© 2013 IBM Corporation@IBMEMM#AskMktgAttrib © 2013 IBM Corporation@IBMEMM
Introduction to Marketing Attribution
IBM Though...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib
Shameless Self-Promotion Twitter
2
Check out the live tweet chat throughout th...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib3
• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital ...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib4
Fly First is an international
airline that has been
collecting and analyzing
...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib5
Jay and his team built detailed, individual pictures of
customers by combinin...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib6
Jay had long leveraged analytics to identify
profitable customers and increas...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib7
Using Attribution to Improve the Customer Experience
Meet Rick and Andrea, tw...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib8
• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital ...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib9
Identifying marketing influence on downstream objectives by analyzing
marketi...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib10
Business Challenges Addressed by Attribution
And how do I
divide credit?”
“W...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib11
Business Challenges Addressed by Attribution
And how do I
divide credit?”
“W...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib12
Business Challenges Addressed by Attribution
And how do I
divide credit?”
“W...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib13
Business Challenges Addressed by Attribution
And how do I
divide credit?”
“W...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib14
• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib15
Attribution
Attributed
Metrics
Click
(Credit clicked channels)
Impression
(C...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib16
Challenge Solution
How do I divide credit among all the
marketing sources th...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib17
Direction
Backward: Which campaigns influenced/drove this conversion/activit...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib18
Analyze multiple attribution logic types
First, Equal, Last, Custom
Analyze ...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib19
Drill down to the
detail level
Analyze forward
and backward
attribution Anal...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib20
Analyze attributed
margin
Attribute Search ROI
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib21
Customizing Attribution Logic
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib22
Impression Attribution
Measure the return on un-
clicked display ads and the...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib23
Challenge Solution
How should I sequence my customer
contact strategy? How l...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib
Measuring the Customer Journey is Vital
24
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib25
• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib26
Business Challenges Addressed by Attribution
“What influences
customers to
m...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib27
Business Challenges Addressed by Attribution
“What influences
customers to
m...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib28
Cross-channel attribution drives marketing planning
eGoogle
Cross-channel da...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib29
Marketing Mix Analysis At a Retailer : Cross-Channel
Attribution Insights
• ...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib30
Marketing mix and cross-channel planning
 Marketing Mix prior to using Attr...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib31
Applications of Attribution Insight
Attributed Metrics:
• Forward/Backward-f...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib32
Direct Mail - ROI
Double
counting
Marketing Leader’s pain – ROI numbers that...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib33
Double
counting
Understand Effectiveness Across Channels
Cross-Channel ROI
U...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib34
So What Does This Mean for Andrea and Rick?
Good candidate for:
• Social med...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib35
• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib36
 Data revealed no cannibalization problem
 Visitors who shift channels go ...
© 2013 IBM Corporation@IBMEMM#AskMktgAttrib37
Learn More:
• Enterprise Marketing Management: IBM.com/marketing-solutions
•...
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IBM Thought Leadership Thursday - Marketing Attribution roadshow presentation

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This is a copy of the presentation used at several Thought Leadership Thursday events describing the fundamentals of marketing attribution from digital, cross-channel and marketing planning perspectives.

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  • With smart use of their available customer data, Jay and his team are able to deliver tailored experiences at the critical touchpoints that Andrea and Rick will encounter – from booking their itineraries online all the way through to disembarking.
  • What, exactly, do we mean when we say “marketing attribution?”It’s not just about “X caused Y.” It’s also about the sequence of interactions, channels and programs that, combined together, created a certain impression or effect on a customer.
  • Our focus for near-term roadmap is within black rectangle. These are considered the building blocks of developing a strong planning capability, and includes: a cross-channel interaction history to store all stimuli and responses attribution services to drive more precise modeling channel and lift analysis which allows marketers to gain a view into how marketing spend is performing
  • They learned a few interesting things:First, in terms of responses, SMS was by far their highest response mechanism. Thousands of people went to the site based on SMS messages which would probably indicate that SMS should be invested in. Second, after they ran the statistical model against the actual transactional data they saw the real causal relationship driver… email. That’s right, while SMS initiated the purchase interest, and was supported by catalogs and radio and TV, it was actually the creation of customized emails with customized offers (30% off, free shipping, buy one get one free) that drove the purchase.
