tag:www.econsultancy.com,2008:/topics/attribution Latest Attribution content from Econsultancy 2016-12-02T01:01:00+00:00 tag:www.econsultancy.com,2008:BlogPost/68589 2016-12-02T01:01:00+00:00 2016-12-02T01:01:00+00:00 Five essential ingredients for digital marketing success Jeff Rajeck <p>Ideas about how marketers should optimize their time are scarce as well. Some departments use KPI frameworks to 'cover all of the bases' while others simply do what the business asks them to do.</p> <p>To find out what marketers themselves think about what makes digital marketing successful, Econsultancy recently hosted a roundtable workshop with <a href="https://www.ibm.com/watson/marketing/">IBM Watson Marketing</a> in Mumbai, India.</p> <p>Senior client-side marketers from a wide variety of industries were invited and asked to come up with<strong> ideas about</strong> <strong>what a digital marketing department should do to increase customer engagement and boost brand loyalty.</strong></p> <p>Below are the five key topics discussed along with details about why these are the 'ingredients' for digital marketing success.</p> <h3>1. Integration</h3> <p>Participants on the day were emphatic that integration was essential for one main reason, consistent messaging.  </p> <p>They felt that without integrating channels, brands risk posting one message on, say, the website, and not following through with it on another, like social media.</p> <p>Integration also helps with customer experience in a couple of ways.  First, off, <strong>integrating channels ensures that the customer has a single view of the company and it helps the company get <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/">a single view of a customer</a>. </strong></p> <p>Attendees noted that a single view is useful for messaging, but even better for providing appropriate customer service.  A customer who has made it clear that she is irate via email will become even more so with a cheerful hello from an uninformed operator in the call centre.</p> <p>To make this level of integration a reality, <strong>marketers must first know what channels their customers use and how they use them.</strong> </p> <p>Then, they need to make sure the data from the channels is available throughout the organisation so that the company can manage the customer relationship in a coordinated fashion.</p> <p>One marketer pointed out that sharing data may cause problems for firms in heavily-regulated industries such as pharma and finance. Everyone, however, agreed that all organisations will benefit from some level of channel integration.</p> <p><img src="https://assets.econsultancy.com/images/0008/1984/DSC_1663.JPG" alt="" width="800" height="533"></p> <h3>2. Segmentation</h3> <p>Another digital marketing function which attendees felt was key to success was audience segmentation.</p> <p>Customers and prospects can be segmented in many ways.  Some participants said that they stick with simple attributes such as geography or interests. Others felt that behaviour was more important and delivered a better return on investment (ROI) than demographic targeting. </p> <p>Several marketers, however, said that <strong>the best way to segment customers was by where they were in the buying cycle</strong>.  </p> <p>In their opinion, marketers should engage prospects differently if they were just finding out about the company (awareness), showing interest, trying out the product or service, or near to purchase.  </p> <p>Then, once the consumer becomes a customer, any communications with them should focus on encouraging loyalty, advocacy, and re-engagement with the brand.</p> <p>When asked how they segment their customers in practice, participants said that they typically started with <a href="https://econsultancy.com/blog/64545-what-is-crm-and-why-do-you-need-it/">a customer relationship management (CRM) system</a> linked to their email engine and, later, personalised the website. </p> <p>Then, for continuous engagement, they created custom audiences on social media with customers' email addresses. These audiences then were targeted with posts crafted for each segment to optimize engagement. </p> <h3>3. Content</h3> <p>Apart from integrating channels and segmenting audiences, attendees felt that <strong>marketers need to create content which drives engagement.</strong> Brands were advised to avoid publishing general purpose content which just drives traffic to the site.</p> <p>Instead, <strong>all content should answer the question, 'why would someone want to do business with you?'</strong></p> <p>One participant said that for ecommerce, the answer to this question is simple - the site offers better prices or a superior shopping experience.  For most brands, it is not quite so easy; they must find a unique value proposition and communicate it consistently.</p> <p>This value proposition could be simply that the company has superior technology or is more efficient than competitors, but regardless of what it is, companies should agree on it and use it repeatedly.</p> <p>Some delegates noted that <strong>behavioural segmentation can help with delivering content as well.</strong>  They suggested that brands can categorise customers according to what content they have clicked on before and ensure that the future content they see addresses their interests.  </p> <p>Doing so helps improves engagement and accelerates the buying cycle, according to one participant.</p> <p><img src="https://assets.econsultancy.com/images/0008/1985/DSC_1581.JPG" alt="" width="800" height="533"></p> <h3>4. Automation</h3> <p>The fourth key 'ingredient' to digital marketing success, according to attendees, is <a href="https://econsultancy.com/blog/65212-what-is-marketing-automation-and-why-do-you-need-it/">marketing automation</a>.</p> <p>Most organisations, participants argued, work in silos so there is little inter-departmental communication about customers.  </p> <p><strong>Marketing automation breaks down company silos </strong>and ensures that every department is using the same customer information and delivering a consistent message.</p> <p>Doing so ensures that messaging and content are coordinated and that segments do not receive different messages from different parts of the organisation.</p> <p>With automation, then, even the most disjointed organisation can create a single 'virtual channel' of communication with the customer and deliver the single value proposition mentioned previously.</p> <p><img src="https://assets.econsultancy.com/images/0008/1986/DSC_1658.JPG" alt="" width="800" height="533"></p> <h3>5. Key Performance Indicators (KPIs)</h3> <p>The final characteristic of a successful digital marketing department is agreed-upon key performance indicators (KPIs).  </p> <p>KPIs let everyone in the department know what is important and to what extent they are accomplishing goals of both the marketing department and the business.</p> <p>For the marketing department, <strong>KPIs should indicate whether the customer is engaging with and responding to the content</strong>. Engagement figures should also be linked to business results, noted one attendee. Likes and shares are nice-to-have, but performance metrics such as clicks and conversions are preferred.</p> <p>According to one participant, <strong>KPIs should also be tracked against a particular channel or a piece of content</strong>.</p> <p>Known as 'attribution', knowing whether, say, a web page or a particular ad is driving more conversions is critical to making improvements. Without understanding what activity is delivering more clicks, page views, and conversions, marketers will struggle to make improvements.</p> <p>For the business, <strong>KPIs should help management understand how marketing is helping them realize their financial goals</strong>.</p> <p>Participants felt that <a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">customer lifetime value (CLV)</a> and marketing-assisted sales were two of the most important figures which marketers could deliver to the business.</p> <p>Demonstrating ROI from marketing efforts was also the best way for marketers to enjoy continued investment in the technology, such as marketing automation, as well.</p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank all of the marketers who participated on the day, subject matter expert Antonia Edmunds, business leader of IBM Watson Marketing in Asia Pacific, and our keynote speaker Sriman Kota, cognitive engagement executive in Asia Pacific for IBM Commerce.