Presentation from the October 14th webinar presented by Kenshoo and featuring Forrester — From Insight to Action: Executing Successful Cross-Channel Attribution and Optimization.

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
From Insight to Action:
October 14, 2014
Executing Successful Cross-Channel
Attribution and Optimization
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Webinar Instructions
Audio Instructions
•Listen via computer speakers and be sure the volume is turned up.
•Still can’t hear the webinar? Tell us please!

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Today’s Speakers
Tina Moffett
Analyst
Forrester
Doug Chavez
Global Head of Marketing Research & Content
Kenshoo
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Agenda
•The Age of the Consumer
•Survey Findings
•Recommendations
•Power of Advanced Attribution Models
•Predictive Marketing Applications Beyond Attribution
•Key Takeaways
•Q&A
#Insight2Action

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Agenda
›Empowered customers disrupt traditional measurement
›Cross-channel attribution is still in its infancy
›Organizations struggle to take action
›Marketers reap the attribution benefits
›Recommendations
#Insight2Action

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Agenda
›Empowered customers disrupt traditional measurement
›Cross-channel attribution is still in its infancy
›Organizations struggle to take action
›Marketers reap the attribution benefits
›Recommendations
#Insight2Action

7. A 20-year business cycle in which the most successful enterprises will understand and serve increasingly powerful customers
Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report
The age of the customer
A 20-year business cycle in which the enterpriseswill reinvent themselves to systematically understand and serveincreasingly powerful customers
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In the age of the customer, individuals are always-addressable…
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And they create data at every interaction point
Source: July 22, 2013, “Mix Art And Science For Marketing Success” Forrester report
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But they do not trust traditional, campaign-based marketing.
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Marketing as we know it is experiencing a shift.
Source: April 2014 “The Power Of Customer Context”Forrester report
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12. The spotlight is on measurement and analytics
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Agenda
›Empowered customers disrupt traditional measurement
›Cross-channel attribution is still in its infancy
›Organizations struggle to take action
›Marketers reap the attribution benefits
›Recommendations
#Insight2Action

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What do we mean by cross-channel attribution?
Source: “Cross-Channel Attribution Presents a Clear Path to Marketing ROI” September 20, 2012
The practice of allocating proportional credit to all marketing communications, across all channels, that ultimately lead to the desired customer action.
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Organizations leverage many channels to reach
and grow customers
Digital channels dominate those measured
taking 8 of the top 10 spots
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo,
April, 2014
“What channels are you currently using to
drive marketing and media objectives?
Which channels are included in
attribution measurement?”
Email marketing
Online display advertising
Referral marketing
Paid search advertising
Mass media
Mobile display advertising
Search engine optimization
Affiliate marketing
Paid social advertising
Behavioral targeting advertising
Magazines or newspapers
Online video
Owned social media
Retargeting
Mobile search
Mobile apps
Direct mail or catalogs
Other events
Currently using to drive marketing and media objectives
Included in attribution measurement
87%
82%
81%
78%
76%
76%
75%
75%
73%
72%
72%
71%
71%
70%
68%
67%
65%
65%
50%
53%
50%
55%
43%
41%
46%
43%
48%
43%
45%
45%
44%
40%
40%
44%
38%
37%
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Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
But marketers still use basic attribution
approaches to measure impact
77% of marketers
moved beyond single
touch attribution
“What specific approach do you use to calculate
cross-channel attribution?”
First or last touchpoint
receives all attributed
credit
Predefined rule-based
attribution
Self-defined business rules
Advanced or algorithmic
attribution
23%
35%
31%
11%
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Few marketers measure cross-channel halo
effects
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
24% of marketers
measure many channels
and campaigns
simultaneously
“How are you measuring channel and campaign
efficiency and effectiveness?”
41%
36%
24%
We measure each channel
and campaign separately
We measure limited cross-channel
and campaign effects
We simultaneously measure
many channels and campaigns
#Insight2Action

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Marketers seek measurement help from their
partners
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
Only 15% of
marketers use
attribution
specialists
“Which vendor or partner do you currently use for
your attribution measurement efforts?”
My data management provider 17%
My marketing service provider 16%
My web analytics provider 15%
My attribution specialist 14%
My media buying platform 14%
My digital/direct response agency 10%
My tag management provider 8%
My bid management platform 5%
#Insight2Action

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Agenda
›Empowered customers disrupt traditional measurement
›Cross-channel attribution is still in its infancy
›Organizations struggle to take action
›Marketers reap the attribution benefits
›Recommendations
#Insight2Action

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Marketers face many hurdles preventing actionable attribution insights
What are the TWO largest obstacles preventing you from taking greater action from your attribution tool?
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
#Insight2Action

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Agencies labor to alter media plans based on attribution
What are the TWO largest obstacles preventing you from taking greater action from your attribution tool?
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
#Insight2Action

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Agenda
›Empowered customers disrupt traditional measurement
›Cross-channel attribution is still in its infancy
›Organizations struggle to take action
›Marketers reap the attribution benefits
›Recommendations
#Insight2Action

