The Case for Conversion Attribution: Kenshoo and Figaro Digital Seminar

Smart Reinvestment:The Case for Conversion Attribution23 August 2012

Yossi Synett – Research Analytics Team Lead

Agenda

History of Attribution

Reinvestment = Attribution

Types of Attribution Models

Viewing Data via Different Models

How to choose the right model

History of Conversion Attribution

The early days of PPC

2002 AdWords goes to PPC Model

2003 Yahoo! buys Overture

The assumption: One Conversion = One Click

Keyword 1

Green T-ShirtGreat PricesT-shirt.com

Blue T-ShirtGreat PricesT-shirt.com

Keyword 2

Red T-ShirtXL Size Available

T-shirt.com

Keyword 3

Last Click Attribution Model:•Solves conversion duplication issue•Assumes last click is most important

Discovering the need for conversion attribution

Reinvestment = Conversion Attribution

Reinvestment based on data

All strategic decisions in Paid Search are based on data

Forecasting & Scenarios

Algorithm Configuration

Algorithm Selection

Geographies

Devices

Sites and Content

Campaign Structure

Ad Copy & Testing

Keyword Selection

Attribution Model

Multi-Channel Data Connections

Multi-Source Data Reconciliation

GroovyTravel.com investment strategy (with last touch attribution)

cheap flights to Mexico GroovyTravel.com

ROAS = 0.83 ROAS = 5

Total ROAS = 1.88

GroovyTravel.com investment strategy (with last touch attribution)

ROAS = 0.9 ROAS = 2

Total ROAS = 1.63

GroovyTravel.com path to conversion

GroovyTravel.com investment strategy (with divide equally attribution)

ROAS = 1.54 ROAS = 2.88

Total ROAS = 1.88

GroovyTravel.com investment strategy (with divide equally attribution)

ROAS = 1.38 ROAS = 2.33

Total ROAS = 1.64

Last Click Attribution Undervalues FB Performance

Increase in Facebook ROI for RetailAdvertiser Based on Revenue Attribution

• Last Touch

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

• Last Touch

• Prefer Last

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

• Last Touch

• Prefer Last

• U-Shaped

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

• Last Touch

• Prefer Last

• U-Shaped

• Distribute Evenly

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

• Last Touch

• Prefer Last

• U-Shaped

• Prefer First

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

20% 40% 60% 80% 100%

• Last Touch

• Prefer Last

• U-Shaped

• Prefer First

• First Only

FirstOnly

PreferFirst

DistributeEvenly

U-Shaped PreferLast

LastTouch

Types of Attribution

Keyword 1

Keyword 2

Red T-ShirtXL Size

AvailableT-shirt.com

Keyword 3

Industry Default Model

Attribution Models: Last click

Attribution Models: Linear

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Single Click Only (First or Last)

Keyword 1

Keyword 2

Red T-ShirtXL Size

Keyword 3

Attribution Models: Non Linear

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Keyword 1

Keyword 2

Red T-ShirtXL Size

Keyword 3

Attribution Models: Distribute evenly

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Keyword 1

Keyword 2

Red T-ShirtXL Size

Keyword 3

Attribution Models: Single Point

Attribution Models

Linear Ratio

U Shaped

Distribute Evenly

Keyword 1

Keyword 2

Red T-ShirtXL Size

Keyword 3

Viewing Data via Different Models

Considering multiple channels using the Kenshoo Attribution Model Simulator

Leading pet supply cataloger using last touch attribution

Brought data from various channels (e-mail, CSE, display) into Kenshoo

Using the Kenshoo Attribution Model Simulator, they were able see the best and worst case ROI for a given channel under different models

They could also determine which model was the best fit for their business by seeing how different channels would benefit or lose from changing models

Case Study: Moving away from last click

U.S. national service center chain increases ROI by changing attribution model following a multi-model attribution analysis//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Key Lessons

• Different regions have different behaviors

• Last click model was holding back potential new to file customers

• Prefer last model better allocated money

How to choose the right model

Get insights

• Any single model will only show a single viewpoint, compare different models for the most comprehensive view

• Lower costs by pruning ads that have no touch-points in any conversion attribution model

• Expand assisting keywords to find new traffic generators and widen you market reach

• Don’t miss the forest for the trees, apply real world categories and use your own business logic to make attribution model decisions

❙[Don’t worry, Kenshoo can help with this]

Thank you

The Case for Conversion Attribution: Kenshoo and Figaro Digital Seminar

Technology

Figaro mag 261012_portraits

Best Marketing de Performance - Plataforma Kenshoo

Kenshoo Editor OneSheet · Kenshoo Editor: Bring the Power of Kenshoo to your Desktop Info@kenshoo.com | Kenshoo.com The ﬁrst and only of its kind, Kenshoo Editor is a desktop application

Figaro Social Commerce

Kenshoo Intersections - Melbourne

K8 - Research from Kenshoo and Yahoo!

FIGARO Project Presentation

The Kenshoo Story - Original Version

BDX 2016 - Tzach zohar @ kenshoo

Brochure Figaro

KENSHOO UNIVERSAL PLATFORMkenshoo.com/.../uploads/2013/03/Kenshoo-Universal-Platform-One-S… · Kenshoo-Universal-Platform-One-Sheet1 Author: Kenshoo Subject: The first and only

K8 Welcome from Kenshoo CEO

K8 - Kenshoo Product Updates

Kenshoo Mobile App Solutions One Sheet

FIGARO MADAME

Figaro slideshare

Kenshoo Global Search Trends Q1 2013 - Kenshoo Webinar

sol2 - Le Figaro

Kenshoo portfolio optimizer_brochure

BEST Marketing de Perfomance - Plataforma KENSHOO