Archive for 2008

Weekly Observation and Analysis

Tuesday, December 30th, 2008

**Disclaimer- in order to do our analysis we broke the audience down into 2 buckets: Bucket 1 is based on skill level and use of AM today. The 2nd bucket is based on the type of business they work for: B2B, B2C, or agencies. In the observations, analyses, and questions you see below, we have taken the liberty to share what we think are the most interesting data points.

Poll 3:

In this poll, the majority in each group believed that distributing the profitability evenly between the Comparison Shopping Engine (CSE) and branded term was the correct rule. However here at ClearSaleing, we would be in the minority because we would exclude giving credit to the branded term.

CSE with Branded Search

CSE with Branded Search

CSE and Branded Search Purchase Path

One of the most common Purchase Paths we see when CSEs are involved is that a consumer starts with a CSE, discovers a product/place where they want to buy from, but then they go to a search engine and search for that company by name. Perhaps the reason a consumer does this, is that they are uncertain how a CSE makes money. Therefore, they want to check the site directly to make sure the CSE is not charging a premium on price.

We would like to hear from the audience why there is such a drop off from excluding branded terms when a search was involved as opposed to when a CSE was involved.

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The Attribution Management Forum: Part 3 Lifetime of a Banner Impression

Tuesday, December 23rd, 2008

The Attribution Management Forum has been created to bring together the leading online advertising minds to help collectively identify, evaluate, vet & ultimately recommend the best attribution valuation practices and methodologies. There are 5 categories concerning Attribution Management. The following video is the third in the series: The Lifetime of a Banner Impression.

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The Attribution Management Forum: Part 2 Lifetime Ad Value and Attribution

Tuesday, December 16th, 2008

The Attribution Management Forum has been created to bring together the leading online advertising minds to help collectively identify, evaluate, vet & ultimately recommend the best attribution valuation practices and methodologies. There are 5 categories concerning Attribution Management. The following video is the second in the series: Lifetime Ad Value and Attribution.

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The Attribution Management Forum: Part 1 Paid Seach and Attribution

Tuesday, December 9th, 2008

The Attribution Management Forum has been created to bring together the leading online advertising minds to help collectively identify, evaluate, vet & ultimately recommend the best attribution valuation practices and methodologies. There are 5 categories concerning Attribution Management. The following video is the first in the series: The Paid Search Environment and Attribution.

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Weekly Observation and Analysis

Monday, December 8th, 2008

**Disclaimer- in order to do our analysis we broke the audience down into 2 buckets: Bucket 1 is based on skill level and use of AM today. The 2nd bucket is based on the type of business they work for: B2B, B2C, or agencies. In the observations, analyses, and questions you see below, we have taken the liberty to share what we think are the most interesting data points.

POLL 2:

The only group where the majority believed you should avoid crediting a branded term at the end of a Purchase Path are those who indicated that they are doing AM and that it is working well. Although, there were at least 37% in every other group that felt that same way.

At ClearSaleing, we are firm believers that branded terms at the end of a path don

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Attribution Management: Good Theory or Good Practice?

Wednesday, December 3rd, 2008

Attribution Management: Good Theory or Good Practice?

Most businesses that advertise online set some rule as to what they can and cannot afford to pay for a conversion. A common practice is multiplying their average sales price times their average margin and setting that as the maximum cost per acquisition that can be allowed. In our example below, we are looking at Joe’s TVs, which has an average sales price of $1,200 and a margin of 35%, which leaves $420 to acquire a sale at breakeven. Any advertising source producing sales that cost more than $420 is in need of change. Below you will find an example of two keywords from JoesTV.com, one for the general keyword ‘HDTV’ and another for their branded term, ‘Joes TV’. The two keywords have combined to produce 86 orders, and within those 86 orders, 12 orders were produced as a result of a Purchase Path (two or more ads) beginning with ‘HDTV’ and closing with ‘Joes TV’. With these rules in place, let’s take a look at the performance of their keywords to determine which are acceptable and which are not, and then take action on which of these keywords works.

