1© 2014 Kenshoo, Inc. Confidential and Proprietary Information
From Insight to Action:
October 14, 2014
Executing Successful Cross-Channel Attribution and Optimization
#Insight2Action
2© 2014 Kenshoo, Inc. Confidential and Proprietary Information
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3© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Today’s Speakers
Tina Moffett
Analyst
Forrester
Doug Chavez
Global Head of Marketing Research & Content
Kenshoo
#Insight2Action
4© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Agenda
• The Age of the Consumer
• Survey Findings
• Recommendations
• Power of Advanced Attribution Models
• Predictive Marketing Applications Beyond
Attribution
• Key Takeaways
• Q&A
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 5
Agenda
› Empowered customers disrupt traditional measurement
› Cross-channel attribution is still in its infancy
› Organizations struggle to take action
› Marketers reap the attribution benefits
› Recommendations
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 6
Agenda
› Empowered customers disrupt traditional measurement
› Cross-channel attribution is still in its infancy
› Organizations struggle to take action
› Marketers reap the attribution benefits
› Recommendations
#Insight2Action
A 20-year business cycle in which the
most successful enterprises will
reinvent themselves to systematically
understand and serve increasingly
powerful customers
Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report
The age of the customer
A 20-year business cycle in which the most successful enterprises will
reinvent themselves to systematically understand and serve increasingly
powerful customers
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 8
In the age of the customer, individuals are always-addressable…
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© 2014 Forrester Research, Inc. Reproduction Prohibited 9
And they create data at every interaction point
Source: July 22, 2013, “Mix Art And Science For Marketing Success” Forrester report
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© 2014 Forrester Research, Inc. Reproduction Prohibited 10
But they do not trust traditional, campaign-based
marketing.
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 11
Marketing as we know it is experiencing a shift.
Source: April 2014 “The Power Of Customer Context” Forrester report
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© 2014 Forrester Research, Inc. Reproduction Prohibited 13
Agenda
› Empowered customers disrupt traditional measurement
› Cross-channel attribution is still in its infancy
› Organizations struggle to take action
› Marketers reap the attribution benefits
› Recommendations
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 14
What do we mean by cross-channel attribution?
Source: “Cross-Channel Attribution Presents a Clear Path to Marketing ROI” September 20, 2012
The practice of allocating proportional credit to all
marketing communications, across all channels,
that ultimately lead to the desired customer
action.
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© 2014 Forrester Research, Inc. Reproduction Prohibited 15
Organizations leverage many channels to reach and grow customers
Digital channels dominate those measured
taking 8 of the top 10 spots
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo,
April, 2014
“What channels are you currently using to
drive marketing and media objectives?
Which channels are included in
attribution measurement?”
Email marketing
Online display advertising
Referral marketing
Paid search advertising
Mass media
Mobile display advertising
Search engine optimization
Affiliate marketing
Paid social advertising
Behavioral targeting advertising
Magazines or newspapers
Online video
Owned social media
Retargeting
Mobile search
Mobile apps
Direct mail or catalogs
Other events
Currently using to drive marketing and media objectives
Included in attribution measurement
87%
82%
81%
78%
76%
76%
75%
75%
73%
72%
72%
71%
71%
70%
68%
67%
65%
65%
50%
53%
50%
55%
43%
41%
46%
43%
48%
43%
45%
45%
44%
40%
40%
44%
38%
37%
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 16
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
But marketers still use basic attribution approaches to measure impact
77% of marketers
moved beyond single
touch attribution
“What specific approach do you use to calculate
cross-channel attribution?”
First or last touchpointreceives all attributed
credit
Predefined rule-based attribution
Self-defined business rules
Advanced or algorithmicattribution
23%
35%
31%
11%
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© 2014 Forrester Research, Inc. Reproduction Prohibited 17
Few marketers measure cross-channel halo effects
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
24% of marketers
measure many channels
and campaigns
simultaneously
“How are you measuring channel and campaign
efficiency and effectiveness?”
