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Attribution 101

Attribution 101 provides an overview of full-funnel attribution and measurement for online media. Presented by Steve Latham, founder and ceo of Encore Media Metrics.
For a copy please send a request to info(at)encoremetrics.com or visit http://Attribution101.com

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Attribution 101

  1. 1. Confidential Attribution 101: Full-Funnel Media Measurement ! Fall 2011!
  2. 2. What We Do We help marketers optimize spend through better analytics q  Advanced Measurement §  Comprehensive reporting §  Integrated cross-channel views §  Full Attribution (beyond last click) §  Paid, owned and earned media q  Actionable Insights §  Rank Vendors and Keywords §  Quantify opportunity of optimizing media CPA - Last Last Click Vendor! CPA - Attributed Click! Rating! Attributed! Rating! q  Consultative, On-Demand Solution Social Net 1! $ 0.90 ! Winner! $ 0.84 ! Winner! §  Hands-on planning and deployment Ad Net 1! $ 3.48 ! Winner! $ 1.02 ! Winner! Publisher 1! §  Cloud-based platform $ 4.45 ! Bubble! $ 2.10 ! Bubble! Ad Net 2! $ 6.41 ! Bubble! $ 1.32 ! Winner! §  Effective, user-friendly and flexible Publisher 4! Publisher 3! $ $ 9.22 ! 9.96 ! Loser! Loser! $ $ 3.31 ! 7.09 ! Bubble! Loser! Ad Net 3! $ 13.11 ! Loser! $ 2.43 ! Bubble! Publisher 2! $ 13.56 ! Loser! $ 1.81 ! Winner! Totals! $ 5.36 ! $ 1.88 ! Attribution 101 © Encore Media Metrics 2011 2!
  3. 3. Media Measurement Today Digital is hard to characterize Awareness 
 q  Strategic + Tactical (Display, Email, Social, q  Branding + Performance Mobile, Fat Tail Search)! Consideration
 Digital touches customers throughout! (Display, Mid-Tail the funnel Search, Social)! q  Can t win by simply harvesting demand Preference
 q  You must create it (display, social, etc.) (Long-Tail Search, Social Email)! Digital is hard to measure Action
 Traditional metrics no longer suffice q  (Social, Search, Email)! …Yet, each buy must stand on its own Attribution 101 © Encore Media Metrics 2011 3!
  4. 4. Measurement Challenges “If all you have is a hammer, everything looks like a nail.” -Abraham Maslow We learned to measure performance via: q  Clicks q  Click-through-rates (CTRs) q  Direct conversions We now know these aren t sufficient q  Keyword assists are important (Search) q  Display Ads can be effective without clicks q  Social contributes throughout the process Clicks have very little correlation to ! performance of Display Ads q  8% of users contribute 80% of Display clicks q  Only 20% of post-imp conversions follow clicks Attribution 101 © Encore Media Metrics 2011 4!
  5. 5. Think About It This Way… What if they only gave the last swimmer the medal? That ain t right! Attribution 101 © Encore Media Metrics 2011 5!
  6. 6. Think About It This Way… What if they only gave the last swimmer the medal? Attribution 101 © Encore Media Metrics 2011 6!
  7. 7. PhD Targeting… 1st Grade Metrics The paradox in online advertising, as it relates to data.. q  Most are very sophisticated in using data to find and engage audiences q  Very few are using data effectively to measure impact It s like hiring a PhD statistician to develop new algorithms… and having a1st grader assess their work Attribution 101 © Encore Media Metrics 2011 7!
  8. 8. Why Times are Changing The Five Forces Driving Better Analytics Shift from Traditional to Digital Media! Growth in Increasing 
 Display Focus on 
 Better Solutions! Advertising! Accountability! Evolution of Web Architecture! Attribution 101 © Encore Media Metrics 2011 8!
  9. 9. Attribution Methodologies There are two primary approaches to Attribution: 1. Algorithmic modeling: correlations, regressions, etc. q  Performed in batches, monthly, quarterly or annually 2. Operational: analyzing all touch points that drive actions q  Requires synching of ad server and site analytics data Attribution 101 © Encore Media Metrics 2011 9!
