With more consumer paths to purchase than ever before, marketers are increasingly turning to ‘attribution models’ to find out what channels work best- but many are still falling short.
New research indicates that marketers are unable to optimise their cross-channel spend at the speed they require to keep up with consumers.
The study conducted by Forrester Consulting on behalf of Visual IQ, found that while 75% of respondents use algorithmic attribution, just one third are able to quickly action the insights gained on a daily basis.
Given the massive amounts being spent in the digital space and the expectations that marketers deliver bigger, better results than they did the day before, understanding what, specifically, moves the needle is key. And it’s those attribution models that help us paint the picture: where meaningful touches are taking place, how users are being exposed to your message across all channels and, overall, the optimal budget allocations that should take place within those channels.
Visual IQ, the leading cross channel marketing attribution software provider, today announced the publication of “Bring Algorithmic Attribution Up to Speed: Accelerate Your Attribution Insights for More Effective Digital Channel Optimization,” an August 2016 commissioned study conducted by Forrester Consulting on behalf of Visual IQ, that explores the state of the marketing attribution marketplace.
The study concludes that today’s marketers are utilising algorithmic attribution to accurately track the increasingly complicated customer journey and optimise cross channel spend, yet currently cannot do so at the speed they would like.
A multi-dimensional algorithmic modelling approach to attribution provides granular cross channel insights and data-driven optimisation recommendations, leading to better performance and higher return on marketing spend. Based on in-depth surveys with more than 50 U.S. and U.K. marketing professionals responsible for digital channel optimisation at their organisation and utilising algorithmic attribution models, the study finds that algorithmic attribution is essential for marketers to optimise media investments.
Three-quarters (75%) of respondents note that they use algorithmic attribution informed insights to develop a more precise reach strategy, and 71% use those insights to target the right audiences more effectively. Furthermore, 67% of marketers use these insights to adjust media spend across channels, while 63% use them to adjust tactics within individual channels.
While the benefits of attribution are vast, marketers must be agile and able to react quickly to changes in market conditions and keep pace with competitors’ ever-changing strategies. The study reveals that being able to quickly optimise marketing channels on a daily basis is important or very important for many marketers (58%), yet only one-third say they can do so today.
When probed about the barriers to faster optimisation, marketers indicate that inflexible marketing and media budgets (41%), data consolidation challenges (37%), and partner and/or agency contracts that limit budget changes across channels and campaigns (29%) are key inhibitors. Additionally, 29% of marketers that use algorithmic attribution don’t receive fresh data fast enough to optimise on the most current results.
Other key findings of the study include:
• Algorithmic attribution has quantifiable benefits. Three-quarters of marketers experience improvements in customer targeting and brand engagement from utilising algorithmic attribution, with 80% reporting that they reach the right customers and 74% saying they serve more effective creative to customers at the right time.
• Speedy algorithmic attribution is critical to achieving top marketing goals. The top goals defined by marketing organisations are improving profitability (43%), targeting more effectively (43%) and increasing brand engagement (39%). Yet marketers that cling to traditional media buying and measurement practices, or use attribution technologies that are unable to update models and insights on a daily basis risk falling behind the competition.
• Daily optimisation is critical during key time periods. The rebuilding of attribution models on a daily basis – based on the most recent marketing performance data available and enabling real-time optimisation informed by this data – is vital during critical time periods, including when competition is live in the market (55%), during the start of a campaign (53%) and during key sale seasons (51%).
“Marketers are challenged to make the most of media budgets, and legacy measurement solutions that don’t accurately allocate credit between touchpoints and channels or identify the right audiences to target are no longer an option,” said Manu Mathew, co-founder and CEO of Visual IQ. “The results of this study confirm the major role that algorithmic attribution plays in helping marketers make the right media investment decisions, yet there is clearly an appetite for near real-time updates and daily optimisation. Getting there means choosing technologies that support a daily optimisation cadence.”