The American Attribution Index: Using Advertising Attribution Management to Improve Media Mix AllocationThursday, October 1, 20091 PM EDTSpeakers: Adam GoldbergPurushPapatla

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Adam Goldberg, Chief Innovation OfficerCo-Founded ClearSaleing Inc. in 2006Columbus, OHStarted Google’s inside sales organization in 2003-2006New York City, NYStarted Actuate’s inside sales organization in 2000-2003San Francisco, CAWorked for Oracle Corp. in 1998-2000 in Major Account SalesRedwood Shores, CASpeaker and Trainer at events such as: (SMX), (SES), (DMA)

Co-Founded ClearSaleing Inc. in 2006

Started Google’s inside sales organization in 2003-2006

Started Actuate’s inside sales organization in 2000-2003

Worked for Oracle Corp. in 1998-2000 in Major Account Sales

Speaker and Trainer at events such as:

Dr. PurushPapatlaPresident and Founder; Vetra AnalyticsPublished in top-tier marketing journals» Marketing Science» Journal of Marketing Research» Journal of Business Research» Journal of Retailing» Journal of Interactive Marketing

President and Founder; Vetra Analytics

Published in top-tier marketing journals

CLEARSALEINGDEFINEDClear’-Sale’ing (klir sāl ing)n. 1. an advertising technology and analytics company 2.the only effective way to manage an online advertising portfolio and increase profit (ROI) for online advertisersv. 1. continually improving the ROI of online advertising campaigns 2. easily andtransparently increasing sales and profits

The American Attribution Index: Using Advertising Attribution Management to Improve Media Mix AllocationThursday, October 1, 20091 PM EDTSpeakers: Adam GoldbergPurushPapatla

EVOLUTIONOF ATTRIBUTION MANAGEMENTLast ClickEvenExclusionsRules BasedMathematical

Poll Question 1Currently, how are you attributing conversion credit to your various ad sources?Last clickOther attribution method

The American Attribution Index (AAI) is the first-ever attribution management index that measures the relative effectiveness of each online advertising source and influence factor on consumer purchases and conversions. THE AMERICAN ATTRIBUTION INDEX (AAI)

THREE SUBSETS OF AAIAAI: Aggregate IndicesAAI: Vertical Industry IndicesAAI: Company-Specific Indices

AAI AGGREGATE INDICESThe Aggregate Indices serve as important barometers of each advertising source’s relative impact and influence on consumers' purchasing decisions. Since they represent an aggregate measure across all industries and companies, the Aggregate Indices should not be used to make advertising allocation decisions for a specific company.

AAI AGGREGATE INDICESThe Aggregate Indices can be used, however, to gain strategic insight into the relative influence and trends of the respective advertising sources in general.

AAI AGGREGATE INDICES MAKEUPGiven that company size and level of advertising budget often dictate the range and mix of advertising sources employed, the AAI: Aggregate will be comprised of 3 sub-indices: Large Advertisers > $2M yr in online ad spend Medium Advertisers $300K to $2M yr in online ad spend Small Advertisers < $300K yr in online ad spend* The size breakdown could change in the future

Large Advertisers > $2M yr in online ad spend

Medium Advertisers $300K to $2M yr in online ad spend

Small Advertisers < $300K yr in online ad spend

NO HYPOTHESIS

STATISTICAL MODELS & DISCRETE DATA ANALYSES

INFLUENCE POTENTIAL

RATE OF DECAY

ABANDONED PATHS

PURCHASE AND ABANDONED PATHS1,300,000+500,000+ Purchase800,000+ Abandoned

STEP1ClearSaleing and Vetra Analytics built several statistical models to evaluate visitor buying behavior using Purchase Path data collected by the ClearSaleing platform for a particular company.

STEP 2Next, the models were tested and calibrated against actual historical data to ensure that the models were able to perform well in capturing, explaining and predicting buyer behavior.

STEP 3The best model was then selected. Using the outputs of this model, channel-specific attributions were developed.

STEP 4Next, the channel-specific attributions were used to develop influence weights for each channel (advertising source), where the influence weight represented how much influence a given source had in affecting a visitor’s decision to buy or not buy.

STEP 5These four steps were then repeated for multiple companies in multiple industry sectors.

STEP 6The companies were then segmented based on several criteria, such as total ad-spend or the company&apos;s vertical industry.

STEP 6The influence weights were then aggregated across companies within a segment.

STEP 6Segment-specific indices were then developed:AAI: AggregateAAI: Vertical Industry Indices

THE AMERICAN ATTRIBUTION INDEX

Poll Question 2What challenges have you run into when trying to build an attribution model? 1. Our technology cannot track beyond the last ad clicked 2. We cannot build a sound mathematical model 3. We cannot incorporate offline, social media, and word of mouth advertising 4. All of the above 5. We haven’t tried to build an attribution model

ATTRIBUTES OF AD SOURCES

FURTHER ATTRIBUTES OF AD SOURCES Google OtherModel NumberProduct NameCompetitorGeneral

MODELINGTHE INFLUENCE POTENTIALINFLUENCE POTENTIALof an influencer = f (# of exposures, when each of the exposures occurred, decay rate of the effect of exposures)

HOW TO DO CALCULATIONON INDIVIDUAL PATHSTake weights of ad sources from pie chartNormalize the ad sources used in that Path to 100%Example -&gt;

EXAMPLEOF NORMALIZING TO 100%

Poll Question 3How do you see your company incorporating Attribution Management into your marketing decisions going forward?1.) Build an in-house technical solution 2.) Purchase a third party solution 3.) Rely on your current agency or hire an agency 4.) Use the tools you have today

REGULAR ONGOING ACCESS TO AAI CRITICAL(1) the continual addition of more and more data from the new companies who join AAI (2) changes that occur in macroeconomic environmental factors (3) changes that occur in advertising options and measurement technology.

AAIUPDATES

AAIVERTICALIZATION TODAYeTailFinance

ANECDOTAL’REASONS’ BEHIND THE RESULTSWhy are there such differences in weights between companies that have different ad spend?Why does email and comparison shopping have such little influence?What changes do we expect to see as more company’s data is incorporated into the AAI?

AUDIENCEQUESTIONS ?

Questions?Adam Goldberg- www.attributionmanagement.com info@attributionmanagement.com www.clearsaleing.comwww.searchmarketingnow.comwebcasts@searchmarketingnow.comUpcoming SMN webcast: October 13, PPC Negative Keywords: Maximizing the Positive Effect