  10. 10. Channel Attribution q  Most know display drives leads from direct and natural search q  If you can quantify the impact, you can optimize spend The impact can be dramatic •  Often see 50-150% lift in attributable results for Display •  30-60% drop in CPL is common Attribution 101 © Encore Media Metrics 2011 10!
  11. 11. Vendor Level Attribution Vendor Level Report Last-Click vs. Attributed CPA CPA - Last Last Click CPA - Attributed Vendor! CPA - Last Click! CPA - Attributed! Click! Rating! Attributed! Rating! $16 ! $14 ! Social Net 1! $ 0.90 ! Winner! $ 0.84 ! Winner! $12 ! Ad Net 1! $ 3.48 ! Winner! $ 1.02 ! Winner! $10 ! Publisher 1! $ 4.45 ! Bubble! $ 2.10 ! Bubble! $8 ! Ad Net 2! $ 6.41 ! Bubble! $ 1.32 ! Winner! $6 ! Publisher 4! $ 9.22 ! Loser! $ 3.31 ! Bubble! $4 ! Publisher 3! $ 9.96 ! Loser! $ 7.09 ! Loser! $2 ! Ad Net 3! $ 13.11 ! Loser! $ 2.43 ! Bubble! $- ! Publisher 2! $ 13.56 ! Loser! $ 1.81 ! Winner! Totals! $ 5.36 ! !   $ 1.88 ! !   q  As shown above, many vendors are short- q  Wide discrepancies can exist between changed by last-click analysis Last-Click and Attributable CPA (Contributors vs. Closers) Attribution 101 © Encore Media Metrics 2011 11!
  12. 12. The Business Case for Attribution The Objective of Analytics: To Use Insights to Optimize Spend % of Proforma Proforma Proforma Vendors Spend % of Revenue ROS Proforma Proforma Proforma Impact Vendors Spend Budget Revenue ROS % Budget ROS Revenue Impact Budget % Budget ROS Revenue Winners $74,500 41% $255,000 $3.42 70% $3.42 $429,564 $174,564 Winners $74,500 41% $255,000 $3.42 70% $3.42 $429,564 $174,564 Bubble $54,500 30% $135,000 $2.48 30% $2.72 $148,500 $13,500 Bubble $54,500 30% $135,000 $2.48 30% $2.72 $148,500 $13,500 Losers $51,000 28% $64,000 $1.25 0% n/a $0 ($64,000) Losers $51,000 28% $64,000 $1.25 0% n/a $0 ($64,000) Total $180,000 100% $454,000 $2.52 100% $3.21 $578,064 $124,064 Total $180,000 100% $454,000 $2.52 100% $3.21 $578,064 $124,064 Relative Improvement 27% Relative Improvement 27% Incremental Revenue $124,064 Incremental Revenue $124,064 Cost of Attribution and Measurement $7,150 Cost of Attribution and Measurement $7,150 ROI: Attribution 1735% ROI: Attribution 1735% Attribution 101 © Encore Media Metrics 2011 12!
  13. 13. Keyword Attribution How Most View Keyword Reports (%-51<"&1 .+/%0-1 .+/%0- (<.1234-51 !"#$%&' ()*+,- :;"0' ()*+,1 234-51()*+,6 2.7&*896 ()*+,6 2(<(61 !"#$%&'() *+),- -. ./0 1-2/ 103./ 1..3/. !"#$%&'(.. *+4*2 -. 2, 1/42 103*- 1./32/ !"#$%&'(*2 *+,)) -2 2. 1)*0 1035, 1.)3,2 !"#$%&'(. /+.., -- .0* 142. 103.- 1.)340 !"#$%&'(5. .+.*4 *, .0, 122* 103/4 150344 !"#$%&'(*4 2+.-) -0 .// 1.+*-0 103.2 15.300 !"#$%&'(.2 .+424 ,0 .2- 1.+2./ 103). 15-35* !"#$%&'(.* *+-4, 50 .-4 1.+*4) 103,* 1-*3)2 !"#$%&'(.) 5+4-2 5* ..2 1.+-), 1035) 1-/32* !"#$%&'(*/ .+5)0 -/ ..0 1*+*5* 1.3/. 1-43,* !"#$%&'(- )+0// -, .-0 1*+*.4 103*- 1-)3*) !"#$%&'(/ -+50, .4 )- 1)/2 103** 1,532* !"#$%&'(./ 5+*.- -* ... 1*+*)- 1032. 1,-3/* !"#$%&'(5- ..+/40 ,0 .-5 1*+4-4 103*- 1,/3)/ !"#$%&'(*. 2+./- *4 .5, 1.+4.) 103*, 1/-3)/ !"#$%&'(.- -+5,2 .) .-- 1.+*-2 103*) 1/,3/5 !"#$%&'(.4 ,+0-0 50 ). 1*+042 103-. 1/)3,2 !"#$%&'(5* .+*4) .5 2, 1)/0 1032- 12534, !"#$%&'(*, -+,24 .* .0/ 1)4/ 103** 14*3.2 !"#$%&'(4 )+20, */ .-4 1*+552 103*- 14)344 !"#$%&'(50 5+4)- *4 .-. 15+.55 10340 1...34) Attribution 101 © Encore Media Metrics 2011 13!