41%
36%
24%
We measure each channeland campaign separately
We measure limited cross-channel and campaign effects
We simultaneously measuremany channels and campaigns
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© 2014 Forrester Research, Inc. Reproduction Prohibited 18
Marketers seek measurement help from their partners
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
Only 15% of
marketers use
attribution
specialists
“Which vendor or partner do you currently use for
your attribution measurement efforts?”
My data management provider 17%
My marketing service provider 16%
My web analytics provider 15%
My attribution specialist 14%
My media buying platform 14%
My digital/direct response agency 10%
My tag management provider 8%
My bid management platform 5%
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 19
Agenda
› Empowered customers disrupt traditional measurement
› Cross-channel attribution is still in its infancy
› Organizations struggle to take action
› Marketers reap the attribution benefits
› Recommendations
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 20
Marketers face many hurdles preventing actionable attribution insights
What are the TWO largest obstacles preventing you from taking greater action from your attribution
tool?
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 21
Agencies labor to alter media plans based on attribution
What are the TWO largest obstacles preventing you from taking greater action from your attribution
tool?
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 22
Agenda
› Empowered customers disrupt traditional measurement
› Cross-channel attribution is still in its infancy
› Organizations struggle to take action
› Marketers reap the attribution benefits
› Recommendations
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 23
Marketers want attribution to answer difficult questions
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
“When evaluating attribution output and results, how important do you find each of the following?”
44%
47%
42%
47%
41%
46%
42%
48%
55%
47%
51%
19%
20%
25%
21%
28%
24%
28%
25%
20%
29%
33%
Evaluating the time, cadence, and frequency of ads acrossthe purchase path
Inputting attribution results directly into real-time mediabidding engines to optimize spend
Analyzing the true impact of exposed vs. unexposedmarketing and media
Determining the value of your affiliate programs
Measuring the influence of one channel on another, such asdigital to offline conversions or display ads on paid search
Calculating % attributed credit by channel, campaign,program, and tactic level
Generating new customer insights based on path length, timebetween touch points, order of channels, etc.
Analyzing which search terms and/or publisher sites are themost impactful
Evaluating different creative, offers, or content versions
Measuring incremental sales generated by channel, purchasepaths, and/or touch points
Changing media buys based on prior attribution results andanalyze the impact
Very important Critically important
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 24
Experience and greater channel measurement drives satisfaction
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
Marketers are Very
Satisfied with their current
measurement efforts and ability
to take action
“How satisfied are you with your . . .”
Completely satisfiedVery satisfied
46% 17%
49% 18%
Current measurement and insightsefforts for your marketing and
media channels?
Ability to take action on yourcurrent attribution results
and insights?
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 25
Speed to action improves satisfaction
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
42% of marketers have the
processes and technologies to
act on their attributed results
several times a day.
“Once you have received your attributed values,
how quickly can you adjust media buys
based on the attribution results?”
In real time throughan automated process
(in less than 35 milliseconds)7%
A few hours, and results canchange several times a day
35%
About one day 19%
More than one day,but less than a week
11%
About a week or longer 28%
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 26
Integration of attributed results into media buying platforms is desirable
Integrating advanced attribution into bid management platforms allows marketers to optimize their
digital spend without needing to make manual adjustments or monitor performance. If your
attribution tool was connected into your bid management platform, how likely would you be to use
it for at least portions of your media spend?
Base: 106 marketers, advertisers, and customer insight professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April, 2014
68% are very or completely likely
to use technologies that can
rapidly adjust digitally media
spends
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 27
Agenda
› Empowered customers disrupt traditional measurement
› Cross-channel attribution is still in its infancy
› Organizations struggle to take action
› Marketers reap the attribution benefits
› Recommendations
#Insight2Action
© 2014 Forrester Research, Inc. Reproduction Prohibited 28
Source: A commissioned conducted by Forrester Consulting on behalf of Kenshoo, October 2014
› Build an attribution business case and get executive
sponsorship.
› Dig into your partners attribution approach.
