In an increasingly connected world where travellers have access to endless sources of information on many different devices, it can be difficult to measure the true path to conversion. In the absence of proper attribution, the question has become “Which piece of content finally tipped the individual over the edge to ‘buy’?” As the digital marketing landscape becomes increasingly fragmented and complex, the topic of attribution becomes more and more important. It all boils down to this: if you don’t know how to track, measure, and allocate value, then you cannot understand how each of your marketing channels contribute to your bottom line.
When the correct attribution model is in place, it can give brands the insight to minimise the time to conversion, optimise media plans, eliminate wasted impressions and perhaps most importantly yield greater returns on ad spend.
Here are a few things to consider when addressing the issue of attribution:
1. Weigh the Pros and Cons of Last Click as a Measurement Tool
It is vital for brands to select a measuring system that matches their type of media and last click attribution fits perfectly with search advertising and with lower funnel tactical campaigns in general, but makes very little sense for display and when trying to assess multiple channels holistically.
Last click fails to capture a traveller’s journey as he moves towards a booking. It doesn’t take into account the multiplicity of interactions and influences (both brand-led and outside of brand’s control) that lead to the traveller’s eventual conversion – and there could be as many as 18.2 touch points on average, according to Google, before a consumer makes a final purchase decision.
Another downside of last click is that it equates clickers and bookers, lumping both into the same category when research shows that clickers are not always bookers and vice-versa. So, if you’re running a display campaign, consider other measurements, such as view-through conversions.
2. Consider the Impact of View-Through Actions
A view-through conversion occurs when a person is impressed by an ad, does not click, but searches or visits the website later and converts. In addition to identifying the last piece of content read before that conversion, marketers should identify which touch-points are most crucial to successful conversions.
For instance, if you’re considering travelling to New York for a short trip in December, it’s highly unlikely that you will click on the first ad you see for a discounted hotel room and book straight away, regardless of how relevant or attractive this offer might be. You will probably first check prices on online travel agencies or other hotel sites, and you may even book your flight first. Only then you might come back to the original site and consider the offer that caught your eyes in the first place and book.
3. Get Technical: Understand the Methodologies Behind Attribution
Currently, the two main methodologies for attribution are: 1) algorithmic and 2) rules-based. There are a number of alternatives available in the market, but for simplicity’s sake, we’ll focus here on the two main ones.
The algorithmic technique is centred around statistics. It entails the dynamic analysis of all exploitable digital data touch points to show, in real-time, how each digital channel influences the other channels to drive results, i.e. conversions. This machine-learning technology is powerful but expensive and difficult to implement.
The rules-based methodology is much simpler to implement and uses rules to build out individual touch-point weightings that determine how credit for sales and conversions is assigned to touch-points in conversion paths. These rules are relatively static but present the advantage of being simple to implement and change, and relatively cheap.
If you’re just starting to sort out your attribution, begin with the rules-based approach. Here a few easy steps to follow:
- Get all your data in the same place. Set clear KPIs that are aligned with business objectives.
- Then begin to dig deeper: based on the nature of your business, define individual touch-point weightings or use available models (i.e. Google analytics multi-touch). Now you can begin the thought process around attributing value to each action prior to conversion. For example the likes of Airbnb will require a very different attribution model to Hilton despite both being in the hospitality sector.
- Now you can test, optimise, measure success and repeat the process.
4. Bring in the Big Guns: Use Lift Studies to Validate Working Assumptions
Lift studies help answer the most important question – did my marketing influence a purchase that would not have happened if I had not carried out that marketing?
There are many kinds of lift studies but all allow brands a more accurate insight into the performance of their campaign and help them maximise return on investment by considering the entire funnel. A Causal Impact Lift study, for instance, compares actual site activity versus the prediction of site activity had advertising not occurred during the same timeframe.
As a result, you’ll see the direct impact of all your marketing efforts, enabling you to take a holistic and well-informed approach to future campaigns, understanding the full role each channel plays in terms of conversion volume and rates, outside its individual results.
It is becoming more and more important for brands to address the issue of attribution head on and when done correctly, brands will reap the rewards. Having the ability to holistically understand how effective each of your marketing channels are will allow you to maximise your budget and drive ROI.
