The principal challenge of today’s marketers is the evaluation of their cross-media campaigns as holistically as possible. Because only with the knowledge about the actual effect of individual channels and advertising on the decision-making process of the consumers can the budget be optimally distributed.
The model or method that assigns sales and conversion to the various points of customer contacts is called attribution. One possible solution is dynamic attribution, which models the real behavior of consumers in great details, based on statistical methods and intelligent algorithms.
For the first time, marketers can analyze and evaluate all channels involved in the customer journey: Dynamic attribution can use a variety of factors to evaluate the conversion percentage of each touchpoint - for example, interactions between channels or the time between clicks and buy. Therefore, marketers should focus more on this intelligent, self-learning form of attribution modeling to achieve the most realistic assessment of success.
The Beginner’s Guide Dynamic Attribution of intelliAds gets to the point of the dilemma marketing are facing, saying: “By its very nature art is not an exact science and it is precisely this which represents the challenge in marketing. All great and small decisions depend to a large extent on estimations, instinct and experience. Knowing how all the channels and strategies influence each other when used at the same time and across different devices has been an elusive dream until now – as has determining the deciding factor which caused a customer to buy. This is precisely where dynamic attribution comes into play. “
I like as well how intelliAds explains in a nutshell how “dynamic attribution” works:
- Dynamic attribution distinguishes itself by the fact that it is not static. Algorithms and statistical analyses are always moving in the background and create a self-learning attribution model. This recalculates itself regularly and in doing so maps reality in the best way possible, making the very most out of the available data. When determining the real contribution made by a touchpoint to a conversion, influencing factors such as its position in the conversion funnel, time intervals between clicks and conversions as well as cross-channel effects and synergies can be factored into the calculations. Furthermore, deep analyses into how specific channels work in combination with each other are carried out - for this purpose non-converted chains are also factored in which, by definition, cannot be considered by static attribution models.
- This gives you much more reliable conversion forecasts and you will automatically save money. If you so desire, Bid Management for SEA and Programmatic Advertising automatically refer to the insights from attribution during the automation in order to optimize in line with your objectives (ROI, conversion optimization etc.) Furthermore, user-specific display placements, which encourage a buying decision in combination with certain content, can be investigated automatically, e.g. by using statistical twins.
- Or put another way: static attribution models are a reproduction of a known painting, dynamic attribution is an artwork created especially for you: Your dynamic attribution model updates itself continuously and the performance of the automation benefits from every new data source which you connect (e.g. CRM data or order cancellations). In doing so you react automatically and flexibly to changes in customer behavior and market conditions.
- It is clear that the channel evaluations in the various models diverge from each other markedly. In particular, the bathtub and last-click models attribute the same conversion contribution to the direct type-in channel in both customer journeys - for the simple reason that it occupies the same position in both. In addition, both models significantly overestimate the contribution of this touchpoint. Dynamic attribution, however, recognizes cross-channel effects and therefore assigns the direct type-in channel different (and lower) values in both click chains. For it is the interaction between touchpoints, and not just the position in the chain, which really counts.
Clearly, dynamic attribution allows you to accurately deduce which channels and campaigns should be given more budget in the future and which other areas of marketing the money can be deducted from.
By Daniela La Marca