</p> <p>We hope to see you all at future Mumbai Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/1987/DSC_1738.JPG" alt="" width="800" height="533"></p> tag:www.econsultancy.com,2008:BlogPost/68471 2016-11-09T19:43:46+00:00 2016-11-09T19:43:46+00:00 Defining a new approach to measurement: Four top findings from new research Stefan Tornquist <p dir="ltr">Analytics increasingly faces a challenge in understanding audiences who jump from device to device and online to offline. These users are notoriously difficult to track and categorize, leading some marketers to a shift in thinking about measurement that acknowledges the imperfect reality of most datasets.</p> <p dir="ltr">To test its hypotheses and provide a point for comparison, the study sought to identify “leading” organizations with a successful approach to marketing measurement.</p> <p dir="ltr">These are companies with a combination of characteristics that include their use of business KPIs, advanced measurement (cross-device and/or online-offline) and experimentation.</p> <p dir="ltr">Supporting the argument that these characteristics contribute to success, the leading companies outperform the industry in several ways. Most notably they are more than twice as likely to have significantly exceeded their top business goal in 2015 (42% vs. 19%).</p> <h3 dir="ltr">1. Alignment of KPIs with business goals makes marketing more powerful</h3> <p dir="ltr">One of the central hypotheses of the study was that marketing achieves greater success when its measures and processes reflect the goals of the wider organization than when they’re focused solely on the metrics and concerns of marketing.  </p> <p dir="ltr">In the real world we need to look for those metrics that can make the leap between marketing and finance instead of trying to contend with every possible digital marketing statistic, most of which don’t resonate outside the team let alone outside of marketing.</p> <p dir="ltr">Leading companies' responses bear out this premise; 95% agree with the statement “to truly matter, marketing KPIs must be tied to broader business goals.”</p> <p dir="ltr">One advantage of moving to a business focus is that it enables marketing to influence the broader organization more easily, whether through a Center of Excellence model or another learning and development mechanism.</p> <p dir="ltr">This emphasis on business KPIs has several powerful benefits for marketing:</p> <h4 dir="ltr">Drives digital evolution through opportunity instead of mandate.</h4> <p dir="ltr">Teams and individuals are far more motivated to change when they see the benefit than simply as a response to a strategic directive, which is often how organizations try to drive transformation.</p> <h4>Normalizes marketing across divisions and regions by focusing on universal goals.</h4> <p>Every part of an international company is, to varying degrees, an independent actor with unique issues, capabilities and opportunities. Getting them to play in concert is an eternal challenge, but it’s impossible when they use different measures.</p> <p>Using a limited basket of metrics that are agreed upon by finance and marketing as representing the top business goals is one of the most effective paths to motivating and level-setting between regions.</p> <h4>Advances the strategic role of marketing.</h4> <p>Today’s marketing department is tasked with far more than awareness. It has to be inside the head of a new kind of mobile, social customer and represent their needs for a better experience across the organization.</p> <p>It also has to adapt to media, channels and platforms that are changing at breakneck speed. Through it all, marketing is asked to contribute more to the bottom line, often with fewer resources.</p> <p>Despite these rising demands, marketing doesn’t always have a seat at the table.</p> <p>Perhaps the most important reason to use business goals to define marketing’s KPIs is to ensure that marketing is always speaking the same language as sales and finance.</p> <p dir="ltr"><strong>Where to start:</strong> Identify the top three business goals set in 2017 strategy and meet with analytics leaders to argue for the one KPI that best fits with each one.</p> <p dir="ltr">These “hero” metrics won’t stand alone, but they should be at the center of every measurement conversation.</p> <h3 dir="ltr">2. Metrics don’t matter if they don’t affect decisions</h3> <p dir="ltr">It’s one thing to measure, it’s another to use that information. One surprise of the study was the large share of organizations that have one or more advanced measurement capabilities, but fail to use them in decision-making.</p> <p dir="ltr">For example, 47% of mainstream organizations say they track cross-device behavior but that it doesn’t factor into decision-making.</p> <p dir="ltr">That’s an equal share to those that do use their cross-device analysis in planning and strategy.</p> <p dir="ltr">When data is collected but goes unused, there is often a lack of trust in its validity that might be due to the complexity of measurement (such as in the case of cross-device identification) or an inability to use that data in context.</p> <p dir="ltr">One trait of elite marketers is the realization that there will be gaps in data, especially in emerging areas. They are comfortable making estimates to fill those gaps to move forward with their decision-making.</p> <p dir="ltr"><strong>Where to start:</strong> Create a list of all of the available KPIs and measurement capabilities. This might range from simple email metrics through advanced attribution, depending on the organization.  </p> <p dir="ltr">Go through the list and consider whether each metric is unused, used only in reporting or used for planning. Any gaps in the third column indicate a gap in trust, a missed opportunity or a meaningless measure.</p> <h3 dir="ltr">3. Perfection isn’t the goal</h3> <p dir="ltr">Between the enthusiasm of technology vendors and the genuine revolution in data driven business, it’s not surprising that marketing has fallen into the trap of pursuing perfection.  </p> <p dir="ltr">Every cycle brings new tools and models and filters, each suggesting a better way of collecting, managing and interpreting data.</p> <p dir="ltr">Our data describes our customers and customers are people – chaotic, fickle, emotional, mobile people. Even when we fix every technical glitch and connect every database, data will never be perfect.</p> <p dir="ltr">Some marketers are building their measurement and analytics practices with this in mind. It’s an attitude and approach as much as it is a selection of technologies or models.  </p> <p dir="ltr">It’s about approaching problems in a way that is nimble and effective with the knowledge that there will be gaps and mistakes and odd shapes that won’t fit into square holes.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0008/0977/gaps_in_measurement.png" alt="" width="700" height="443"></p> <p dir="ltr">The most effective analytics organizations are also those that recognize the reality is imperfection.  </p> <p dir="ltr">As we see in the chart above, leading measurement practices are three times more likely than the mainstream to strongly agree that there will always be gaps in the data connecting people, channels and devices (39% vs. 13%).</p> <p dir="ltr"><strong>Where to start:</strong> Identify those areas where data issues arise most frequently and explore processes, practices and technologies to address them.</p> <p dir="ltr">For example, build estimate models based on existing data, look for reliable industry benchmarks or look at tools that analyze and add in missing data.</p> <p dir="ltr">Of note, elite organizations are more likely to develop specific models and employ technology to fill these gaps than the mainstream, which tends to rely on historical precedents.</p> <h3 dir="ltr">4. Experimentation isn’t just optimization</h3> <p dir="ltr">Optimization is an important advantage of digital marketing. It’s fast, easy and makes an incremental, consistent positive difference.</p> <p dir="ltr">But optimization isn’t the most powerful business use of experimentation. At its best, the scientific method can be used to identify most valuable customers, explore major trends and validate strategic direction.