Is Twitter a Bona Fide Advertising Source?

Monday, February 16th, 2009

What is Twitter? You could ask 100 Tweeters that question and end up with 100 different answers. Some might say it is micro blogging. Others say it is a way to keep your ‘followers’ up to date on your comings and goings. Another group might say it is a waste of time.

As an online marketer, I want to know if Twitter is a bona fide advertising source. Sure I know I could tweet about events going on at my company or clients in hope that those Tweets drive my followers to take certain action. But is it really an advertising source that deserves to receive credit for conversion if I can tie the conversion to the fact that the consumer read the tweet?

During the Attribution Management Forum 2.0 (AMF) on Jan 29th, 2009, we posed that question to an audience of hundreds of senior online marketers by presenting the following two scenarios, and we asked them to vote on how they would attribute conversion credit if they knew a tweet was involved in that consumers buying process.

Scenario 1:

In Scenario 1, a consumer received a tweet that alerted them to the fact that they could save 20% on Nike Shox if they bought them from the Finish Line by 12am tomorrow night. The consumer clicked on the link in the tweet, but did not buy the Nike Shox at that moment. Later on they went to a search engine and searched for “Woman’s Nike Shox,” clicked on an ad for the Finish Line and bought a pair of Nike Shox before the 12am deadline and saved the 20% that was tweeted about on Twitter.

We asked the audience to select the best attribution rule out of the following options:

Over 67% in both groups we polled, according to their indicated level of experience with attribution management, believe option “A” is the best rule. This vote shows that these senior online marketers do indeed believe that Twitter is a bona fide advertising source as they are willing to give half of the credit for this conversion to Twitter.

Less than 8% in any group we polled voted for option “C”, which totally excluded Twitter from receiving any credit for the conversion. This is further proof that senior online marketers do value Twitter as an advertising source worthy of conversion credit.

Scenario 2:

In scenario 2, the tweet was exactly the same as the tweet in scenario 1. In scenario 2, the consumer clicked on the link in the tweet, but did not convert at that moment. Later on they used their address bar to navigate directly back to the Finish Line’s website, purchased a pair of Nike Shox and received the 20% discount because they bought before the deadline.

We asked the audience to select the best attribution rule out of the following options:

Over 66% in both groups we polled, according to their indicated level of experience with attribution management, believe option “B” is the best rule. This vote shows once again that these senior online marketers do indeed believe that Twitter is a bona fide advertising source as they are willing to give 100% of the credit for this conversion to Twitter and 0% of the conversion credit to the address bar.

Less than 7% in any group we polled voted for option “C”, which totally excluded Twitter from receiving any credit for the conversion. This is further proof that senior online marketers do value Twitter as an advertising source worthy of conversion credit.

These types of scenarios and rules are why we continue to strive to generate some consensus around Attribution Management. If you would like to learn more about these scenarios or the scenarios from the previous Forum, please visit www.AttributionManagement.com. Additionally, we love to hear from our audience, so please fill us in on what your thoughts about this scenario may be.

The Attribution Management Forum 2.0: Part 1 Paid Search and LAV

Friday, February 13th, 2009

The Attribution Management Forum 2.0, which took place on January 29, 2009, was the second installment in the Forum series.

This is the first video in the 2.0 series and covers Paid Search and Lifetime Ad Value (LAV). The different Purchase Paths explored in this video include : search with a time element, product sold is unrelated to the ad, and lifetime ad value with related products. Please visit ClearSaleingInc on YouTube for the latest Attribution videos and events.

How to do Attribution Management When the Product Sold is Unrelated to the Ad(s)

Wednesday, February 11th, 2009

One of the most repeated stats about online marketing is that 44% of the purchases that happen online from advertising are for products unrelated to the ad(s) clicked on. If an online marketer were able to see the ad(s) that a consumer clicked en route to purchase, and discovered that the product they purchased was unrelated to the ad(s), how would they attribute sales credit across the ad(s)?

During the Attribution Management Forum 2.0 (AMF) on Jan 29th, 2009, we posed that question to an audience of hundreds of senior online marketers and asked them to vote on the attribution model they would use in the following scenario:

In this scenario, a consumer did a search looking for “running shoes” and clicked on an ad for the Finish Line, but not did buy. They did a second search which was more refined and looked for “woman’s Nike Shox” and still did not buy. They then did a branded search for “Finish Line” and made a purchase. However, the product they purchase was unrelated to the first two ads.

We provided the audience with 3 attribution models they could choose from. They were as follows:

If you voted for:

A) Attribution Rule A, there were 3 ads involved before the sale. Regardless of which product was purchased, all 3 ads contributed and deserve equal credit for the sale.

