Last week at Attribution Accelerator, some of the foremost leaders in advertising and analytics came together to discuss the current challenges of attribution modeling. While there was a lot of enthusiasm for the event, one of the key themes echoed by various speakers and attendees was the dire need for advancement in measurement solutions.
Taking a step back, part of the challenge of attribution lies in the proliferation of internet devices in recent years. The number of connected devices per household went from 2.8 devices in 2007 to more than 10 devices today. As a result, marketers are struggling to determine the impact of their campaigns against the growing number of customer touchpoints.
The promise of multi-touch attribution was to solve this by giving marketers the tools to know what touch points are important and how they fit together in the customer journey.
However, as we heard over and over again at Attribution Accelerator, the current state of marketing attribution solutions is…chaotic. Look no further than the Mobile Marketing Association’s (MMA) 2016 Multi-Touch Attribution (MTA) Assessment and Landscape Report for further proof of this. Of the 19 MTA vendors evaluated in the report, MMA discovered a total of 25 different statistical models being used.
As fellow speaker and CEO of Marketing Evolution, Rex Briggs, said: the industry players need to come together and bring about some standardization and transparency to attribution models.
The two biggest segments of ad budgets for large consumer advertisers today are TV and Digital, with the standard means of measuring sales impact for those ad channels being Market Mix Modeling and Attribution Modeling, respectively.
Market Mix Modeling relies on regression analysis to assess current performance and provide insight as to what mix of marketing tactics delivers the highest return on investment. Attribution Modeling, on the other hand, focuses on determining how and where credit is assigned to various customer touchpoints based on conversions or sales.
Note the common approach: “modeling.”
There is growing consensus in the world of advertising research that both of these approaches need a reboot.
They are too reliant on assumptions and opaque statistics, too often limited to single media platforms and sales channels, and too light on rigorous science.
To that end, Viant’s vision of the future is fact-based ad measurement that puts people at the center of the modeling equation.
For more than a decade now, marketers have relied on cookie-based modeling to link the same consumer across internet devices. But in a world where 75% of cookies are deleted every month and two-thirds of IP-connected devices don’t accept cookies, this approach simply doesn’t work anymore.
The biggest opportunities for marketers today are:
- Cross-device linkage and attribution
- Measuring the impact of TV, digital, and print on online and in-store sales
- Creating seamless cross-channel experiences for customers
A people-based advertising approach gives marketers the ability to gain one holistic view of their consumer across TV, mobile, desktop, and connect that back to online and in-store purchasing activity. As a result, marketers can use this level of transparency to gain real insights into what’s moving the needle for their businesses.