The first view of the keyword set below is using your traditional last click model. The keyword ‘HDTV’ does not perform below the target $420 CPA, so that keyword is up for elimination:

Last
Keyword Conv Convr CPA Revenue Profit ROI
Joes TV

58

2.22%

 $33.74 $69,600.00 $22,403.25 1145%
HDTV

28

0.40%

 $563.23 $33,600.00 $(4,010.52) -25%
Total

86

0.89%

 $206.13 $103,200.00 $18,392.73 104%

In this next example, the data displayed is using an even attribution model, meaning that both keywords are being given even credit for the conversion. The keyword ‘HDTV’ is still costing above the targeted $420 CPA, so that keyword is up for elimination:

Even
Keyword Conv Convr CPA Revenue Profit ROI
Joes TV

52

1.99%

 $37.63 $62,400.00 $19,883.25

1016%
HDTV

34

0.49%

 $463.84 $40,800.00 $(1,490.52)

-9%
Total

86

0.89%

 $206.13 $103,200.00 $18,392.73

104%

In this next example, the data displayed is using an even attribution model with exclusions, meaning that we have selected to exclude the branded term from credit since the user initially found the site by searching for ‘HDTV’. We’ve found that users search a branded term at the end of a Purchase Path for navigational purposes, so we exclude it from receiving credit. The keyword ‘HDTV’ is now performing at an acceptable CPA and is producing a 7% ROI:

Even w/ Exclusions
Keyword Conv Convr CPA Revenue Profit ROI
Joes TV

46

1.76%

 $42.54 $55,200.00 $17,363.25

887%
HDTV

40

0.57%

 $394.26 $48,000.00 $1,029.48

7%
Total

86

0.89%

 $206.13 $103,200.00 $18,392.73

104%

In this final example, the data displayed is showing that if you use the metrics in the first and second example you may move forward with eliminating the ‘HDTV’ keyword, which will then result in a large loss in revenue and profit that could have been prevented by using an even attribution model with excluded terms.

If HDTV Eliminated
Keyword Conv Convr CPA Revenue Profit ROI
Joes TV

46

1.76%

 $42.54 $55,200.00 $17,363.25

887%
HDTV

0

0.00%

 $ - $ - $ -

0%
Total

46

1.76%

 $42.54 $55,200.00 $17,363.25

887%

A lot has been written about the theory of attribution management, but very little has been put into the practice and types of results it yields. The previous examples took you through a scenario with a view of a campaign, and another view of that campaign where attribution management is applied. As you can see, attribution is not only a good theory, but a best practice that all online marketers should implement sooner than later if their goal is to increase profits.

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Attribution Management Forum Gets Online Marketers Thinking and Talking

Wednesday, November 19th, 2008

The initial Forum webcast, co-sponsored by ClearSaleing and Search Marketing Now, began the process of defining attribution management practices and methodologies.

Columbus, OH (PRWEB) November 19, 2008 — Leading online advertisers and marketers participated in the first Attribution Management Forum webcast, which was co-sponsored by ClearSaleing and Search Marketing Now. The goal of the first Attribution Management webcast was to bring together the most influential minds in the online advertising community to better identify, define and ultimately recommend improved valuation practices and methodologies for measuring an ad’s value.

Attribution Management Forum
Attribution Management Forum
With that said, over 85 percent of the participants are still unable to go beyond last click attribution accurately today, which proves there is still a long way to go for many companies to improve the performance of their online advertising.

The Attribution Management Forum webcast was attended by over 150 leaders in Internet marketing, ranging from some of the largest online advertisers to leading advertising agencies to respected industry press and bloggers. Some of the active online advertisers in attendance included: American Greetings, YellowPages.com, eBay, FTD, Starcom, Google, Orbitz, Yahoo!, Nationwide Insurance and General Motors.

Many attribution management scenarios across a wide range of online advertising sources were explored during the webcast. While only intended to start the thought process and not to draw specific conclusions , the initial Forum webcast did produce one especially important theme. The attendees reached a virtual unanimous consensus that the often-used last click method of attribution, which gives sole credit of a conversion to the last ad clicked by a consumer prior to purchase, is not a reasonable means for properly valuing an ad’s true contribution. And while no specific conclusion was reached on exactly how, virtually all attendees agreed that credit should be shared between all ads that contributed to a conversion.

“It was very interesting to see that no matter what the experience level of the marketer in attribution management, there was consensus that an even attribution model is more accurate than a last click model,” said Adam Goldberg, ClearSaleing’s Co-Founder and Chief Innovation Officer. “With that said, over 85 percent of the participants are still unable to go beyond last click attribution accurately today, which proves there is still a long way to go for many companies to improve the performance of their online advertising.”