B) Attribution Rule B, the product sold does not matter. However, when a branded term is used at the end of a path, it is being used to navigate back to the Finish Line. The customer could’ve found the Finish Line through the address bar or bookmark, however, they chose to use search again. In this instance, the consumer has already decided to buy and no sales credit goes back to the branded term at the end of a Purchase Path. Credit for the sale is split evenly between the first and second search.

C) Attribution Rule C, the purchase has nothing to do with what they searched for. Therefore, credit is excluded from the terms that do not relate to the product bought. All of the credit of the sale is attributed to the final ad for “Finish Line”.

The following charts highlight how the AMF participants felt attribution should be given, broken out by the indicated Attribution Management Experience Level:

poll_2_results

What is interesting from these results?

  • We presented the same scenario in the first Attribution Management Forum, but did not disclose the type of product sold. All the audience knew was that a sale occurred after clicking on the same 3 search ads. Over 76% of the group with the most AM experience voted to exclude giving credit to the branded term at the end of the path and favored dividing the credit across the first 2 search ads. In the scenario above, where the product sold was not related to the ads, only 17.95% chose to vote the same way.
  • Almost 36% of the experienced group voted to give credit solely to the branded term at the end of the path. This was not the case in AMF 1.0 where the experienced group thought a branded term at the end of the path was used for navigation and was not deserving of sales credit.
  • It would be interesting to know how the audience would have voted if the 3rd search term was not a branded search, but instead was another running shoe related term.
  • Why do people search and click on ads for one type of product, but then buy something very different? One obvious reason could be in the case of gift shopping. Perhaps you really wanted to buy someone shoes and when you got to the site another product caught your eye. Or perhaps your selection of shoes was not good enough or your prices were too high, but your selection and prices on other unrelated products of interest were in line.
  • If a retailer could isolate ads that sell unrelated products, they could try to understand why they have difficulty selling those items. It probably has to do with the 4 P’s of marketing: Product, Price, Promotion, or Place.

Attribution Management Forum 2.0 Builds on Best Online Advertising Practices and Methodologies

Wednesday, February 11th, 2009

The second Forum webcast explored and defined rules for online advertising latency, unrelated sales and social media

Columbus, OH (PRWEB) February 11, 2009 – Leading online advertisers and marketers participated in the Attribution Management Forum 2.0 webcast, which was sponsored by ClearSaleing and hosted by Search Marketing Now. The goal of the second Attribution Management Forum webcast was to bring together the most influential minds in the online advertising community to continue to better identify, define and ultimately recommend improved valuation practices and methodologies for measuring an ad’s true value.

The Attribution Management Forum (AMF) 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: Forrester Research, iProspect, Rosetta, Best Buy, Sherwin Williams, Fifth Third Bank, Google, Yahoo! and Channel Advisor.

“The second Forum webcast really helped to build on some of the earlier attribution scenarios we proposed, while introducing some completely new scenarios to the audience as well,” said Adam Goldberg, who was the presenter during AMF 2.0 and is ClearSaleing’s co-found and Chief Innovation Officer. “There are so many advertising sources and scenarios to discuss to properly value online ads, and this Forum continued to help define the best practices and rules that began with the first Forum.”

One of the more interesting results from AMF 2.0 came from a scenario about latency. Over 60% of the attendees polled through all industries believe that even attribution is the proper method when a team of ads works over a 30-day period to provide a purchase. The attendees also concluded that even if the product sold is unrelated to the team of ads in the path, even attribution is still the best attribution role. AMF 2.0 also began to explore the value of Social Media advertising, including polling that concluded that Twitter is a useful ad source when users follow links in ‘tweets’ that lead to sales. These conclusions, along with new scenarios, will continue to be dissected in the next Attribution Management Forum webcast, scheduled for late April.

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.

Twitter and the address bar

Friday, February 6th, 2009

In this Purchase Path a consumer sees a Tweet on Twitter promoting a discount on Nike Shox at Finish Line that is valid until midnight. The consumer clicks on the Twitter URL, but does not buy at that point. They go to the address bar and type in the URL for the Finish Line and proceed to the site. Again, they complete the purchase before midnight and thus receive the advertised discount.

  1. In Attribution Rule A, credit is split evenly between Twitter and the address bar.
  2. In Attribution Rule B, Twitter is given all of the credit, either because it is seen as a valuable advertising source and therefore fully responsible, or because you don’t choose to credit the address bar.
  3. In Attribution Rule C, Twitter does not get credit. The use of the address bar implies that it should be counted as a direct visit and a direct sale. Twitter is excluded from receiving credit for the sale, and the address bar get 100%.