  14. 14. Keyword Attribution How We Should View Keyword Reports .+/%0-1 .'78-5"'1 .<&:;1 (%-51A"&1 ()*+,1 .+/%0- >"+4-51 (A.1234-51 (A.1 (A.12=1 ()%-"&1D1 !"#$%&' ()*+,- 234-51 ()*+,1 .+/%0-1 ?@"0' ()*+,1 .--*-5- 2.9&*:;6 .+/%0- ()*+,6 2.9&*:;6 (B40C"6 (%05&*:85%& ()*+,6 .--*-5- 2=6 2(A(61 !"#$%&'() *+),- -. ..) ..) ./0 -1-2 -3 4-3/ 401./ 4..1/. 4.010/ 5.,2 67%8"& !"#$%&'(*9 3+.-) -0 .*/ .*/ .// -1/2 -) 4.+*-0 401.3 4:.100 4*,1*3 5*:2 67%8"& !"#$%&'(. /+.., -- ,9 ,9 .0* *192 :0 493. 401.- 4.)190 4*9199 :.2 67%8"& !"#$%&'(.- -+:,3 .) .*, .*, .-- -102 -: 4.+*-3 401*) 4/,1/: 4*)1*) 5.*-2 (%05&*:85%& !"#$%&'(.* *+-9, :0 ..9 ..9 .-9 -1.2 -- 4.+*9) 401,* 4-*1)3 4*)1-/ 5-/2 (%05&*:85%& !"#$%&'(.. *+9*3 -. :- :- 3, *1.2 ** 4/93 401*- 4./13/ 4:01)9 -/2 67%8"& !"#$%&'(*, -+,39 .* )- )- .0/ *1)2 :. 4)9/ 401** 49*1.3 4:.1-/ 5./.2 (%05&*:85%& !"#$%&'(.3 .+939 ,0 .*- .*- .3- -192 ,. 4.+3./ 401). 4:-1:* 4::1:/ 5:2 67%8"& !"#$%&'(/ -+:0, .9 3/ 3/ )- *1/2 *9 4)/3 401** 4,:13* 4:-190 5,-2 (%05&*:85%& !"#$%&'(.) :+9-3 :* 9, 9, ..3 :1:2 :, 4.+-), 401:) 4-/13* 4-:1** 592 67%8"& !"#$%&'(:* .+*9) .: /* /* 3, *1.2 ** 4)/0 4013- 43:19, 4-:1:0 53.2 (%05&*:85%& !"#$%&'(*3 *+,)) -3 *- *- 3. *102 *. 4)*0 401:, 4.)1,3 4-:19: ,,2 67%8"& !"#$%&'(*. 3+./- *9 .03 .03 .:, :192 -0 4.+9.) 401*, 4/-1)/ 4-,1,9 5-:2 (%05&*:85%& !"#$%&'(9 )+30, */ .** .** .-9 -1.2 -- 4*+::3 401*- 49)199 4,:1-. 5/92 (%05&*:85%& !"#$%&'(- )+0// -, ), ), .-0 :1)2 -. 4*+*.9 401*- 4-)1*) 4,:1,) 92 67%8"& !"#$%&'(.0 /+*0) .. 3/ 3/ 93 *1-2 */ 4.+,9, 401*/ 4.--10) 4/.1/* 5.:-2 (%05&*:85%& !"#$%&'(:- ..+/90 ,0 ): ): .-: -102 -* 4*+9-9 401*- 4,/1)/ 4/31:3 .,2 67%8"& !"#$%&'(*/ .+:)0 -/ /- /- ..0 :1.2 :: 4*+*:* 4.1/. 4-91,* 4/91/: *)2 67%8"& !"#$%&'(./ :+*.- -* /) /) ... :1.2 :: 4*+*)- 4013. 4,-1/* 4/)1). **2 67%8"& !"#$%&'(:0 :+9)- *9 ..: ..: .-. :1)2 -* 4:+.:: 40190 4...19) 43,1./ 5-)2 (%05&*:85%& !"#$%&'(.9 ,+0-0 :0 /. /. ). *1,2 *3 4*+093 401-. 4/)1,3 4331,3 .02 67%8"& !"#$%&'(., /+3-. *, 3: 3: )9 *132 *) 4*+:,- 401:, 4)-1./ 49.1*, 5./2 ()%-"& !"#$%&'(:: /+,93 .- ,, ,, /) .1)2 *0 4.+//* 401*, 4..913. 49.1-3 5-/2 (%05&*:85%& Attribution 101 © Encore Media Metrics 2011 14!
