It may sound slightly dry, but actually it's fascinating, honestly
Essentially attribution is merely the discipline of finding out which bits of your media investment generated what sales. You can then use that insight to drop the bits that don’t work and do more of the bits that do.
Common sense really
Image from Google showing digital attribution
What I found shocking was how few clients do this when it's so effective.
Only 54% of clients do any form of attribution, and only 35% track the online sales caused by offline media, despite the fact that 54% of them say this has very large impacts on their profits (this from research Econsultancy did in November 2012)
The biggest opportunity for clients to improve profitability in this area is probably in linking online sales to offline media investments
We offered three pieces of advice
1. The vast majority of online sales journeys start offline: typically between 80% and 95%
2. Typically our clients see some 30% of their total sales from media investments now coming online
3. If they use offline to online attribution they can improve the profitability of these sales by between 20% and 30%
Its not easy to do, but tools now exist that can help
Clients have a choice of Econometric modelling, or media event matching software.
Our recommendation is to start with matching. It gives clients the everyday micro insight as to which bits of their media schedules worked. C4 or Sky. The Sun or The Sunday Times. And investments can be optimised on that basis
Larger campaigns (typically £3million+) will benefit from Econometrics, which can answer questions like: exactly how much impact did my TV campaign have on my search, my door drops, my press, and my retail sales. And how much can I spend before I see diminishing returns.
We use both tools as appropriate. Our view: if you can measure it, how can you manage it?
Written by Mike Colling, MD
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