November 29, 2017 - By Ginna Hall, Senior Writer, Visual IQ
Most marketers today face an extremely difficult mandate — how to accurately allocate credit for every conversion or brand engagement activity. Increasingly, these touchpoints are the result of a complex path that spans many channels, devices, and interactions. CMOs, VPs and channel managers trying to optimize their marketing and media investments must navigate data from multiple streams and platforms. It’s challenging, to say the least.
Legacy attribution methods, such as a last-touch attribution approach, no longer serve the purpose, as they cannot take cross-channel influences and synergies into account. To complicate matters, all of this must be done quickly, to take advantage of changing market conditions and keep pace with the competition and changing customer behavior.
To develop a more precise customer reach strategy; optimize spend across multiple tactics, campaigns, and channels; and measure the impact of cross-channel marketing campaigns, marketers need to use an advanced algorithmic attribution methodology.
To find out more, Visual IQ commissioned Forrester Consulting to evaluate the current state of algorithmic attribution. Forrester conducted in-depth interviews with 51 marketing professionals across the US and the UK responsible for digital channel optimization at their organization and using algorithmic attribution models.
We found that using algorithmic attribution enables marketers to accurately track the increasingly complicated customer path and optimize marketing spend, but they can’t do so with the speed they would like due to legacy processes and strategies.
Forrester’s study yielded four key findings:
Currently, marketers are challenged to optimize their media buys using algorithmic attribution models due to inflexible budgets and partner contracts, a glut of customer data that is locked in silos, and the sheer time it takes to collect data, interpret insights, and execute the optimization strategies they present. Our “State of Attribution” infographic sums up Forrester’s findings.
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