This presentation on Attribution and Media Measurement was made at the 2012 Digital World Expo. For an electronic copy please email info@encoremetrics.com

1. Online Attribution !
Media Measurement Demystified!
September 2012!
Steve Latham, CEO
Encore Media Metrics
@stevelatham

2. Background and Objectives
My Background
q Founded, grew and sold a digital media agency (2002-2010)
§ Managed campaigns for FedEx, Continental Air, 76 Gas, The Scooter Store
§ Intense focus on accountability and results
q Launched Encore Media Metrics in 2011
§ Media measurement, attribution and reporting as managed service
My Objectives for Today
q Define the problem
q Explain Attribution
q Show where we are (and where we’re going)
q Keep you from falling asleep!
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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3. Now let’s have some fun with
digital media measurement!
…Said No One. Ever
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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4. Context
Since early days, we’ve measured performance via:
q Clicks and Click-through-rates (CTRs)
q Direct Conversions and Cost Per Action (CPA)
q Credit allocated to Last-Click or Last-View
We now know these are no longer sufficient
q Customers utilize numerous channels
q Keywords often play an Assist role
q Display Ads create awareness
§ Success is NOT correlated to clicks
§ Only small % of post-view conversions !
involve display clicks
The Solution: Multi-Touch Attribution
q
Identify all interactions that precede conversions
q Attribute value to each interaction that plays a supporting role
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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5. Distinguishing Attribution
Two Approaches
q Statistical – looking for relationships between data sets
§ Paid clicks vs. Conversions
§ Impressions vs. Conversions
§ Impact of Display on Search
§ A/B Testing
q Operational – analysis of conversion paths for each visitor
§ Lower-funnel (click-based)
§ Full-funnel (clicks + impressions)
§ Types of Models
• Equal weighting
• Subjective weighting
• Algorithmically weighted
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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6. Operational Approach (Steps 1 and 2)
1 Aggregate Visitor Data Based 2 Synch Ad Server Impression
on Source:! Data to See Engagement Paths!
► Display ads ! ► Record all interactions that
► Search (paid and natural)! precede visit or conversion!
► Email! ► Note: requires data cleansing!
► Affiliate, CSE! !
! Site Display
Display Vist
Imp: #1! #1! Imp: #4!
SEM! Display! Email! Affiliate!
Site
Display Vist Display
Imp: #6! #2! Imp: #5!
Master DB! Site
Vist Display
Conversion!
#3! Imp: #7!
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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7. Operational Approach (Steps 3 and 4)
3 4 Produce Actionable Reports!
Attribution Modeling!
► Data Cleansing! ► Engagement paths !
► Statistical modeling ! ► Attributed Actions & CPA!
► Weigh impressions vs. clicks! ► Optimal Frequency!
Ac#ons'By'Channel'
4,000
Last Click Attributable
3,526&
3,500
3,000 2,904& 2,679&
2,504&
2,500 2,207&
2,062& 2,002&
2,000
1,500
1,000
256& 307& 436& 423& 504&
500
0
Direct Nav Org Search Referrals Email Paid Search Display
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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8. Sample Reports
Reports should be…
q Insightful
q Actionable
q User-friendly
10
Impressions*Required*by*Vendor* 9.6$ Attributed)Cost)Per)Action
9
Visit$ Conversion$ 9.0$ Vendor CPA
8
7.8$ Publisher*8 $********** 32.43
7
7.0$ 7.0$
6.6$ Ad*Net*1 $********** 42.53
6.2$
6 5.4$
Publisher*9 $********** 44.88
5
4.7$
4.4$ Publisher*5 $********** 64.46
4 3.5$
3.2$
Publisher*7 $*********
105.53
3.0$
3 2.4$ 2.4$ Publisher*2 $*********
108.83
2
1.7$ 1.8$ 1.8$
1.3$
1.6$
1.3$ Publisher*1 $*********
126.56
1.1$
1 Publisher*3 $*********
142.38
0 Publisher*6 $*********
269.87
Ad*Net*2 $*********
374.89
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Publisher*4 $*********
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@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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9. Conversion Path Analysis
Quantifies impact of each channel
Conversion)Path)Analysis Engagement)Overview Sources)of)Visits)within)Conversion)Paths)========>
IMPs Visits Display Direct0Nav Nat.0Search Paid0Search Referring
All Converters (100%) 5.2 3.0 0.5 0.4 0.8 0.5 0.7
Relative Contribution 54.2% 45.8% 18.0% 14.0% 26.7% 18.0% 23.0%
Cluster 4 (45%) 1.5 2.8 0.8 0.0 0.1 0.0 1.8
Cluster 6 (21%) 4.7 3.8 0.2 0.6 0.8 1.5 0.6
Cluster 3 (15%) 6.1 4.0 1.5 0.2 1.8 0.3 0.2
Modeled Conversion4.8
Cluster 8 (13%) 3.9
Path data shows:
0.0 1.2 2.0 0.1 1.3
q Converters were exposed to 5.2 display ads
q Converters visited 3.0 times before taking action
q Search comprised 45% of visits in conversion process
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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10. Channel Level Attribution
Attributing credit across all touch-points  deeper insight into
performance of each channel
Ac#ons'By'Channel' Cost%Per%Ac+on%By%Channel%
4,000 $80
Last Click Attributable $71.29'
3,526& CPA Last CPA Attrib.
