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tF
task-force
# 7
In partnership with
Multichannel
attribution,
contribution
& optimisation
3 // Multichannel attribution, contribution & optimisation
June 2016
Acknowledgements
The EBG would especially like to tha...
[ This guinea pig is the EBG’s
mascot. He will be your guide
through this publication
and will provide details, figures
an...
7 // Chapter 1 // beyond “ last click ”6 // Chapter 1 // beyond “ last click ”
occurs through paid channels,
while the oth...
special report
9 // Chapter 1 // beyond “ last click ”8 // Chapter 1 // beyond “ last click ”
W
hile “ performance ” is
qu...
are (too) simple, and the
raw information is not always
exportable. Moreover, there are
substantial licensing costs for
so...
case study
13 // Chapter 1 // beyond “ last click ”12 // Chapter 1 // beyond “ last click ”
keypoints
information allows t...
15 // Chapter 1 // beyond “ last click ”14 // Chapter 1 // beyond “ last click ”
zoom
our branding strategies.”
With regar...
spotlight
social networks are jealously
guarding their turf
17 // Chapter 1 // beyond “ last click ”16 // Chapter 1 // bey...
19 // chapter 2 // bringing in the offline world
Ideally, attribution/contribution should not be limited to the digital re...
21 // chapter 2 // bringing in the offline world20 // chapter 2 // bringing in the offline world
lll
“ You might wonder wh...
23 // chapter 2 // bringing in the offline world22 // chapter 2 // bringing in the offline world
rather than an integral
p...
25 // chapter 2 // bringing in the offline world24 // chapter 2 // bringing in the offline world
The system can distinguis...
27 // chapter 2 // bringing in the offline world26 // chapter 2 // bringing in the offline world
keypoints
channels, espec...
spotlight
29 // chapter 2 // bringing in the offline world28 // chapter 2 // bringing in the offline world
The market is b...
Cross-channel, and to be more precise, cross-channel devices, will change
everything.
excelling
atmultichannel
chapter 3
3...
variable into the equation
because if you only look at the
usual 30 day attribution window,
there is a risk you might miss...
34 // chapter 3 // excelling at multichannel 35 // chapter 3 // excelling at multichannel
launching the campaign,
you have...
37 // chapter 3 // excelling at multichannel36 // chapter 3 // excelling at multichannel
zoom
eight years and has therefor...
39 // chapter 3 // excelling at multichannel38 // chapter 3 // excelling at multichannel
zoom
contribution questions, ” sa...
41 // chapter 3 // excelling at multichannel40 // chapter 3 // excelling at multichannel
oversimplifying things, you need
...
43 // chapter 3 // excelling at multichannel42 // chapter 3 // excelling at multichannel
in practice
Élodie Hazac (Orange)...
our advice
Define and prioritise your needs
Take the time you need
to define what you’re
looking for, since
everything els...
Multichannel Attribution, Contribution, Optimisation
Multichannel Attribution, Contribution, Optimisation
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Multichannel Attribution, Contribution, Optimisation

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Multichannel Attribution, Contribution, Optimisation

  1. 1. tF task-force # 7 In partnership with Multichannel attribution, contribution & optimisation
  2. 2. 3 // Multichannel attribution, contribution & optimisation June 2016 Acknowledgements The EBG would especially like to thank members and partners of the “ Multichannel attribution, contribution and optimisation ” Task Force: Performics. A big thank you to the Performics / Publicis Media teams who helped us to set up and grow this project: Pierre-Emmanuel Cros, Laure Debos, Aude Guérin, Arnaud Lauga, Nicolas Schmitz and Guillaume Valicon, as well as Florence Delplanque-Boulenger who compiled the information and formatted this publication. With support from iStock by Getty Images Multichannelattribution, contribution&optimisation What is a Task Force? It is a discussion process limited to around 20 decision makers for major accounts, focusing on four objectives: 1. Discussion among peers 2. Making headway on a strategic topic 3. Identifying reliable partners 4. Sharing ideas with the whole EBG community Between October 2015 and May 2016, the “ Multichannel attribution, contribution and optimisation ” Task Force, organised by the EBG in partnership with Performics, held a discussion on current attribution models and their development in the near- and medium-term. How can one measure real return on each of the investment levers for both online and offline channels? What impact do levers have on one another? To what extent do they feed on one another? What is the right amount to invest, overall and for each channel? How can I measure the incremental contribution of media, whether in terms of traffic, sales or brand image? The answers are in this book. THE ELECTRONIC BUSINESS GROUP - www.ebg.net The EBG is the largest French professional community for company decision- makers in industry, services and media, who all share an interest in innovation. The EBG’s activities: The purpose of the EBG is to maintain a knowledge and know-how network by organising more than 150 round tables every year, giving senior executives the chance to share their experience. There are more than ten active communities within the EBG: CEOs, Purchasing Directors, IT Directors, Finance Directors, HR Directors, Marketing Directors, Web Marketing/e-Commerce Directors, Media and Mobility Directors, and Communication Directors. Each community meets at least once a month for discussions and updates on the newest practices in their field. The sessions are filmed and streamed live. For more information on the EBG or its partners: Benjamin Glaesener Managing Director +33 1 45 23 05 89 benjamin.glaesener@ebg.net Fanny Raimbault Content Manager +33 1 73 03 01 98 fanny.raimbault@ebg.net ACCORHOTELS Air France Allianz APEC April Group AramisAuto.com Auchan Direct BNP Paribas Cardif Celio France Compagnie des Alpes CRM Services filiale SNCF DS AUTOMOBILES (PSA PEUGEOT CITROEN) Euromaster Fortuneo FUTUROSCOPE LA BANQUE POSTALE LA FRANCAISE DES JEUX LA POSTE LUDENDO LVMH / Moët-Hennessy - Louis Vuitton MALAKOFF MEDERIC Meetic - MEETIC MOBILE MeilleurTaux.com MICHELIN ORANGE / FRANCE TELECOM ORANGE BUSINESS SERVICES PMU RENAULT SFR SONY MOBILE COMMUNICATIONS FRANCE Ubisoft VANITY FAIR BRANDS Lingerie SA members of the task force
  3. 3. [ This guinea pig is the EBG’s mascot. He will be your guide through this publication and will provide details, figures and additional information. And if you stop by to see us at 10 rue Mercœur (Paris, 11th  arrondissement), you can meet him in person. ] 5 // Multichannel attribution, contribution & optimisation4 // Multichannel attribution, contribution & optimisation Beyond “ last click ” (page 6) Measuring performance The objective: a sale, a lead and more Six big attribution models Case studies Sony Mobile: “ Service providers versus in-house solutions ” (p. 12) L’Oréal: a complicated network and concrete answers (p. 14) Spotlight Social networks are jealously guarding their turf (p. 16) table of contents #1 #2 #3 [ Chapter 1: understanding attributi on-contribution ] [ Chapter 2: reconciling two differen tworlds ] [ Chapter 3: in-depth look at manag ementbyincrements ] Excellingatmultichannel (page 30) Cross-device and the dream of the unique ID Incremental management Case studies Compagnie des Alpes: bi- annual attribution studies (p. 36) Greenweez.com: “ Identifying value-creating channels ” (p. 38) Motoblouz.com: “ Avoiding technological one- upmanship ” (p. 40) Spotlight First steps towards incremental management (p. 42) Bringingintheofflineworld (page 18) Different calendars and units of measurement Focus on econometrics The tenuous link between Online and Offline Case studies Meilleurtaux.com: “ Measuring the impact of our TV spots ” (p. 24) Euromaster: “ The digital world working for the physical network ” (p. 26) Spotlight DMP and CRM: towards a more pragmatic approach (p. 28)
  4. 4. 7 // Chapter 1 // beyond “ last click ”6 // Chapter 1 // beyond “ last click ” occurs through paid channels, while the other half leverage the attribution model that cre- dits the last click, regardless of channel. Moreover, Google Analytics and other site-centric tools and ad servers are confi- gured by default to incorporate the last click”. Members of the EBG 2016 Task Force working on “ multichan- nel attribution, contribution and optimisation ” were aware of this, stating in the very first session that “ analysis by ‘last click’ undervalues branding performance at the expense of the performance of the SEA and proprietary levers ”. What impact do levers have on one another? To what extent do they feed on each other? How can you measure the incre- mental contribution of a media, whether in terms of traffic, sales or brand image? At what cost is this contribution made? Getting more sophisticated These questions are essential and lead to others about the offline world and about the uni- queness of clients: what impact do digital campaigns have on conversions in the physical world? Is it possible to include offline marketing campaigns in attribution models? How can one identify a single client through various devices (telephone, com- puter, tablet) and the different channels they leverage? The stakes are high. “ These days, we consider the contri- bution of each ‘device’ and each channel to overall traffic ”, explains Yoann Aldon, Res- ponsible for Digital Strategy and Client Awareness at the Française des Jeux. “ We have around 33,000 sales outlets in France, and we are not ex- clusive at these locations. We therefore have a major problem regarding Online vs Offline in terms of intermediation and recovering information ”. For Meetic, the European leader in online dating (Meetic, Friends- cout, Match, Lexa, Neu, etc.), online acquisition “ is naturally at the heart of our work, and comes with specific cross-de- vice attribution problems. As a pure player, we are very aware of Online, but we also have a strong Offline presence and are currently working on an in- house attribution model that will be more accurate for TV spots in particular ”, says Pierrine Grif- fiths, Mobile Services Manager. Attribution is also a priority for a certain major players in shoe sales: “ We started up in digital relatively late, and I am current- ly in the process of establishing centralised management. Ha- ving more sophisticated attribu- tion and contribution models is a priority ”. “ Why bother with attribution? Generally speaking, it’s to mea- sure the profitability of your marketing actions ”, says the Performics team. “ Different attribution models exist these days, with increasingly scientific approaches: mathematics and even statistics ”. Before going into detail on these models, it is important to define certain terms: what is meant by “ attribution ”, “ contri- bution ” and “ deduplication ”? The Performics team: “ Attribu- tion is attributing a conversion to a particular lever, accor- ding to a predefined rule set. Attribution is challenged by contribution. Contribution is about identifying which stages were decisive and what role each lever performed. As for deduplication, this ensures that each conversion is only counted once. This is a prerequisite for both attribution and contribu- tion ” (continued on the next page). G oogle “ last click is dead ” and you will find that the death of the last click attri- bution model was announced at least eight years ago, in 2008. Nonetheless, the latest sta- tistics from IFOP, the French Institute of Public Opinion find that the vast majority of French advertisers still measure their performance by the last click: 79 %, according to a study car- ried out in late 2014. The reason is obvious: it is the easiest and most accessible model. However, advertisers are not naive. The last click is an illusion. “ There are some cases - maybe one study in five - where attri- bution by last click is accurate ”, according to Arnaud Lauga, Data, Technology & Innovation Director at Performics/Publi- cis Media France. “ Four out of five advertisers base their models on the ‘last click’: half of these ‘last click’ advertisers use an attribution model that gives credit to the last click that zoom 14 marketing actions for a conversion According to an analysis carried out by Performics in 2016, it takes 14 marketing actions to create a digital conversion (across all sectors). This is an average: more than half of digital conversions are accomplished through a single action, with a central tendency that has been relatively stable over the past few years: between 40 % and 60 %. In these cases, attribution and contribution become the same. “ Analysis by last click undervalues branding performance at the expense of the performance of the S.E.A. and proprietary levers. ” beyond “ last click ” Towards a customised model. chapter  1
