Which conversions can be allocated to which marketing measures, channels or publishers? This is what marketing attribution deals with. But even this analyzing method doesn't work without the right indicators.
WHY DO WE NEED KPIs IN MARKETING ATTRIBUTION?
The allocation of marketing budgets frequently poses a challenge to many companies. It’s essential to know which advertising measures are profitable and which ones aren't. To determine this, companies need to measure the success or effectiveness of each marketing activity. The main question to ask here is how does a company define success and determine the type of indicators used for the evaluation.
KPIs not only provide transparency and ideally signalize very early on positive or negative developments, they also allow for a short and concise presentation of complex matters. Those who properly evaluate existing KPIs, can optimize their marketing and allocate budgets more precisely.
MAIN KPIs IN MARKETING ATTRIBUTION
- Cost-per-Order (CPO)
Der Cost-per-Order tells you how much costs need to be paid per generated conversion. The CPO doesn't exactly serve as a billing model for advertising on external websites in order to determine the business revenue, however, it is an indicator to show the effectiveness of marketing campaigns in relation to the invested budget.
- Attribution/Commission Change
Describes the ratio of conversions that are allocated to an advertising measure according to dynamic attribution, and those allocated to the same measure according to rule-based attribution. Different attribution models also lead to different results. If you measure activities with both models, you can quickly tell whether partners are over- or under-represented in a rule-based model. If a partner is allocated a lot of conversions in the rule-based model, but according to dynamic attribution they only earn a small percentage from those, there's room to balance this ratio. In the future, the budget can be allocated to those partners who gain revenue in dynamic attribution.
A conversion describes the transformation of a website visitor into a customer or registered user. A conversion always depends on the previously set goals, e.g. a newsletter registration, the purchase of a product or signing on to a community. In marketing attribution, this indicator is used to show how many conversions are allocated to a campaign, a publisher or an entire channel.
- Total Price per Click
How much revenue does a publisher generate on average for every click? This indicator helps to measure and compare the effectiveness of different publishers even if no media costs were imported into the analyzing tool.
This indicator tells advertisers how many touchpoints a publisher has generated in total, which is particularly interesting in terms of future decisions. If a publisher only has a very low reach, it is questionable whether advertising via this publisher still makes sense or if it is better to transfer the budget to a more competitive partner.
- Customer Journey (CJ) Contacts
CJ contacts and frequency correlate directly because this indicator shows how many of these touchpoints contribute to a successful customer journey, i.e. a user has registered, signed up or bought something. Especially when there's a great number of touchpoints, the question is, were they also valuable and led to a conversion?
- Intensity of use (IOU)
The IOU tells advertisers how many pages a user visited after the original touchpoint. It shows whether a user is actually interested in the product or whether the first touchpoint was a mere coincidence. This indicator is particularly insightful to establish the value of an advertising measure or a website. Will users find what the advertising measure promised? The longer visitors remain on the site after the first touchpoint, the more they are part of the relevant target group or might be new potential customers.
This indicator represents the number of website visits by potential or existing customers. It is mainly relevant in branding campaigns. The more customers or prospects are attracted, i.e. the higher the number of visits – the more successful the campaign.
The proportion of introducers is usually considered in combination with visits to evaluate a branding publisher. This key figure shows how often a particular publisher has initiated successful customer journeys. It serves as a good reference value when viewed over a longer period of time.
SELECTING METRICS DEPENDS ON INDIVIDUAL FACTORS
Although the described indicators are important, they are not necessarily mandatory for each advertiser, as every company has different goals and sets of data. The individual indicators are also weighed differently in marketing attribution because they depend on how the company operates, the target group and which channels are being played.
When selecting the indicators to be measured, the main question is what exactly needs to be optimized based on which metrics. We suggest to view campaign data from three perspectives:
- Result: How many clicks, conversions, etc. were generated?
- Revenue: How high was the company's profit?
- Costs: What were the costs?
Bringing these three points together and taking a look at the key indicators, can provide valuable insights for marketing attribution. The more detailed you want to dive into the analysis, the more indicators can be added at a later point.