The Question
What is marketing attribution for your company?
For many, click-thru rates and bounce rates are the primary attribution metrics they use. Click-thru rates and bounce rates are very effective when interpreted properly and defined. Many people use these techniques improperly because of their ease of use. This creates a system which is typically misunderstood leading to incorrect results.
The Process
Understanding what outcomes will be expected should be the primary focus when determining the attribution technique you choose. Similar to the scientific method, develop a hypothesis and then evaluate the results throughout the campaign.
Keep in mind that the hypothesis needs to be unbiased from the results of your previous campaigns. This goes against best practices currently implemented in the majority of marketing departments.
Requesting the correct information from the placement service you are using becomes pivotal in evaluating the results. Variances should be evaluated similar to how we evaluate financial variances from budgets. If the variances cannot be explained through information from the campaigns, look to diversify campaign strategy to pinpoint failure points. Successful campaigns should be evaluated the same as unsuccessful campaigns.
Financial Metrics
Another primary focus of attribution involves whether financial metrics can be derived from marketing campaigns. The primary goal of any component of a company is to make money, whether that be directly or indirectly. Judging marketing performance on financial performance creates value of marketing campaigns.
Why do companies use non-financial metrics to judge performance of marketing campaigns? Non-financial metrics are often the most easy to obtain. They are often included in campaign reporting and provided by the entity running the campaign. In other words, it is the easiest way to manage marketing but very ineffective. By evaluating through non-financial metrics, you are more likely to create the wrong result which will lead you down the wrong path in your marketing strategy.
Items to Review
Google Analytics
Google Analytics provides hundreds of insights into how your website currently interacts with your consumer population.
Interpretation of these analytics are often communicated incorrectly pushing advertising dollars toward success metrics built by incorrect assumptions.
Placement of Advertisements
Review of the following reports may identify lost dollars or value points to more effectively target.
- Domain Report
- Click Through Analytics
- Time of Day
- Creative Sizing by Ad Serve
Placement services are inclined to not report poor performance which can be found within these reports.
Attribution Methodology
Understanding assumptions you use for attribution is essential to evaluating the metrics.
Evaluating on non-financial metrics brings a far greater risk of placing advertisements at a loss unknowingly.
Outcome Potential and Discussion
Helping companies define performance goals often comes with educating those performing the procedures for items which should cause concern and further inquiry.
Developing the Hypothesis
Helping create the pathway towards created an unbiased hypothesis requires common sense psychology. How should people react to this message? What is your primary goal with this marketing campaign and is there a better path?
Defining Performance Objectives
Determining whether financial or non-financial metrics should be the primary path to attribution. Creating a pathway towards obtaining measurement objectives. Maintaining reasonable goals for marketing campaigns and reviewing vendor provided information. Never let your placement service understand how you are measuring performance.
Interpreting Results
Are your campaigns performing positively? Reading and developing results from reports provided by vendors. Helping understand which aspects of a campaign performed positively and how to further exploit positive attributes.