</p> <p dir="ltr">Leading organizations are more than twice as likely to conduct strategic experiments than the mainstream, and by doing so they overcome some of the issues that often arise in large organizations trying to evolve.</p> <p dir="ltr">Typically, any major shift in spending or direction will create political divides as gut instinct and inertia work against change. Experimentation can be an antidote to this kind of resistance, giving a black and white answer to key questions.</p> <p dir="ltr"><strong>Where to start:</strong> Identify the intersections between business goals and customer behavior and use these lessons to prioritize experiments.</p> <p dir="ltr">Where are you losing to competitors? What’s important to customers but under-represented in your experience?</p> <p dir="ltr">Whatever the experiment, make sure that it’s testing a specific hypothesis that’s unambiguous, that the test will be able provide meaningful data and that the test results focus primarily on overall business impact, not simply efficiencies or optimization.</p> tag:www.econsultancy.com,2008:BlogPost/68431 2016-10-28T14:06:05+01:00 2016-10-28T14:06:05+01:00 How to combine attribution and segmentation data to achieve marketing success James Collins <p>Ultimately, being shrewd about how you segment your marketing data gives you the opportunity to become more effective at targeting the right people at the right time.</p> <p>Here, I share just some of the ways you can use attribution and segmentation to unlock even more value from your marketing efforts.</p> <p><strong><img src="https://assets.econsultancy.com/images/0008/0493/different-customer-groups-shopping-online.jpg" alt="Different customers shopping online" width="800" height="500"></strong></p> <h3>Understand the journeys of converting <em>and </em>non-converting users</h3> <p>As the name suggests, the data captured by traditional CRM systems is based on <strong>customers</strong>: On people who have completed a conversion.</p> <p>However, there will always be far more people browsing your products and services only to walk away.</p> <p>It’s here, in these non-converting journeys, that marketers are able to uncover where their efforts are falling flat.</p> <p>Effective user journey analysis and attributed reporting provides you with not only an understanding of the behaviour of people who buy from you but also those people who come to your site and do not purchase.</p> <p>Armed with this information, you can identify the marketing channels that aren’t helping attract or convert your chosen customer segments well enough.</p> <p>You can then experiment with cutting back spend in those areas and reallocating budget to other more effective channels.</p> <h3>Discover what activities attract new customers</h3> <p>One of the most common uses of segmentation is to provide a <strong>distinction between new and existing customers.</strong></p> <p>Segmentation allows you to distinguish between these two types of customers, while attributed reporting and user journey analysis helps you understand their typical behaviours.</p> <p>This combination then gives you the power to experiment and discover which channels are most effective at attracting each type of customer.</p> <p>How might user behaviour differ between these two segments? You might expect that new customers are exposed to your brand through channels like display and non-navigational search.</p> <p>On the other hand, existing customers might visit your website more often directly, through <a href="https://econsultancy.com/reports/email-census/">email marketing</a>, or a branded, more specific, search.</p> <p>Once you have the data to prove (or disprove) these assumptions, you’ll have an idea of where to focus your marketing efforts.</p> <p>For example, if you want to attract more new customers, you’ll know which channels, and which combination of channels, to test first.</p> <h3>Reach your different customer groups in the most effective ways</h3> <p>Effective segmentation should also allow you to <strong>determine between different groups of customers based on their demographic or behavioural characteristics.</strong></p> <p>Analysing your attributed reporting data by customer segment allows you to formulate and test marketing campaigns specific to your different customer groups, rather than put out an ineffective ‘one-size-fits-all’ campaign and hope for the best.</p> <p>To give a simple example to put this into context, say you’re a travel company and you’ve identified two of your common customer types:</p> <p><strong>Active Retirees</strong></p> <ul> <li> <strong>Description:</strong> older holidaymakers who have the free time and money to enjoy travel.</li> <li> <strong>Relevant products:</strong> cruises, package holidays, tours.</li> <li> <strong>User journey:</strong> don’t regularly use social media, conduct a lot of online research before making final choice, often complete purchase offline.</li> <li> <strong>Effective marketing campaigns: </strong> display advertising, affiliate partnerships, email marketing campaigns well in advance of peak booking time offering in-store discount.</li> </ul> <p><strong>Affluent Singles</strong></p> <ul> <li> <strong>Description: </strong> spontaneous decision makers with money to burn.</li> <li> <strong>Relevant products: </strong> last minute group holiday deals.</li> <li> <strong>User journey: </strong> impulse purchasers with short lead time, engage with social media regularly.</li> <li> <strong>Effective marketing campaigns: </strong> targeted social media advertising offering limited-time group discount.</li> </ul> <p>In this example, ‘Active Retirees’ tend to have more touchpoints in their path to purchase than ‘Affluent Singles’.</p> <p>Given this data, you can then try targeting your Active Retirees well in advance with an in-store discount across the various platforms that work for them.</p> <p>At the same time, you can test cutting back on the number of different touchpoints used to engage with Affluent Singles, who convert last-minute regardless, to see if you get better results.</p> <h3>Learn how to market to customers with high lifetime value</h3> <p>Segmentation can also allow you to <strong>group customers based on their purchasing habits.</strong></p> <p>For example, one-time purchasers, occasional purchasers, and regular purchasers with a high lifetime value.</p> <p>Using the Active Retirees example again, let’s say that your attributed reporting shows that a retargeting campaign had only a minor impact on these customers’ decisions to purchase their first holiday.</p> <p>In this way, it doesn’t appear to be a profitable a campaign.</p> <p>However, when you analyse the attributed data over an extended period of time, you may find that these same customers come back to make additional purchases further down the line, making them fall into your high lifetime value segment.</p> <p>You may also find that they return using what we might call ‘free’ channels (<a href="https://econsultancy.com/training/courses/topics/search-marketing/">SEO</a>, email, or direct), interacting with fewer touchpoints each time.</p> <p>When judging the value of the initial retargeting campaign across the entire lifetime value of these customers, the associated ROI becomes much greater.</p> <p>Only by using segmentation and attribution in combination can you gain this insight and judge the performance of your campaigns effectively.</p> <p>This then gives you the power to experiment and get better at targeting the right people in the right ways.</p> <h3>Use attribution to unlock the value that’s right under your nose</h3> <p>By <a href="https://econsultancy.com/blog/66996-the-three-stages-of-attribution-that-are-crucial-to-success/" target="_blank">harnessing the power of attributed reporting data</a>, marketers can better understand the intricacies of the true value of their efforts.</p> <p>By segmenting that data in astute ways, marketers are given the opportunity to test, evaluate, and ultimately get better at targeting their most valuable customers.</p> <p>When talking about attribution, the conversation is immediately drawn into the algorithm, with little regard as to the additional benefits it can bring to all of your marketing channels.