SEW Blog: How to Successfully Use Advertising to Get into the Consumer’s Consideration Set

Wednesday, December 8th, 2010

The lottery has a slogan, “You have to play to win.” In business, you have to be considered to win. The more often you are considered the more chances you have to win.

If you want to increase your odds of being considered, and even more importantly, increase your odds of winning, then you need to engage consumers as early as possible in the buying cycle…


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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 2.0

Wednesday, January 7th, 2009

Attribution Management 2.0

By Adam Goldberg

On October 28, we held the first Attribution Management Forum (AMF). We created the AMF to bring together the most influential minds in the online advertising community and to better identify, define and ultimately recommend improved valuation practices and methodologies for measuring an ad’s value.

The AMF is a thought exercise that has several objectives:

  • facilitating the discussion of emerging trends in Attribution Management
  • enabling online marketers to take steps toward being more profitable
  • identifying consensus on certain attribution models
  • establishing industry benchmarks
  • In the AMF 2.0, to be held on January 29, we will be exploring many of theideas and discussions that have surfaced since the first Forum. Specifically, based upon audience results and feedback from the first Forum, we will focus on the following:

  • Time Sensitive Attribution. One area in which we established consensus in the first Forum was that over 65% of our audience believes that when three search ads are involved in a conversion, all three ads deserve equal credit for the conversion versus crediting only the first or last ad. In AMF 2.0, we are going to explore this scenario even further by introducing an element of time. For example, if the three search ads appeared in a conversion over 30 days, would we still have a consensus that all ads deserve equal credit for the conversion?
  • Product Sensitive Attribution. A widely known industry fact is that over 44% of online purchases that are a result of online advertising are for products not related to the ad(s) that were clicked. In AMF 1.0, we did not pay attention to which product was sold, but only that a conversion occurred. In AMF 2.0, we will specifically call attention to the fact the product sold was unrelated to the team of ads that produced the conversion. Will this new data point change the consensus opinion that all ads deserve equal credit?
  • Search – Display Interaction. In the first Forum, we saw that when two banner impressions were served to a consumer who then clicked on a corresponding search ad for the company, 88% of our audience believed that the banners deserved some credit for a subsequent conversion, but not as much as the search ad. In AMF 2.0, we are going to reverse the order of this Purchase Path to see if people think that banner impressions that occur after a search ad are still worthy of getting some form of credit.

As was our hope in AMF 1.0, AMF 2.0 will continue to drive bigger ideas, establish some consensus and create benchmarks that online marketers will be able to put in action. We had a wide range of audience participation in AMF 1.0, including Fortune 500 and large international agencies. If you are interested in participating in the AMF 2.0, please Register Here.

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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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