3,500 $70
3,000 2,904& 2,679& $60
2,504&
2,500 2,207& $50
2,062& 2,002&
2,000 $40
1,500 $30
$19.53' $17.95'
$20 $16.28'
1,000
256& 307& 436& 423& 504& $8.95' $9.23'
500 $10
0 $0
Direct Nav Org Search Referrals Email Paid Search Display Email Paid Search Display
q Display is usually the laggard when q Display CPA is overstated by “last
viewing “last click” results
click” metrics
q Attribution reveals which channels are q Often see 50-300% lift in actions
driving customer actions
and 33-66% drop in CPA
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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11. Vendor Level Attribution
View the true performance for each vendor (last-click vs. attributable)
Vendor Level Report
Last-Click vs. Attributed CPA
Last Click Attributable Cost%Per%Ac+on%by%Vendor%
Display Vendor Rank
CPA CPA $1,200
Ad Network 1 $ 52.16 $ 25.81 Winner Last Click Attributed
$1,000
DSP $ 72.49 $ 35.98 Winner
Ad Network 2 $ 130.51 $ 38.46 Winner $800
Publisher 2 $ 138.12 $ 48.46 Winner
Ad Network 3 $ 207.53 $ 54.24 Challenger $600
Publisher 1 $ 155.23 $ 57.33 Challenger
Publisher 3 $ 210.67 $ 149.87 Laggard
$400
Publisher 2 $ 292.97 $ 154.01 Laggard
$200
Totals $ 128.57 $ 50.93
$0
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q As shown above, many vendors are short- q Wide discrepancies can exist between
changed by last-click analysis
“Last-Click” and Attributable CPA
(Contributors vs. Closers)
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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12. Keyword Performance
How Most View Keyword Reports
(%-51<"&1
.+/%0-1 .+/%0- (<.1234-51
!"#$%&' ()*+,- :;"0' ()*+,1
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!"#$%&'(.. *+4*2 -. 2, 1/42 103*- 1./32/
!"#$%&'(*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)/
!"#$%&'(.- -+5,2 .) .-- 1.+*-2 103*) 1/,3/5
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!"#$%&'(5* .+*4) .5 2, 1)/0 1032- 12534,
!"#$%&'(*, -+,24 .* .0/ 1)4/ 103** 14*3.2
!"#$%&'(4 )+20, */ .-4 1*+552 103*- 14)344
!"#$%&'(50 5+4)- *4 .-. 15+.55 10340 1...34)
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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13. Keyword Attribution
How We Should View Keyword Performance
.+/%0-1 .'78-5"'1 .<&:;1 (%-51A"&1
()*+,1 .+/%0- >"+4-51 (A.1234-51 (A.1 (A.12=1 ()%-"&1D1
!"#$%&' ()*+,- 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%&
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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14. ROI Modeling
Use data to forecast value of optimizing spend
% of Proforma Proforma Proforma
Vendors Spend ROS Revenue Impact
Budget % Budget ROS Revenue
Winners $21,781 21% $19.18 $417,792 65% $19.18 $1,297,843 $880,051
Challengers $35,745 35% $6.46 $230,910 35% $8.40 $300,183 $69,273
Laggards $45,880 44% $1.21 $55,428 0% n/a $0 ($55,428)
Total* $103,407 100% $6.81 $704,130 100% $15.45 $1,598,027 $893,896
*excludes buys not tracked by Encore
Relative Improvement 127%
Incremental Revenue $893,896
q Insights from Attribution forecast 127% improvement opportunity
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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15. Additional Considerations
Accounting for Excess Impressions
q Many assist impressions are not necessary
q Need to remove them to have a clean data set
Modeled&#&of&Transitions&using&Mean
Number'of'Transitions'Req'd&for&a&VISIT& &&&&&&&&&&&& 3.9 Impression*Distribu6on*