</p> <p>The advice I’ve provided here hopefully demonstrates that using the data to enhance insight presents a huge opportunity for marketers.</p> tag:www.econsultancy.com,2008:BlogPost/68408 2016-10-20T15:01:00+01:00 2016-10-20T15:01:00+01:00 The five fundamentals of data-driven marketing Evan Dunn <p>81% of marketers are looking to <a href="http://www.zoominfo.com/business/mktg/ebooks/ebook-data-driven-benchmarks-for-success.pdf" target="_blank">increase budgets</a> for data-driven marketing, while 83% of marketers believe <a href="https://www.ana.net/content/show/id/37128">it's important to be able to make data-guided decisions</a>.</p> <p>That's nearly every marketer.</p> <p><a href="http://www.thedrum.com/news/2016/09/19/investment-data-driven-marketing-continues-rise-survey-notes" target="_blank">Over half</a> expect to see revenue growth as a result of data-driven marketing investments (only 7% expect a decrease), and 39% plan to increase spend on data-driven marketing initiatives.</p> <p>Despite the popularity of data-driven tactics and tech, there is a lot of confusion about the nature of marketing data, and the possible implications it can have for marketing decisions.</p> <p>Here are five ideas I’ve identified as fundamental to effective data-driven marketing.</p> <h4><strong>1. There are two types of marketing 'data': Contact information and performance metrics.</strong></h4> <p>It is strange how rarely this distinction is highlighted, despite how frequently marketers interact with both types of data.</p> <p>For example, “database marketing” refers exclusively to leveraging email lists to engage with customers.</p> <p>“Data management platform” (DMP) refers exclusively to leveraging a mix of IP addresses, emails and other contact information to deliver targeted advertising to customers across the web. </p> <p>Part of the reason I’m writing this article is because of how confused I was by so many of these terms.</p> <p>Databases can store many things, so why only point to use cases that involve emails? And DMP - such a broad, sweeping term for such a narrow use case.</p> <p>Understanding the difference between the two methods is critical to knowing how and when to use them.</p> <p>Many modern marketers are focused so heavily on contact-information-based use cases that they neglect the importance of measuring overall performance and tying it to revenue.</p> <h4><strong>2. Data-driven marketing based on contact information involves tracking individuals in order to get them to buy.</strong></h4> <p>It's sort of like helicopter parenting - helicopter advertising.</p> <p>Tracking individuals across digital media is becoming increasingly popular among marketers, in an attempt to make their marketing distinct among the hundreds of ads we each see every day.</p> <p><img src="https://assets.econsultancy.com/images/0008/0562/helicopter.jpg" alt="" width="600" height="400"></p> <p>“<a href="https://econsultancy.com/blog/65212-what-is-marketing-automation-and-why-do-you-need-it/">Marketing automation</a>” is one of the earliest examples of this type of data-driven marketing, though people rarely classify it as such.</p> <p>Marketers use a MAP (Marketing Automation Platform - a technology class created by Marketo, much like Siebel Systems pioneered CRM) to track individuals through the funnel, usually in organic (email, website) touchpoints, but also in <a href="https://econsultancy.com/training/courses/social-media-paid-advertising/">paid social</a> and display ads.</p> <p>Then the MAP distributes targeted content based on where a person is in the funnel, particularly what last action they took (such as downloading content).</p> <p>Another example is “Attribution” - a term which on the surface just refers to assigning various media, creative and audience segments with percentages of contribution to success.</p> <p>Attribution usually involves tracking individual customers across the web, based on interactions with digital media properties, both paid and owned.</p> <p>More advanced platforms can track whether display ads come into view on the visible portion of a person’s screen.</p> <p>Attribution sometimes leverages DMPs and TMS (Tag Management Software), along with proprietary analytics, to attribute conversions and sales to specific ads. </p> <p>Attribution is primarily focused on individual identification, but also relies on aggregate performance metrics to recommend adjustments in advertising tactics.</p> <p>Data-driven methods that rely on contact information benefit from high levels of detail, but suffer from scalability (you can’t track everyone).</p> <p>Personalization, customer experience optimization and other initiatives fall into this category.</p> <h4><strong>3. Data-driven marketing based on performance metrics involves analyzing investments in and returns from marketing initiatives, in order to better drive results.</strong></h4> <p>Performance marketing, quantitative marketing, media mix modeling - these practices involved rolled up streams of customer actions - i.e. performance metrics. </p> <ul> <li>“Performance marketing” is just a way of saying “marketing where you actually look at what works and what doesn’t in order to drive outcomes.”</li> <li>“Quantitative marketing” has historically referred to enterprise-grade initiatives that use statistics to optimize marketing outcomes based on investment (i.e. ad spend) and key performance indicators. </li> <li>“Media mix modeling” - or media mix allocation - is sometimes classed as a type of quantitative marketing. It involves analyzing which channels (TV, radio, display, etc.) have the greatest impact on conversions through probabilistic statistics (data science).</li> </ul> <p>Data-driven methods that rely on performance metrics benefit from the fact that every system produces some measure of reporting and thus are highly scalable, but sometimes more detail is needed.</p> <p>A focus on performance metrics also has a natural bias towards objectives.</p> <p>Customer data can be a black hole of possible activities, and many companies are stuck in the vortex of collecting, cleansing, weighing customer data.</p> <p>But performance data always tells a story relevant to your objective.</p> <h4><strong>4. There’s this thing called a “proxy” - it’s how you measure the intangibles.</strong></h4> <p>Some things are difficult to measure.</p> <p>For example, “Awareness” (which is an actual objective for many marketers) is really the sum of “how much time do people spend thinking about your brand/product/service?”</p> <p>Obviously, we can’t strap brain sensors to everyone (yet). Most marketers use focus groups and surveys to approximate awareness.</p> <p>Those may also be used to approximate “Brand Equity” - the amount people <em>like </em>and therefore demonstrate <em>purchase intent </em>towards a brand.</p> <p>The problem is, surveys of all kinds are riddled with <a href="https://en.wikipedia.org/wiki/Response_bias" target="_blank">response biases</a> - including the most subtle, such as <a href="https://www.psychologytoday.com/blog/mind-my-money/200807/familiarity-bias-part-i-what-is-it" target="_blank">familiarity bias</a> and <a href="http://heuristics.behaviouralfinance.net/availability/" target="_blank">availability bias</a>.</p> <p>Why not supplement these traditional approaches to awareness measurement with more comprehensive, scalable (and faster, less expensive) tactics?</p> <p>One increasingly popular method of measuring awareness via proxy is <a href="https://econsultancy.com/blog/67137-social-monitoring-listening-what-is-it-and-do-you-need-it/" target="_blank">social listening</a>.</p> <p>This technology category is actually not focused only on social media, but the ‘social web’ - all those publications, blogs, articles, comments, social networks, forums etc... essentially most of the Internet. </p> <p>“Best-in-class” estimates for the number of websites scanned by a social listening tool are usually around 100m or 200m websites.</p> <p>For reference, Twitter counts as one website.</p> <p><a href="https://econsultancy.com/training/digital-transformation/">Digitally-transformed</a> enterprises use these tools to monitor the success of paid and earned media initiatives, as well as establish competitive benchmarks for brand awareness, based on the assumption that some number of people who are aware of a brand/product/campaign will talk about it.