ATTRIBUTION ANDOPTIMISATION

Jonathan Beeston, Global Marketing Director

GLOBAL PRESENCE

The biggest global performance marketers choose theEfficient Frontier platform•$1 Billion in annual online marketing spend under management

•Working with 250 leading global marketers

•Over 150 million active keywords

•5 Million bids set, 100+ million models processed daily

•50+ Full-time engineers, 40 Master’s Degrees, 7 PhD’s

•1 Patent granted, 6 patents pending

@efrontierblog.efrontier.com

REPRESENTATIVE OF GLOBAL CLIENTS

TRAVEL RETAIL & AUTOS MEDIA AGENCY & OTHERFINANCE

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“All models are wrong.Some are useful.”

George Box

• On average there are 4-6 touchpoints across before conversion

Date Type Channel Ad/Keyword6/25/2010 16:52 Click Yahoo Search “london hotels”6/25/2010 16:56 Lead - -6/27/2010 13:42 Impression Doubleclick AdX Creative_disp_1.gif6/27/2010 13:42 Impression Doubleclick AdX Creative_disp_1.gif6/27/2010 13:47 Impression Rightmedia Creative_disp_1.gif6/27/2010 13:56 Impression Rightmedia Creative_disp_1.gif7/1/2010 13:42 Click Facebook Creative_FB_1.gif7/1/2010 15:30 Impression Doubleclick AdX Creative_disp_1.gif7/2/2010 11:42 Impression Rightmedia Creative_disp_1.gif7/2/2010 14:05 Click Google Adwords “hotel in london”7/2/2010 15:05 Conversion

WHAT ARE USERS DOING ONLINE?

THE PROBLEM WITH LAST CLICK

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£1,000

£2,000

CROSS-CHANNEL OPTIMISATION

VALUE DISTRIBUTION ACROSS TOUCHPOINTS

Facebook ConversionDirectWebsite

DisplayView

PaidSearch

PaidSearch

0.2 0.2 0.2 0.2 0.2 1

EF EVENT ATTRIBUTION MODELS

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Last

First

Equal

LastMore

FirstMore

Custom

MULTI CHANNEL ATTRIBUTION: INSIGHTS

• Changing attribution changes your budget allocation• Understand the impact before you make the change• Doesn’t really explain interaction effects between

channels• What about time between interactions?

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Channel Equal credit Last Click Bayesian Model

SEM 35% 25% 38%

SEO 25% 50% 22%

Facebook 10% 5% 12%

Display 30% 20% 28%

WHAT IS CROSS CHANNEL OPTIMISATION?

PROBLEM• Determine the right way of spending across all media

channels, accounting for interaction effects acrosschannels to maximise my ROI.

SOLUTION• Dynamically model all cross-channel interaction

effects and apply optimisation algorithms to determinethe correct media mix.

Budget: €€€€€€Multiple Goals:(1) Max Revenue(2) >10,000 Leads

Cross ChannelModeling

Facebook

BiddableDisplay

SEM

TV

€

€

€€

€€€€

BudgetBids

CROSS CHANNEL OPTIMISATION: THE VISION

Dynamically model

CROSS CHANNEL OPTIMISATION: ONLINE

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Total Marketing Budget: $12,000

SEARCH + OFFLINE

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Collect SEM and TV data

Determine Revenueattribution for the multi-point multi-channel funnel

Build TVModels

Build SEMmodels

Cross Channel Optimizationusing portfolio theory

Cross-channel Efficient Frontier Objective:Given an overall budget, find the best way to bidacross search and TV to get the maximum returnfor the advertising dollar.

SEARCH + TV

CROSS CHANNEL OPTIMISATION

• Our models showthat the optimalbudget allocation ofTV and SEM spendin July would haveresulted in 5% lift.

PRESS + SEARCH

• Typically 6-7 weeks of improved search performance16

IN SUMMARY

• First pre-requisite: Unified Tracking Platform

• Attribution is a partial solution

• Attribution + Algorithmic Optimisation is the solution foranswering the media mix question

• This is a young field! There’s a long way to go!

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THANK YOU

Blog: blog.efrontier.comTwitter: @efrontier; @searchbeest

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