60,000"
Number'of'Transitions'Req'd&for&a&CONVERSION &&&&&&&&&&&& 5.6 DSP"Only" Other"Vendors"
50,000"
Modeled&#&of&Transitions&using&Median
Impressions*Count**
Number'of'Transitions'Req'd&for&a&VISIT& &&&&&&&&&&&& 2.5 40,000"
Number'of'Transitions'Req'd&for&a&CONVERSION &&&&&&&&&&&& 3.5
30,000"
Actual'#'of'Impressions'Served'per'Converter &&&&&&&&&& 19.3
Efficiency'Opportunity'(%'to'be're?allocted) 70.8% 20,000"
10,000"
0"
1"
2"
3"
4"
10 o"9"
20 "19"
30 "29"
40 "39"
50 "49"
0"t 9"
0"t 9"
0"t 9"
0"t 9"
10 0"to 9"
20 "to"1 9"
30 "to"2 9"
40 "to"3 9"
"to 9"
50 9"
+"
00
10 "to"9
20 o"19
30 o"29
40 o"39
50 o"49
00 "99
00 99
00 99
00 99
9
"49
"to
"to
"to
"to
5"t
Impressions*Served*Before*Visit*
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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16. Additional Considerations
Defining the right attribution model
q What is the value of an impression vs. a click?
q How far back should you look?
è Use machine learning and statistical modeling
Allocating credit for Offline conversions to Online engagement
q Quick and easy way: use post-purchase visits
§ Dedicated pages for customers (not indexed)
§ Connect post-purchase visits to previous Impressions and Visits
Excluding Out-of-View Impressions
q Requires ad verification tools (e.g. AdSafe, Adogoo, Double Verify)
§ Identify out-of-view Impressions
§ Exclude from Attribution analysis
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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17. Where Are We Today?
Using Geoffrey Moore’s model from Crossing the Chasm…
q 2008-2010 Innovators
q 2011-2012 Early Adopters
q 2013-2014 Early Majority
q 2014-2015 Late Majority
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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18. Takeaways
1. Media measurement is changing
q Moving from last-click to holistic views
2. Don t Fear Attribution. Embrace it!
q Be a thought leader, not a laggard
3. Choose approach that fits your strategy
q Lower-funnel (SEM, SEO, Facebook ads, email)
q Full-funnel (Display, Rich media, video, etc.
4. Take a pragmatic approach
q Walk before you run
q Don’t wait for perfect solution (it doesn’t exist)
For more info…
- Visit our blog: http://Attribution101.com
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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19. Q&A
Encore Media Metrics
Steve@EncoreMetrics.com
Steve Latham, Founder and CEO
1633 Broadway, 5th Floor
@SteveLatham
New York, NY 10019
@EncoreMetrics
646.820.1006
http://EncoreMetrics.com
http://Attribution101.com
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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20. About the Presenter
Steve is the founder and CEO of Encore Media Metrics (http://encoremetrics.com),
which helps marketers optimize spend through better analytics. Serving leading
brands and agencies around the globe, Encore s on-demand solution enables
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 speaker and thought leader, speaking frequently at
industry events including Ad-Tech, OMMA Global, Search Engine Strategies, IAB
Mixx, eMetrics Summit and others. Steve s articles have been published by
Adotas, 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
@stevelatham
Information is confidential and may not be shared. © Encore Media Metrics 2012
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