Author Name: Shiju Thomas

What is #marketing #attribution?

Marketing attribution is the model or system by which a business or marketing is able to allocate impact to their marketing spend, based on different factors such as recency, frequency, time to convert etc.

To re-use the iconic words of some famous person - if we know that half our marketing spend is being wasted, #attribution modelling empowers you with the knowledge to know which half. However, it's imperative that you test and fine-tune your model - and compare results from multiple models over a time frame before you throw your hat on one.

Why is marketing attribution important?
Marketing attribution models generate a ton of valuable insights that you can put to use for better results. You may already know that attribution provides a complete view of the entire purchasing process from beginning to end, telling you what marketing channels are most influential in delivering conversions or sales. You're able to assess the success of your marketing efforts and understand how each touchpoint and therefore each dollar spent contributes to revenue earned from conversions or sales on your website or in your retail office.

Attribution modelling helps marketers to track the effectiveness of campaigns, even drilling down to the ROI of the keywords in their AdWords campaigns - which is kind of basic stuff, but extend that to every click, every impression and therefore every dollar - and that's what you get from a good attribution model. Knowing what's working and what's not is key to allocating the budget for paid media efforts smartly, leveraging various outbound marketing options more aggressively, and prioritizing content projects correctly.

Choosing an attribution model
Of course, your success with attribution will depend on your choice of attribution model. There are six #attribution models and the opportunity for you to create a custom model that reflects your customer behaviour and industry best. The right marketing attribution model for your product will come down to whether you provide a service or product (transactional), whether the product requires a lengthy research and consideration period - or is it a more impulsive purchase.

If you are a B2B or B2C service with a lengthy sales cycle (Enterprise Saas, Real Estate/Buyer's Agents, Marketing Automation Software)? A time decay model may appropriate.

By definition, a time decay model assigns more value to the interaction that directly led to conversion; it also credits previous touchpoints, but to a lesser extent than the touchpoint closest in time to the conversion/sale. The default half-life of a time decay model is 7 ½ days, implying that a touchpoint happening seven days prior to the conversion will receive ½ the credit of a touchpoint occurring on the day of the conversion.

For lengthy sales cycles where prospects spend considerable time going through your company's whitepapers, fact sheets and thought-leadership content, a 30-day half-life and 90-day look back (default is 30 days) are recommended. For a shorter sales cycle in the service industry, a time decay model with a 15-day half-life and 30-day look back works nicely.

If you operate an e-commerce store/online store, consider position-based attribution.

A position-based attribution model assigns 40% of the credit to the first and last interaction each, and distributes 20% to the interactions happening in the middle, is the way to go. Sell products under $100? A look-back period of 15 days may suffice (average is 30 days). Do your products come with big price tags? Best to work with a look-back of a window of 45 days.

What are the key things to remember when building, choosing or applying an attribution model for your marketing spend?

Please be aware that all attribution models rely on tracking - and perfect tracking of every impression or every click doesn't exist. Although #Bizible, #Google Attribution 360, #VisualIQ make a good pass at it.

You're likely to overestimate the impact of the last touch and underestimate the impact of the first impression - irrespective of the model you apply. You can call this the 'prodigal click' problem.

Well behaved early Brand Spend which creates affinity, presence in the consideration set, positive brand associations will be underestimated in terms of impact because the prodigal last click or first click will get most of the credit for turning a click into a sale

Plan your marketing spend based on the knowledge that your tracking is likely to be imperfect, and your attribution model is a guess - and allow yourself to test and learn as all the best marketers do.

Educate your boss/CEO, your financial leader or CFO on the importance of an #integrated #marketing campaign to drive results - starting with awareness, brand all the way down to last click and purchase. So you don't get told one day to cut all the spend before the last click.

In an age of multi-channel customer experiences, attribution modelling is a necessary strategy. By applying the right attribution model, you can improve, test and innovate with your marketing efforts to drive better business outcomes.

About the Author: Shiju Thomas is an expert when it comes to Digital Marketing Strategy Consulting and Execution. Visit us to find out everything about Digital Marketing & Performance Consulting, For the right dashboard solution Try The Best Dashboard.

Keywords: #digitalmarketing #marketing #attribution #mediaspend #advertising #growthmarketing

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