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Adobe Digital Marketing Suite Solution Brief Budget allocation in the world of multichannel marketing How to optimize ROI The attribution challenge Should marketers allocate more budget toward social and mobile channels, or less? Are mobile store locators or email marketing campaigns ultimately propelling customers toward conversions on the e-commerce website or in stores? All marketers, regardless of industry, are asking themselves these questions, and often coming up short. Today, marketers are striving to move beyond the ’last click‘ attribution model that potentially short changes a variety of channel interactions in stores, social, email marketing, and other avenues, and gives faulty conversion credit to the very last click on an e-commerce website. Few marketers know how to advance beyond click-based attribution and therefore are not finding actionable answers that help them advance their multichannel marketing efforts. Marketing Attribution is a model for evaluating the performance of all channels (convertors and nonconvertors) Marketers need accurate channel valuation to focus spend on channels that perform best throughout the entire path to conversion The need for accountability despite increasing complexity With higher expectations for digital marketing returns, marketing leaders are struggling to capture and communicate campaign ROI. Although every business function must explicitly demonstrate worth and accountability, the proliferation of online and offline channels has left marketers wondering where to allocate budgets to optimize returns. At issue: the lack of visibility into the mix of events leading up to conversion. Marketers today need—and demand—better solutions for marketing attribution. In the November 2011 Forrester Research report What Does the Web Analytics Industry Want to Be When It Grows Up? a full 46% of respondents answered ‘Marketing Attribution’ to the question: ‘Which topics represent the three greatest challenges that you seek to resolve with your web analytics solution?’ This finding is backed up by Adobe research. In early 2012, CMO.com readers, who include marketing executives and managers in businesses across industries worldwide, were surveyed about measuring and tracking the ROI on their digital marketing campaigns. The results were telling, and highlighted what marketers feel is their inability to measure the overall efficiency and effectiveness of their digital marketing efforts. Through the CMO.com survey, Adobe discovered that fewer than 20% of marketing respondents have full confidence in what should be fundamental abilities, including measuring overall campaign effectiveness, how to allocate budget with ROI in mind, and communicating performance up to C-Level executives. In large part, it appears the lack of confidence results from a perception that there is simply too much data and too many channels, making it difficult to capture, measure, and attribute conversions appropriately. At the same time, it is clear the need to communicate the value of digital marketing campaigns is greater than ever. Survey responses from CMO.com readers showed that more than 70% of them communicate with executives about performance metrics associated with their marketing and advertising campaigns at least once a month. Managers typically rely on dashboards to address executive demand for frequent reporting. In summing up the experience of many marketing managers today, one marketing director at a large technology company explained in his survey response that he meets weekly with the company’s sales director to evaluate how his marketing initiatives impact leads and discuss where those leads are in the sales cycle. Still, many marketers are looking for more granular methods of analyzing what is occurring in the marketing and sales funnel. Credit where credit is due Today, more advanced online and offline attribution solutions are available that can help marketers accurately credit the contribution of various marketing and communications channels to conversions and sales, regardless of the customer’s journey toward a purchase or other conversion event. These solutions are helping marketers allocate online and offline budgets wisely to maximize ROI. Attribution seeks to provide answers to which marketing efforts had what share of influence on the conversion. Adobe® Insight, a cornerstone of Adobe Digital Marketing Suite, can integrate event-level log data from practically any data source. Because of this, Adobe Insight is frequently used to combine not only web clickstream data (from Adobe SiteCatalyst® or other commercial or proprietary web analytics technologies), but also event-level data from store sales (POS) systems and data from marketing vendors like ad servers or email marketing service providers. Conversions do not have to be e-commerce cart checkouts. Attribution can be made to multiple conversion points, both online and offline: retail store counter purchases, hotel check-ins, airport kiosk events, rental car check-outs, B2B lead form submissions, and webinar attendance. If it is an event, then attribution can be configured and included in the mix for analysis. This is important because conversion for most types of businesses—retail and otherwise—occurs in both online and offline channels. Multidimensional analysis for more precise attribution With Adobe Insight, it is possible to correlate precise events within a single view of each customer and understand how each display ad view, email send, and direct mail piece—in short, every addressable marketing touch point—influences conversions. Individual events can be associated and grouped by customer, then organized by experience, such as web visits, store purchases, call center sessions, and more. All events are ordered by time, presenting fast, multi-dimensional analysis on any level of the data. Armed with this information, marketers can begin to build more advanced attribution models and tailor them specifically to the needs of the business, whether the company is in travel, retail, financial services, or other areas. Many marketers start by experimenting with a few pre-configured models and then tailor them based on the specific business requirements. Examples include: • First and Last Touch—The first marketing touch receives the full credit for the conversion in one model; the last marketing touch garners the full credit in the other model. • Even (Linear)—Every marketing touch within a defined period of time receives an equal share of credit for the conversion. • Starter/Player/Closer—The Starter (initiating) touch receives a set percent of credit for the conversion, the Closer (last) touch receives a set percent of credit for the conversion, and the remaining Player touches each receive an equal share of the remaining credit for the conversion. Adobe Digital Marketing Suite Solution Brief 2 • Latency Score—Every marketing touch is scored with a numeric value reflecting how many days it fell prior to the next conversion. • Pathing—Advanced visualizations in Adobe Insight help the marketer understand both the direct and indirect paths among customers’ experiences with various touch points. • Stacking—Pinpoints how many interactions and channels precede a purchase. These examples clearly show how marketers can easily go from ‘click only’ attribution to impression-level ‘touches’ such as email sends, email opens, lead submission forms, social channel interactions, and more. The results include rich intelligence into how customers are interacting with a brand, both online and offline, and a better understanding of where to spend marketing dollars to maximize effectiveness and ROI. Attribution modeling: a process versus an event One major retailer is using Adobe Insight to test several attribution models. The company is measuring in-store sales and tracking interactions down to the individual user through its loyalty program. After testing several attribution models, the retailer can gauge success and better allocate budgets using a combination of Last Click, Linear, and Stacking attribution models. The company has learned how to successfully create and follow an analytics roadmap. Marketers at the company have found that defining the questions to ask cannot be accomplished in a day or a week. Instead, it is an ongoing process that requires input from experts and analysts and a keen understanding of the data inputs. The company’s advice? Start analyzing data as soon as possible. Continuously validate the data and reference back to the analytics roadmap and selected attribution models for constant refinements. Recommendations Whether the aim is to attract new customers, retain customers, maximize mobile conversions, increase social engagement, boost average order value, or all of the above, marketers today can no longer rely on guesstimates. According to Adobe’s recent survey on CMO.com, the complexity of channels and the huge volume of data created and captured are the primary culprits hindering data acquisition and reporting. Using new multichannel attribution and analysis tools, marketers can gain invaluable insights based on hard data that can assist them in more intelligently allocating funds toward both online and offline channels, and communicating the resulting strategies and results across their organizations. Here are some simple steps you can follow to improve your attribution analyses and achieve better returns on your marketing investments. For more information www.adobe.com/products/ insight.html 1. Start collecting data and have a realistic, phased strategy 2. Start measuring and explore for insights without knowing the answer 3. Be prepared to make mistakes, but learn from them—keep iterating 4. Continue to evolve by adding new channels and models Adobe Systems Incorporated 345 Park Avenue San Jose, CA 95110-2704 USA www.adobe.com Adobe, the Adobe logo, and SiteCatalyst are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners. © 2012 Adobe Systems Incorporated. All rights reserved. Printed in the USA. 91077010 10/12 3