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Marketers are migrating to digital channels en masse. According to a recent eMarketer study, U.S. e-commerce sales will total $259 billion in 2013 - a 14.8% annual increase over 2012's $225.5 billion.
But there's a missing link. When consumers research products online, the majority of purchases take place offline, either over a phone or in a store. Forrester Research, Yahoo, and comScore all reach the same conclusion: As much as 92% of purchases take place offline following online consumer activity, while most digital marketers target online conversions only.
Targeting isn't about clicks, it's about sales, and 92% is a large percentage of missing data!
Bridge the Marketing Divide: Combining Cross-Channel Attribution with Data Onboarding
Bridge the Marketing Divide: Combining
Cross-Channel Attribution with Data Onboarding
6801 N. Capital of Texas Hwy.
Lakewood Center II, Suite 250
Austin, TX 78731
2Bridge the Marketing Divide: Combining Cross-Channel Attribution with Data Onboarding
Understand the Impact of Online Marketing on
The rise of digital marketing has drastically
expanded the marketer’s toolkit, providing
tremendous opportunity to connect with target
audiences in new ways. Digital marketing
channels offer a wealth of granular data, allowing
advertisers to gather more information than ever
before about the entire customer journey from
discovery to conversion. However, while online
purchases capture a greater percentage of
overall spending year to year, offline purchases
continue to drive the lion’s share of revenue for
many businesses. Unfortunately, offline and online purchase data is typically silo-ed, making
it difficult to understand which advertising touch points truly influenced conversions.
So how do advertisers determine which marketing messages were the most
compelling or which channels produced the best returns?
Additionally, without being able to tie offline purchases to digital campaigns, how
can advertisers accurately measure campaign effectiveness or know if/how to
optimize budgets to generate better ROI?
To accurately assign credit for all conversions and gain the full value of any attribution
platform, it is important to understand a process called “data onboarding.” This white paper
will walk through data onboarding basics, advanced capabilities and benefits, as well as the
security and privacy features to look for in an onboarding partner
Bringing Offline Data to the Digital World
Historically, digital marketers’ attempts to understand the influence of online advertising on
purchases that take place offline has been more a guessing game than an exact science.
Recently, new technologies have become available that enable advertisers to onboard offline
marketing data — such as purchase history, CRM databases, email campaigns, and loyalty
program information — in order to create a comprehensive view of the individual customer
journey and accurately assign conversion credits to digital marketing efforts.
3Bridge the Marketing Divide: Combining Cross-Channel Attribution with Data Onboarding
How it Works
Imagine a department store where the majority of sales take place offline. This retailer may
wish to run an online campaign promoting their annual sale. They may collect purchase data
tied to email and postal addresses via their loyalty card. But how can they measure the true
impact of their online ad campaign on offline sales? Working with a data onboarding partner,
such as LiveRamp, this retailer can anonymously match their offline data sets to online
browsers. Once the offline transaction data is paired with corresponding online browsers,
marketers have the ability to run attribution analyses on offline conversions alongside online
conversions to understand the true impact of digital marketing campaigns — regardless
of where the conversion took place. The department store can now attribute their in-store
transactions during their annual sale to online ad impressions.
Working with LiveRamp, a brand identifies use cases for onboarding data and
determines which data they wish to bring online.
Using secure data transfer protocols, the brand sends LiveRamp offline transactional
data tied to email addresses or postal addresses. This email or postal address data is
typically collected at the time of the transaction, either directly or via a loyalty card.
Using registration information from several hundred leading websites, LiveRamp
compares offline profile information with recognized online browsers, creating a “match.”
Once a match is confirmed, all PII received from websites is automatically discarded
• LiveRamp’s industry-best match rates typically range between 30 and 40 percent.