</p> <p>Other examples of proxies include NPS (Net Promoter Score) - a measure of the social equity a brand has with its customers.</p> <h4><strong>5. You can’t quantify poetry</strong></h4> <p>Marketing - getting people to invest time/attention/money in brands, products &amp; services - will always live partially in the poetic.</p> <p><img src="https://assets.econsultancy.com/images/0008/0571/shakespeare.jpg" alt="" width="335" height="298"></p> <p>Connecting with customers inherently has one foot in the abstract, ethereal, creative - and one foot in the scientific, mathematic, quantifiable.</p> <p>After all, some of the best ideas are ones no one has thought of before.</p> <p>This is why Jay Baer proclaims that “<a href="http://www.convinceandconvert.com/digital-marketing/data-driven-marketing/" target="_blank">Data-Driven Marketing is a Bad Idea</a>” - all he’s really saying is that you can’t forsake the creative for the quantified, but the title he actually used is more sensational.</p> <h3><strong>We need a more holistic view of marketing data</strong></h3> <p>What marketers need is to broaden the scope of the way data is viewed, valued and used within their organization. </p> <p>Personalization and attribution have their place among the most academic of statistical approaches.</p> <p>And macro-performance measurement must concede the fact that, sometimes, the devil is in the details.</p> <p>Of utmost importance is the fact that no data is valuable unless it connects to critical objectives. For most marketers, this means awareness, brand equity and revenue.</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/reports/the-role-of-crm-in-data-driven-marketing/"><em>The Role of CRM in Data-Driven Marketing</em></a></li> <li><a href="https://econsultancy.com/training/courses/big-data-driven-marketing-how-to-get-it-right/"><em>Data-Driven Marketing Training</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68347 2016-09-29T01:00:00+01:00 2016-09-29T01:00:00+01:00 Seven ways to supercharge your data-driven marketing Jeff Rajeck <p>Nine out of ten put it in their first three, more than any other topic.</p> <p><img src="https://assets.econsultancy.com/images/0007/9633/data-driven.png" alt="" width="565" height="315"></p> <p>But what are marketers actually doing with their data?<strong><br></strong></p> <p>What tips can professionals give for those who may be just starting out with data-driven marketing?</p> <p>To find out, Econsultancy recently held roundtable discussions at our fifth annual Digital Cream Sydney.  </p> <p>There, client-side marketers from across the industry discussed trends, best practices, and the issues they are currently facing.</p> <p>The roundtables were moderated by subject matter experts from the industry. Participants brought their own experiences, questions, and challenges to the table for open discussion.</p> <p>Here are the highlights from the discussion at the Data Driven Marketing &amp; Marketing Attribution Management table.</p> <h3>1. Use personas and customer journey mapping for attribution modeling</h3> <p>We now live in an omnichannel world. People often use the web, social media, mobile, and search before buying something.  </p> <p>How can marketers determine the right amount to invest in each channel?</p> <p>Participants agreed that doing so, also known as attribution modeling, is one of the toughest tasks marketers now face.</p> <p>Figuring out which channels drive awareness, which help with research, and which lead to conversions is not easy - even with all the data in the world.</p> <p>While attendees admitted that there is 'no silver bullet' for determining the right model, delegates suggested that using customer experience data can help.</p> <p>They said that <strong>creating audience personas and then mapping each customer journey can provide insight into the path-to-purchase for different customers.</strong>  </p> <p>This can then provide the foundation for the elusive attribution model which helps marketers allocate their spending for optimal results.</p> <p><img src="https://assets.econsultancy.com/images/0007/9626/data-driven__Custom_.jpg" alt="" width="800" height="533"></p> <h3>2. Avoid using personas for more granular data-driven marketing</h3> <p>While the customer-centric approach may work for modeling attribution, delegates agreed that<strong> personas and customer journey maps were not so useful when doing more personalised data-driven marketing.</strong></p> <p>That is, when buying programmatic media or providing on-site personalisation, broad segments and models do not help.  </p> <p>Instead, attendees stated that <strong>marketers should use an individual's behavior to deliver relevant ads and personalised content.</strong>  </p> <p>What a person has viewed or purchased previously is much more likely to attract their attention in the future than something which fits a particular persona, one participant argued.</p> <h3>3. Look at <em>your</em> data when optimizing</h3> <p>Another dilemma marketers often face is how to optimize their website and ad buying based on outside trends.</p> <p>Recently, there have been many charts showing that mobile traffic is outpacing web traffic. Does this mean that marketers should go 'mobile first'?</p> <p>Not at all said the delegates. While it is useful to be aware of the trends in mobile, video, and messaging, <strong>marketers should prioritise their own customers' behaviours to help form strategies.</strong></p> <p>As an example, at one table on the day, there were some marketers who said that mobile usage was plateauing while others said that tablet traffic is becoming increasingly important to them.</p> <p>So, the recommendation is that marketers should first keep a close eye on the trends in their own data before making any drastic changes as a result of industry reports.</p> <p><img src="https://assets.econsultancy.com/images/0007/9627/data-driven2__Custom_.jpg" alt="" width="800" height="533"></p> <h3>4. Use data for more than just conversions</h3> <p>Marketers these days are typically required to produce data to justify their budget.  </p> <p>Metrics such as cost-per-acquisition (CPA) and return on ad spend (ROAS) are commonly used by the business to gauge performance.</p> <p>Because of the need to demonstrate that marketing spend matters to the business, <strong>attendees agreed that most of the effort spent on marketing attribution and data-driven marketing is used to lower customer acquisition costs</strong>. </p> <p>However, delegates also agreed that we now have the data to do much more. <strong>Data should also be used, they argued, to improve customer retention and loyalty.</strong></p> <p>Doing so will, in turn, increase the lifetime value of customers and improve the bottom line, albeit in a less direct way.</p> <p>Marketers should, therefore, look for opportunities to use data for customer experience and resist the tendency to look for the immediate gratification of a lower CPA.</p> <h3>5. The best third-party data is from sites where users log in</h3> <p>While marketers tend to have a good handle on the data from their own sites (first-party data), many are still wondering about the value of data from other sites (third-party data).</p> <p>This concern was made apparent because, when asked, only around 10-15% of marketers at the tables admitted using a data management platform (DMP) as a 'single source of truth' about their customers.</p> <p>The reasons for hesitating are well-founded. Many third-party data services guess at aspects of users' identities from the sites they visit or activities they have done in the distant past.</p> <p>Attendees asserted, however, that <strong>sites which require users to log in can provide much higher-quality third-party data.</strong></p> <p>Specifically, Google and Facebook can both link extensive browsing and posting behaviour to a particular person.  </p> <p>For this reason, delegates said that such sites do offer third-party data worth using for advertising and analytics.</p> <p>Interestingly, one participant noted, both Google and Facebook are also starting to offer data which allows brands to track consumers offline.</p> <p>That is, they will know whether someone has entered a particular location (e.g. a store) after viewing an ad on their platform.