  • Had they based their entire marketing mix on just the response data, this retailer would not have had a complete picture of the actual tactic that was creating the most ROI - email. Today, Statistical Attribution Modeling is helping this retailed more rationally optimize their channel mix as shown in this example slide … notice the increase in email investment that the statistical model recommends.
  • IBM Thought Leadership Thursday - Marketing Attribution roadshow presentation

    1. 1. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib © 2013 IBM Corporation@IBMEMM Introduction to Marketing Attribution IBM Thought Leadership Thursday Blair Reeves - Product Leader IBM Digital Marketing Optimization BlairReeves
    2. 2. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib Shameless Self-Promotion Twitter 2 Check out the live tweet chat throughout the day at: #AskMktgAttrib Also accessible through our custom tweet chat website: http://twubs.com/AskMktgAttrib Have a question? BlairReeves RosettaMktg IBMEMM
    3. 3. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib3 • A Story: Fly First • Digital Attribution 101 • Basic Components of Digital Marketing Attribution • Advanced Attribution: Cross-Channel and Marketing Planning • Case Study: Digital Attribution • Q&A
    4. 4. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib4 Fly First is an international airline that has been collecting and analyzing customer data over many years. But Jay, the CMO of Fly First, knew that the organization was just scratching the surface.
    5. 5. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib5 Jay and his team built detailed, individual pictures of customers by combining multiple data sources from behind and outside the firewall. They used interaction data like marketing responses, attitudinal data from social media, behavioral data including flight history and descriptive data such as seat preferences.
    6. 6. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib6 Jay had long leveraged analytics to identify profitable customers and increase customer retention. Now he is using it to predict behavior like upgrading seats or buying in- flight meals, as well as leveraging social network analysis to understand his customers' social networks.
    7. 7. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib7 Using Attribution to Improve the Customer Experience Meet Rick and Andrea, two Fly First passengers waiting at a gate to board their flight to Chicago. Customer Registration Data • Name, DOB, Location, Email, preferences, etc. Transactional Data •Trip “Extras” Purchased •Purchase History •Loyalty Program Digital Behavior • Content Preferences • Product/Promotion Affinities • Search, Browsing Data • Products/Itineraries Viewed • Messages/Promotions Received • Customer Responses
    8. 8. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib8 • A Story: Fly First • Digital Attribution 101 • Basic Components of Digital Marketing Attribution • Advanced Attribution: Cross-Channel and Marketing Planning • Case Study: Digital Attribution • Q&A
    9. 9. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib9 Identifying marketing influence on downstream objectives by analyzing marketing interaction sequences, affinities and weighted contributions. What is Marketing Attribution?
    10. 10. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib10 Business Challenges Addressed by Attribution And how do I divide credit?” “What influences conversions?”
    11. 11. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib11 Business Challenges Addressed by Attribution And how do I divide credit?” “What influences conversions?” Attributed Metrics: • Forward/Backward-facing attribution windows • Impression attribution • Search
    12. 12. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib12 Business Challenges Addressed by Attribution And how do I divide credit?” “What influences conversions?” “What influences customers to migrate through the conversion cycle?” “What campaign channel combinations drive the highest lift?” “How long should I wait between customer communications?”