  15. 15. Additional Considerations Defining the right attribution model q  What is the value of an impression vs. a click? q  How will that vary based on the type of media? q  How far back should you look? !"#$%&'("!"(')**&+,-*+%# +67' +67':';59<=' +;"' $98754@' $98754@' !"#$%&'($ )0AB83.0'!"#$ !./012 *1345'+678 D7./0 3&4, )889838 &4>1? )889838 ;59<=8 ;59<=')889838 -./*01(&0)2 !)*+, *1B<C.8 EBF598C.2'G !"#$%"&'# ("#() !*+* (#( !"$(& %&&&&&&&&&& !% !"#$ %&&&&&&&&&& $"$'''"() ,&"%** Winner EBF598C.2'H )-)"&(# !"%)- )+* %!$ %!# %&&&&&&&&&& &% #"$! %&&&&&&&&&& !"*#&*"!! ,$"%** Winner )0'#.3I12='J )-#"!(' !!")#( -+* !"'(- '-$ %&&&&&&&&&&!*! $")+ %&&&&&&&&&& $"'%(*",* ,#"%** Winner EBF598C.2'J )%'"#!! &"()* &+* !"$)) %&) %&&&&&&&&&& )' ("*' %&&&&&&&&&& !"'!&*"), ,%"*** Winner )0'#.3I12='H &%-")!% &"(#! #+* #!* $#! %&&&&&&&& )% '!"$# %&&&&&&&&&& !"*!-!",( ,)"#%* Bubble )0'#.3I12='G $"&!%"#!* !)"('$ !*+* !")(' !"*-) %&&&&&&&& '( '+"!- %&&&&&&&&&& $"%%*#"!' ,!!"*** Bubble EBF598C.2'H )%'"*!$ #(! )+* $-& )%- %&&&&&&&&&& ' ("$! %&&&&&&&&&& -$' -"-$ ,)"%** Loser EBF598C.2'K )%#"$)! !")%- -+* $$- $%- %&&&&&&&& &* '-",! %&&&&&&&&&& %$$ )",, ,&"*** Loser *13458 '"%*$"!-! &'"#)( -+' #"$!' %"!-$ %&&&&&&&&&&%)- $"+( %&&&&&&&&&& !$"#%$ !"*) ,&!"#%* Attribution 101 © Encore Media Metrics 2011 15!
  16. 16. Case Studies Regional Furniture Retailer q  Integrated media campaign (15 million impressions and 145,000 visits per month) §  Display attribution resulted in 98% lift over last-click reporting (46% drop in CPA) §  PPC attribution resulted in 14% lift over last-click report (16% drop in CPA) B2B Service Provider q  Integrated media campaign (10 million impressions and 15,000 visits per month) §  Display attribution resulted in 88% lift over last-click reporting (47% drop in CPA) §  PPC attribution resulted in 6% lift over last-click report (6% drop in CPA) Attribution 101 © Encore Media Metrics 2011 16!