  5. 5. special report 9 // Chapter 1 // beyond “ last click ”8 // Chapter 1 // beyond “ last click ” W hile “ performance ” is quintessential, it does not represent the same thing to everyone. Even the members of the EBG Task Force have different views on what constitutes “ performance ”. For Apec, performance refers to appointments, while for Meetic, it refers to recruiting free or subscription-paying members. The primary objective for Auchan, a retailer that sells staple products, is to improve its understanding of customers: its performance indicators deal with recurring purchases and average shopping baskets. The objective: a sale, a lead and more Celio is making the transition from an online acquisition strategy to a holistic strategy, since its 500 stores “ clearly remain its primary business contributors ”. An e-reservation system meets these requirements by allowing the company to monitor in-store sales as well as consumer behaviour after its TV spots are aired. The most common metaphor to explain the interest in contribution comes from sport: “ Of the marketing actions you take, which levers are completely autonomous? Which are the initiators, the passers and the strikers? ” A sports metaphor... or perhaps a criminal one? The Performics team illustrates its methods differently: “ Imagine that a conversion is a murder and you need to identify those responsible. The person who pulled the trigger is guilty of course, but what about the person who provided the weapon or who ordered the hit? Aren’t they also to blame? The goal is to understand to measuring performanceA problematic idea! Performance does not mean the same thing to all advertisers. what extent each person was responsible for the murder, and to what degree the crime might have taken place without the gunman. If it was a paid hitman, would the murderer have been equally successful? ” “ The goal of this investigation is to inform the judge, who interprets various laws to make the right decision, attributing blame and passing sentences on each person involved in the crime in proportion to their level of responsibility. Finally, the laws the judge rules on are fairly subjective, or at least bound by a certain culture or era. That is why these rules must be determined carefully, so that attribution for a sale through a lever or an advertisement is proportional to the real responsibility of this action for the final conversion ”. The key: deduplication “ In the context of this crime metaphor, deduplication is the equivalent of having five different investigators investigating five different suspects, says Guillaume Valicon (Performics). In the evening, they go back to the police station and don’t speak to each other. Because they don’t speak to each other, we might be led to think there are five different murders instead of one. Deduplication is about communicating and understanding that there is only one conversion being discussed. When we deduplicate, a single conversion is attributed to the various levers, along with a proportion. Of course, to get to this point, one needs a customised measurement ecosystem ”. Six big attribution models There are six classical attribution models: The “ last click ” model gives all the credit to the last point of contact before the conversion. This is the basic attribution model and the default setting for tools on the market. It is an acceptable solution only for short purchase funnels or for impulse purchases. The “ first click ” model, in contrast to the previous model, gives all the credit to the first point of contact. This favours upstream marketing channels and discounts the brand’s marketing actions. The “ linear ” model gives each point of contact the same value with regard to the conversion. This is used in cases of extensive searches for high-value products. The model based on the importance of the first and last actions can be adapted when there are multiple searches and points of contact, in order to give more weight to the points of contact that begin and end the process. It is very rarely used in practice. The “ time decay ” model gives most credit to the most recent points of contact. This is used for impulse purchases for which the most recent points of contact are likely to have had the most impact. Finally, customised models, which are the most accurate: “ These are the most interesting models, where the type of action is accounted for, not just its position in the purchasing funnel. These models are more algorithmic, more adaptable and therefore more accurate than the previous five. I don’t mean to say that they recreate reality, just that they are the most accurate ”, says Arnaud Lauga (Performics). Apart from the models, the tools currently available on the market can be divided into three main categories: - “ Site-centric ” tools, such as Eulerian, Google Analytics, TagCommander, AT Internet and Adobe Analytics. “ The advantage of these tools is that all the levers are available natively after the click. These tools can be used to determine the remuneration of display performance partners ”, says Arnaud Lauga. “However, post- view is only possible if bridges or double tracking are in place. The attribution models « An sed audire aperiri, et quod amet consectetuer sea, no definiebas adversarium sea. Sint percipit no nec, id vis viris aeterno euismod. Atomorum pericula no qui, esse iuvaret usu ad. Ius ferri prompta praesent ut. » [ Nullam semper ei eam ] “The key to our approach is to compare conversion and non-conversion pathways. This allows us to quantify the additional conversion probabilities of each type of action ”. [Arnaud Lauga, Data, Technology & Innovation Director at Performics/Publicis Media] lll [ Meilleurtaux.com (left) has come up with a tool to measure the impact of TV campaigns on site traffic: see page 24. Allianz (right) is trying to optimise its Web to Store strategy.]
  6. 6. are (too) simple, and the raw information is not always exportable. Moreover, there are substantial licensing costs for some of these tools ”. - “ Ad servers ” such as DoubleClick Campaign Manager, Sizmek and Weborama. “ They integrate post-impression and post- view, providing exportable raw files and advanced attribution models ”, continues Arnaud Lauga. ” However, they require that the channels are double tracked, which comes at a cost. They do not allow onsite unless special tracking is put into place. Moreover, they do not resolve the problem of tracing non-paying levers (except for ad hoc technological developments) ”. - Finally, “ attribution specialists ” such as Mazeberry, Visual IQ, Adometry, Abakus, C3 Metrics and Converteo offer advanced statistical models and information visualisation. The main downside: their cost. “ The key to the Performics approach is the comparison between conversion pathways and non-conversion pathways ”, explains Arnaud Lauga. “ This comparison allows us to quantify the additional conversion probabilities that each action type provides. From a technical standpoint, we draw on a statistical model: logistic regression. Some models retrieve 95 % of conversions and non- conversions compared to the control sample. We therefore get a better understanding of the ecosystem in terms of conversion pathways, non-conversion, interactions and lever complementarity, post-view windows and more. This lets us measure the contributions of branding campaigns and acquisition, adjust the associated costs and challenge the different display partners, removing some from media plans and introducing others we didn’t think were profitable ”. Limitations of the exercise Of course, attribution/ contribution has its limitations. It does not provide a perfect understanding of attribution, just more accuracy than what is provided by default by other tools. Another key question: how to integrate Offline in an attribution model largely based on the digital world. Consumers (and especially Internet users) generate a large volume of data. Reconstructing their paths on the Internet - and in the real world - is a major goal. “ We at Boursorama are lucky to be a pure player, and a small brand that is growing quickly ”, explained Nicolas Montetagaud, Marketing Director, during an EBG conference in 2014. Imagine that a client hears about Boursorama on television, then discovers a special offer while browsing on the Internet, clicks and then continues to surf. A little while later, they search “ inexpensive bank ” on Google before arriving on the Web page of a Boursorama affiliate. This confirms the client’s preconception of the bank and clinches the sale: this affiliate may now become the trigger, even if the decision was not necessarily made at this stage. Certain solutions are being developed to provide a pathway between Online and Offline, such as Atlas, DoubleClick, and methods like CRM onboarding and Call Tracking (more information on page 22). These solutions all suffer from the same shortcoming: the providers have a conflict of interest (see page 19). Finally, imagine a world without advertising: what proportion of sales would occur anyhow? The answer to this important question, asked time and again by members of the Task Force, can be found through “ incremental management ” (see page 31). 11 // Chapter 1 // beyond “ last click ”10 // Chapter 1 // beyond “ last click ” lll [Opposite: display from the Meetic campaign “ Love Your Imperfections ”, launched in 2015 on TV, radio and digitally, and repeated in 2016. This campaign played on both Online and Offline, including highlighting the dinners and workshops organised by the pure-player in the physical world.] zoom Should one be opposed to the integration of branding and performance? Is it preferable - and possible - to integrate branding in attribution/contribution methods? At the Futuroscope theme park, the goal was to “ analyse the contribution of each point of contact to the purchase ”. Florence Lemesle, Head of Advertising and Media Partnerships, explains: “ The difficulty in the leisure and travel sector is that purchase recurrence is very low and the client funnel is very long. Attribution windows can therefore extend to 90 days. We place considerable importance on branding, which has an impact on our objectives. Therefore, the visibility rate is a very important performance indicator for us and is in no way excluded from the attribution model... ” Arnaud Lauga (Performics) emphasises that: “ Attribution is identifying the advertising stimuli that accounts for a behaviour, whether a purchase conversion or a psychological change (awareness, image perception). We often speak of attribution for a lead or sales action, but it can refer to a change in awareness of your brand ”. special report “ Finally, imagine a world without advertising: what proportion of sales would occur anyhow? ”
  7. 7. case study 13 // Chapter 1 // beyond “ last click ”12 // Chapter 1 // beyond “ last click ” keypoints information allows the company to refine its digital strategy: “ The goal is to bring the customer to our own channels, and in particular to our website and the Xperia Lounge, two networks where we can hold a one-on-one conversation without having to pay for it. After all, on Facebook and Twitter, the more you communicate, the more you pay. We have about 50 million fans across all social networks, and an unsponsored post only allows us to reach 1 % of this fan base due to new social network algorithms ”. “ Making the most of three different paths ” In terms of tools and solutions, David Chapon believes he is at a crossroads between three major paths: the “ major players ”, with whom he has been working for a few years, smaller service providers, and “ in-house ” solutions. “ The major players offer an impressive suite of programs, but it costs a fortune and you sometimes feel like you’re playing the role of guinea pig. The smaller providers are certainly very interesting, but working with them requires hand-holding by an SS2I and system integrators, since we are forced to resort to an amalgam of solutions: one provider for social networks, another for mobile Web pages, etc. Connecting these solutions together can be very complicated ”. The third way - an in-house solution - is tempting: “ This relates mostly to groups like ours, with a strong desire to innovate, the necessary human resources internally (as a smartphone manufacturer, we have the required personnel) and, especially in our case, a major emphasis on protecting private information. We are particularly careful when it comes to sharing our data with service providers, whatever their size ”. “ The main risk for those who choose to develop their own solutions is long-term maintenance. You can’t skimp on it. We are currently trying to leverage the best of three worlds. In practice, there is no tool that can do everything. It’s a real problem ”. Another difficulty mentioned by David Chapon: the lack of marketing support, especially from social networks, which “ tend to focus on advertising, but should help brands by offering marketing tools that help develop one-on-one conversations outside the network: I think this would be very smart in the long term ”. As for Offline, David Chapon is working on geo-tracking, among other things, in order to push offers to users who pass by a store in order to sell upscale products to existing clients. As a smartphone manufacturer, Sony Mobile has special access to the screens of their smartphones, “ which consumers look at 50 to 70 times per day ”. The group uses attribution/ contribution to build loyalty, employing multichannel while working on an in- house solution in order to protect its information and to make up for the inadequacies of solutions on the market. “M any brands spend a fortune trying to reach smartphone screens, which we have the opportunity to access directly ”, says David Chapon, Digital, CRM and E-commerce Director for Sony Mobile. “ We work with substantial data, in terms of both quantity and quality. With regards to attribution/ contribution, we decided to work on multichannel and loyalty-building. We are looking to optimise client pathways on sites, mobile apps, social networks and even television on certain apps ”. By accessing the data anonymously, David Chapon can find the consumer’s point of entry into the Sony Mobile ecosystem and reconstruct their pathway. “ For example, we now know that when a client or prospective client uses at least two pathways, we have a 50 % higher chance of retaining or converting them. Therefore, an existing client who receives our emails but never goes to our website will be harder to retain and to sell upscale products to ”. This valuable type of In order to attract customers to sonymobile.com and the Xperia Lounge, Sony Mobile is sending an increasing number of push notifications throughout the client life cycle and has adopted “ a media approach that includes regular communications on news and contests... ” The threshold is a maximum of two push notifications per week, but this may vary if the user reacts positively or indicates they are interested in a particular field (such as sport, for example): in this case, notifications are personalised and prominent. As for the site, it is beginning to attain “ a high level of personalisation: it changes when someone logs in, or if it recognises a cookie ”. [David Chapon is Digital, CRM and E-commerce Director for Sony Mobile] Serviceprovidersversus in-housesolutions Sony Mobile zoom The figures • Xperia Lounge has more than 50 million installations, 13 million active users (more than 2 visits per month) and a 4/5 score on Google Play (also available for iPhone on xperialounge.com) • Sonymobile.com has more than 70 million visitors per month and 52 localised versions of its website. [75 % of website traffic comes from a mobile device.]
