Advanced Attribution Metrics: A Three-Step Guide to Data-Driven Digital Marketing Optimization

Advanced Attribution Metrics: A Three-Step Guide to Data-Driven Digital Marketing Optimization

In digital marketing, data is king. And with multi-touch Attribution (MTA), marketers have a powerful tool at their disposal to make informed decisions and optimize their campaigns. In this three-step guide, we will explore the nuances of advanced Attribution metrics and how they can revolutionize your approach to digital marketing.


Step 1: Implementing Advanced Attribution Metrics

Creating a comprehensive dashboard is the first step in harnessing the potential of advanced attribution metrics. Your dashboard should be capable of consolidating data from various platforms, including Facebook, Google Ads, and any other platforms heavily represented in your marketing mix.  This dashboard will provide you with insights into your ad spend, total orders, and total revenue, allowing you a clear overview of your marketing performance.


To take full advantage of advanced attribution metrics, you'll need to introduce some additional metrics to your dashboard. These new metrics will mirror the ones you're using for last-touch attribution, including advanced attributed orders, advanced attributed revenue, and advanced attributed ROAS (Return on Ad Spend) or CPA (Cost Per Acquisition). These metrics will paint a more complete picture of your campaign's effectiveness.

As an example, consider a hypothetical Facebook prospecting campaign. In this scenario, you've achieved a self-reported ROAS of 6.2. However, this metric is based on Facebook's view of your campaign's performance, limited to its own ecosystem. It doesn't account for cross-channel interactions or customer behavior beyond Facebook. This is where advanced attribution comes into play.

To calculate advanced attribution ROAS, you'll apply a multiplier. If your self-reported ROAS from Facebook is 6.2 and your multiplier is 72%, you'll get a new ROAS of 4.5. This revised metric offers a more accurate reflection of your campaign's actual performance across various touchpoints.

Step 2: Comparing and Decision-Making with Advanced Attribution Metrics

The next step is to compare your newly calculated advanced attribution metrics to your predefined goals. Setting these goals can be a complex process and may vary from brand to brand. However, an ROAS of $1.50 is generally considered the break-even point in many industries, while ROAS values between $2 and $3 are typically profitable.

In our example, the brand had initially set a goal ROAS of 3.5 based on last-touch metrics. However, advanced attribution metrics led them to adjust their goals, providing a more accurate and ambitious target. This flexibility in goal-setting opens doors for more accurate budget allocation, ensuring that the brand invests where it truly matters.

By comparing advanced attribution ROAS to the updated goal ROAS, marketers can make more informed decisions. If the results align with or surpass the goal, there may be an opportunity to scale up the campaign. If the results fall short, optimization or budget reallocation may be in order. For non-brand search campaigns, the introduction of advanced attribution can have a profound impact. While last-touch metrics might suggest budget reduction, advanced attribution might reveal untapped potential, encouraging brands to maintain or even expand their efforts.

Step 3: Dive into the Nitty-Gritty of Optimization

Once you've set the stage with your advanced attribution metrics and made data-informed decisions, it's time for the nitty-gritty of optimization. Micro and macro optimization both will come into play.

Micro Optimization:

Even if your campaign is performing close to your goal, there's always room for improvement. Micro optimization involves fine-tuning your tactics at a granular level to achieve even better results. Don't settle for meeting your goals; strive to surpass them and continue optimizing.

Macro Optimization:

The larger scale of macro optimization entails reallocating budgets between platforms and channels. Measurement solution providers and agencies can offer guidance here. They might suggest moving a certain amount from one channel to another or making strategic changes based on your advanced attribution metrics.

Embracing advanced attribution metrics revolutionizes the way you approach digital marketing. It offers a more comprehensive view of your campaign's performance, allows for dynamic goal-setting, and enables you to make data-informed decisions. By diving deeper into optimization, you can unlock the full potential of your digital marketing efforts and stay ahead in the competitive landscape.

 

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