</p> <p><img src="https://assets.econsultancy.com/images/0007/9628/data-driven3__Custom_.jpg" alt="" width="800" height="533"></p> <h3>6. Aim to make small changes with insights from data</h3> <p>While most of the day's discussions were positive, one negative aspect of data-driven marketing emerged. </p> <p>Even with insights from data,<strong> delegates admitted that it was rare that recommendations based on data were actually implemented</strong>.</p> <p>Data was more likely, they said, to be used for retrospective reporting and business-oriented statistics.</p> <p>One way around this, one participant suggested, is to adopt a more 'agile' way of working.</p> <p>What this means is that marketing teams should avoid gathering vast amounts of data in an attempt to influence strategic decisions.  </p> <p>Instead, <strong>marketers should use insights to drive incremental changes on a frequent, tactical basis.</strong></p> <p>In this way, the 'agile' approach will change an organisation's approach to marketing iteratively over time and have a much higher likelihood of succeeding.</p> <h3>7. The biggest hurdle? Finding the right people.</h3> <p>In previous years, marketers have lamented about quality of marketing technology and the difficulty of obtaining data to drive marketing strategy.</p> <p>While these are still concerns, <strong>delegates this year said that their biggest challenge was finding the right people to drive data-driven marketing initiatives.</strong></p> <p>Attendees agreed that that finding people who could interpret data both technically and commercially was really hard. Additionally, these people are critical for getting insights out of data.</p> <p>Newly-hired data scientists are often too technical and abstracted from the operational business to help. Experienced marketers, though familiar with the business, often lack the statistical modeling skills to extract new insights from data.</p> <p>One suggested approach is for marketing teams to recruit analysts with business acumen and data crunching skills.  </p> <p>But in lieu of staffing up with the right people,<strong> participants felt that marketers could also take a more active role in interrogating the data themselves for insight. </strong></p> <p><strong><img src="https://assets.econsultancy.com/images/0007/9630/data-driven4__Custom_.jpg" alt="" width="800" height="533"></strong></p> <h3>A word of thanks...</h3> <p>Econsultancy would like to thank all of the marketers who participated on the day and especially our Data Driven Marketing &amp; Marketing Attribution Management table moderators,<strong> Beaudon McLaren, APJ Ecommerce Manager at Symantec</strong> and <strong>Ashley Friedlein, President of Centaur Marketing &amp; Founder of Econsultancy.</strong></p> <p>We hope to see you all at future Sydney Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0007/9632/moderators__Custom_.jpg" alt="" width="800" height="533"> </p> tag:www.econsultancy.com,2008:BlogPost/68313 2016-09-26T11:20:00+01:00 2016-09-26T11:20:00+01:00 Marketing attribution: How many are actually doing it? Ben Davis <h3>66% of companies undertake some form of attribution and analyse their results</h3> <p>The headline statistic is a heartening one. 66% of company respondents said they carry out attribution on all or some campaigns and analyse the results.</p> <p>Though the agency sample size is a third of that for company respondents, a disparity is notable in the results, with agencies less confident of their clients' competence.</p> <p>Nearly a fifth of agency respondents (18%) say their clients are carrying out attribution but are not sure how to effectively analyse results.</p> <p><img src="https://assets.econsultancy.com/images/0007/9534/Screen_Shot_2016-09-26_at_08.34.58.png" alt="marketing attribution" width="615" height="492"></p> <h3>UK companies not particularly confident of agency impartiality in attribution</h3> <p>24% of company respondents said they use their media agency to carry out marketing attribution.</p> <p>Respondents could select multiple options here, with vendor technology the most popular (51%), followed by custom-built tech (44%) and spreadsheets/manual (42%).</p> <p>Of those respondents that said they used their media agency for attribution, UK companies were particularly sceptical when it comes to impartiality.</p> <p>32% of UK respondents said they were 'not very confident' of their agency's impartiality when it comes to marketing attribution, and a further 44% were only 'quite confident'.</p> <p>This is quite startling, and speaks to the pressing need for transparency and accountability in media agency land (amid <a href="https://econsultancy.com/blog/68319-all-the-digital-news-stories-you-missed-this-week-6/">reports of overcharging</a> and <a href="https://econsultancy.com/blog/68315-where-has-programmatic-gone-wrong-and-how-can-agencies-fix-it/">lack of strategy/skills</a>).</p> <p><img src="https://assets.econsultancy.com/images/0007/9536/Screen_Shot_2016-09-26_at_08.48.48.png" alt="trust in agencies" width="615" height="512"></p> <h3>Display feels the wrath of attribution</h3> <p>When respondents were asked what channels they include in their marketing attribution, email (71%) and display (64%) were clear favourites.</p> <p>These were followed by content (58%), paid search (55%), social (54%), affiliate (52%), paid social (42%), SEO (41%), mobile apps (25%) and video (24%).</p> <p>And the result of this marketing attribution analysis?</p> <p>28% reported they were increasing spend across all or some channels, 46% reported decreasing spend across all or some channels.</p> <p>What is particularly striking though is that of those decreasing budgets based on attribution analysis, over half (54%) report doing so for display advertising (see chart below).</p> <p>Again, this stat shows that companies are intent on gaining more oversight of channels such as display, which may have previously seemed like a black box to some clients or a line added to a media plan.</p> <p><img src="https://assets.econsultancy.com/images/0007/9535/Screen_Shot_2016-09-26_at_08.56.18.png" alt="decrease budget attribution" width="615" height="500"></p> <p>This is just a taster from this new report, but there's plenty more revealing data to dig into and many tangential conclusions to be made about the state of measurement and media in digital marketing.</p> <p><strong><a href="https://econsultancy.com/reports/state-of-marketing-attribution/">Subscribers can download the report now</a>.</strong></p> tag:www.econsultancy.com,2008:Report/4219 2016-09-21T10:00:00+01:00 2016-09-21T10:00:00+01:00 The State of Marketing Attribution <h2>Overview</h2> <p>As customer journeys become increasingly complex and fast-paced, it’s imperative for marketers to understand the effectiveness of their campaigns and how each channel contributes to the end conversion. </p> <p>This <strong>State of Marketing Attribution</strong> report, produced by Econsultancy in association with <a href="https://www.adroll.com/en-GB/">AdRoll</a>, explores current adoption levels and types of strategies organisations are using. The study evaluates tools and processes employed as well as the potential barriers to effective use of the capability.</p> <p>The report, which is based on a survey of almost 600 in-house and supply-side respondents, discusses how well companies are leveraging their data to attract, convert and grow their customer base.</p> <p>Respondents were based in the UK, France and Germany, and the report compares and contrasts the three countries.</p> <h2>Key topics covered</h2> <ul> <li>The multichannel challenge - despite the increasingly crucial role that attribution plays, organisations carrying out attribution across the majority of their campaigns are still in the minority. Find out the reasons why and tips on how to remedy this.</li> <li>What others are doing with attribution - benchmark your organisations against your peers by finding out which methods and technologies they are using.</li> <li>The skills and training needed for successful attribution.</li> <li>The regional variations between the UK, France and Germany in terms of the state of attribution.</li> </ul> <h2>Key findings</h2> <ul> <li>While four in five organisations carry out marketing attribution, less than a third (31%) do so on the majority of or all their campaigns and analyse results.