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Marketers want attribution to answer difficult
questions
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
“When evaluating attribution output and results, how important do you find each of the following?”
44%
47%
42%
47%
41%
46%
42%
48%
55%
47%
51%
19%
20%
25%
21%
28%
24%
28%
25%
20%
29%
33%
Evaluating the time, cadence, and frequency of ads across
the purchase path
Inputting attribution results directly into real-time media
bidding engines to optimize spend
Analyzing the true impact of exposed vs. unexposed
marketing and media
Determining the value of your affiliate programs
Measuring the influence of one channel on another, such as
digital to offline conversions or display ads on paid search
Calculating % attributed credit by channel, campaign,
program, and tactic level
Generating new customer insights based on path length, time
between touch points, order of channels, etc.
Analyzing which search terms and/or publisher sites are the
most impactful
Evaluating different creative, offers, or content versions
Measuring incremental sales generated by channel, purchase
paths, and/or touch points
Changing media buys based on prior attribution results and
analyze the impact
Very important Critically important
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Experience and greater channel measurement
drives satisfaction
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
Marketers are Very
Satisfied with their current
measurement efforts and ability
to take action
“How satisfied are you with your . . .”
Very satisfied Completely satisfied
46% 17%
49% 18%
Current measurement and insights
efforts for your marketing and
media channels?
Ability to take action on your
current attribution results
and insights?
#Insight2Action

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Speed to action improves satisfaction
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
42% of marketers have the
processes and technologies to
act on their attributed results
several times a day.
“Once you have received your attributed values,
how quickly can you adjust media buys
based on the attribution results?”
In real time through
an automated process
(in less than 35 milliseconds)
7%
A few hours, and results can
change several times a day
35%
About one day 19%
More than one day,
but less than a week
11%
About a week or longer 28%
#Insight2Action

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Integration of attributed results into media buying platforms is desirable
Integrating advanced attribution into bid management platforms allows marketers to optimize their digital spend without needing to make manual adjustments or monitor performance. If your attribution tool was connected into your bid management platform, how likely would you be to use it for at least portions of your media spend?
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
68% are very or completely likely to use technologies that can rapidly adjust digitally media spends
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Agenda
›Empowered customers disrupt traditional measurement
›Cross-channel attribution is still in its infancy
›Organizations struggle to take action
›Marketers reap the attribution benefits
›Recommendations
#Insight2Action

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Source: A commissioned conducted by Forrester Consulting on behalf of Kenshoo, October 2014
›Buildan attribution business case and get executive sponsorship.
›Diginto your partners attribution approach.
›Connect attribution insights into media execution engines.
›Test and experiment new marketing and media strategies to continually improve results.
Recommendations
#Insight2Action

29. Thank you
Tina Moffett
+1 212.857.0769
tmoffett@forrester.com
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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Attribution helps us determinewhereto allocate spendand how much to pay.
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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Static attribution rules treat all opportunities the same.
Last Click
Divide Evenly
Time Decay
U-Shaped
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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Conversion
Online
1
LAST CLICK
Conversion
in Store
3
TIME DECAY
100%
40%
35%
20%
5%
Conversion
by Phone
2
DIVIDE EVENLY
25%
25%
25%
25%
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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Last click is a very outdated model. You need to understand the customer’s full journey to increase conversion across the full funnel and give proper credit to each channel.”
—Online media director for an international educational software company
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April 2014
“
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Give credit where credit is due
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
SOCIAL
SEARCH
RETARGETING
DISPLAY
EMAIL
PRODUCT LISTING ADS
The world is dynamic.
Not all customers or conversions are alike.
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Go from maze to model
Cheap DVD Players
Great Prices
electronics.com
Keyword 1 Keyword 3
Top DVD Players
Great Prices
electronics.com
Best DVD Players
Great Prices
electronics.com
Keyword 2
Research/Awareness
40%
Consideration
10% 12%
Intent to Purchase/Convert
38%
Cheap DVD Players
Shop now at
Electronics.com
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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Savvy marketers get sharper and nimbler withattribution measurement
49% are adjusting long-term media plans
38% are changing media spend
34% are comparing campaign performance measures
23% are taking some action in real-time
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April 2014
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
68% of marketers said they would be very likely or completely likely to use technology to directly integrate attributed results into media buying platforms, if they were available.
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April 2014
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Planning and measurement tools embedded into the bidding platform
Go beyond measurement to insights and action across your programs
OptimizedBidding
Multi-Channel Measurement& Attribution
Scenario Planning, Forecasting & BudgetManagement
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Take advantage of every opportunity
Predictive technology that understands and learns your unique business
Event Driven Performance
Predictive MediaForecasting
Automated BidOptimization
Leave nothing on the table.
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Inform your optimizations with data
TV Commercial Seasonal Sale Snail Mail Campaign
I have a big promotion coming up. How can I let the algorithm know
that the conversion volume will increase?
How can I see if my promotions impacted performance?
#Insight2Action

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If I knew how investment
alternativeswould pay out,
I could boost performance.
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Challenge
Identify obtainable spend
and return levels
Solution
Scenario Planning
•Understandoverall market potential
•Buildforward-looking analysis
•Chooseinvestment scenario
#Insight2Action

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Even when I feel comfortable
witha forecast, we still have to
find a way to act on it.
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Turn analysis into action
Challenge
Solution
Budget Pacing
•Translate predictions to strategy
•Apply changes across portfolio
•Repeat daily cycle
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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Forecasting of an Entire
Portfolio Within Minutes
Unparalleled Accuracy in
Forecasting by Integration
with Dynamic Attribution
Budget Pacing Syncs with
Market-Leading Kenshoo
Portfolio Optimizer
Interface to Inform Engine of
Market, Seasonal or Offline
Events
Automated Alerts for Both
Opportunities and Threats
Leverage predictive marketing technology
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Key Takeaways
•Build an attribution business case and get executive sponsorship
•Dig into your partner’s attribution approach
•Connect attribution insights to media execution engines
•Test and experiment with new marketing and media strategies to continually improve results
•Become a proactive marketing organization by applying the power of predictive marketing in real-time to improve forecasting, optimization, and attribution
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Q&A
#Insight2Action

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© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Download the Study
Kenshoo.com/InsightToAction
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