The document discusses the future of digital measurement in marketing. It notes that the majority of global media consumption will soon be digital, so measurement tools need to account for this. Key challenges include cross-device tracking, determining touch point quality, location tracking, dealing with "walled gardens" like Facebook and iOS, and identity management across platforms. Unified measurement of both online and offline data will be needed. Addressing these challenges can improve marketing efficiencies by 10-30% according to research.

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FUTURE OF DIGITAL
MEASUREMENT
Christian Bartens, Managing Director
Datalicious – Marketing Data Specialists

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Future of Digital Measurement = All Media
Majority of global media consumption (by week) will soon be digital
Important to build
measurement tools
and techniques that
are future proof and
(are starting to) solve
the measurement
challenges of
tomorrow – today

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Purchase Path vs Purchase Attribution
Purchase path
§ Challenges related to building an exhaustive purchase path
Purchase attribution
§ Challenges related to establishing and distributing generated value
TV Display Branch Print Search Website Leads Sales Profit LTCV
$100 $1,000 $500 $2,000?% ?% ?% ?% ?% ?%

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Key ‘Digital’ Measurement Challenges
Purchase path
§ Cross-device tracking
§ Touch point quality
§ Location tracking
§ Walled gardens
§ Identity management
Purchase attribution
§ Offline sales
§ Attribution models
Unified measurement

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Purchase Path: Cross-Device
Consumers increasingly use multiple devices and apps along the purchase path
This requires different measurement strategies to ID consumers across devices and apps
so individual touch points can be combined into one single cross-device purchase path
Datalicious study revealed that combining paths across devices lengthens the path by
38%, attributes 1.8x more sales to mobile equaling +142% percent for Facebook ads
TV Display Branch Print Search Website $1,000
Device 1 Display
Device 2 Search Website $1,000

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Purchase Path: Cross-Device
Consumers increasingly use multiple devices and apps along the purchase path
This requires different measurement strategies to ID consumers across devices and apps
so individual touch points can be combined into one single cross-device purchase path
Datalicious study revealed that combining paths across devices lengthens the path by
38%, attributes 1.8x more sales to mobile equaling +142% percent for Facebook ads
TV Display Branch Print Search Website $1,000
Device 1 Display
Device 2 Search Website $1,000
Source http://data.li/2krpbPF

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Purchase Path: Touch Point Quality
Just because ad impressions were served doesn’t mean …
§ They were not blocked – Ad blocking
– eMarketer reports that ad blocker penetration reaches 30-35% in the US
§ They were actually viewed – Ad view-ability
– Marketing Charts reports ad view-ability to be between 45-60% in the US
§ They were actually viewed by a human person – Ad fraud
– Datalicious study suggests twice as high as thought or 15-20% in the US
Filtering out ineffective ads can reduce ROI by >100%
TV Display Branch Print Search Website $1,000

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Purchase Path: Touch Point Quality
Just because ad impressions were served doesn’t mean …
§ They were not blocked – Ad blocking
– eMarketer reports that ad blocker penetration reaches 30-35% in the US
§ They were actually viewed – Ad view-ability
– Marketing Charts reports ad view-ability to be between 45-60% in the US
§ They were actually viewed by a human person – Ad fraud
– Datalicious study suggests twice as high as thought or 15-20% in the US
Filtering out ineffective ads can reduce ROI by >100%
TV Display Branch Print Search Website $1,000
Source http://data.li/2krKlNlSource http://data.li/2yL25FG

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Purchase Path: Location Tracking
Physical branch interactions are still important touch points
Challenge is sourcing and then connecting the location data to the path
Various (mostly still untested) possible approaches
§ Walk-in counters and inclusion via Media Mix Model (MMM)
§ Latitude/longitude tracking via mobile ad servers, browsers or mobile apps
§ Proximity tracking or triangulation via in-store free Wi-Fi or Bluetooth beacons
Problem remains how to connect location data set to main path data set
§ Solution will be a combination of PII to device advertising ID and IP address matching
TV Display Print Search Website $1,000
Branch

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Purchase Path: Walled Gardens
Purchase
Path
Google
Facebook
iOS
[…]
Walled gardens opening
§ Facebook Clean Rooms, APIs
§ Google Ads Data Hub
§ Access via trusted partners
such as Datalicious, Equifax
Walled gardens closing
§ Apple iOS Tracking Prevention
– Technical R&D challenge

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Purchase Path: Walled Gardens
Purchase
Path
Google
Facebook
iOS
[…]
Walled gardens opening
§ Facebook Clean Rooms, APIs
§ Google Ads Data Hub
§ Access via trusted partners
such as Datalicious, Equifax
Walled gardens closing
§ Apple iOS Tracking Prevention
– Technical R&D challenge
Source http://data.li/2kqPAwR

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The future of measurement
is identify management
§ To facilitate the stitching of touch
points across platforms, devices, etc
People can easily amass
hundreds of IDs across time
and different ad platforms
Deterministic and probabilistic
user ID matching is crucial
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Purchase Path: Identity Management
Persistent
User ID
PII IDs
CRM ID
Google
Cookie ID
Facebook
People ID
iOS ID
Android ID
IP
Address
[...]

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The future of measurement
is identify management
§ To facilitate the stitching of touch
points across platforms, devices, etc
People can easily amass
hundreds of IDs across time
and different ad platforms
Deterministic and probabilistic
user ID matching is crucial
13
Purchase Path: Identity Management
Persistent
User ID
PII IDs
CRM ID
Google
Cookie ID
Facebook
People ID
iOS ID
Android ID
IP
Address
[...]
Source http://data.li/2krpbPF

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Purchase Attribution: Offline Sales
What if all research and ads are online but the sale offline?
§ Reality is that online drives offline and vice versa
§ Cannot just attribute sales to online we can track online
Important to match offline sales to online campaign activity
§ Requires PII of sales to be matched to cookies and IP addresses
§ Combined cookie and IP address match rate between 30-50% for US
TV Display Branch Print Search Website
$1,000

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Purchase Attribution: Attribution Models
TV Display Branch Print Search Website Leads Sales Profit LTCV
0% 0% 0% 0% 100% 0% $100 $1000 $500 $2000
20% 25% 25% 25% 25% 0% $100 $1000 $500 $2000
30% 10% 10% 10% 40% 0% $100 $1000 $500 $2000
A% B% C% D% E% F% $100 $1000 $500 $2000
Many different out of the box models but all wrong …
Only accurate way is a custom model …

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Unified Measurement
Traditionally online and offline measurement are separate
§ Offline = Media Mix Modelling (MMM)
§ Online = Multi-Touch Attribution (MTA)
Online and offline can no longer be measured in isolation
Need for integrated unified online offline approach
§ Media Mix Modell (MMM)
– Determines optimal spend at channel level, seasonality and baseline
§ Multi-Touch Attribution (MTA)
– Allocates optimal channel spend by week/month down to ad/keyword level

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Seems Complicated – Why Bother?
Because Forrester
suggests – and we can
confirm – that unified
marketing measurement
and resulting optimization
can easily yield 10-30%
media efficiencies in
the 1st year …
Source http://data.li/2krDzas

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THANK YOU!
Questions?
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