If you would like to view and participate in the polling for the Attribution Management Webcast, you can do so at http://searchmarketingnow.com/on-demand. To learn more about attribution management and discover related content, visit www.attributionmanagement.com.

About ClearSaleing:
ClearSaleing is a leading technology provider to the online advertising market. Based on a strategic, portfolio management approach to online advertising investment, the ClearSaleing solution represents the next generation in advertising analytics technology. ClearSaleing’s portfolio management software delivers an improved, more profitable allocation of a company’s spend across a complex mix of online advertising options. At the foundation of the ClearSaleing solution is its patent-pending Purchase Path technology that accurately attributes profit (ROI) across the multiple ads that contribute to and influence the ultimate purchase.

About Search Marketing Now:
Search Marketing Now webcasts combine the most authoritative and actionable education about search engine marketing issues with the convenience of attending online. Register today for one of our free webcasts covering topics about search engine optimization, paid search advertising and search marketing in general. Continue your professional development without leaving the office.

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Poll 1- Oberservation and further questions

Tuesday, November 18th, 2008

**Disclaimer- in order to do our analysis we broke the audience down into 2 buckets: Bucket 1 is based on skill level and use of AM today. The 2nd bucket is based on the type of business they work for: B2B, B2C, or agencies. In the observations, analyses, and questions you see below, we have taken the liberty to share what we think are the most interesting data points.

Poll 1:

No matter the skill level, across all the groups that were polled, the consensus is that Even Attribution is a more accurate rule. The second most popular rule is Last Attribution. However there were a few in each group that believed 1st attribution was the best rule.

What we would like to know, is from the groups that indicated they do AM and it works well, is there some data that supports this position?

  • For example- what is your method for proving one attribution model works better than another?
  • What changes in campaign performance have you seen after switching from a last attribution model to even?
  • Finally, for everyone, are there any other models, aside from first, even, last, that you believe are even better?

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If the same search term is used, is that navigational?

Tuesday, October 28th, 2008

In this Purchase Path, a consumer searches for running shoes. They click on the ad from Finish Line, yet do not make a purchase. Then they type in the search term “Nike Shox Womens”, click on a Finish Line ad again, but do not make a purchase. Lastly, they use the same search term as before “Nike Shox Womens”, found the Finish Line ad again, clicked on it, and completed the purchase.

a) In this attribution rule, credit is given to the last search ad clicked before the sale.

b) In this attribution rule, there are 3 ads, and there is no differentiation between them. All the ads assisted in making the sale and therefore credit is distributed evenly among the 3.

c) In this attribution rule, since the same search term was used twice, you conclude that the second time it was used it was for navigational purposes. Therefore the 3rd search term is excluded and credit for the sale is distributed evenly across the first 2 ads.

See how others voted

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Posted in AMF 1: Paid Search Environment and Attribution | No Comments »

Banner Impressions with Branded search

Tuesday, October 28th, 2008

In this Purchase Path, the consumer sees a banner impression for ProFlowers, later they see another banner impression. Next, the consumer searches for the branded term “ProFlowers”, they find the site and then complete the conversion.

a) In this attribution rule, all 3 (banner impression, banner impression, branded search) are weighted equally and therefore all given equal credit for the sale.

b) In this attribution rule, the banners did all the work; they introduced the problem, gave the consumer a way to solve it and are therefore completely responsible for the conversion. Although they could’ve clicked on the banner to complete the sale, they instead typed in ProFlowers. The banners however are the reason the user thought to use the branded term in the first place.

c) In this attribution rule, the ad that gets clicked on is believed to be more valuable than the banners. Both the banners are lumped together and given half the credit, while the ad that actually gets clicked get the majority of credit for the conversion.

See how others voted

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Posted in AMF 1: Banner Impressions and Clicks | No Comments »

Total Economic Impact: Attribution Webinar


Forrester Consulting recently examined the total economic impact and potential ROI that enterprises may realize by deploying ClearSaleing's advanced advertising analytics and attribution management platform. Register for the webinar to see the full analysis and the benefits from implementing an attribution management solution.

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Independent technology research firm Forrester Research, Inc. selected vendors for a 44-criteria evaluation to determine the leaders in the attribution management field.
ClearSaleing Takes "Top Honors"
ClearSaleing received the highest scores in both the “Current Offering” and “Strategy” categories.
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About Attribution Management

In the world of online marketing, Attribution Management is the process of properly identifying and valuing the chain of marketing initiatives and advertisements that lead to a sale or conversion.

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