</li> <li>The issues which restrict marketers’ ability to carry out attribution or implement it properly are mainly around a lack of knowledge (58%), lack of time (44%) and technology limitations (41%).</li> <li>Organisations are lagging behind when it comes to more complex attribution models, with nearly half still using last-click models. More worryingly, a similar proportion use first-click, a less intuitive form of attribution.</li> <li>While algorithmic and custom attribution feature among the most effective models (96% and 89% respectively claim they are ‘very’ or ‘somewhat’ effective), less than a quarter (23%) of responding organisations use these methods.</li> <li>Around half of marketers choose off-the-shelf vendor technology for marketing attribution, while 44% opt for custom-built technology. Over two-fifths (42%) are still resorting to manual attribution with the use of spreadsheet data.</li> <li>When asked about areas with the biggest issues and gaps, creating a culture of measurement and accuracy (59%), campaign tracking/tagging (56%) and data validation/normalisation (56%) were cited as top-three challenges.</li> <li>Nearly 60% of responding organisations don’t action the insights they get from attribution.</li> </ul> <p><strong>Download a copy of the report to learn more.</strong></p> tag:www.econsultancy.com,2008:BlogPost/68102 2016-07-27T14:02:00+01:00 2016-07-27T14:02:00+01:00 Why there should be more plaudits for digital audits Chris Bishop <p>Those at the top of organisations don’t feel they have the strategic sweep to justify the time and effort required to commission them.</p> <p>Audits are viewed at times as a little “too tactical” or only done once every blue moon by agencies aiming to impress for your business, only to then collect dust on top of Econsultancy buyers guides print outs or even your old New Media Age magazines (<strong>Ed</strong>: We let this lie, but only to show we have a sense of humour).</p> <p>For the in-house Head of Ecommerce, requesting a digital audit might sound dangerously like a turkey voting for Christmas. </p> <h3>Are we selling audits wrongly?</h3> <p>Or is it the slightly cheesy marketing of website or marketing auditors themselves that is putting people off?</p> <p>All that tired ‘digital health check’ stuff might be the kind of foot in the door tactic that make brands feel suspicious of then giving access to their precious AdWords account, <a href="https://econsultancy.com/blog/67171-what-is-affiliate-marketing-why-do-you-need-it/">affiliate network</a> or analytics suite.</p> <p><img src="https://assets.econsultancy.com/images/0007/7503/healthcheck.jpeg" alt="health check" width="275" height="183"></p> <h3>How important are digital audits anyway?</h3> <p>In reality, though, digital audits are absolutely vital. And third party objective auditing ensures that you’re not marking your own home work or ignoring long term problems.</p> <p>Proper auditing, UX testing and <a href="https://econsultancy.com/blog/67473-seven-conversion-rate-optimization-trends-to-take-advantage-of-in-2016/">CRO analysis</a> means you can elongate the lifetime and effectiveness of your website and digital media activity, in a way that can be done on any budget.</p> <p>Your digital real estate is often an expensive investment - you’ve got to maintain it properly to get results.</p> <h3>Regular servicing is vital</h3> <p>Think of that shiny new website you’ve just spent months developing as a new car you’ve just acquired.</p> <p>To start off with, it’s the envy of everyone who sees it. After-sales support is pretty good and you can see years of trouble free motoring ahead of you. Before you know it, though, your warranty is up and you’re on your own.</p> <p>As the car ages, small problems become big problems. It performs less effectively. You’re paying for petrol, but it’s becoming less and less economical to run. There are so many things going wrong with it you don’t know where to start. Eventually the car's value is so diminished you might as well scrap it and buy a new one.</p> <p>It’s the same with websites and digital marketing campaigns. They can’t be left to look after themselves – and even the mechanic themselves might need some fine tuning or training themselves.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7504/service-blog-flyer.jpg" alt="car service" width="380"></p> <h3>What a digital audit can do for you </h3> <p>Audits can show you how to balance your budget more effectively through action and prioritisation. They can identify common issues like plateaus in activity and drop offs in acquisition; all the elements that reduce profitability. </p> <h3>The Lessons of the Audit</h3> <p>Constantly learn, constantly improve, constantly trade! A timely and constructive audit will help you:</p> <ul> <li>Keep up to date with the latest channel trends - Google changes, new publishers in affiliate, new platform or techniques for social. </li> <li>Use competitor analysis to keep your enemies close! It’s crucial to analyse and understand market share/spend and its consequences for your brand. </li> <li>Help you (re)define your goals.</li> <li>Confirm your objectives or KPIs so you can measure success.</li> <li>Understand new opportunities.</li> <li>Benchmark improvements or conversely measure areas of decline.</li> <li>Ensure corporate compliance – its best practice to have someone external “rubber stamp” your activity.</li> <li>Encourage serendipity – the uncovering of that nugget of information that transforms your understanding and makes the commercial difference.</li> </ul> <h3>Should you take the plunge?</h3> <p>Regular and skilled digital auditing is a detailed and never ending task.  It can transform the effectiveness of your digital advertising, website and budget.  </p> <p>Is it sexy? It’s showing your website a lot of love and attention. It’s optimizing and maximizing your marketing profitability and performance. Sounds pretty sexy to me.</p> <p><em>More on auditing:</em></p> <ul> <li><a href="https://econsultancy.com/blog/68031-answering-the-key-question-of-content-auditing-where-do-i-start/">Answering the key question of content auditing - where do I start?</a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/67914 2016-06-09T13:14:00+01:00 2016-06-09T13:14:00+01:00 Could 'incrementality' be key to freeing up digital ad budgets? Rachael Morris <p>However, new developments in programmatic have made it possible to directly credit sales to specific campaigns, leading to truly incremental advertising.</p> <p>So, how does an incrementality model work, and how can advertisers make the switch?</p><p>My <a href="https://econsultancy.com/blog/authors/rachael-morris/" target="_blank">previous posts</a> have talked about the advantages and disadvantages of the different ways we measure campaigns.</p> <p>So, I wanted to take a step back and talk about the point of all these forms of measurement - what are we actually trying to achieve?</p><p>The quote that gets pulled out most often on this is John Wanamaker's (“Half my advertising is wasted...”) and with good reason.</p> <p>It accurately describes the point of campaign measurement.</p> <p>We’re essentially trying to work out which parts of any campaign are having the most cost effective impact on an audience, so the overall campaign efficiency can be increased. </p> <h3><strong>Improving display measurement</strong></h3> <p>When agencies and advertisers look at measurement models and <a href="https://econsultancy.com/blog/66440-three-key-trends-from-our-marketing-attribution-briefing-digital-cream-2015/">attribution models</a>, they are (or should be) trying to find the fairest and most accurate way of sharing credit for the audience response, to allow them to improve the campaign plan over time. </p> <p>I previously highlighted some of the ways we can work to make traditional methods of measurement more accurate reflections of what is actually driving efficiency, but these are all just steps on the way to a better model.</p> <p><img src="https://assets.econsultancy.com/images/0007/5878/funnel.jpg" alt="" width="548" height="374"></p> <p>For instance, whilst post-visible conversions do discount those conversions that came from unseen ads, they don’t take into account the 'natural' baseline of people who would have bought the product anyway.