  8. 8. 15 // Chapter 1 // beyond “ last click ”14 // Chapter 1 // beyond “ last click ” zoom our branding strategies.” With regards to attribution, Vincent Labasse’s objective is to attribute simple consolidated and timestamped performance indicators to each point of contact with customers. “In order to reconcile our offline and online data and reduce confusion, we have had to work on several projects at once”. Consolidating the data First lever for the brand: managing data better. With messaging and objectives that vary from one campaign to another, an essential step towards improving attribution models is to consolidate good data. “ We first linked together all our locations (websites, Facebook pages, YouTube channel, advertising server, etc.) in order to consolidate the information, identify our customers, and follow their pathways more easily. We wanted to get a more comprehensive picture of our users’ behaviour within our digital ecosystem. Ultimately, two things allow us to analyse purchasing behaviour: the digital loyalty card and MyDermacenter. These platforms give us total visibility for a small portion of our customers: the most loyal and committed. They act as “ samples ” to build models and glean information on the rest of the customer base as well as on prospective customers ”. ... analysing it By dissecting these consolidated performance indicators, Vichy can review its biases. However, the brand wants to go beyond managing its return on digital investments by extending this process to offline sales. This is a topic the team is currently devoting considerable energy to: what are the best indicators for “ brandformance ” with regards to purchases made at points of sale? “One shouldn’t see things in terms of branding versus performance. The aim of all our campaigns ultimately is to generate sales in pharmacies. We are working on solutions to link involvement on our websites to conversions at sales points. For example, how does one attribute point to a visit on the Store Locator compared to a visit on a product page in terms of their relative impact in-store? The link to sales is very difficult to model, but we are working with research institutes and our media partners to come up with a solid methodology”. ... and democratise it A final goal for Vincent Labasse: putting into place the tools to allow marketing teams to manage their campaigns more easily. “ We are starting with simple initiatives to allow teams to better understand the effectiveness of each point of contact. For example, we have standardised and simplified our dashboards, since a few indicators are enough to understand the impact of a lever. One has to be pragmatic. Performance indicators can be very opaque, but marketing teams and management really want more information ”. ROI is an important topic for Vichy, and not just for digital. The brand entrusted an econometric study to a specialised firm a few months ago. “ Last year we concentrated very heavily on three ranges of Vichy brand products. We studied the impact in terms of sales of all of the methods we used: media, advertising expenses, POS advertising expenses, PR campaigns, sales force...We put all this information forward, going back three years. It was a substantial piece of work. It took a lot of time and energy internally to leverage the raw data required for the study. We identified a considerable number of aspects we wanted to have studied. They are now providing us with good advice when we want to launch an operation. We are considering launching other studies like this to learn even more ”. With 12,000 sales points - none of which it owns - and the launch in 2015 of an e-commerce site (MyDermacenter.com), L’Oréal Cosmétique Active France and its Vichy brand face especially difficult problems with attribution. Where to begin? The company has decided to capitalise on its data and to optimise its internal resources. F or L’Oréal, the third-largest advertiser worldwide, the topic of media investment optimisation is not new. What is new, however, is the ever-increasing number of levers at its disposal (formats, technologies, media, etc.) and the great volume of disorganised information it must analyse to ensure that it is making the right choices. Another difficulty for the Vichy brand: the very “ fragmented ” distributor landscape: pharmacies and drug stores. The majority of the brand’s sales occur through retailers and online retailers. “ This network makes managing the ROI more difficult ”, says Vincent Labasse, head of Digital. “ How can one effectively manage the return on the investment of each channel without exhaustive and reliable information on our offline sales? Nonetheless, it’s important not to fall into the trap of “above-ground” digital marketing: the profitability of our investments is more and more complicated to understand, but it remains essential for us all. Mastering this data is a historical opportunity for our brands to put performance at the heart of L’Oréal Cosmétique Active France includes five brands (La Roche-Posay, Vichy, Sanoflore, Roger&Gallet and SkinCeuticals). The group launched “ MyDermacenter ” in June 2015, which includes both an e-commerce website and a store in Paris. “ MyDermacenter ” provides consumers with a personalised diagnosis, chatting with advisors backed by a qualified pharmacist, a forum and more. There are two main goals: acquiring data on clients and providing an online sales model for traditional distributors like pharmacies and drug stores. [Vincent Labasse is Head of Digital Marketing for L’Oréal Cosmétique Active France] a complicated network andconcreteanswers L’Oréal Cosmétique Active case study
  9. 9. spotlight social networks are jealously guarding their turf 17 // Chapter 1 // beyond “ last click ”16 // Chapter 1 // beyond “ last click ” Social networks and their impressive amounts of data kindled hope among advertisers, especially Facebook and Twitter, which regularly launch new marketing tools. But are they sustainable solutions for brands? T ake the example of the un- disputed leader in the field, Facebook. According to an article in Le Nouvel Économiste published in April last year, “ Facebook claims to have close to 1.6 billion monthly users in its social network. Approxima- tely 1 billion people - a third of Internet users worldwide - use it every day ”. The group cashes in on 19 % (35 % for Google) of the 70 billion dollars spent on mo- bile advertising worldwide in 2015, according to the consul- ting firm eMarketer. Facebook is careful to maintain its dominance in the field, pur- chasing Instagram in 2012 and WhatsApp in 2014. “ Facebook is promoting Messenger and WhatsApp as services through which customers can buy pro- ducts and interact privately with companies ”, writes Le Nouvel Économiste. “ For example, the Dutch avia- tion firm KLM provides e-tickets and boarding cards by Mes- senger. It can also be used to chat with customer service. It is already possible to request an Uber car by Messenger, without having to open up the company’s app. [...] Facebook has already become a kind of ‘universal passport’ on the Internet. ” Blind trust The journalist Will Oremus, writing in Slate in 2012 on Face- book’s purchase of Instagram, highlighted that “ Surely Face- book, with its 3,000-plus em- ployees worldwide, could have just built something similar to, if not better than, Instagram for a lot less money. So why did it pay $1 billion? Because for Facebook, this isn’t just about improving its photo-sharing app. It’s about domination. Facebook doesn’t want to be one among a num- ber of options for sharing your personal content with friends and strangers. It wants to be the only option. Just as Google rakes in revenue by ruling search, Facebook’s business model depends on monopoli- zing sharing on the Web ”. Therefore it should come as no surprise that the company is unwilling to provide access to its raw materials – its data. “ Facebook states that it ano- nymises your data when it sells it to third parties ,” wrote Will Oremus in an article published in 2014. “ The company insists that it anonymizes all your data in its dealings with third-party advertisers, so that they can’t connect your behavior and de- mographic information to things like your actual name or email address. And it apparently expects you to trust its own security mechanisms implicitly. Its attitude seems to be that you shouldn’t worry about the giant file of information that Facebook is collecting on you, because Facebook will only use that information for benign purposes, like showing you more relevant ads. ” In this atmosphere of secrecy and fear, Facebook is improving and refining its data by ma- king its algorithm increasingly sophisticated. It launched five new buttons in February 2016: “ Love ”, “ Haha ”, “ Wow ”, “ Sad ” and “ Angry ”. This would appear to be the most efficient way to increase its “customer intelli- gence”: asking them directly. However, these users “ have begun to write increasingly fewer status updates. This has reached the point where it has become troublesome for Facebook ”, the newspaper Les Échos wrote last April. “ According to The Information, the social network has put into place a working group at its London offices dedicated to fin- ding ways to persuade users to share more personal informa- tion. One of the first initiatives implemented by this team was the “On this day” notifications, which invites you to share a photo, status or personal de- tail, published on the same day several years ago”. Other tools have been announced but not confir- med, such as allowing users to earn money from their posts through a tip system (“ Facebook considers letting users add a tip jar to make money from posts ”, theverge.com, April 2016). Will social networks open up or clam up to advertisers? For Arnaud Lauga (Performics), this is a question of “ turf ”: “ None or almost none of the information can be collected or used outside of its own environment. The only actions you can monitor and in- clude in broader attribution studies are clicks co- ming from “ social ads ”. The three main networks, Facebook, Twitter, and to a lesser extent Insta- gram, are “ walled gardens ”. The rich data they collect can only be used in their own environment: when you buy a campaign, you are told how many views and clicks you got, but that’s it, you don’t get any information for each cookie or user ID. In short, you get nothing. It’s the same story with Amazon. However, I think these “ walled gardens ” will open up one by one in the medium or long term, for fear of losing business. For example, Google’s DMP (Audience Mana- ger) will open up to DSPs other than DSM ”. When Twitter announced that it would significantly increase the number of characters in its messages, this was not just in response to the requirements of its increasing number of users, but it was also to ensure that it could host the longer texts which its members currently link to outside websites. This is being done to keep things “ in Twitter’s own garden ”, as Will Oremus points out. “ Twitter isn’t raising the character limit, it’s becoming a walled garden ”. It would therefore seem that brands shouldn’t have high ex- pectations in the medium term for social networks. All you can do is to learn to use them bet- ter, optimise the free levers and dedicate more time and human resources to them, while kee- ping branding at the forefront. “ Only they can put their rich seams of data to use: when you buy a campaign, you don’t get any information for each cookie or user ID. In short, you get nothing ”.
