Why Marketing Attribution Is Important

Every marketer should know which channels performs best to advertise in consumer conversions. But there are so many online portals that it is becoming more and more difficult to measure the customer journey. Marketers should find the best approach to marketing attribution to track and measure the customer journey to better understand the route to conversion. How can they ensure the success of their campaigns? How can they define which my customer‘s actions lead to conversions and which channels bring these conversions? These questions every marketer has surely already asked.  So we try to make it clear.

First of all it‘s important to measure the role of the channels (TV, website, e-mail, display, SEM, social media) and user behavior on these channels and on different devices (smartphone, notebook, tablet). After you should concentrate on every single channel and compare the performance of each of them. Here it’s necessary to know which channels had a huge impact on conversions and brought many leads. Marketing researcher and consultant Karen Nelson-Field researched in her study  advertising impact of different media channels ans platforms such as TV, Facebook and Youtube and found out TV has he most powerful advertising effects. The reason for it is the highest coverage on watching screen and second TV is an ideal medium for „lean-back-modus“ of people. While they are watching TV their behavior is passive and the concentration is on the screen in front of them. In contrast to TV the behavior on social media is active: users chat with friends, search some informations and would like to know what their friend have published recently.

The most effective attribution model utilizes intelligent algorithms, is data-driven, and focuses on all touchpoints of the customer journey. It allows marketers to get information about the success of every advertising channel and meanwhile manage the budget allocation on different channels. A website has a pixel that measure all the conversions user have on website. Besides it’s possible to see which channel had the most impact on conversions. If marketers identify the best channel they can react and increase their spend there. So they can permanently optimize their campaign and take necassary measures at the right time. Besides data driven attribution has an advantage that marketers have an opportunity to get some target group insights such as demographic data and hobbies. So they can predict their user behaviour for better measurement of customer journey and optimization of advertising.

No matter on which channels you want to advertise it’s essential to include all channels while measuring the customer journey. So you can ensure you know everything about your customer’s behaviour and won’t miss the opportunity to include channels in the future your customers prefer the most. And the more data about your customers you have the more customers you can attract in the future. By the way Andrew McAfee and Erik Brynjolfsson with Harvard Business Review and MIT found in their study “Companies in the top third of their industry in the use of data-driven decision making were, on average, 5% more productive and 6% more profitable than their competitors.” So it’s probably not a bad idea to use this approach in the praxis, isn’t it?