What is Marketing Attribution and Why is it so Important?

Published 23 March, 2020
Introduction
For those of us in marketing, we know that the world of marketing is getting more complex over time as consumer behaviour adapts to the ever increasing technological developments. Consumers are now using multiple devices for different purposes, which now represents different touch points in the consumers journey to a purchase a product and/or service. This is why leading data and tech companies such as Google or Nielsen are trying to come up with what is known as¬† ‘Multi-Touch Attribution’.
MTA (Multi-Touch Attribution), when developed should allow advertisers to understand when and where their customers have seen their advertisement – whether it’s offline or online – to accurately measure the benefits of the various advertising mediums (such as billboards to Facebook ads).
Unfortunately, we’re still far off from such an elegant and universally applicable solution due to the current limitations of our tech and negative consumer reactions to the required data collection and privacy issues. This is why advertisers are looking into other plausible solutions to address the problem of understanding which advertising channels are more effective and cost efficient. This is where Marketing Attribution comes in.
Marketing Attribution solutions should have and/or allow the following;
Single Platform Reporting Capabilities
  • The basics of Marketing Attribution is to being able to see how each marketing channels are performing in one easy reporting dashboard. This of course means that the platform has the capabilities of having the necessary integration with the various marketing channels currently available (Facebook and other social platforms, Google ads, Display and Video).
Real-Time Marketing Channel Synchronization
  • When there is limited media budget to spend, we want to ensure that every dollar being spent is reported in real-time. This allows the marketers to effectively optimize their campaigns to ensure that they can reallocate their media budgets towards the channels that are effectively bringing in revenue or conversions. Weekly reporting should be the bare minimum window to ensure that the limited media budget is not being wasted on ineffective marketing platforms.
Advanced Audience Categorization
  • We’re in the marketing era where we’re now able to categorize our audiences in specific buckets to further engage our customers with tailored ad messaging and remarketing. Whether this is for email marketing or other paid campaigns; advertisers are now able to use audience segmentation for onsite content personalization as well. Audiences can now be grouped by age and gender splits, but also job titles and industry sectors they work in; more advanced audience categorizations can also understand where the customer is in the sales funnel. This can be done by bucketing audiences using onsite behavioral data combined with advanced data collection strategies.
The Benefits of Marketing Attribution
The key benefits of having a creative and complex marketing attribution system in your marketing strategy is that every visitor you get on your website feeds your database on how to best approach them through personalization. This is where Machine Learning comes in.
Machine Learning basically means that the algorithms of a specific software can read multiple layers of a data set or in this example, a consumer’s behavior combined with their demographic information to then predict and provide recommendations of what that consumer best resonates with. This data model should of course be based off a substantial volume of sample size to effectively find similar patterns in certain demographic or behavioral profiles.
Bottom Line
Marketing Attribution is essentially the first base advertisers need to cover to ensure that they’re collecting pivotal consumer data correctly. This enables the advertisers to service their visitors/customers onsite accurately and in the most tailored manner. Paid advertising campaigns can then be activated to re-engage the consumers on multiple different offsite platforms to reconnect with them further down the sales funnel back to your site . This of course will then increase the conversions for your business.

 

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