  10. 10. 19 // chapter 2 // bringing in the offline world Ideally, attribution/contribution should not be limited to the digital realm, no matter how rich it is. But are there any bridges between the two worlds? First solutions are beginning to appear. Zoom to the “ Offline ”. bringinginthe offlineworld 18 // chapter 2 // bringing in the offline world chapter 2 “T here is a longstanding culture of measurement in the offline world that is solidly rooted in existing practices. However, it isn’t about measuring performance, it’s about measuring the target audience. You buy exposure, not conversions ”, explains Laure Debos, Analytics, Research & Insights Director at Publicis Media, on the main difference between Online and Offline. On the rare occasions when you purchase performance in Offline, you link the exact timing of a TV spot to the number of calls to a Call Centre or the number of connections to a website, for example. But this remains fairly uncommon. “ Advertisers rarely use TV solely for immediate conversions, they put more of an emphasis on branding. Generally, with Offline, the line between branding and impact on sales is much more vague than in Online, where we draw a sharp distinction between the two ”, says Laure Debos. Different calendars and units of measurement The main unit of measurement in Offline, and in TV in particular, remains the GRP: the number of individuals within a predefined segment, such as the famous “ housewife under the age of 50 ”. “ In digital, we measure certain indicators. This is another difference between the two worlds ”. As for remuneration, in Offline you pay “ in relation to the numbers of viewers reached ”, says Laure Debos. The GRP cost is negotiated with the media company, and there is no need for an attribution model since a single institute (Médiamétrie) delivers the results and states how the GRP was broken down. Médiamétrie is a certifier, the “ control tower ” for TV and radio campaign results. The equivalent for paper media is the ACPM (Alliance pour les Chiffres de la Presse et des Médias). “ Médiamétrie is financed by the ecosystem as a whole (TV channels, agencies, etc.), which guarantees its impartiality. There is no equivalent in the digital world ”. This is a real problem, according to Laure Debos: “ Our online partners and service providers have a conflict of interest. They provide results for campaigns that they themselves have managed. Many of us are trying to get Médiamétrie to have the same kind of role in digital as it has in TV. The institute has many ongoing projects, but there are even more sources of data available in the market ”. At the end of a TV campaign, Médiamétrie provides the exact GRP out of the target provided by each channel. Invoicing occurs afterwards, and in proportion to these results. “ You often hear that digital is more accessible, but in the Offline world, you only pay for what you get ”, says Laure Debos. Another major difference between Online and Offline is “ time-frame windows ”. The common theme strategy and the “ One Shot ” strategy are both possible in Online and Offline. However, the implementation timeframe is very different: Offline often requires advance planning (with regards to openings in advertising networks), and offers only infrequent measurement opportunities - 2 to 6 times per year, according to media companies. Modifying a campaign is difficult. In contrast, Online often allows for daily measurement and easy changes. “ The current trend is to measure how radio and TV are drawing customers to the website ”, says Laure Debos. “ There are many new technological solutions. The tools provide numbers on visits linked to TV campaigns, often during the five minutes following the spot ”. Alexis Mollet (La Poste) used one of these tools in his latest TV campaign. “ In the long term, the goal is to understand how people reached by the spot behave in the digital world. Is the conversion rate better? Is the average shopping cart bigger? ” Most members of the EBG Task Force are very eager to measure the effectiveness of their TV campaigns through these new solutions. Some have tried even more radical solutions: suspending TV campaigns entirely for a year, in order to see if anything changes! “ There are many other ways of going about this ”, says Laure Debos. “ For example, one can link a consumer panel to a media panel, to see if families exposed to an offline thenumbers 94 % The percentage of conversions that occur in the physical world. Source:Facebook / Atlas “ For TV, we pay in terms of the viewership reached. No one needs an attribution model since a single research institute (Médiamétrie) tells us how the GRP was divided ”. lll
  11. 11. 21 // chapter 2 // bringing in the offline world20 // chapter 2 // bringing in the offline world lll “ You might wonder why the market has waited so long (around 50 years) to take interest in such an old and reliable method such as econometrics. The reasons are technical. We hear a lot about the development of the Internet, but not about developments in computing power and the statistical suites that have become broadly accessible in turn ”. [ Laure Debos, Analytics, Research & Insights Director at Publicis Media ] campaign make more purchases than a family that hasn’t been exposed. But ideally - and this would be revolutionary - we would like to be able to measure and quantify the impact of branding on the performance of digital campaigns”. TV campaigns have long-lasting effects thanks to persistence (the memory it creates) and repetition. Focus on econometrics Econometrics is an ancient science that has been much- discussed in the past ten years. What exactly is it? Statistics and mathematics: “ Econometrics is the analysis of time series ”, explains Laure Debos. “ The idea is to observe variations over a very long period. You determine what you want to model; for example, variations in a manufacturer’s sales. You then go through two years of sales data, week by week, and look at anything that could have influenced the curve: price changes, publicity campaigns, weather, school holidays, media and marketing investment. You get two years’ worth of data for each of these, with a weekly value for each. All this data is processed and analysed by a statistician who tries to account for changes in sales. The goal is to find a model that “ sticks ” closest to the real data ”. Once this substantial piece of work is complete, econometrics allows you to “ play ” with the model, for example, in order to determine at what level of investment campaigns begin to be profitable, and at what level of investment they stop yielding returns. Laure Debos: “ Typically, a digital campaign produces results very quickly for a “ minor ” investment, but if one invests too much, the saturation point is reached very quickly ”. For their part, TV campaigns require more investment, but models often show that the saturation point is rarely reached. The model can also calculate how long the impact of the campaign lasts (persistence): this helps you understand how to spread out marketing actions. You might wonder why the market has waited so long (around 50 years) to take interest in such an old and reliable method. Laura Debos believes that the reasons are technical: “ We hear a lot about the development of the Internet, but not about developments in computing power and the statistical software that has become broadly accessible in turn. Ten or 15 years ago, we didn’t have the computers required to run the complicated programs required. You hear about it these days because it’s like a contribution model: you need to look three months into the past for digital work, compared to two years in econometrics. The only difference is that the contribution model is used to remunerate a partner, while in the offline sphere, partners are already remunerated ”. It is an expensive method since it requires considerable human expertise as well as “ looking beneath the bonnet ”. It also requires the client to be entirely on-board and to provide all the necessary data, some of which can be sensitive. The still-tenuous link between Online and Offline Where are we in terms of the integration of Offline into attribution/contribution? How can we manage the impact on measurements? What kind of progress can we hope for in the medium or long-term? For now, all we really know how to do is measure attribution/ contribution with or without a parallel offline campaign. For example, we can observe that the contribution of SEO increases during a TV campaign. In these cases, Offline is more so contextual information, “ Econometrics allows you to ‘play’ with the model to determine at what level of investment campaigns begin to be profitable and at what level of investment they stop yielding returns. Typically, a digital campaign produces results very quickly for a “ minor ” investment, but if one invests too much, the saturation point is reached very quickly ”. lll “One can link a consumer panel to a media panel, to see if families exposed to an offline campaign make more purchases than a family that hasn’t been exposed. But ideally – and this would be revolutionary – we would like to be able to measure and quantify the impact of branding on the performance of digital campaigns”. special report
