Here are eight trends that are driving marketing attribution:
- Success is rapidly accelerating adoption. Some 90% of marketing organizations who’ve adopted it say they are seeing significant benefits from marketing attribution. That’s huge. The one most commonly cited is justification for digital spending, followed by better understanding of the customer journey, and optimizing the media mix.
- Many companies are still stuck in old attribution models (i.e. last click) because they validate their current theories and are considered “good enough for now.” But media fragmentation undermines last-touch methods, with serious implications for future marketing effectiveness. Organizations that try to move beyond basic single-point models face two key challenges: a traditional corporate culture that rewards success of an individual channel rather than the company’s overall success; and a lack of consolidated data warehouses.
- Mobile and social proliferation is accelerating attribution adoption. In particular, marketing organizations want to better understand mobile’s role in bridging the gap between online and offline channels. Cross-device tracking is not easy, but some vendors have devised ways to help companies understand consumer behavior across different devices.
- Attribution gets political at many organizations, since budgets often get redistributed when a company gains better understanding of channel interplay. This has been an unexpected hurdle for many CMOs. Changing the status quo is particularly difficult at organizations where compensation is tied to budget size and bonuses.
- An offline/online gap remains large. Attribution efforts still tend to fall into separate camps, either online or off. But the relatively rare organizations (for now) that attempt combined attribution tend to like what they are finding
– powerful, complimentary effects by digital and offline.
- There’s no one-size-fits-all. Lessons from one company, industry, product or campaign don’t necessarily port over to others. In other words, you need to do this for yourself, rather than poach someone else’s results. Since factors change over time, monitoring is an ongoing process, and well worth the effort.
- Models aren’t perfect, but some are much better than others. The right approach depends on the business goals you are trying to achieve.
- While companies often focus attribution efforts on digital, that’s only part of the picture. “Attribution technology can now bring marketers closer to the holy grail of a single customer view by joining up data from the online and offline worlds related to both brand advertising and direct response marketing,” says the Econsultancy report “Making Sense of Marketing Attribution.”