  17. 17. Case Studies Client: Education Company q  Enrollment campaign, using display media only §  Display Attribution produced 280% lift in Actions vs. last-click reporting §  Cost per conversion fell from $95 (last-click) to $18 (attributed) Client: National Provider of Energy Services q  Customer acquisition campaign using display and 3rd party email §  Display Media cost per conversion fell from $147 (Last-click) to $28 (attributed) §  Email cost per conversion fell from $50 (last-click) to $33 (attributed) Attribution 101 © Encore Media Metrics 2011 17!
  18. 18. Some Things You Can Do Today 1.  Market testing 2.  Customer surveys 3.  Online surveys Attribution 101 © Encore Media Metrics 2011 18!
  19. 19. Market Testing To isolate the impact of media, conduct a market test q  Conduct a campaign targeting a Geo or Product q  Define the test and the control groups q  Measure lift in traffic and conversions (via G.A. filters) Case study: regional campaign targeting Austin, TX q  Results: 120% lift in traffic from Austin Attribution 101 © Encore Media Metrics 2011 19!
  20. 20. Survey Customers Ask customers if they… q  Visit your site, facebook page, YouTube channel, etc. Define Test and Control groups Case study: Retailer asked customers how they heard about the sale (comparing Austin to other markets) Internet was referenced 4x more in Austin vs. other markets Attribution 101 © Encore Media Metrics 2011 20!
  21. 21. Online Surveys Use 1-Question surveys to measure lift in awareness, consideration or preference from advertising Compare results from Exposed vs. Control Group Case study: Awareness-building campaign for eCardio q  Used 1-Question survey to measure awareness vs. competitors q  Exposed group showed 280% lift in awareness Attribution 101 © Encore Media Metrics 2011 21!
  22. 22. Takeaways Success requires that you: q  Create demand q  Harvest demand It s time to re-assess how we measure media q  Use right tool and approach for each channel q  Put in context of the stage in the funnel For deep insights, use Full-Funnel Attribution q  By channel q  By vendor q  By keyword Lacking tools, go back to basics! Attribution 101 © Encore Media Metrics 2011 22!
  23. 23. Contact Information Encore Media Metrics Info@EncoreMetrics.com New York | Texas @SteveLatham 646.820.1006 http://EncoreMetrics.com @EncoreMetrics http://Attribution101.com Attribution 101 © Encore Media Metrics 2011 23!
  24. 24. About the Presenter Steve is the founder and CEO of Encore Media Metrics (http://encoremetrics.com), which helps marketers optimize spend through better analytics. Encore s on- demand measurement and reporting solution allows clients to achieve deeper insights into campaign performance while lowering the cost and complexity of online measurement. Prior to launching Encore, Steve founded, grew and sold Spur Interactive, a digital marketing agency that specialized in strategic planning and execution of integrated media campaigns. In this role, Steve planned and executed successful campaigns for leading brands, including FedEx Office, Continental Airlines, ConocoPhillips and The Scooter Store. Steve is an accomplished industry lecturer and thought leader. Steve speaks frequently at industry events including OMMA, Search Engine Strategies, Online Marketing Summit, eMetrics Summit, Integrated Marketing Summit and others. Steve s articles have been published by MediaPost, Online Media Daily, iMedia Connection, Marketing News and Bizjournals.com. Steve has been quoted in B2B Magazine, PR Week, Fortune and CNN.com. Steve received an MBA from Harvard Business School and a BBA from the University of Oklahoma. You can read Steve s blog at http://Attribution101.com. http://facebook.com/slatham http://twitter.com/stevelatham www.linkedin.com/in/stevelatham Attribution 101 © Encore Media Metrics 2011 24!
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Attribution 101 provides an overview of full-funnel attribution and measurement for online media. Presented by Steve Latham, founder and ceo of Encore Media Metrics. For a copy please send a request to info(at)encoremetrics.com or visit http://Attribution101.com

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