  12. 12. 23 // chapter 2 // bringing in the offline world22 // chapter 2 // bringing in the offline world rather than an integral part of the model. “ You would need to be able to add cookies to TV ” “ To manage the impact on measurements, you would need customers who see a TV campaign to produce cookies ”, says Laure Debos. “ You would need “ TV cookies ”. I give the example of TV because that’s the medium where we’ll reach that point first, because that’s where the most information is available. You would need to link a cookie to “ people-based ” marketing, as Facebook puts it, by asking customers directly or by merging information ”. Reconciling Online and Offline is a vital issue. “ The frantic pace of measurement in Online is still a bit crude. We are far from perfecting our techniques, and the market is in the process of trying everything out: what data is best, which partners to choose...? The lack of precision is a bit shocking to those who come from the rigorous culture of the Offline world. On the other hand, we have a lot to learn from Online, in terms of reaction speeds, flexibility and the test & learn approach ”. We are starting to see solutions based on the punching power of social networks in combination with tools like Atlas that can reduce the distance between On and Offline (described opposite). From Web to store and vice-versa “ In incidents of fire, accidents and miscellaneous risks zoom Atlas and DoubleClick: the first tools for a reconciliation Atlas and DoubleClick are comparable tools, in the sense that they are “people based” instead of “cookie based”. Cookies are linked to a computer, browser or device. A cookie on a PC can therefore be connected to two people in the same household. Atlas and DoubleClick work on the same identifier: the fact that a person is “logged in”. One same email address can correspond, for example, both to a loyalty card at a physical sales point and to a username on a social media network. The two can be linked. The Atlas solution, purchased by Facebook from Microsoft in 2013, uses clients’ Facebook usernames to connect the link between Online and Offline: “ All the information is anonymised in order to comply with CNIL ”, says the Performics team. “ Last year, one of our clients, a bank, was able to measure that 67 % of its impressions were delivered to its target age group of 13- 24 years old. But we were also able to discover that the campaign was even more effective for 25 to 34-year-olds ”! As for Google, it has launched its own solution integrated into DoubleClick Manager (DCM), which works within the Android environment, Gmail addresses, etc. According to the Performics team, “ They have a little less coverage, but the tool is very reliable from a statistical point of view ”. Another solution is being reviewed by the members of the EBG Task Force: “Call Tracking”. Specifically, each advertisement and advertising channel are given their own phone number, generating phone calls to the call centre. This is invisible to clients, and the call centre keeps a record of the numbers called. This subsequently allows you to measure the profitability of each channel. The main limitation of Call Tracking is determining when a sale is actually closed: “ When do you deem a sale is made? Is a lead enough? After all, Call Tracking measures leads and not actual conversions ”. However, advertisers face a dilemma. They aren’t always ready to provide certain information to third parties, even if this is necessary to produce better analysis. That’s why Sony Mobile, for example, prefers to use internal tools to create its models (read p. 12). within the insurance sector (automotive and residential), 80 % of the pre-purchase phase is conducted digitally, and much less is being done in the physical world. We therefore need to guide the flow towards sales points ”, says Rodolphe Pachot (Allianz France). Meilleurtaux.com, a pure player with more than 200 sales points, has the same problem (see next page). If digital campaigns can complement in-store physical traffic, the opposite can also be true: advertisers relying on offline campaigns to bring traffic to their websites. This is clearly the case for Meetic, whose TV campaigns and display ads bring new members to its website. Aramisauto. com, a pure player, goes a step further: it uses offline TV campaigns to bring prospective clients to its website, knowing that the website will then bring clients to physical points of sale to finalise the purchase. lll thenumbers 187 In 2003,consumers could be exposed to 37 different contact points.“ Twelve years later,in 2015, our studies found 187 potential points of contact between the brand and the consumer ”,says Laure Debos. Source:ProprietaryTouchpoints study - Publicis Media. special report
  13. 13. 25 // chapter 2 // bringing in the offline world24 // chapter 2 // bringing in the offline world The system can distinguish visits linked to the spot from normal traffic. “ We activated the system well before the campaign started so that it could observe normal traffic on the website ”. Indirect post-view visits outside the six-minute timeframe are also estimated by excluding natural visits (SEO, direct access) or AdWords. This allows us to better estimate the “ halo ” effect of the TV campaign. “ Without information and measurements, we can’t improve and we can’t optimise our actions ”, says Guillaume Gozlan. “ We now have access to data on the type of product our website users are interested in: real estate loans, automobile loans…The TV spot focuses on real estate loans, but it ends with the following words: “ Real estate, automobile, consumer loan, professional loan, meilleurtaux.com – may the best win ”. The idea was to give information on the different sectors we work in. We were able to observe that from the very beginning of the campaign the visits were spread across different sectors ”. A good analytical lens With a 16 second TV spot, shot in 3D and aired on multiple TNT and cable channels, linked to transmission sponsorships on M6 (Capital, Zone interdite, Recherche appartement ou maison, series, etc.), Meilleurtaux.com now has better data to help guide its future campaigns. “ This is a strong analytical lens that helps guide our strategy. We’re looking for the best compromise to optimise our budget. This pragmatic approach comes from the Internet. I’m also interested in the distinction between mobile devices and desktops. There are now many multitaskers in France, consumers who watch TV while surfing on their tablet ”. Beyond its TV campaigns, Meilleurtaux.com uses local levers (posters, exhibitions, etc.) determined by local conditions. Meilleurtaux.com, a pure player with 230 franchises in France, has been on TV since 2011, first in typical TV spots and then as a show sponsor. Guillaume Gozlan chose both options for 2016. Above all, he chose a measurement solution. Objectives: quantify the increase in traffic directly linked to TV and measure the benefits in terms of conversions. “W e have had an “ Analytics ” culture for a long time, and we’re happy that new tools are appearing to allow us to better understand the impact of our TV campaigns on our website ”, says Guillaume Gozlan, Marketing and IT Director at Meilleurtaux.com. “ We have chosen Realytics, which offers an advanced technological solution, developed by a French company. Our goal is simply to optimise our media plan: to what extent do TV campaigns generate website visits? How many estimates, and on what products? At what times and on what channels do we get the best results? ” Behind the scenes, the system they put in place starts by detecting the spots and show sponsorships. “ We’re basically talking about robots watching TV ”, says Guillaume Gozlan. “ And yes, we’re very confident that they recognize our spots. And since the tool is linked to our website, it can show us peak visit times or specific visits during a window of six minutes after the spot is aired. This applies both to show sponsorships and TV ads. ” And it does this with subtlety. [Guillaume Gozlan, Marketing and IT Director.] “ measuringtheimpact ofourTVspots ” Meilleurtaux.com “ We analyse site traffic during the six minutes after the spot is aired. Indirect post-view visits outside the six minute timeframe are also estimated by excluding natural visits (SEO, direct access) or AdWords ”. case study
  14. 14. 27 // chapter 2 // bringing in the offline world26 // chapter 2 // bringing in the offline world keypoints channels, especially in radio, and more occasionally on TV. We also have poster campaigns and our service centres are key communication points ”. A project in three phases On the digital side of things, Euromaster focused for a long time on Search. “ We work in an essential needs market: tyre replacement, oil change, brake pads...Our prospective customers are therefore customers who intend to make a purchase, and we have put a lot of emphasis on active research channels (SEM, retargeting), which give us the best return on investment ”. Nowadays, the company is using many other levers. Therefore we need to know with some precision the effectiveness of each channel and each campaign. This helps us spend our money more wisely, and of course, to sell more! “ We know that some levers are over-emphasised, and others under-emphasised. If we know what part of our budget is most effective, we can saturate it before moving on to other channels ”. Their attribution/contribution project was launched in 2016. Romain Perrin built it in three phases, starting by analysing the deployment of various digital channels. This will be followed by a cross-device stage, and then a cross-channel phase using econometrics amongst other things. “ The technology has a head start on the marketers ”. So far, Romain Perrin has completed a study of the tools currently available on the market. “ Software solutions are currently very effective. Often they are even a little bit ahead of the advertisers. We are in the midst of the virtuous cycle. Technological advancement makes us ask new questions, which in turn improves these tools and helps them become more sophisticated. I have sourced a solution that corresponds to Euromaster’s current and future needs. It’s not the ‘luxury’ model, but it is accessible and comprehensible for our traffic managers in various countries, which is essential. Behind every attribution campaign are human resources. You need the right people to analyse the data you collect ”. The software, installed in May 2016, will soon allow Euromaster’s digital strategy to evolve. “ The ROPO (research Online, purchase Offline) effect is very important for us. These are not impulsive purchases, and the consumer conducts careful research before making a decision ”. Euromaster is a click and mortar company operating in an essential goods market, automobile maintenance. The digital world allows the company to direct its customers to its service centres. Having long depended on Search, Euromaster is now playing with several other levers. It has recently equipped itself with a software attribution/ contribution solution in order to better identify the role of each channel. “T he historical heart of our business is the tyre ”, says Romain Perrin, Digital Acquisition & Retention Manager at Euromaster. “ Several years ago we expanded our service offerings to include ongoing maintenance ”. Euromaster operates in 17 countries and has a network of around 2,300 service