</p><p>The next question then is <strong>what can be done about this? </strong></p> <p>How do we filter out those conversions that would have happened anyway, to make sure we aren’t optimising towards the cheap and easy conversions over and above genuine influence the campaigns are having on user behaviour?</p><p>This is a hot topic, often labelled 'incrementality'.</p> <p>There are already some attribution companies offering solutions and most clients we talk to are aiming to resolve it.</p> <p>So, why does incrementality still seem to be a problem? There are a few reasons:</p> <ul> <li>Not many companies offer it as a form of measurement, making it difficult for advertisers to find someone who can calculate this for them.</li> <li>It can be challenging to explain incrementality internally, particularly in large businesses that have traditionally favoured a more click-based approach.</li> <li>The most popular methods for measuring genuine campaign uplift are very inflexible, generally assessed quarterly, and are often not granular enough to make any real difference to your campaign.</li> </ul> <h3>How to measure incrementality </h3> <p>We started doing this a couple of years ago when a client asked us to help them prove the true value of display activity; they knew click-based attribution was undervaluing it, but felt that view-based attribution was overvaluing it.</p><p>Initially, we approached the challenge in a traditional way, comparing the performance of a charity ad to the performance of the branded display ad.</p> <p>This was when we first came across two problems with this way of measuring uplift.</p> <p>Firstly, it was very expensive - the client in question spent half their budget for the month on a banner promoting another company.</p> <p><img src="https://assets.econsultancy.com/images/0007/5879/budget.jpg" alt="" width="501" height="333"></p><p>The second problem came when looking at the data. It was clear that the biggest influence on the advert’s effect was whether it was viewed, and in any campaign there is a certain amount of non-viewable ads.</p> <p>Essentially, the unseen branded ads saw the same performance as the charity ads, while the branded ads that were visible had a much stronger response from customers.</p> <p>That led us to a new way of analysing results from that test, but also how we measured uplift from future tests.</p><p>So the method for measuring incrementality is basically the same as an <a href="https://econsultancy.com/blog/64417-horror-stories-how-to-avoid-an-a-b-testing-nightmare/">A:B test</a>, but easier and less expensive to carry out.</p> <p>By knowing unseen ads don’t affect user behaviour this gives us a control group who we've targeted but haven't seen the message.</p> <p>We compare the conversion rates of this group with the one that did see the ads. Any conversions over the ‘baseline’ of the control group are incremental, so must have been generated by the campaign.</p> <h3>Moving to an incremental model</h3> <p>We've been doing this for a few years, but it's yet to be widely adopted. So, as an advertiser interested in moving to measuring the incremental uplift of your campaign, what can you do?</p><p>The first step is to speak to your agency or partner to ask if they are tracking the viewability of your campaigns.</p> <p>Can they get data at a user level? If they can, they should be able to calculate incrementality for you.</p> <p>If they can’t get hold of the data required, it might be worth reviewing what you track currently and whether you can make changes to allow them to pick up the necessary data.</p><p>Changing the way display is measured and reported can be an upheaval. But, confidently attributing a portion of sales to display spend allows budget conversations to run more smoothly.</p> <p>Over the last year many of the advertisers we work with have found moving to incremental measurement crucial in getting internal buy-in for the value of advertising.</p> tag:www.econsultancy.com,2008:BlogPost/67892 2016-06-07T10:08:00+01:00 2016-06-07T10:08:00+01:00 Are marketers overspending on TV, display and even SEO? Ben Davis <h3>Planned spend in 2016 - mobile, web and paid social on top </h3> <p><a href="https://econsultancy.com/training/courses/social-media-paid-advertising/">Paid social</a> is definitely on the agenda in 2016, with nearly half of respondents set to increase spend.</p> <p>This is unsurprising, given these ad products use native units, trusted inventory and can target known users across devices.</p> <p>The reach of social networks and brands' long-standing publication of content here have made them attractive paid options both in terms of ease of adoption and effectiveness.</p> <p>Looking at this trend by country, UK respondents plan to increase spend on paid social more than any other nation (66%).</p> <p>At the other end of the scale, paid social has the least support in APAC (41% plan to increase spend).</p> <p>Social media is no doubt blurring the boundaries between paid, owned and earned media. Platforms are still changing rapidly and brands are continually adjusting strategies.</p> <p><img src="https://assets.econsultancy.com/images/0007/5450/Screen_Shot_2016-05-30_at_18.07.21.png" alt="media budgets index" width="615"></p> <h3>TV, display and even SEO see overspend</h3> <p>The table below shows channels that see underspend and overspend when taking into account customer dwell time.</p> <p>The figures compared are the percentage of respondents that ranked a particular channel in their top three for customer dwell time, versus the percentage of respondents who ranked the same channel in their top three budget priorities.</p> <ul> <li>Websites see underspend, prioritised by 56% of respondents despite 66% placing it in the top three channels for time spend.</li> <li>Surprisingly, printed media (25% vs. 31%) sees underspend, as does mobile (27% vs. 21%).</li> <li>Overspending is evident in TV (25% vs. 33%), display (14% vs. 20%) and very slighlty in SEO (13% vs 14%).</li> </ul> <p>Of course, time spent by users isn't the only variable that accounts for the effectiveness of a channel.</p> <p>However, 31% said time spent was the key variable that influences budget allocation and a further 36% said time spent is 'one of the variables' that influenced their media budget.</p> <p>Additionally, planned spending increases for many in 2016 for websites and mobile in particular, may tackle some of the perceived imbalance. However, the report in general does paint a picture of budgeting being out of kilter with engagement metrics.</p> <p>The majority of those allocating digital media spend are basing their decisions on incremental change from the previous budget depending on performance.</p> <p>While this is certainly a way of improving performance, it does build on assumptions that may be questioned by more solid insights such as more accurate <a href="https://econsultancy.com/reports/marketing-attribution-trends-briefing-digital-cream-london-2015/">attribution measurement.</a></p> <p><img src="https://assets.econsultancy.com/images/0007/5451/Screen_Shot_2016-05-30_at_19.40.46.png" alt="overspend and underspend" width="615"></p> <h3>Display is bottom of the pile when it comes to digital effectiveness </h3> <p>The chart below shows perceived effectiveness of media spend by channel. There aren't too many surprises, though it's interesting to see TV and POS out in front.</p> <p>Display advertising certainly seems to be the least effective digital channel. Though more termed it 'very effective' than did paid social, the total that viewed it as 'very effective' or 'quite effective' was 60% compared to 63% for paid social.</p> <p>Again, these results are caveated with the inability of many companies to attribute marketing success.</p> <p>When asked whether their organisation used attribution to measure marketing effectiveness, 34% of respondents said no and 22% said they didn't know or it wasn't relevant.</p> <p><img src="https://assets.econsultancy.com/images/0007/5453/Screen_Shot_2016-05-31_at_08.26.52.png" alt="effectiveness of channels" width="615" height="608"></p> <p>For many more findings, combined with desk research and insight from industry figures, subscribers can access the report below.</p> <p>The <a href="https://econsultancy.com/reports/media-budgets-index/">Media Budgets Index</a>, in association with Datalicious, comparing media budget allocation with media consumption.</p>