Adotas is pleased to continue a series of Tech Talks that offer insights and explanations regarding the sometimes mysterious meaning and use of various digital tools. Your guide is Stephen Upstone, CEO of LoopMe.
When it comes to budgeting and evaluating your marketing spend, attribution is what you should be aiming for. (As a CEO, I’ll give you a tip – illustrating the impact of your marketing spend is the best way to keep your Chief Exec on your side.) But how does marketing technology seek to enhance this all-important aspect of reporting? A number of different metrics can be combined to give a detailed picture of the success of a campaign.
Unlike offline activity, online marketing campaigns generate a wealth of data, showing exactly how the campaign is performing, even at a micro-level. For display and video advertising, Click-Through Rate (CTR) and Video Completion Rate (VCR) are both commonly-used metrics. But CTR and VCR on their own aren’t enough for effective attribution. While they do provide insights around engagement and the best performing channels, it gives little insight into the impact on sales. A study by Nielsen found virtually no relationship between clicks and sales.
Another metric that can help illustrate success is conversion rate, which measures the proportion of consumers exposed to a campaign, who then become paying customers. Foot traffic is a useful indicator of success, showing the number of people visiting bricks-and-mortar stores after viewing an advert who have potentially purchased while there. Of course, the gold standard would be through analyzing and optimizing to purchases using anonymized card data.
Marketers can also consider utilizing uplift modelling to their advantage. Using a control and exposed group enables marketers to visibly demonstrate their marketing tactics have a direct relationship with consumers, and are helping meet business objectives.
Through thoughtful use of data, marketing technology allows for detailed insights into campaign success, at every stage of the path to purchase. Attribution modelling can effectively triangulate ad impressions, engagement and conversions – vital insights when it comes to articulating the effect of marketing activities on sales and revenue. The next step is to use artificial intelligence to optimize to these attribution metrics in real-time, and with the right data and AI technology, this optimization is becoming a reality for today’s marketer.