centres in Europe. For this company, the Internet serves as a lever for generating traffic in its service centres. The level of online interactions varies. It includes transactions (e-commerce), appointments (individuals and commercial), estimates, service centre locator and downloadable coupons for services. Identifying consumers acting with the intent to purchase “ We leave it up to consumers to choose the entrance point that suits them ”, says Romain Perrin. “ This Web to Store strategy has been in place for several years and from now on, I’m looking to emphasise the cross-channel aspect. We have a lot of presence in offline “ In terms of attribution/contribution, you should not set out to immediately find the Holy Grail ”, says Romain Perrin. “ It’s better to proceed calmly and to understand exactly what’s happening, step by step, between the digital and physical worlds. As is often the case in the digital world, one often needs to test things before deploying them across the board. Even if one attribution tool suggests that a particular channel is a ‘gold mine’, I’m not going to divert all of my budget to this channel. There is no 100 % accurate model. The model can change depending on the date, the hour, the device, the market... Finally, the digital and communication teams need to work hand-in-hand in-house. The data deployed for the study, just like the data resulting from the study, is cross-sectional ”. [Romain Perrin is Digital Acquisition & Retention Manager.] “ thedigitalworld workingfor thephysicalnetwork ” Euromaster zoom The figures • Euromaster (Michelin group) has around 11,000 employees in Europe and 1.8 billion euros in sales. • Euromaster sells 7.8 million tyres each year, including 2.5 million in France. • Euromaster France was named best chain store in France in 2015-2016 in the automotive sector. case study
  15. 15. spotlight 29 // chapter 2 // bringing in the offline world28 // chapter 2 // bringing in the offline world The market is buzzing with solutions to better exploit first party data, and you can even try your luck with second and third party data. However, marketers are being more cautious with “ full DMP ”: it’s better to do things one step at a time. T he DMP (Data Management Platform) concept has provoked debate. “ DMP has been a commonly-heard buzzword for the past two years ”, says Arnaud Lauga (Performics). “ Many compa- nies want to quickly build up their DMP and to acquire a full toolset. However, the per- ception has changed this year. Marketers aren’t throwing themselves anymore into these very demanding projects. They understand the need to proceed step-by-step, and that it’s better to start by using the tools they already have ”. And here they are in a strong position! So-called ‘first party’ data is the most qualitative. Advertisers collect this data through their own interactions with clients and prospective clients. Exposure to media campaigns, site pathways, purchases/conversions and CRM information in general. It exists only within the company. “ However, there is still work to be done to optimise first party data! ” says Arnaud Lauga. “ It’s the most valuable and inexpensive data. Of course, it requires energy and an investment in human resources, but it’s worth working on it before spending 400,000 or 800,000 euros for a full DMP ”. After all, by collecting and merging first party data and then processing, dividing and then using it, it is already a DMP - a “ first party DMP ”! After that, one can collect more data through advertiser partnerships or editors (second party data). Finally, third party data is much less qualitative, but also comes in great quantity. However, for most advertisers, proceeding step-by-step is the key to success. Some, like Yacine Mahfoufi, France Marketing Director of Alcatel-Lucent Enterprise who interviewed in January 2016 for emarketing.fr, point to the tool’s weaknesses. “ The benefits of DMPs are currently over estimated for five reasons: the inability to merge with external data, the poor matching rates between your data and the CRM, an unproven ROI since anonymised third party data is expensive, lack of clarity on privacy and under-appreciated “ There is still work to be done to optimise First party data! It’s the most valuable and inexpensive data. It requires an investment in human resources, but it’s worth working on it before spending 400,000 or 800,000 euros for a full DMP ”. DMPandCRM:towardsamore pragmaticapproach technical complexity - implementing the tag plan with the matrix that links your offers on the one hand and messages modified for email and display on the other hand is a considerable piece of work that must be completed before making a start ”. Linking a cookie to each element of the CRM database Among the more interesting recent technological innovations is an improvement of client relationship management thanks to “ CRM onboarding ”. In simple terms: “ This is about linking digital identifiers (cookies) to each piece of information in a CRM database. Has someone logged on? Link a cookie to them. Is someone sending an email? Similarly, assign them a cookie. And so on and so forth ”. This data must be anonymised by encryption. As of May 2016, there are four service providers in the French market. In terms of the downsides of CRM Onboarding, aside from high pricing that can jeopardise ROI, there are problems with the freshness of the data. “ In the travel sector, for example, a three-month-old cookie can already be obsolete ”. And the percentage of the CRM database that can actually be “ onboarded ” is a topic that is up for debate. Achieving 25 %, it seems, would be quite an accomplishment. “ CRM On-boarding raises the problem of data freshness. In the travel industry, a three- month-old cookie can already be obsolete ”.
  16. 16. Cross-channel, and to be more precise, cross-channel devices, will change everything. excelling atmultichannel chapter 3 31 // chapter 3 // excelling at multichannel30 // chapter 3 // excelling at multichannel “A t present, when you think you’ve reached 100 people, you have only reached 42 at most. And when you think that a consumer has seen your ad 10 times, in reality they have seen it 24 times. We both overestimate target cove- rage and underestimate repeti- tion”. These statistics, provided by Performics, show how diffi- cult circulation and campaign measurement are from a cross- channel perspective. The cross-device and the dream of a unique ID The cross-device does not simplify matters - 40 % of consumers today start a purchase on one device (computer, tablet, phone, etc.), then finish it on another. Even if today, the majority of cross-device conversion re- attributions take place between two computers (office vs. home), Arnaud Lauga (Performics) reminds us: “ One person is four cookies! One computer at home, one computer at the office, a smartphone, a tablet, a laptop...The goal is to get a unified understanding of these four cookies by grouping them under one ID. After that, of course, one must make a connection with the CRM, in order to know that a particular ID belongs to a particular client - anonymously, of course. What interests us is the information we have on the client (RFM segment, age, purchase history, type...) and not their name ”! Is this possible, in technical terms? We need to turn back to Atlas and DoubleClick (read page 22). “ By using a people- based perspective - the Atlas solution - one of our clients was able to observe that its conversion rate increased by 29% when at least two devices were used, compared to only a desktop ”, says Arnaud Lauga. “ Another advertiser in the fashion sector discovered that, according to Atlas, 13 % of its in-store sales followed at least one exposure to an online campaign ”. These statistics are from January 2016. “ Another significant result is that by using Google’s DoubleClick solution with cross-device measurement, a communications company was able to better re-attribute its conversions, leading to a 110 % increase in attribution to its paid levers. Exposure on the mobile device followed by conversion through direct access on a desktop is attributed by default to normal traffic ”. There is a third solution, “ co- opt ”, where advertisers share their logged data, for example, Adobe, Signal, etc. “ For all of these ”, says Arnaud Lauga, “the bridge is the email address, username or Facebook ID. Both Facebook and Google have enormous reach, so it was only logical they were the first to throw themselves into these kinds of tools. But there are others like BlaBlaCar and LinkedIn that also have considerable reach and are in a position to launch their own solutions ”. zoom Mobile continues to buzz “ Online shopping on mobile devices doubled in 2015 ”, according to the magazine L’Usine digitale (March 2016). A study carried out in January 2016 by the Centre for Retail Research in eight European countries (France, Germany, Spain, Italy, Netherlands, Poland, UK and Sweden), as well as in North America, found that “ online sales have reached 36.5 billion euros, an increase of 17 % in a single year. This puts France in third-place in the EU, after Great Britain and Germany. This strong overall result hides changes in the types of device used to make these purchases, with an increasing reliance on smartphones. For the time being, though, a majority of purchases are made by computer. Online shopping doubled in 2015, reaching 7 billion euros, compared to 3.7 billion one year earlier. In other words, each French mobile device customer spent 282.85 euros in 2014, 521.77 in 2015 and will likely spend 711.67 in 2016. This is in part due to the fact that “ one of the factors causing this growth is the increasing rate of smartphone usage ”, according to one of the authors of the study, noting that at 58 %, this rate is 4% above the European average. Smartphone purchases tend to be small, with an average shopping cart of 49.74 euros in 2015. It will decrease in 2016 to 47.54 euros ”. This was highlighted by the members of the EBG Task Force: “ We have observed the increase in mobile sales as well as the difficulty at this stage in doing cross-device tracking. Companies such as Facebook are proposing to use their logging across multiple devices in order to reconcile these two. At this stage, not many can use this, and it represents a pretty small sample size ”.
