What is Marketing Attribution?
Marketing campaigns tailored to each stage of the funnel and businesses often use a multi-channel approach towards marketing. Marketing attribution models measure how effective digital campaign spends drive business outcomes. Depending on the business model, these outcomes are often milestones along the marketing funnel.
Digital Marketing Challenges Faced by Marketers
Marketers need to measure the effectiveness of their marketing spend to understand the Return on Ad Spend (ROAS) of each channel. The primary issues that hinder that measurement include:
- Unable to acquire granular, user-level data, or identity resolution across ad-serving platforms; like Google and Facebook.
- No harmonization among external and internal marketing data sources.
- Lack of technical skills required to build data-driven models.
- Cannot gain insights from attribution models to optimize future marketing spend.
Our Marketing Attribution Solution
Our marketing attribution solution works with aggregated data using a Media Mix Modelling (MMM) framework. In its simplest form, we use the following, first-party data, aggregated on a daily basis to build our model:
Spend by each marketing channel
Key outcomes, e.g., website visits, lead submissions, and revenue
Promotions and discounts
Pricing decisions
Benefits of Our Attribution Solution
Revenue Attribution from Model
1. Measures the contribution of each marketing channel
- Evaluate channels based on their contribution to key business outcomes. Look at YoY or Quarterly numbers do understand which channels are driving growth.
2. Understand marketing ROAS
- Measure the effectiveness of marketing channels by comparing the contribution with the spend. Look at trends over a year to understand how this effectiveness changed and the tactics that are driving this change
Model vs Last Click
Response in Revenue to Facebook Spend
3. Identify saturation level of marketing Channels
- Understand the reach of marketing channels and identify optimal spend thresholds that prevent saturation
4. The attribution model is deployed as an automated solution on the AWS cloud. This enables us to create:
- An attribution dashboard to visually monitor the performance of marketing channels
- Web-based planning application to optimize future marketing spends
5. A/B Tests to validate the attribution model
We design and deploy testing strategies to validate findings from the model. These findings can be used to reinforce the attribution model.