• Results are typically delivered to Adometry in 72 hours
• There are no limitations to the number of in-store conversion records that can be
onboarded and data is refreshed on the same cadence as the brand
A fully-anonymized cookie is then assigned to the user’s browser tied to the offline
Audience information (cookies) is then provided to Adometry, who then tie the
cookies to online campaign and impression data for 360-degree attribution and
4Bridge the Marketing Divide: Combining Cross-Channel Attribution with Data Onboarding
Accurate Attribution Analysis
Marketing attribution is the process of identifying a set of user interactions “touch points”
that contribute in some manner to a desired outcome, and then assigning value to each
of these events1
. Advertisers can use this information to measure and understand the true
performance of marketing campaigns. While there are multiple techniques, sophisticated
marketers prefer data-driven attribution methodologies that take into consideration all
marketing touch points—across multiple channels and campaigns—leading to a conversion.
Using a combination of probabilistic algorithms and predictive modeling, the attribution
platform gives the proper amount of fractional credit to every element of the media mix.
Attribution insights can be used to:
• Identify high-performing media inventory and/or publishers
• Predict campaign performance among specific audience segments and geographies
• Perform granular “lift” analysis across channels to assess relative value of advertising
spend in multi-channel campaigns
• Create flexible “what if” scenarios for advanced media planning and budget allocation
• Understand the influence of and interaction between online (e.g., display ads, email,
search, social) and offline (TV, print radio) media on desired key performance indicators in
order to maximize advertising budgets
Comprehensive Insights about the Customer Journey
Consider an automotive company rolling out a significant, new multi-channel marketing
campaign to generate awareness for its new fleet of vehicles and increase foot traffic
at dealerships among target demographics. Working with a third-party data provider,
the company has identified desirable audience profiles, and using optimization
recommendations from Adometry, it has determined which touch points are most effectively
leading to conversions—in this case, visiting the company’s website for more information
about the vehicles or using the ‘store locator’ feature to find a local dealership. But how does
the company account for customers that saw a display ad or read a review from an affiliate,
only to later visit the dealership on their way to work? Also, how does the company effectively
retarget existing customers that may be ready to upgrade to a new model?
Without tying offline activity and purchase data with online marketing efforts, the company
has an incomplete picture of campaign effectiveness. Worse, the company may be missing
valuable opportunities to target existing and prospective customers with the right message at
the right time.
By bringing purchase history and valuable CRM data, the retailer can then run attribution
models to evaluate the performance of the marketing campaign using both online and offline
“While more and more dollars are
being spent on online campaigns,
most purchases still happen offline.
Any business that allows consumers
to place orders via telephone, catalog,
in store or just about anywhere that
doesn’t involve only a mouse click is
going to have offline data.That data
becomes extremely valuable when
brought online and fed into a
powerful attribution engine like
“IAB Attribution Primer.” Interactive Advertising Bureau (IAB). June 21, 2012.
5Bridge the Marketing Divide: Combining Cross-Channel Attribution with Data Onboarding
Unlocking New Oppor tunities Using Offline Data
Onboarding offline data offers marketers a plethora of benefits that accrue to more efficient
and effective campaigns, such as the ability to:
1. Run attribution to assess the impact of cross-channel efforts on total purchases including
online, offline and in-store purchases
2. Improve optimization recommendations through holistic investment-to-conversion
3. Increase predictive capabilities and performance projections for subsequent campaigns
4. Calculate more precise ROI and margins for specific campaigns using purchase data
Applying Advanced Attribution With Adometry Attribute
Once offline data is onboarded, Adometry Attribute™ analyzes it alongside online
conversion data to assess which marketing touch points during a configurable “look back”
period played a role in influencing the purchase decision. Adometry Attribute then compares
converting and non-converting sequences to analyze how valuable each event was relative
to the others. There is no limit to the number of data streams Adometry can integrate. The
Attribute platform analyzes complete data sets, not sample sets. This yields highly accurate
and insightful models.
Powerful Tools to Optimize Results and Answer “What If” Questions
Once advertisers have determined the impact of digital marketing on offline conversions,
Adometry Attribute’s Media Modeler allows them to optimize in-flight campaigns and drive
maximum results. Using incremental metrics, the Media Modeler lets marketers test various
scenarios and re-allocate budgets to generate the biggest ‘lift’ in key metrics such as
conversions, reach, or revenue. Optimization recommendations include saturation points,
giving marketers a way to assess when additional spending will result in diminishing returns.