› Connect attribution insights into media execution engines.
› Test and experiment new marketing and media strategies
to continually improve results.
Recommendations
#Insight2Action
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Attribution helps us determinewhere to allocate spendand how much to pay.
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Static attribution rules treat all opportunities the same.
Last Click Divide Evenly Time Decay U-Shaped
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Conversion
Online1 LAST CLICK
Conversion
in Store3 TIME
DECAY
100%
40%35%20%5%
Conversion
by Phone2 DIVIDE EVENLY
25%25%25%25%
#Insight2Action
33© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Last click is a very outdated model. You need to understand the customer’s full journey to increase conversion across the full funnel and give proper credit to each channel.”
— Online media director for an international educational software company
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April 2014
“
#Insight2Action
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Give credit where credit is due
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SOCIAL
SEARCH
RETARGETINGDISPLAY
EMAILPRODUCT
LISTING ADS
The world is dynamic. Not all customers or conversions are alike.
#Insight2Action
36© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Go from maze to model
Cheap DVD Players
Great Prices
electronics.com
Keyword 3Keyword 1
Top DVD Players
Great Prices
electronics.com
Best DVD Players
Great Prices
electronics.com
Keyword 2
Research/Awareness
40%Consideration
10% 12%Intent to Purchase/Convert
38%
Cheap DVD Players
Shop now atElectronics.com
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Savvy marketers get sharper and nimbler withattribution measurement
49% are adjusting long-term media plans
38% are changing media spend
34% are comparing campaign performance measures
23% are taking some action in real-time
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April 2014
#Insight2Action
38© 2014 Kenshoo, Inc. Confidential and Proprietary Information
68% of marketers said they would be very likely or completely likely to use technology to directly integrate attributed results into media buying platforms, if they were available.
Source: A commissioned study conducted by Forrester Consulting on behalf of Kenshoo, April 2014
#Insight2Action
39© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Planning and measurement tools embedded into the
bidding platform
Go beyond measurement to insights and action across your programs
Optimized
Bidding
Multi-Channel
Measurement
& Attribution
Scenario Planning,
Forecasting
& Budget
Management
#Insight2Action
40© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Take advantage of every opportunity
Predictive technology that understands and learns your unique business
Event Driven
Performance
Predictive Media
Forecasting
Automated Bid
Optimization
Leave nothing on the table.
#Insight2Action
41© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Inform your optimizations with data
TV Commercial Seasonal Sale Snail Mail Campaign
I have a big promotion coming up. How can I let the algorithm know that the conversion volume will increase?
How can I see if my promotions impacted performance?
#Insight2Action
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If I knew how investment alternatives would pay out,I could boost performance.
#Insight2Action
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Challenge
Identify obtainable spend
and return levels
Solution
Scenario Planning
• Understand overall market potential
• Build forward-looking analysis
• Choose investment scenario
#Insight2Action
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Even when I feel comfortablewith a forecast, we still have tofind a way to act on it.
#Insight2Action
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Turn analysis into action
Challenge
Solution
Budget Pacing
• Translate predictions to strategy
• Apply changes across portfolio
• Repeat daily cycle
#Insight2Action
46© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Forecasting of an Entire
Portfolio Within Minutes
Unparalleled Accuracy in
Forecasting by Integration
with Dynamic Attribution
Budget Pacing Syncs with
Market-Leading Kenshoo
Portfolio Optimizer
Interface to Inform Engine of
Market, Seasonal or Offline
Events
Automated Alerts for Both
Opportunities and Threats
Leverage predictive marketing technology
#Insight2Action
47© 2014 Kenshoo, Inc. Confidential and Proprietary Information
Key Takeaways
• Build an attribution business case and get executive sponsorship
• Dig into your partner’s attribution approach
• Connect attribution insights to media execution engines
• Test and experiment with new marketing and media strategies to
continually improve results
• Become a proactive marketing organization by applying the power
of predictive marketing in real-time to improve forecasting,
optimization, and attribution
#Insight2Action
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