    13. 13. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib13 Business Challenges Addressed by Attribution And how do I divide credit?” “What influences conversions?” “What influences customers to migrate through the conversion cycle?” “What campaign channel combinations drive the highest lift?” “How long should I wait between customer communications?” Attributed Journeys: • Customer lifecycle attribution • Multichannel attribution • Mobile device pathing • Social media
    14. 14. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib14 • A Story: Fly First • Digital Attribution 101 • Basic Components of Digital Marketing Attribution • Advanced Attribution: Cross-Channel and Marketing Planning • Case Study: Digital Attribution • Q&A
    15. 15. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib15 Attribution Attributed Metrics Click (Credit clicked channels) Impression (Credit viewed channels) Attributed Journeys Sequences (Paths, Affinities) Segments (Multi-channel, Lifecycle) Attribution Types
    16. 16. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib16 Challenge Solution How do I divide credit among all the marketing sources that influence visitor conversion? Attribution Metrics Which marketing sources most frequently influence conversions and site activity? Attribution Metrics Are we under or over invested in particular marketing channels or campaigns? Attribution Metrics How do I credit marketing impressions regardless of whether or not they were clicked? Impression Attribution Do those who view our shoes ads ultimately purchase shoes? Impression Attribution Business Challenges – Attribution Metrics
    17. 17. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib17 Direction Backward: Which campaigns influenced/drove this conversion/activity? Looks backward in time to attribute credit to the appropriate marketing source(s). Forward: What is the latent success of this campaign? Considers a marketing campaign and looks forward in time to attribute credit to the campaign. Time Window The number of days for which activity will be analyzed. Credit Logic First: Apply all credit to the first source in the time window. Last: Apply all credit to the last source in the time window. Average: Apply equal credit to all sources in the time window. Custom: Apply x% credit to the first source, y% credit to the last source, and z% credit split across all middle sources. First Time Window Last Time Window Average Time Window 35% Time Window Custom $30 $30 $10 $10 $10 $10.50 $13.50 45%$6 20% Allocating a $30 conversion… Attributed Metric Definitions/Options
    18. 18. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib18 Analyze multiple attribution logic types First, Equal, Last, Custom Analyze multiple attribution windows Create calculated Metrics Strong cycle initiator Strong cycle closer Analyze across all channels Analyzing Attribution Metrics
    19. 19. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib19 Drill down to the detail level Analyze forward and backward attribution Analyze a wide variety of metrics Analyzing Attribution Metrics
    20. 20. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib20 Analyze attributed margin Attribute Search ROI
    21. 21. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib21 Customizing Attribution Logic
    22. 22. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib22 Impression Attribution Measure the return on un- clicked display ads and their impact on the visitor
    23. 23. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib23 Challenge Solution How should I sequence my customer contact strategy? How long should I wait between communications? Visitor Journey Insight: • Channel Combinations • Top Visitor/Customer Insight • Automated Customer Lifecycle Analysis What campaign channel combinations drive the highest lift? How do my top contributors behave? How do I get more to act like them? What influences our visitor to migrate to new milestones (e.g. buyers, 3x buyers, advocates, fanatics, etc) What online marketing activities lead to offline transactions? Multi-Channel Segmentation Business Challenges – Attributed Journeys
    24. 24. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib Measuring the Customer Journey is Vital 24
    25. 25. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib25 • A Story: Fly First • Digital Attribution 101 • Basic Components of Digital Marketing Attribution • Advanced Attribution: Cross-Channel and Marketing Planning • Case Study: Digital Attribution • Q&A
    26. 26. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib26 Business Challenges Addressed by Attribution “What influences customers to migrate through the conversion cycle?” “What campaign channel combinations drive the highest lift?” “How long should I wait between customer communications?” What is my optimal marketing mix? What channels should we invest in? And how do I divide credit?” “What influences conversions?”
