At a time when there is more focus on marketing budgets, attribution solutions can prevent waste and justify spending.
Marketers have always argued that it is impossible to know if and where their spending is increasing sales. While everything was analog, Nielsen’s set-top boxes and Arbitron’s radio magazines – panel and recording data – offered insights.
The rise of digital media promised a brighter future, in which we could finally look at every sale and determine which touchpoints were effective to achieve ROI and which costs were lost. It’s not as simple or straightforward as it sounds, but we’re getting close, although we are considering the abolition of cookies and stricter privacy rules.
It’s important to measure the relative success of each of your marketing tactics, regardless of which direction the economic wind is blowing. But when budgets are tight, as is the case today with the economic uncertainty caused by the COVID-19 pandemic, the prospect of wastage is very resonant.
While the payout – assigning weight to each touchpoint in a marketing campaign based on its contribution to sales – is not new, the scope and reach of the tools available for marketing are much wider than some have suggested.
In addition, machine learning and advanced algorithms are advanced to enable the synthesis of data of different types and from different sources. Some tools can now extract information from the data to predict possible future outcomes and suggest the next steps.
The pressure on marketers to justify their spending is greater than ever, in part because COVID-19 has had a dramatic impact on all businesses and also because in many cases technology can combine spending with revenue.
A survey of 200 marketers and agencies conducted by The Trade Desk in September 2020 found that 84% of marketers are under new pressure to prove the effectiveness of their campaigns, while 50% say KPIs are discussed for long-term marketing. term.
More devices, more channels, more of everything
At the same time, marketers are dealing with an increasing number of channels and devices that allow them to connect with their customers and potential customers, and research shows that multi-channel advertising is more effective.
L’Oréal Nordics found that ads on Instagram and Facebook, along with a purchase on TV, increased the ad’s recall by 12 points among the 18- to 34-year-old audience. Social media elements also increased by 22.6% via TV.
The traditional media are also reinforcing themselves. In a 2018 survey, Nielsen found that, aside from a TV ad from the same campaign, people who heard a radio ad were 35% more familiar with the TV ad than those who just watched it.
What’s more, according to a Salesforce survey of 15,000 consumers and commercial buyers, buyers increasingly expect their interactions with brands to be consistent regardless of the device they use. It will also likely switch devices when looking for a purchase. Both phenomena mean that it is important for brands to coordinate their campaigns across all channels and understand the role each touchpoint plays in bringing someone closer to a purchase decision.
The marketing attribution and forecasting analysis tools are designed to address all these marketing challenges, responsible for all online and offline channels, often allowing marketers to earn more from the same cost or lower their budget and achieve the same achieved result.
Gartner notes that these leaders use big data and analytics solutions, such as marketing charts and predictive analytics tools, to address the challenges of a complex marketing ecosystem. Martech tools to offer.
“As the Genius and Gifted brands pursue complex omnichannel strategies, improved performance results from turning large amounts of data into relevant information,” notes the report, describing these data science tools as ‘generating’ perceptions. For segmentation, targeting, and personalization. “These tools can also ‘go through the top walls of walled gardens,'” says Gartner’s presentation entitled Marketing Technology Drivers of Genius Brand Performance.