Evolving markets and technology have dramatically shifted how consumers (and businesses) spend their time and money. Tracking key elements — like how people are exposed to advertisements and engage with businesses as well as what individuals and organizations are buying — is essential to navigating frequent changes. The best way to track this vital information is with marketing attribution models.
At CMG Analytics it is our goal to ensure that our advertisers can understand where their media spend dollars are driving the most Return on Investment (ROI). We've found that so many advertisers are sitting on a mountain of data, like you, who need guidance in the correct approach and resources to understand how all the data works together to drive results.
What Is Marketing Attribution?
Marketing attribution is the process of analyzing marketing channels to determine how many sales and conversions those channels cause. It measures the value of each campaign, channel, or even specific pieces of marketing material — basically the ROI of your strategy.
Marketing attribution models can be more complicated than merely tracing a purchase back to the triggering interaction. For example, a new customer might see a paid social media ad and decide to make a purchase. However, they may have trusted the advertisement because they saw the brand name or product in a review, a commercial, or an email.
Some complex attribution models weigh the total impact of each marketing touchpoint; others analyze which advertising touch-points were the last-click before a potential customer became a lead. New technologies connected to artificial intelligence and machine learning are emerging to enhance attribution models. It's important to support your marketing plan with these advanced technologies to get the most ROI out of your ad spend.
No matter what type of marketing attribution tools or formulas your business uses, attribution is essential for:
- Increasing the ROI of your marketing efforts.
- Tracking changes in user behaviors to meet your customers' needs.
- Keeping your marketing strategies up-to-date after significant market shifts.
- Making confident plans for future marketing campaigns.
How Is COVID-19 Reshaping Marketing ROI?
COVID-19 has drastically reshaped forecasted marketing budgets. IAB research confirms that 70% of buyers have paused or adjusted their ad spend, and 98% of sell-side respondents admit they expect revenue shrinkage in 2020.
Along with a broad overall reduction in spending, marketers are scrambling to realign messages as a result of this pandemic. According to another IAB report, 42% of marketers are increasing mission-based marketing, while 37% are pouring more resources into brand equity messages.
We are seeing a similar trend on the tactical side: 38% of marketers are increasing their audience targeting, and 23% are increasing their local targeting strategies. One reason for this could be the consolidation of consumers in a relatively fractured, competitive market.
Yes, marketing spend is down. However, the decrease isn't occurring equally across all types of marketing. Digital media was down 38% in March and April, but traditional media plummeted by 43% — showing some disparity between strategies.
This split is likely to widen as self-isolating, sheltering in place, and working from home continue. When consumers spend more time at home, they tend to consume more online ads and content marketing media. It also means drastically reduced exposure to radio ads, brick-and-mortar promotions, physical signs, and more.
How Attribution Can Help Improve ROI Today
Whether your business is losing revenue, holding steady, or seeing a surge in demand, marketing attribution is key to revising your marketing strategies and making your business as strong as possible. Assessing the situation with data will help you make informed marketing decisions and adapt.
- If revenue is declining or holding steady: Use attribution models to find your most efficient marketing dollar spend. This may focus mostly on soliciting return customers and slowing down customer acquisition efforts. While it's vital to maintain cash flow, cutting off marketing efforts entirely can cause customers to forget about your business. Ensure the effective media channels have optimized messaging to maintain relevancy with your consumers' current needs. Speak to them about your business while showing how you can offer support.
- If revenue is increasing: Unexpected increases often are due to shifts in customer behavior. Track the sources of any new demand. It may be due to supply demands or new needs, but it also may be because your digital marketing efforts have reached a new audience or a newly concentrated audience. Determine which marketing channels are the most effective, which will enable you to deepen your grasp on the evolving market. Keep messaging in mind, adapting your creatives to connect with the current trends.
What Comes Next for Digital Marketing?
Your first marketing priority is to use data and an attribution model to determine which marketing efforts are still working. Once you know what's clicking with consumers, you can begin to trim away the least effective channels or double down on marketing efforts with the highest ROI.
If you're not sure how to use marketing attribution models to get actionable data, we're here to help. Our CMG Analytics tools can help create a plan to maximize your marketing strategy.
CMG Analytics deploys advanced technology for tracking, ad serving, and tag management to unlock cross-channel, real-time performance data. Advanced tracking combined with our dedicated data analysts will uncover actionable insights to inform your marketing decisions and drive campaign ROI. Our team offers customized analytic solutions, ensuring that our advertisers understand their holistic campaign story. We take a highly customized approach, not some cookie-cutter analytics account setup. CMG Analytics develops an individually unique attribution model to each client we partner with, ensuring we are optimizing for your business, not your general industry. Our custom approach helps make sense out of what is driving your business ROI, allowing you to make better informed marketing decisions.
At Cox Media Group Local Solutions, we are hyper focused on ensuring that our clients' brands thrive and we wholeheartedly believe that digital marketing should be the go-to strategy during this time. With digital expertise and innovative technology, we help you get noticed by your target audience, be found online everywhere consumers are searching and convert shoppers into customers. We are here and willing to walk you through best practices, lend a supportive hand when you need us and facilitate growth for your business. Contact Us Today.