Mobile Attribution Modeling

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    The Channel-less

    Consumer

    TALK ABOUT US USING

    #FUTUREM

    Identifying Attribution within Mobile

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    Michael KaushanskyAnalytics and Insights, Havas Media,

    [email protected]

    @kaushansky

    2

    New Approach to ConsumerCentric Modeling

    mailto:[email protected]:[email protected]
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    Deterioration in key performance metrics (leads &sales)

    We looked for answers: why wasnt our existing

    media mix working? Whywasnt TV, search anddisplay across screens generating the samevolume of leads?

    Simulations of existing media mix models pointed

    to a shift to digital though unclear where. Currentmodels were not reflective of emerging trends inmedia.

    Our global Auto client had experienced a

    recent deteriorating trend

    3

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    Click to edit Master text styles

    Second level

    Third level

    Fourth level

    Fifth level

    Media Consumption The Path to Purchase

    The Role of the Consumer Consumer Expectations

    What we experienced was a shift in marketing

    dynamics

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    Adding to the shift - the emergence of the

    multi-channel marketplace

    2 explosive and complementary markets

    Local Advertising: $35B in 2015

    Mobile Commerce: $39B in 2016

    Location, Location, Location

    70% of mobile revenue tied to location by 2015

    40% of mobile search has local intent1) BIA/Kelsey, U.S. Local Media Forecast, 03/2012

    2) eMarketer, US Mobile Commerce Forecast: Capitalizing On Consumers Urgent Needs, 01/2012

    3) Forrester Report, US Online Sales Forecast, 2009

    4) BIA/Kelsey, U.S. Local Media Annual Forecast (2010-2015), 06/2011

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    Cross Channel Shopping will be 6X of Online

    Retail alone

    Source: Paypal Media Network

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    Multi-channel brings a new complexity to the

    purchase funnel

    Source: Paypal Media Network

    Nearly 1/3 of retailers credited smartphones

    with driving traffic to physical stores in 2011,

    up from 1/5 in 2010-Retail Systems Research, The 21stCentury Store: The Search for Relevance, 6/2011

    15% of US online shoppers made a holiday

    purchase via their mobile, growing 3X over

    Holiday 2010- Baynote, 2ndAnnual Baynote Holiday Shopping Survey, 1/2012

    - IBM, Benchmark December holiday report, 1/2012

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    The purchase funnel becomes the purchase

    pretzel

    Source: Paypal Media Network

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    Existing model failed to identify the shift

    towards digital

    Investment

    Sales

    Black

    Box

    Consumer journey is unique

    Journey metrics are

    essential to understand the

    impact of media

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    Our objective was clearupdate the model!

    Enhance our existing model to address the

    unexpected digital shift

    Approach divided the journey into stages, defined

    success metrics across each stage & linked the metrics

    to show progression throughout the journey

    Methodology developed 4 models which explained

    key drivers at each stage, i.e. what drove search, site

    traffic, leads and sales

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    Of Course it

    will work

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    We modeled the consumer journey across the

    5 stages

    Stage Success Metric

    Awareness Organic Branded Search

    Engagement Page Views

    Consideration Digital Leads

    Shopping Showroom Traffic

    Purchase Unit Sales

    1

    2

    3

    4

    5

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    Consumer Stages

    Awareness

    Engagement

    Consideration

    Shopping

    Purchase

    Hierarchical Modeling explained impact at

    each stage

    4 Independent

    ECONOMETRIC

    Models

    Known Strong

    Existing Correlation

    Media Mix

    TV

    Print

    OOH

    Display

    Search

    Mobile

    Online videoPaid social

    Social

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    We identified 12+ data sources across 52 weeks

    Structured

    Equation

    Source Data Begins Timing Data Descriptions Metrics Available

    Digital Media (DFA) 2009 daily actual media spend by channel (OLA, SEM) impressions, cl icks, hvts

    Kantar Evaliant 2010 weekly competitor web impressions and spend impressions, spend

    Kantar Stradegy 2011 weekly offline GRP & spend GRP, spend

    Sysomos 2009 weekly social media buzz data buzz volume, sentiment

    Hitwise/Compete last year daily site visitation and duration visitation, duration

    Google Insights 2004 daily total search trends (paid & organic) search trend index

    Autodata/Wards 2008 monthly monthly sales data by brand/model/category sales figures

    Google Analytics/ Omniture 2009 daily Website/model/configurator/RFQ pageviews visits, configs, RFQ, Model PV

    Harte-Hanks 2001 weekly owners, prospects, email/mail campaign, etc.

    Urban Science 2009 weekly leads by channel by week leads

    Manufacturer 2009 weekly dealer visits dealer visits

    Third Party Sites 2009 monthly Comp model PV, day/week/month model pageviews

    Brand Tracker 2010 Semi attitudinal data by month consideration, intent

    Census 2000 monthly economic data by Geo economic data

    Yt= + 1Mt +2Et +3St +4Tt +t , Y (represents th e dependent variable, e.g.,sales)

    M (medi a), E (engagem ent), S (search es), T (stor e traffic), etc .

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    Results

    As suspected results pointed media

    consumption varying at each stage

    We identified 5 key insights

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    1. Brand equity dominates & TV is king of paid

    (36% contribution from TV)

    Stage

    Awareness

    Engagement

    Consideration

    Shopping

    Purchase

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    2. More channels at play in driving site traffic,

    digital media is the workhorse (33%

    contribution)

    Stage

    Awareness

    Engagement

    Consideration

    Shopping

    Purchase

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    3. Paid Search was essential in driving leads

    influenced by DRTV (paid/Mobile search +

    DRTV @ 46%)Stage

    Awareness

    Engagement

    Consideration

    Shopping

    Purchase

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    4. Leads were the most significant driver of

    showroom traffic (40% contribution)

    Stage

    Awareness

    Engagement

    Consideration

    Shopping

    Purchase

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    5. Showroom traffic was the best proxy of

    units sales

    Stage

    Awareness

    Engagement

    Consideration

    Shopping

    Purchase

    3500

    4000

    4500

    5000

    5500

    6000

    6500

    7000

    7500

    8000

    2400

    2600

    2800

    3000

    3200

    3400

    3600

    3800

    SalesUnits

    Show-rooming was responsible for 82% of sales

    Unit

    Sales

    Showroom

    Traffic

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    Moving the consumer further down journey

    increasingly relies on paid media

    0%

    20%

    40%

    60%

    80%

    100%

    Media

    Base

    1 2 3 4 5 sales

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    The new models made our simulations more

    true-to-life (what-if scenarios) identified

    dimensioning returns & ROI

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    What weve learned

    1. Consistently / frequently assess the journey of your consumers

    2. Digital media is significant in the middle of the journey

    3. Mobiles role was strongerthan previously thought

    4. Promotional messaging is effective if consistent at each stage

    5. Exogenous data (weather & holidays) have minimal impact

    6. Going dark beyond 5-weeks would be detrimental

    7. Optimizing media at each stage points to a 12% improvement

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    Ramifications and things you should consider

    Do Your

    Homework

    Determineconsumerbehavior bystage/funnel

    Weight socialinfluence

    along journey

    Set up for

    measurement

    success

    Establish KPIsalongpurchase path

    CRM lists

    Paid, owned

    and earnedmedia

    Unify 3

    screens

    Creative +Media

    Merge screenidentifiers andinteractions

    Crunch data

    What does it

    tell you?Weightactivityagainstconversioncontribution

    Optimizeaccordingly

    Future

    Consideration

    Weight socialinfluencealong the

    journey

    Invest inapproach &

    tech to unifyscreens