How ignoring attribution is sabotaging your growth.
The digital marketing landscape has undergone significant changes in recent years, driven by evolving regulations, privacy concerns, and technological advancements. As the industry grapples with the fallout of obstacles such as iOS 14.5 and the disappearance of third-party cookies, marketers are struggling to track the efficiency of their marketing efforts at every stage of their customer journey.
In response, many marketers have adopted a ‘last-click’ strategy, focusing on retargeting their existing clientele.
But what are the risks of exclusively focusing on your current demand pool, and why should you consistently employ a full-funnel attributed approach? Discover more about this subject in our blog and avoid undermining your own or your client’s efforts!
What is attributed modelling and why is it important?
Before delving into the significance of attributed modeling and the obstacles it presents, let us briefly explore the definition of this model.
Imagine a potential customer encountering your ad on a Tuesday night while browsing their social media before bedtime, only to purchase your product several days later through a Google Shopping campaign. Should Google receive all the credit for this conversion, or have your social campaigns played a role as well?
In essence, attribution modeling is a fundamental concept within online marketing that pertains to the process of allocating credit or value to various marketing touchpoints in a customer’s journey. By comprehending how different marketing channels and campaigns contribute to a conversion (such as a sale, lead, or sign-up), businesses can optimize their marketing efforts and effectively allocate their resources.
The pitfalls of not using attribution.
Now that you have a better view of what attribution means, we can look at the dangers of not implementing this model when advertising. Last-click attribution models prioritize the final touchpoint before a conversion, assigning all the credit for a sale or lead to the last interaction a customer had with a brand or ad. While this strategy can help optimize retargeting campaigns, it overlooks the numerous other touchpoints that contribute to the customer’s decision-making process.
The most significant hazard of last-click attribution models is the overemphasis on your existing customer base, leading to underinvestment in potential customers. By repeatedly retargeting your current clientele, you saturate your existing demand pool while missing out on valuable opportunities to attract new customers. Over time, this can result in a sharp increase in customer acquisition costs, impeding long-term growth and compromising your revenue and profits.
The necessity of holistic attribution.
To unlock long-term growth, marketers must adopt a more comprehensive approach to attribution that accounts for every touchpoint in the customer journey. By understanding the true impact of each interaction, businesses can allocate resources more effectively, tailoring their marketing strategies to engage prospects at every stage of the decision-making process.
When implemented correctly marketers or businesses can convert their current demand pool, whilst attracting their potential customer base. Making sure to convert today, whilst building demand for tomorrow.
Why isn't this widely used?
An easy choice, right? One would assume so, and that would be accurate if it were that straightforward. However, due to various regulations and updates, obtaining accurate and unbiased data has become increasingly difficult. In many instances, marketers simply lack the means to gain insights into every touchpoint of the customer journey. In fact, last-click is the only touchpoint still trackable by ad managers such as Meta and Google Ads, making it the last resort for many marketers.
The solution.
So, what should be the solution? By employing an AI-driven data solution like Billy Grace, we can regain control over the entire marketing funnel. Utilizing a first-party tracking pixel and a powerful AI algorithm, we gather accurate, cross-channel data. Through an AI-driven attribution model, we allocate the appropriate value to every touchpoint in the customer journey and distribute marketing budgets accordingly. This ensures that potential and current customers are reached, attracted, and converted at every stage of their journey.
In conclusion, acknowledging and understanding the true impact of every touchpoint in the customer journey is crucial for unlocking your business’s long-term growth potential. By moving away from the last-click attribution model and embracing a more holistic, AI-driven attribution approach, marketers can allocate resources effectively, optimize their marketing strategies, and engage prospects at every stage of the decision-making process. This will not only help in converting the current demand pool but will also contribute to attracting potential customers, ensuring sustainable growth for your business.
