What is marketing attribution and why do you and your team need it? Watch this video taken from Rakuten Marketing's Dot Native Masterclass on marketing attribution to find out.
Jeremy Coster, Business Development Manager at Rakuten Marketing, explains in this video why marketing attribution can be vital in driving return on investment (ROI) in modern marketing.
This video is part of a larger masterclass on marketing attribution, one of the many masterclasses hosted through the ADBL's on-demand learning platform, Dot Native. Claim your free seven day trial of Dot Native to access the entire master class (no credit or debit cards necessary).
Why bother with marketing attribution?
"What is the point of attribution? Why do we bother going to all of this trouble?
"Around the turn of the 20th century US department store owner John Wanamaker was famously quoted as saying: 'Half the money I spend on advertising is wasted. The trouble is I don't know which half.'
"A hundred years on, despite the initial promises made by digital marketing channels to be totally transparent, the same problem still exists.
"Marketers need attribution solutions to help them address this problem and give them clarity and confidence in the measurement and management of their campaigns. The prize for the business is the elimination of wasted spend, wasted time and ultimately a growth in revenue.
"With accurate performance measurement in place, an attribution solution can identify areas of inefficient and wasted spend, and budget can be reallocated elsewhere. This could be key words which lead to visits but no sales or display campaigns which cost too much in relation to their contribution to revenue.
Marketing automation and ROI
"It could be that some affiliate publishers get a commission that is too high, given their actual contribution to incremental revenue. Or that small changes in paid media bids will make significant improvements to overall ROI.
"It's rarely one simple sweeping change that delivers cost savings, more commonly it's the combination of many small changes which add up to make a big difference. Once the candidates for areas to reduce spend become apparent, the next logical question is: where should that money be reallocated to instead?
"Attribution, by its nature answers this by shining a light on what is working well.
"This could be measured in terms of attracting new customers, re-engaging existing customers and driving key conversions.
"For most advertisers it all comes down to one key factor: what drives more sales, and what will increase revenue and ultimately profit?
"Removing the reliance on gut-feel and replacing it with reliable data puts a marketer in a position where those budget allocation decisions can be taken with confidence and results proven. That in turn tends to go down very well in meetings with the finance department.
"Attributed performance figures can be fed into bid optimisation and buying platforms for pay-per-click and display, and also used to restructure affiliate commission schemes to automate the process of reallocating budget within channels.
"This automation creates a feedback loop, where attributed performance data drives the price that advertisers pay for their performance marketing and the ongoing measurement of its performance creates a cycle of constant improvement in terms of budget optimisation."
This video is part of a larger master class on marketing attribution, hosted through the ADBL's on-demand learning platform, Dot Native. Claim your free seven day trial of Dot Native to access the entire master class (no credit or debit cards necessary).