    27. 27. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib27 Business Challenges Addressed by Attribution “What influences customers to migrate through the conversion cycle?” “What campaign channel combinations drive the highest lift?” “How long should I wait between customer communications?” What is my optimal marketing mix? What channels should we invest in? And how do I divide credit?” “What influences conversions?” Marketing Mix Modeling: • Managing cross-channel marketing spend • Cross-channel attribution • Statistically inferred attribution
    28. 28. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib28 Cross-channel attribution drives marketing planning eGoogle Cross-channel data mart that contains stimuli and responses Statistically driven prediction of the contribution of marketing stimuli to a desired marketing result Marketing performance reports within each channel and across channels Optimally plan & optimize cross- channel media spend on attributed performance of past campaigns & other insights Attribution Modeler Rules-based Attribution Attribution Lift Analysis Channel Performance Strategic Planning Channel Mix Planning Channel Mix Optimization Campaign Mix Optimization stimuli responses Attribution Services Performance Reporting Scenario Planning Marketing Mix Optimization Cross-channel Interaction History
    29. 29. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib29 Marketing Mix Analysis At a Retailer : Cross-Channel Attribution Insights • Responses might indicate more investment in SMS • Purchase credit heavily skewed toward email • Statistical Attribution Modeling helps rationally optimize channel mix 0 10 20 30 40 50 60 70 80 90 100 % Attribution Credit by Channel Volume
    30. 30. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib30 Marketing mix and cross-channel planning  Marketing Mix prior to using Attribution Modeler and after – 5 channel view %ofRevenueattributedtoChannel 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Baseline StatisticalModel Web Mail Search SMS Email Baseline using equal credit rule
    31. 31. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib31 Applications of Attribution Insight Attributed Metrics: • Forward/Backward-facing attribution windows • Impression attribution • Search Attributed Journeys: • Customer lifecycle • Multichannel attribution • Channel/device pathing • Social media analysis Marketing Mix Modeling: • Cross-channel attribution • Performance-based budgeting • Attribution modeling based on statistical analysis Site Data Capture Digital Data Analytics Cross- Channel Planning • Optimization of discrete assets • Message testing • Display ad analysis/allocation • Search term inventory • Calculated metrics • “Reality check” • Touchpoint combinations • Customer experience optimization • Advanced segmentation and retargeting • Channel optimization • Data-driven investment • Campaign mix optimization • Marketing performance measurement
    32. 32. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib32 Direct Mail - ROI Double counting Marketing Leader’s pain – ROI numbers that don’t enable effective marketing planning eMail - ROI Search - ROI Social - ROI No insight into overall marketing ROI Difficult to plan and optimize marketing mix
    33. 33. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib33 Double counting Understand Effectiveness Across Channels Cross-Channel ROI Understand overall marketing ROI Optimizes marketing mix based on aggregated channel performance
    34. 34. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib34 So What Does This Mean for Andrea and Rick? Good candidate for: • Social media outreach • Upsell promotions • Affiliate marketing Good candidate for: • Social media outreach • Last-minute deals • Targeted messages Analysis of digital interactions and multichannel data Scoring with attribution modeling and statistical analysis
    35. 35. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib35 • A Story: Fly First • Digital Attribution 101 • Basic Components of Digital Marketing Attribution • Advanced Attribution: Cross-Channel and Marketing Planning • Case Study: Digital Attribution • Q&A
    36. 36. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib36  Data revealed no cannibalization problem  Visitors who shift channels go to unpaid channels, alleviating concerns of double payment for customer acquisition  Branded keywords play a larger role than perceived  10% of multi-click purchasers began with a branded term  Cross-channel collaboration visibility was enhanced with data discoveries; new strategies sprang from this understanding  PETCO wanted more than ‘last click’ to gain insight into the impact of other channels on conversion  Generated actionable reports and models with IBM Digital Analytics to measure attribution metrics  First, middle, and last click over time periods revealed actionable insights Challenge Results Solution PETCO is a privately held specialty retailer that provides products, services, and advice that make it easier for customers to be great pet parents. The company operates more than 1,000 stores in 50 states and the District of Columbia, as well as a leading pet products and information destination at www.petco.com. Customer Profile PETCO’s understanding of paths-to-purchase helps optimize spend
    37. 37. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib37 Learn More: • Enterprise Marketing Management: IBM.com/marketing-solutions • Digital Marketing Optimization: IBM.com/digitalmarketing • Digital Marketing Optimization blog: SmarterCommerceBlog.com/digitalmarketing Follow us: IBMEMM BlairReeves RosettaMktg
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