  17. 17. variable into the equation because if you only look at the usual 30 day attribution window, there is a risk you might miss something important ”. The members of the EBG 2016 Task Force made a list of the various A/B test methodologies and their advantages and disadvantages. They can be divided according to three main criteria: - Before/after split - Geographical split - Random audience split The last type is the most reliable, without any seasonal or geographical bias, but it is impossible to use with certain levers (SEA, affiliation, typical display). Dividing by before/after introduces a major seasonal bias and makes it difficult to isolate two different groups. Dividing geographically (one can divide France into 2, 8, 10, etc. regions) introduces an obvious bias and implementation can be complicated for display and affiliation. Incremental performance Trading desk RadiumOne has implemented “ in-house ” tools, which it first applied to a display campaign. An A/B test was carried out to measure the advertising uplift (the incremental performance): “ We made use of the binary nature of RTB - it’s either a win or a loss. We found a 54 % increase among those who were exposed to the campaign compared to those who were not. Of course, one has to take into account that there is a bias inherent in this method ”. We then tested the campaign strategy – what would happen if we made incremental changes? “ We observed that the conversion rate increased very quickly up until four exposures, and continued to increase but at a lesser rate until seven exposures, but that any further exposures made the conversion rate drop ”! Third test: the trading desk used client data - geolocation of the mobile device users at the points of sale. “ Using GPS coordinates with an accuracy of 15 to 20 meters, we were able to see if users who are exposed to the campaigns went to the stores. This is often used if a company sends out a notification that it is holding a sale on a particular day ”. A final test incorporated CRM data from a company and measured sales compared to advertising exposure: “ The more companies digitise their CRM databases, the more we can use these kinds of techniques ”. The Performics team then presented a client case study carried out using random groupings. “ We divided users of an e-commerce website into three groups and a control sample. We did not use any retargeting on the control sample. Before “I ncremental management is very important for us, since we believe it represents the true added value provided by an advertisement ”, explains Arnaud Lauga (Performics). “ It’s the ideal indicator, the Holy Grail. Supposing an advertiser closes 1,000 sales in a world where they have advertising, compared to 900 sales in a world where they haven’t. They would be pleased with this result. Our goal is to use this indicator in an even more sophisticated man- ner: which advertising levers performed best? ” A/B testing and client cases As in medicine, this measurement is made in comparison with a “ placebo ” - a sample that was not exposed to the advertising lever. But if four levers (SEA, display, retargeting, affiliation) are being studied, for example, there can be a great many possible combinations depending on whether one uses one, two, three or four of the levers. “ A/B tests have limitations - in reality, it’s very difficult to find a population that hasn’t been exposed to any of the levers – unless you lock them up in a cave! No two cases can be entirely isolated from one another. And to measure each lever, everything has to be duplicated by as many times as there are possible combinations. It is complicated or even impossible from a technical standpoint, and it can have a major impact on the budget ”. Another problem is that advertising doesn’t always have an immediate impact. Should one measure after one day? A month? A year? “ It is important to build this 32 // chapter 3 // excelling at multichannel 33 // chapter 3 // excelling at multichannel thenumbers 12 % 12 % of conversions are not captured - in other words, the client finishes their conversion without it being attributed to a marketing action, since they changed devices in the meantime. (Sources:Atlas internal data,March 2015 & Nielsen Digital Ad Ratings industry norms for US,July 2014) understandingthevalueadded ofeachchannelIncremental management allows advertisers to determine the contribution of each lever in comparison to an initial situation in which this lever was not activated. “ A/B tests have limitations - in reality, it’s very difficult to find a population that hasn’t been exposed to anything - TV, SEA, affiliation - unless you lock them up in a cave! And to measure each lever, everything has to be duplicated by as many times as there are possible combinations. It is complicated or even impossible from a technical standpoint ”. lll special report
  18. 18. 34 // chapter 3 // excelling at multichannel 35 // chapter 3 // excelling at multichannel launching the campaign, you have to ensure that the same conversion rate appears among the three groups and the control sample. In this case, the difference was minimal - 0.07 % - suggesting that the random division was successful ”. Over the course of a month- long campaign, Performics measured an increase in the conversion rate of 8.8 % on the sales volume, (representing an additional 10,000 sales). “ It was clear that this was a population that could be retargeted, as it was composed of visitors that the advertising client had access to. Each retargeter will make their own decisions on how to reach out to the group of clients they have access to, concentrating for example on ‘ shopping-cart abandoners ’, who are the most likely to be converted, or on the visitors who remained on the website for the longest period of time ”. You have to identify which visitors are the most susceptible to advertising. How do they behave on the website? Off the website? You need to find some correlation and try to target them. The next step is to determine the right level of pressure. “ Multiplying the budget by three doesn’t necessarily yield proportional returns ”. Identifying the maximum budget for each lever Which statistical concepts can be applied to advertising campaigns? Performics has developed a mathematical approach. Members of the Task Force were asked to work on a micro- economic case study: “ If I have 10 euros, how many oranges and chocolate bars should I buy to maximise my pleasure? ” In this case, “ decreasing marginal utility” (the first chocolate bar giving more pleasure than the second one, and so on) allows us to determine that if the price lll Optimising the allocation of your budget across several levers budget With two levers [Marginal CPA modelling in relation to budget. The optimum level is reached when the two levers have the same marginal CPA.] is equal, the choice between oranges and chocolate should be guided by maximising the marginal pleasure produced by each additional unit. This leads to an equation: the optimal allocation of the budget between oranges and chocolate is reached when the marginal utility of an orange divided by the price of the orange is equal to the marginal utility of chocolate divided by the price of chocolate. Assuming you haven’t given up reading by now to find some aspirin (and a chocolate bar), it is worth noting that this theory can be applied to the media sector and allows one to determine the optimal mix of medias - sales or revenues generated by channels, total media budget to allocate between channels, marginal CPA or ROI. “ It produces some indicators we don’t normally see, such as the ‘marginal CPA’. The optimal budget allocation between channels (which allows you to maximise sales) is reached when the marginal CPA of lever A is equal to the marginal CPA of lever B ”. In another workshop, members of the Task Force were invited to dive into a table of figures to answer the question: “ How do you divide a budget of 7,000 euros between levers A and B in order to maximise your sales? ” With three or more levers, creating a model becomes essential (see graphs opposite). For each budget level, the model determines the optimal allocation between levers A and B to maximise sales. This shows that the optimum is not the same for each overall budget level. The main limitation of the process is that it doesn’t take into account secondary objectives such as image. Moreover, the future cannot be assumed to be the same as the past, so the calculations need to be kept up-to-date. Creating a model is essential when you have more than two levers [Optimal allocation of a budget between different levers. For example, for 830,000 euros, the optimal allocation is 52 % x 830,000 = 431,600 euros for the SEA, and 11 % x 830,000 = 91,300 euros for affiliation.] special report
  19. 19. 37 // chapter 3 // excelling at multichannel36 // chapter 3 // excelling at multichannel zoom eight years and has therefore been interested in attribution/ contribution since 2011. “ All agencies know they need to buy Display and optimise their Search campaigns, but none of them know how to make sense of measuring the pathway chosen by the client. It’s a key topic that requires common sense and is linked to everyday life. Digital has become the second-most important media after TV ”. Compagnie des Alpes has taken a pragmatic approach: “ We are working in ‘test & learn’ mode. We haven’t bought any program licenses since they are too expensive. However, we do request attribution studies from our agency, Performics, on specific time periods. One of their data scientists works on the data ‘manually’. Instead of paying for a very expensive license, I purchase two studies per year and it costs ten times less ”. Investing more at the top of the purchase funnel Around 40 % of tickets for the parks are purchased online, compared to 25 % for ski packages. A ticket purchased online not only gives the company stable revenue, but also allows it to anticipate what internal resources it will need to mobilise from day to day to receive visitors. The results of the first study clearly show that Display and branding were present in more than 40 % of the customer conversion pathways. “This led us to invest at the top of the purchase funnel, on partnered websites, rather than at the bottom. We have reviewed our allocations as a result”. It became clear that certain channels at the bottom of the purchase funnel such as promotion codes were cannibalising conversions: “ The Internet user has already made the decision to buy, and I could have made this sale without a promotion code or by using a less expensive lever. ” Compagnie des Alpes decreased its overall investments by 10 %, with a decrease of up to -50 % on certain partnerships. In all, sales increased by 25 %. While these results are spectacular, they have to be seen in context: “ It is not unusual, when starting from scratch, to find a substantial optimisation gap in the ecosystem for the first attribution studies. The following studies will help us optimise our partners’ remuneration. It’s useful in more than one way - by no longer paying everyone in the same way, but on the basis of the real contribution (direct sales), we are in a better position to find these partners and to negotiate with them ”. A world leade in mechanical lifts and leading European amusement park operator, la Compagnie des Alpes turned to attribution/ contribution in mid-2015. Convinced that traditional methods of measurement were counter-productive, Thomas Demondion follows the client’s pathway in its entirety. It didn’t take long for the results to tell: acquisition costs “ down by 25 % ”. . “W e are all consumers, and therefore we know very well that just because we see an adver- tising poster doesn’t mean we will necessary buy something. The Internet user does some research, compares brands, and when they have made their choice, they get interested in the purchase conditions, such as the delivery date? As ad- vertisers, we need to adapt to this client pathway logic. The numbers speak for themselves - in digital alone, we have gone from 9 points of contact in 2003 to 28 today! Measuring things in discrete groupings doesn’t make sense anymore ”. Thomas Demondion is looking to measure overall online interest: “ We sell tickets for our parks online (Asterix, Futuroscope, Grévin Museum, Walibi) as well as ski packages. Therefore, our performance indicators are very concrete. I am no longer just interested in measuring each lever, or knowing if I’ve organised my SEA correctly or distributed Display correctly. What I want to know is: when exactly is the decision made? Which levers are really useful? And above all, is digital profitable in and of itself? ” He worked for an agency for “ The goal for the digital teams at Compagnie des Alpes is to develop overall sales at our physical sites, whether they are finalised through digital channels or directly at the till. For example, we offer programs to our ambassadors and loyal pass-holding customers to allow them to sponsor 1 to 5 of their friends. This digital communication is reflected in the physical world - they print the email and present it at the till, accompanied by their friends, to take advantage of the offer. We are running tests like this and getting very positive results, with excellent acquisition costs and a conversion rate close to 20 %. We also acquire new clients at the same time ”. [Thomas Demondion is head of Acquisition and Performance.] an attribution case study twiceayear Compagnie des Alpes zoom Next project : mobile devices More than 50% of unique visitors to Compagnie des Alpes connect by a mobile device. “ This is a crucial point. We are actively working on the role of mobile devices in our ecosystem: is it used mostly to prepare for a trip? Or on the day itself, to find the way to the park? To buy additional tickets when someone joins the group? And so on. The final question is: do we want to advertise on mobile devices? We have already defined the role of our application, which is very oriented towards services: waiting time at attractions, food and beverages purchased by phone, etc. ” [La Compagnie des Alpes vend en ligne des forfaits pour 11 domaines skiables (Les Arcs, La Plagne, Tignes, Les Deux Alpes, Serre-Chevalier, Flaine...) ainsi que des billets pour ses 13 parcs de loisirs en Europe. © Anaka] case study