See how other Forum attendees voted

Twitter and a Paid Search

Friday, February 6th, 2009

In this Purchase Path a consumer sees a Tweet on Twitter promoting a discount on Nike Shox at Finish Line that is valid until midnight. Then the consumer clicks on the Twitter URL, but does not buy at that point. Then they do a search for “Woman’s Nike Shox”, and click on the Finish Line sponsored link. They complete the purchase before midnight and therefore receive the advertised discount.

  1. In Attribution Rule A, Twitter is treated like an ad source and therefore deserves credit for the sale the same way an advisement would. The search also led them to the purchase, so the credit is split evenly between the 2 sources.
  2. In Attribution Rule B, Twitter introduced the consumer to the product and informed them of the discount. Twitter did all the work, while the search was merely for navigational purposes; therefore Twitter deserves 100% of the credit.
  3. In Attribution Rule C, the last action before the purchase was a paid click, so all the credit goes to the search. Twitter is not viewed as an ad source and gets no credit for the sale.

See how other Forum attendees voted

Should SEO be credited when used with search?

Friday, February 6th, 2009

In this Purchase Path, someone does a search for “running shoes”, clicks on the sponsored link, but does not make a purchase. They refine their search to “Woman’s Nike Shox” and this time click the organic listing for Finish Line. No purchase occurs. Then they search for “Nike Shox Turbo VII” and click on a paid link. Again, no purchase occurs. Finally, they type in “Finish Line” in the search box, click on the organic link, and complete the sale. How should the mix of SEO and PPC be attributed?

  1. In Attribution Rule A, all the ads and SEO efforts are considered equally important. It took 4 touch points on the website for the consumer to buy, so the credit is divided equally among the 4 all efforts and they are each given 25% of the credit for the sale.
  2. In Attribution Rule B, credit is only attributed to the ads, giving each 50%, while the SEO does not receive any credit for the purchase.
  3. In Attribution Rule C, all the touch points deserve credit. The reason they typed “Finish Line” in and clicked on the organic link was simply to navigate back to the site. At this point, the consumer already made up their mind to buy and the last SEO effort should be excluded from receiving credit for the sale.

See how other Forum attendees voted

Catalog/Direct Mail with a Branded Search

Friday, February 6th, 2009

In this Purchase Path the advertiser sends something direct mail (such as a catalog or flyer). The consumer then goes online and does a search for the branded term (Finish Line), clicks on the ad, and makes a purchase. It is known that the catalog was received within 7 days of them making the online purchase.

  1. In Attribution Rule A, the credit is distributed evenly between the catalog and the search.
  2. In Attribution Rule B, both sources deserve credit, however the breakdown between the 2 is not known. The catalog and the branded search each deserve a portion of credit for the sale, but it is undecided which is greater.
  3. In Attribution Rule C, the catalog is given 100% of the credit for the search. It introduced the consumer to the product they purchased and going to the website was simply the easiest way for them to place the order.
  4. In Attribution Rule D, the branded search is the easiest to track and therefore gets all the credit for the sale. It is also the action that lead most directly to the purchase.

See how other Forum attendees voted

Lifetime Ad Value (LAV) with related products

Friday, February 6th, 2009

In this Purchase Path, a consumer did a search on a Monday and bought some peanut butter. Then a week later, they did another search and bought a complimentary product, jelly. Which search gets credit for the sales?

  1. In Attribution Rule A, you believe the first search should get credit for the sale of the peanut butter. However because the 2 products bought are so closely related, the first search should get credit for the sale of the jelly also.
  2. In Attribution Rule B, the first search gets credit for the first sale and a percentage of the credit for the next sale as well. The second search also deserves a portion of the credit, but not as much as the first.
  3. In Attribution Rule C, you do not believe in lifetime ad value and think that each search gets credit for only the sale that directly follows it.

See how other Forum attendees voted

Are banner clicks equal to search clicks?

Friday, February 6th, 2009

In this Purchase Path, a consumer does a search for flowers and clicks on the Pro Flowers sponsored link. Later, they are exposed to 2 banners. However this time when they are exposed to the banners, they click on them which leads to 3 site visits from the advertising.

  1. In Attribution Rule A, all ads equally contributed to the sale and therefore split the credit evenly.
  2. In Attribution Rule B, all 3 ads deserve credit; however search deserves a larger percentage.
  3. In Attribution Rule C, the search gets 100% of the credit for the sale. The search ad is more has a larger impact than the banners even though they got clicked on.

See how other Forum attendees voted

Which Attribution Solution Is The Right Fit For You?


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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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