Attribution Case Study - Ad-Tech Presentation

Attribution Case Study:Insights You Can UseApril 2012 Steve Latham CEO Encore Media Metrics @stevelatham

Background•  Agency: Lipman Advertising NYC•  Client: Hotel and Resort Operator•  Campaign objectives: –  Create awareness and consideration in a way that is measureable and insightful –  Primary goals: hotel and lodging reservations.•  Channels –  Display (150 million impressions) –  Paid search –  3rd party email

Assignment•  Produce insights that matter –  Useful –  Actionable•  Measure and Interpret KPIs –  Conversion paths –  Engagement cycles –  Impressions required to influence a conversion –  True performance of vendors, placements and keywords (beyond last click)

Key Takeaways•  Display was more impact than previously thought –  Accounted for 26% of attributed conversions –  Exceeded paid search (26%) and natural search (15%) –  Influenced 30% of conversions via natural search, referring and direct navigation•  Performance by media vendor and placement varied significantly… –  Attributed CPAs ranging from $32 to $919 –  Mean was $107 with standard deviation of $67).

Key Insight #1 •  Conversion path analysis showed: –  Converters were engaged via numerous channels –  Among Converters who were exposed to ads: •  Average Converter saw 5.2 ads and visited 4.2 times •  1/3 visited through paid or natural search Display% Natural% Paid%Path%Analysis IMPs Visits Direct%Nav Referring Display% Visits% Clicks Search SearchAll Visitors 5.2 4.2 1.1 0.4 0.8 0.5 1.4 55.2% 44.8%Cluster 4 (45%) 1.5 2.8 0.8 0.0 0.1 0.0 1.8 35.2% 64.8%Cluster 6 (21%) 4.7 3.8 0.2 0.6 0.8 1.5 0.6 55.2% 44.8%Cluster 3 (15%) 6.1 4.0 1.5 0.2 1.8 0.3 0.2 60.3% 39.7%Cluster 8 (13%) 3.9 4.8 0.0 1.2 2.0 0.1 1.3 45.1% 54.9%Relative Contribution (all) 54.2% 45.8% 9.1% 6.1% 9.5% 7.6% 13.3%Includes Converters who were exposed to ads, grouped in natural clusters via machine-learning algorithm.InterpretationThere is a broad distribution of conversion paths so we need to look beyond the averages. In aggregate, display ads

Key Insight #2•  Optimal frequency was 5.7 impressions overall –  Ranged from 1.8 to 9.6 among vendors on the plan. Impressions*Required*by*Vendor* 9.6$ 10 Visit$ Conversion$ 9.0$ 9 7.8$ 8 7.0$ 7.0$ 7 6.6$ 6.2$ 6 5.4$ 4.7$ 5 4.4$ 4 3.5$ 3.0$ 3.2$ 3 2.4$ 2.4$ 1.7$ 1.8$ 1.8$ 1.6$ 2 1.3$ 1.3$ 1.1$ 1 0 8 1 9 7 2 1 3 2 5 6 4 r et r r r r r et r r r he he he he he he he he he N N is is is is is is is is is d d bl bl bl bl bl bl bl bl bl A A Pu Pu Pu Pu Pu Pu Pu Pu Pu

Key Insight #3 •  After attributing credit for assist impressions and clicks… –  CPA for Display Ads fell by 60% overall •  Range: 20% to 85% among placements –  CPA for Paid Search fell by 15% Ac#onsByChannel CostPerAc#onByChannel1,600 1,520$ $350 $319.96$ Lst Click Last Click1,400 $300 Attributable 1,201$ 1,210$ Attributable1,200 1,086$ 1,013$ 1,026$ $2501,000 $200 800 733$ 609$ $131.98$ $150 600 499$ 435$ 400 $100 200 $50 $22.38$ $18.89$ 0 $0 Direct Nav Org Search Referrals Paid Search Display Paid Search Display

Key Insight #4•  Engagement cycles validate the need for a sustainable, visible presence –  48% converted >30 days after seeing the first ad –  49% converted within 1 day of seeing the last ad. –  Average person visited 4.2 times before converting

Key Insight #5 •  Performance of media vendors varied considerably (based on Attributed CPA). –  Four clear winners had an average CPA of $46 –  Four “on the bubble” with average CPA of $121 –  Three laggards with an average CPA of $521 Actions/ Click/ Assist/ ICE/ ICE/ Actions/ CPA:/Last/ CPA:/Vendor Impressions Spend Rating (Last) Assists Imps. Ratio Assists (Attrib.) Click AttributedPublisher/8 2,046,438 333 75 107 4.7 23 431 $13,971 $41.96 $32.43 WinnerAd/Net/1 3,427,418 63 45 1,672 7.8 214 322 $13,710 $217.61 $42.53 WinnerPublisher/9 1,227,090 8 5 610 1.8 339 352 $15,792 $1973.95 $44.88 WinnerPublisher/5 1,002,757 20 5 939 4.4 213 238 $15,368 $768.39 $64.46 WinnerPublisher/7 307,472 5 0 91 1.8 51 56 $5,863 $1172.56 $105.53 BubblePublisher/2 433,527 14 7 140 9.0 16 37 $3,978 $284.16 $108.83 BubblePublisher/1 1,735,227 11 1 143 2.4 60 72 $9,059 $823.58 $126.56 BubblePublisher/3 1,191,854 18 5 198 3.5 57 80 $11,329 $629.41 $142.38 BubblePublisher/6 238,828 17 6 0 7.0 0 23 $6,207 $365.12 $269.87 LaggardAd/Net/2 7,786,210 13 8 344 9.6 36 57 $21,306 $1638.95 $374.89 LaggardPublisher/4 227,348 2 0 11 1.6 7 9 $8,157 $4078.26 $919.04 LaggardTotals 19,624,169 504 157 4,255 4.2 1,014 1,675 $124,740 $247.50 $74.45

So…What’s The Point?By understanding… –  Conversion Paths and Engagement Cycles –  Optimal Frequency –  Impact of Channel, Vendor and Keyword …the Agency can optimize performanceThe economic opportunity is significant: % of Proforma Proforma Proforma Group Spend Revenue ROS Impact Budget % Budget ROS Revenue Winners $58,841 37% $1,343,423 $22.83 59% $22.83 $2,157,823 $814,401 Bubble $65,148 41% $267,262 $4.10 41% $4.51 $293,988 $26,726 Laggards $35,670 22% $88,708 $2.49 0% n/a $0 ($88,708) Total $159,659 100% $1,699,393 $10.64 100% $15.36 $2,451,811 $752,418 Relative Improvement 44% Incremental Revenue $752,418

What’s Next•  More granular analysis –  Format and creative•  Tracking offline converters –  Via post-purchase site visits•  Excluding non-viewable impressions –  Leveraging MediaMind visibility metrics•  Attribution for Brand Lift studies –  Via partnership with Vizu

Criteria for Choosing a Vendor•  Consultative approach –  Planning, implementation, production, analysis•  Transparent and programmatic approach –  Known algorithms are preferred (vs. proprietary)•  Insightful, actionable and intuitive reports –  Must be useful for media planners, analysts, clients•  Flexibility –  Able to accommodate specific needs•  Level of effort to deploy and manage –  The lower the better!

Questions? Steve@EncoreMetrics.com Encore Media Metrics Steve Latham, CEO @SteveLatham 646.919.1809 @EncoreMetrics http://EncoreMetrics.com http://Attribution101.com

Attribution Case Study - Ad-Tech Presentation

by Steve Latham on May 07, 2012

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