building a connected brand with attribution modeling - icrossing

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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.

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Page 1: Building a Connected Brand with Attribution Modeling - iCrossing

1 COPYRIGHT ICROSSING / PROPRIETARY AND CONFIDENTIAL

Page 2: Building a Connected Brand with Attribution Modeling - iCrossing
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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

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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

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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

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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

eMail

SEM Non-Brand

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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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