Business Magazine

The Status Quo of Marketing Attribution

Posted on the 28 April 2011 by Tchu @UpStreamMPM

Multi-channel marketing businesses face a challenge that is more difficult to solve than is immediately apparent: how to attribute a given sale across the various marketing channels that may have influenced it.  There are several methods currently used to address the problem.  Among the most common are:

  • Last-Touch Attribution: the current de-facto industry standard, this method gives full credit for the sale to the last marketing channel to “touch” the customer.  Last Touch has the advantage of simplicity, but even marketing planners who employ it lack faith in the conclusions.
  • Double Counting: in many organizations, every marketing channel that had recent contact with a customer before their purchase takes credit for all or some of the sale; in most cases the sum of sales claimed by all marketing channels exceeds 100% and can add up to as much as 150% of actual total sales.
  • Arbitrary Parameters: in an effort to allocate a sale more fairly, some organizations choose to weight first touch (customer acquisition), last touch (closing), and intermediate touches disproportionately.  While this appeals to our intuition, the different weights are assigned arbitrarily.

Last-Touch Attribution is simple to calculate, but in a multi-channel marketing scenario it favors the channels with the most frequent touches.  For instance, a typical customer might receive a dozen emails over the course of 3 months, during which time they received only one catalog, so at the moment they buy, it’s much more likely that their most recent known contact was via email.  Double-counting avoids a fight between marketing departments but causes headaches higher up the chain.  Arbitrary parameters are an approximation in the absence of evidence; this seems compelling but often does not reflect reality.

Click here to read about how the team at UpStream has attacked the problem.

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • How to Make Packing and Moving Easier

    Moving is definitely a hectic task, but with some proven ways, it can be an easier job. Moving needs organization and proper planning. With some simple steps,... Read more

    4 hours, 32 minutes ago by   Meet Rv
  • Unique Ways to Back-Up Your Data

    Imagine how you would feel having burnt the midnight oil preparing your work presentation, only to wake up the next morning to find your computer has crashed.... Read more

    4 hours, 43 minutes ago by   Meet Rv
  • A Rare Mutation: The Answer to Obesity?

    Rare Mutation: Answer Obesity?

    Would you believe it if I told you that there are people who are genetically incapable of getting obese? Well, it's apparently true! Researchers have found... Read more

    4 hours, 57 minutes ago by   Dietdoctor
  • Star Citizen - Roadmap Update - Wot No Multi-system?

    Star Citizen Roadmap Update Multi-system?

    after someone in the dev team accidentally uploaded a 3.3-3.6 Roadmap a couple of weeks ago that was all sortsa wrong, RSI aka CIG aka makers of both the Star... Read more

    6 hours, 22 minutes ago by   Freeplanet
  • A Gay with a Bun in Bungay

    with Bungay

    Last month’s prolonged heatwave, reminiscent of our Turkey days, drove us from the sticky city to the cute little towns of Bungay and Beccles, just across the... Read more

    6 hours, 58 minutes ago by   Jackscott
  • Josie Entertains the Old Folks

    Josie Entertains Folks

    Read more

    9 hours, 58 minutes ago by   Vickilane
  • An Everyday Thing by Nancy Richardson BLOG TOUR

    Nancy Richardson's poems concern coming of age in the rust-belt of Ohio during a period of decay of the physical and political structures that made the region... Read more

    11 hours, 27 minutes ago by   Pamelascott