HISTORICAL DATA ADVANCED OPTIMIZATION RESULTS
Audience Data / DMPs
6Bridge the Marketing Divide: Combining Cross-Channel Attribution with Data Onboarding
Evaluating Campaign Value in Dollars and Cents
For businesses that provide a feed of offline purchase data through their data onboarder,
Adometry Attribute can evaluate granular performance data and ROI calculations tied to
specific marketing campaigns – down to the impression level. Consider a retailer selling
goods both online and in a physical store. By onboarding offline purchase data, the company
can better understand how marketing campaigns are contributing to sales – both on the
website and in the store – allowing it to better assess the cost of each conversion and the
best performing conversion paths. Once ROI is calculated for individual campaigns, the
marketing team can utilize Attribute’s powerful predictive capabilities to determine the best
marketing mix to reach desired audiences efficiently.
Additionally, through onboarding real-world purchase information advertisers can feel confident
that attribution and optimization recommendations are informed by all customer behavior, not
just activity taking place online. This added context results in more precise performance data
and increases advertisers’ ability to identify hidden marketing revenue streams.
Protecting Your Data by Selecting
the Right Data Par tners
Data privacy and security are high priorities when evaluating offline data partners. Marketers
should take the time to identify vendors that take privacy issues seriously. This is illustrated
by having appropriate controls to ensure data is not only secure but also isolated from other
data sources. Bringing together the online-offline world should be used to optimize ad spend
and deliver consumers relevant content, not to invade individuals’ privacy or increase risk.
While marketing data partners offer significant benefits, brands should evaluate the following:
Is the company considered a leader in its market as determined by credible third-parties
such as analyst firms and experts from digital agencies?
4 Does the company have experience working with other brands in your industry?
4 Does the company have transparent privacy and security measures?
4 Is the company’s methodology transparent and backed by proven technology?
4 Can the company provide examples of real-world results?
7Bridge the Marketing Divide: Combining Cross-Channel Attribution with Data Onboarding
Key Ver tical Use Cases
Retail – A department store targeting an audience segment of 25-34 year old females with
display ads promoting an annual sale event can compute a more accurate campaign ROI
leveraging both in-store and online conversions.
Auto – An auto manufacturer retargeting site visitors with ads about their newest car model
can measure campaign influence on purchases of the car at their dealerships.
Travel – An airline targeting users searching for beach vacations with flight deals to the
tropics can connect all the purchases to online ad impressions and determine how well the
Financial Services – A bank running a multi-channel campaign to small-business owners
with a line of credit offer can incorporate their in-branch conversions into their attribution
analysis of campaign performance for each channel.
Bringing offline data to the online world allows businesses with large customer databases to
benefit greatly from understanding the complete spectrum of customer behavior. In particular,
data-intensive verticals such as retail, travel, financial services and automotive will experience
greater prediction, precision and performance in multi-channel marketing campaigns. These
businesses should strongly consider working with partners that can tie together all of their
online and offline marketing efforts.
Adometry, Inc. redefines marketing analytics by combining and interpreting previously silo-ed sources
of big data to generate actions that improve return on advertising spend and increase sales. Through
its SaaS-based attribution platform, Adometry processes tens-of-billions of marketing touch points from
online and offline media channels for some of the world’s largest advertisers to identify the true consumer
purchase journey. Adometry’s scientifically proven methodology and flexible, easy-to-implement solution
generates the industry’s most accurate insights, in the shortest amount of time. Headquartered in Austin,
Texas, Adometry is privately held and backed by Austin Ventures, Sierra Ventures, Shasta Ventures and
Stanford University. For more information, visit www.adometry.com
LiveRamp’s data onboarding solution turns a marketer’s offline data such as CRM and purchase
history into online audiences. Data onboarding empowers brands to reach their exact customers and
prospects with display ads, enrich their online analytics with their CRM data, and measure the impact of
their marketing initiatives both offline and online. LiveRamp is the only company focused solely on data
onboarding and is integrated into more than 40 leading ad technology platforms. LiveRamp is how offline
gets online. To learn more, visit http://www.liveramp.com.
Copyright 2013. Adometry, Click Forensics and ClickScore are registered trademarks of Adometry, Inc. Adometry Attribute is a trademark of
Adometry, Inc. All Rights Reserved. 0613-3935