  20. 20. 39 // chapter 3 // excelling at multichannel38 // chapter 3 // excelling at multichannel zoom contribution questions, ” says Simon Le Fur. “ The first thing to do is to deduplicate; you just can’t work without it. After that, you have to understand the client’s purchasing dynamics. At Greenweez, we are working with food distribution profit margins, so we base our profitability on selling large volumes. I implemented the Eulerian Analytics solution. They offer several attribution models and, above all, allow you to compare them. The last click is the basic display, even if it is not perfect. We compare it with first click display, which gives us an idea of where the client is coming from. This information disappears quickly, but it’s good to find out what the client did during the 30 or 90 days preceding the purchase ”. This helped Greenweez.com identify major acquisition channels that it has to be careful not to cut off. “ For us, it’s AdWords and price comparators. If an AdWords campaign costs too much, we remember that analysis shows that AdWords brings sales with the first click and we optimise the campaign so that we can go forward with it ”. On the other hand, Simon Le Fur has been able to identify “ declining ” channels, such as affiliation. “ There are still many companies that pay to have promotional codes published on sites other than their own. Users will look for codes even if they have already decided to make the purchase. The last lever in a session, before the conversion, clearly shows this ”. “ For me, ” says Simon Le Fur, “ attribution should only be used to take concrete decisions. Eulerian lets us allocate our budget. Everyone in the company has access to it, and the data is located centrally so that everyone can draw information from it that is directly useful to the company. This is a precondition for us staying flexible ”. Greenweez.com, founded in 2008, has become the “ Internet’s organic supermarket ”. This pure player has developed a pragmatic approach to attribution/contribution, based on the Eulerian solution. . I f a company like Biocoop or Naturalia has 5,000 to 6,000 listings, Greenweez displays 25,000. This was the initial stra- tegy: hyper-choice. “ We wanted to become the leading specialist in organic sales on the Internet. With revenues of 20 million euros, that’s what we’ve done ” says Simon Le Fur, General Ma- nager. “ Our basic model is to have a wide range of products, at affordable prices. We sell not just one but multiple types of a single product, all organic ”. Like any true pure player, Greenweez learned very early to listen closely to its clients: “ They made it clear that they wanted to do all of their shopping online on the same website. Today, we continue to use feedback and are working on an ambassador program with Howtank. We are connected to our clients, while our physical competitors, who have only partial coverage, struggle to reach them. ” Acquisition dynamic The Greenweez team is made up of only 25 employees. Each marketing decision is therefore taken in the most operational manner possible. “ I used to work at Sarenza, where I spent a lot of time on attribution/ “ With 25 employees, we can’t go looking for individual IDs. But of course we are interested in cross-device, ” says Simon Le Fur. “ For me, the only reliable indicator is the percentage of transactions carried out on each device. We have identified a strong appetite for making purchases by mobile device over the past year and a half. We have to react to this and are working on improving the website to make it more responsive. 15 % of transactions are carried out on mobile devices at present, with a mobile device traffic at 25-35 %. Data like this is invaluable since it makes us aware of deeper dynamics and lets us position ourselves correctly and get the timing right ”. [Simon Le Fur is General Manager of Greenweez.com] “ identifying value-creatingchannels ” Greenweez.com zoom The figures • Greenweez.com sells more than 3 million organic products per year; • Its clients are very loyal: they place, on average, five to ten grocery orders per year; • 500,000 individual visits per month; • The average shopping cart is for 95-100 euros including taxes. “ We have defined our important acquisition channels, which are AdWords and price comparators. We cannot cut these off. ” case study
  21. 21. 41 // chapter 3 // excelling at multichannel40 // chapter 3 // excelling at multichannel oversimplifying things, you need to go into the details of how value is measured ”. About the purchase cost What really matters, at the end of the day, is the purchase cost. “ The idea is to find a purchase cost for each lever, based on the real link between a contact point and a sale, instead of dividing the total number of sales by the cost of the campaign, ” says Laurent Bouten. “ We haven’t achieved that yet. I think it’s the most complicated part, and it’s an important question for everyone: should you continuously carry out auditing work in order to model attribution, if you don’t use it continuously? Everything depends on the company’s strategy and on its acquisition context ”. At Motoblouz, the current priority is to internationalise: “ We develop 99 % of this by means of AdWords. Working on attribution is therefore not a priority. It’s an important point for other companies that do branding. But if you want to start working back to the first contact point, to go beyond your own website and track all the banners involved, it can get expensive ”. Affiliated and discount codes Laurent believes that outsourcing an attribution study before putting things into place to do it in-house can be a good practice. “ The second step would be to get this going at a regular tempo that is suited to the company’s means and objectives ”. He concludes that “ for us, we haven’t done much reattribution because we know that there isn’t much crossover between the channels. Originally, the question of attribution started with a debate on discount codes. Many of my colleagues realised that they were paying far too much to certain discount code providers. In reality, consumers were going to Google to search for discount codes having already made the decision to buy ”. (see the Compagnie des Alpes case study on pages 36- 37). “ It’s like with pilot fish - for a long time we thought that they were guiding marine predators, when actually they’re just taking advantage of the slipstream! This led a lot of advertisers to go so far as equipping themselves with a full attribution tool when it would have been enough to use an intermediate-level tool ”. The pure player Motoblouz.com, which sells motorcyclist equipment, has invested in attribution/ contribution since 2014, while retaining, it must be said, a sense of perspective. The company already uses two additional tools to ensure that the data collected is processed correctly, but is careful not to over-invest. The company’s priorities push it towards investing most heavily in AdWords “T here are two important aspects of attribution/ contribution, ” says Lau- rent Bouten, Marketing Director of Motoblouz.com. “ Measure- ment first (understanding the client pathway), strategy second (deciding whether to act or not). ” Acquiring measurement tools without producing analysis of no interest: “ We have been working with Eulerian for two years to record our clients’ pathways. The tool records all access to the site - where the user arrived, what they did when they clicked... At this point there is no payment aspect, it is pure measurement. ” “ We complement this with Mazeberry for data display. This seems key to me, since otherwise you are stuck with a lot of data and it would be a shame to only scratch the surface. You can do your own CPC, comparators or retargeting analysis, but this will lack granularity. ” “ With CPC, for example, the takeaways from a generic keywords campaign will be very different from the takeaways for a shopping campaign. To avoid [Laurent Bouten is Marketing Director.] “ avoidingtechnological one-upmanship ” Motoblouz.com zoom The figures • 700,000 clients; • 30 million euros in sales; • 11 years in business; • 50,000 references; • 17 million visits; • 5 countries covered so far. “ You can use a measurement tool to conduct your own CPC, comparator or retargeting analysis, but this will lack granularity. With CPC, for example, the takeaways from a generic keywords campaign will be very different from the takeaways for a shopping campaign. To avoid oversimplifying things, you need to go into the details of how value is measured ”. case study
  22. 22. 43 // chapter 3 // excelling at multichannel42 // chapter 3 // excelling at multichannel in practice Élodie Hazac (Orange) gives some advice drawn from her own experience. “W hat do you have to take into account when you are interested in attribution and you aren’t a pure player? My opinion is that internally, the most important thing is to have a business plan to make sure it stays profitable. If a few prerequisites are already in place, it’s possible to have started to turn a profit on the software in less than a quarter...after that, in order to account for the integration of Offline in attribution, there are solutions such as Google Analytics once you have primary identifiers like an email address, an order number or a client number. Therefore, one must be prepared to do quite a bit of work in advance to acquire this unique identifier. If not, you pay for a tool that you will use only partially. It is also important to have the in-house resources for processing the information provided by the tool. The team that is putting it to use needs to have a complete picture and be able to act on the different visibility levers. This leads you to the question of management of the project - where should the team be located so that the analysis is efficient, and who sponsors it? Attribution is no more than an activity traffic optimisation tool. Another question you might want to ask yourself is: «What kind of relationship should we put in place with our agency to deploy the optimisations?» There is a lot of excitement about these attribution solutions, but a lot of time passes between starting to think about it and the actual implementation. These kinds of tools must fit into a comprehensive digital overhaul project that should include all the teams carrying out «Paid», «Earned» or «Owned» campaigns. A campaign can be effective, but if you bring traffic to a website that isn’t optimised to clinch sales, it creates a performance measurement bias: you won’t know where to attribute sales! This is what leads companies to get an attribution tool, followed by a testing tool. One last point: as you deploy the tool, make sure there is somewhere for people using the tool or the information it produces to share their ideas. Promote regular exchanges of information». “ Youincreasetraffic, butifthewebsiteisn’t optimisedtoclinchsales, itcreatesaperformance measurementbias ”. in-house Organisation and change management This is a brand new field. Where to start? Advice from Julien Braun (RadiumOne) and Arnaud Lauga (Performics). #1 Choose tools suitable for your business and global media strategy. Adapt both the solution and the measurement sample to your needs. If you want to improve online sales, measure online sales! There are different technologies behind different measurements. Be clear about your priorities before starting #2 It is still very rare to find advertisers using incremental management, even though this method of measurement is more accurate than the others. It is difficult to transition from last click management to incremental management. Don’t rush through the steps. Consolidate your data, unify it, sort it and make sure you have the support of the teams and services that are involved. #3 Change the way you think. “ One of our clients optimised their measurement by organising a competition between agencies (he used three) without generating any additional sales. In contrast, incremental management is a very pragmatic approach; it isn’t a philosophy. It’s been used for years in Offline. A/B test it, and you will be convinced ”. #4 Measuring is good, but you have to then make use of the findings. There has to be linkage between measurement and action. This can be done through programmatic campaigns. Get many people involved, and make sure you have enough resources in-house in order to optimise your media purchase strategies in accordance with the lessons of your attribution studies. You might come to modify them pretty substantially. “ Incremental management is a very pragmatic approach; it isn’t a philosophy. It’s been used for years in Offline. A/B test it, and you will be convinced ”. firststepstowards incremental measurement our advice
  23. 23. our advice Define and prioritise your needs Take the time you need to define what you’re looking for, since everything else will follow. Then compare the effort and costs to the expected benefits. Choose the appropriate technologies. In accordance with the level of sophistication required, your current technology, and the ability of your teams to use and master them. Go about it step by step Take the time to build your technological architecture. Don’t wait for the perfect ecosystem to get started since the environment is constantly evolving. Get started, 44 // Multichannel attribution, contribution & optimisation 45 // Multichannel attribution, contribution & optimisation even if you have only 80% accuracy. Don’t hesitate to carry out POCs (proofs of concept) And determine your own benchmarks (technologies, partners). What matters is the customised optimisation of your business. Challenge your attribution models, while keeping your current model as a starting point. Make medium-term projections The system you implement must be evolving and unrestrictive. For example, expect your online and offline strategies to become synchronised, both in terms of marketing actions and in-house organisation (take the time to communicate and get the company on-board). Draw from the lessons of the market, including those from other sectors. Capitalise on your own data It’s a gold mine! Take advantage of it with third parties that you trust. People are key Ensure positive collaboration between your partners. getstarted inasafeenvironment By the Performics team. “ Thesystemyouimplementmustbeevolvingand unrestrictive.Forexample,expectyouronlineand offlinestrategiestobecomesynchronised,bothinterms ofmarketingactionsandin-houseorganisation ”.

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