At a time when marketing budgets are being scrutinized more closely, attribution platforms are helping minimize waste and justify spending.
Regardless of which way the economic winds are blowing, determining the relative effectiveness of each marketing strategy is critical. When budgets are tight, as they are now as a result of the economic instability brought about by the pandemic, the possibility of reducing waste is gaining interest.
Although attribution – the process of assigning weight to each touchpoint in a marketing campaign based on its contribution to revenues – is not a new concept, the depth and scope of marketing attribution tools available today is much greater than one could have imagined a few years ago.
Furthermore, machine learning and artificial intelligence have advanced to enable the integration of data from a variety of sources. Now, several tools can extract information from data in order to forecast potential future outcomes and make recommendations.
Marketers are under more pressure than ever to justify their spending, in part because COVID-19 has had such a significant effect on all companies, and in part because technology has made it easier to tie spending to revenues in many instances.
According to The Trade Desk’s September 2020 survey of 200 marketers and agencies, 84% of marketers are under pressure to prove the efficacy of their campaigns, while 50% say long-standing marketing KPIs are being questioned.
More channels and devices
Simultaneously, advertisers have to deal with an ever-increasing number of platforms and devices where they can interact with their consumers and prospects, and research shows that advertisement through multiple channels is more successful.
When combined with a TV buy, L’Oréal Nordics found that Instagram and Facebook ads increased ad recall by 12 points among its target group of 18- to 34-year-olds. In addition, the social media components resulted in a 22.6 percent increase in reach over television.
Even traditional media has a history of mutual reinforcement. People who saw a radio ad in addition to a TV advert from the same campaign had 35 percent higher awareness of the TV advertisement than those who just saw the ad on TV, according to Nielsen research released in 2018.
According to a Salesforce survey of 15,000 business buyers and customers, buyers are increasingly expecting their experiences with brands to be consistent regardless of the device they’re using. When they’re analyzing and making a purchase, they’re more likely to move from one device to another. Because of all of these factors, marketers must organize their strategies through various platforms and consider the role that each touchpoint plays in bringing someone closer to a buying decision.
All of these marketing challenges are addressed by marketing attribution and predictive analytics tools, which provide transparency across all online and offline platforms, allowing marketers to generate more revenue from the same spend or minimize budget while achieving the same results.
According to the 2020 Gartner presentation Marketing Technology Drivers of Genius Brand Efficiency, these tools can also “navigate the increasingly higher walls of the walled gardens”. Higher output comes from the transformation of large quantities of data into actionable insight, according to the study, which describes these data science tools as producing “insights for segmentation, targeting, and personalization.”