Nowadays, marketers rely on various channels to perform marketing campaigns, both online and offline. Of course, this enables marketers to customize the customer journey in all stages. But what is marketing attribution, why is it important, and what are its benefits? Let’s find out.
What Is Marketing Attribution?
Brief Definition: simply put, marketing attribution is the analytical science of identifying which marketing strategies are contributing to sales or conversions.
The Long Definition: Marketing attribution is the process of assessing the marketing touchpoints that a consumer comes into contact with when researching products. The goal of attribution is to identify which messages and channels had the biggest influence on the customer’s choice to convert or take the desired next step. Today’s marketers use a number of well-liked attribution models, including time decay, lift studies, multi-touch attribution, and more. Marketing teams may adjust and personalize campaigns to satisfy the unique needs of different customers, thanks to the data these models provide how, where, and when a consumer engages with brand messages. This increases marketing ROI.
The significance of marketing attribution
To guarantee that each encounter is fairly weighted, advanced marketing attribution solutions call for marketing teams to combine and normalize consumer data from many channels. Marketers can notice that this piece of collateral had a greater impact on the sale than the display ad if, for instance, a consumer is exposed to a display ad and an email campaign but only converts once they see a special promotion in the email. Then, they can invest more money into developing focused email marketing efforts.
Marketing teams need sophisticated analytics solutions that can reliably and quickly transform massive data into person-level insights that can be applied for in-campaign adjustments in order to attain the level of data granularity necessary for effective attribution.
Marketing Attribution’s Advantages
Getting advanced attribution models correctly, especially complicated models that assess a variety of datasets for both online and offline campaigns, can take a lot of time and resources. But when done well, attribution offers a wealth of advantages, such as:
Enhanced Marketing Investment
By showing the touchpoints that produce the most engagements, attribution tools provide marketers with insights into the most effective use of marketing budgets.
Greater ROI
Effective attribution helps marketers communicate with the right consumer at the right time, increasing conversions and marketing ROI.
Increased individualization
For more precise targeting throughout the customer journey, marketers can use attribution data to identify the messaging and distribution channels that certain consumers prefer.
Develop better products
Marketers can better understand the demands of their customers by using person-level attribution. When making modifications to the product to target the functionality that customers demand, these insights can subsequently be used as a guide.
Enhanced Creativity
Marketing professionals can improve messaging and visual components as well as their understanding of how and when to engage with users by using attribution models that can assess the creative components of a campaign.