Attribution analysis - measuring the value that each marketing impression contributes to a campaign goal - is hard to get right. In fact, it's so hard that a recent study commissioned by the Interactive Advertising Bureau (IAB) and executed by Forrester Consulting found that 44 percent of interactive marketing executives use no attribution method whatsoever, and an additional 30 percent use the first-or-last click method (in spite of the fact that few marketers, agencies, or publishers stand behind that approach).
There are many reasons that getting attribution analysis right is hard - here are a few important ones:
But the fact that attribution analysis is hard is no excuse not to do it, and smart marketers recognize that some measurement is better than no measurement. The benefits are clear - better spending, channel, and strategy decisions lead to dramatic increases in campaign performance. But perhaps most importantly, getting attribution analysis right is the only way to close the direct-response loop on a multi-channel campaign in order to utilize the predictive analysis techniques that truly move the needle on campaign performance for interactive marketers. For example, WPP's Media Innovation Group reports that better attribution analysis enabled one of its large banking clients to maintain a 25 percent conversion rate with 33 percent lower CPA on its multi-channel campaign. A detailed case study can be found here.
You can achieve similar success by utilizing the following phased approach:
According to the IAB study, only a scarce 11 percent of interactive marketers achieve this level of sophistication in leveraging algorithmic attribution models. But these rare marketers create tremendous value for their firms. And in addition to that, marketers with this experience are among the most highly sought after - and highly compensated - marketers in the world. The payoff is clearly worth the effort.
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Many of ClickZ's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Jeremy Hull, Lisa Raehsler, Andrew Goodman, Bryan Eisenberg, Mathew Sweezey, Aaron Kahlow, Stephanie Miller, Simms Jenkins, Jeanne S. Jennings, Dave Hendricks and more!
Brad Terrell is responsible for maximizing the value that Netezza technology delivers to the many innovative digital media firms that power their large scale data analysis initiatives with Netezza's analytics appliances.
Before joining Netezza (IBM acquired Netezza November 2010), Brad led digital media initiatives at Endeca as director of business development and helped fuel the firm's rapid growth from $10 million to more than $100 million in annual revenue. Prior to Endeca, Brad helped design and launch products including the Spyglass Mosaic web browser, IBM PowerPC microprocessor, H&R Block online investing website, and FlightSafety International's FAA Level C-certified flight simulators.
Brad's entrepreneurial experience includes co-founding and serving as president of ElectricWish.com, ranked among the top five e-commerce sites on the web by ZDNet in 1999, and M-Nova, a pioneer in product development outsourcing to Eastern Europe. Brad holds an MBA from MIT Sloan and a computer science degree from Rice University.
March 19, 2014