Multi-Touch Attribution enables advertisers to holistically understand their customers' behavior and optimize campaigns and advertising budgets across channels. But while this approach brings enormous benefits, it still remains a mystery to many marketers.
In August 2018, Kantar conducted a survey in which marketing experts were asked about attribution. Out of 468 respondents, 54% stated that multi-touch attribution was one of the biggest gaps in their marketing. No other field was described to be untapped as much as multi-touch attribution.
Advertisers struggle with attributing their customers' conversions to the different contact points with a brand and give credit where it’s actually due. As a result, marketing activities are underestimated, others are attributed too much credit and budgets will therefore be misspent. The need for better measurement and allocation to meet the ever-growing needs of consumers is therefore huge.
INTERNAL SILOS COMPLICATE THE PROCESS
To meet the needs of their customers, advertisers need a holistic approach. But the biggest challenge on the way to a holistic solution is not the technology, but the change in internal structures. Many marketing companies have different departments for different marketing channels. These work in isolation from one another and use measurement solutions that are particularly designed for the specific channel. In addition, these solutions are usually short-term and are often based on outdated numbers, such as ROI of the last quarter.
What is missing is an incremental view of the customer journey, in which each individual touchpoint is examined for its effect. To break this silo mentality, advertisers need to look beyond their own channel and find out how the channels are interdependent.
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COMBINING OFFLINE AND ONLINE DATA
When shopping, consumers naturally switch back and forth between online and offline environments. For marketers, this change often leaves large gaps when it comes to understanding the behavior of their customers. But how can the impact of offline activities on online revenue be measured?
The simple solution is to let the customer link online data with offline data. For example, by using loyalty cards, activities can be assigned to the same user across multiple channels.
The information collected can then be aggregated and used to interpret actions. This way, marketers can understand how activities influence each other and close the gap between both worlds.
Read more about this: This is how advertisers bridge the gap between online and offline data
CLOSING GAPS WITH CROSS-DEVICE TRACKING
In addition to switching between the online and offline worlds, assigning consumers across devices and channels is probably the biggest challenge for marketers.
While it is normal for consumers to switch between smartphones, tablets and PCs, advertisers ask themselves how to track their customers' journeys. Some large companies are trying to fill the gaps by using first party data, i.e. log-in data on multiple devices.
This way, a precise pattern of the users’ behavior is created, which helps to show their personal interests and preferences. Advertisers learn to understand their customers and find out how to best reach them. Targeted content can create stimulating experiences that help customers make decisions and build lasting brand loyalty.
You might also like to know: 4 key facts about Cross Device Tracking
Individual content is the future of marketing. Both, online-offline attribution and cross-device attribution, must be personalized to provide customers with a unique brand experience. For this reason, advertisers must fill the gaps that consumers leave behind.
Marketing attribution can help to link key data, so consumer behavior and the effectiveness of marketing efforts become visible. The insights obtained help to design holistic campaigns and win long-term customer relationships.