Measuring campaign performance: Attribution models hit the spot

The second algorithm is a machine learning prediction model that recommends changes in a company’s media spend to get more conversions at a lower cost. “This phase of the process analyzes the recommendation made by Convertro, the resulting outcome and then re-evaluates the actions,” Zwelling explains. The user is presented with a dashboard showing KPIs and a set of scheduled reports each morning. The software also provides the ability to incorporate the data flow into existing enterprise systems such as BI software products and customer relationship management (CRM) systems.

For Dollar Shave Club, Convertro was able to measure which broadcast ads were having the most effect, as well as determine which networks and programs created the most lift. It also provided feedback at a granular level, indicating the impact of time of day for the ads. As a result, Dollar Shave Club now modifies its television advertising budget on a daily basis to optimize its campaigns. In just two months of use, the company reduced its cost per acquisition rate by 48 percent.

“We have two primary groups of users,” Zwelling says. “One group consists of senior-level decision makers, CMOs who want to make sure that all the media campaigns are working together. The other group consists of the media planners and buyers, who are responsible for their own channels.” Convertro’s dashboard is customized to the needs of each user group.

Although the channels are fragmented, Zwelling points out that the customer experience is just the opposite. “Customers don’t say ‘I’m only going to watch TV ads,’ and limit themselves to a single channel,” he explains. “They move seamlessly from one channel to another looking for information that will help them make a decision. Marketers need to understand that experience and what led to the decision.”

The biggest obstacle to broader use of attribution software is resistance to transparency, according to Zwelling. “A lot of people don’t want their work to be measured,” he says. “Nevertheless, this is where the industry is heading.”

Marketers are becoming more accountable, Forrester’s Moffett agrees, even though the shift may not be entirely voluntary. “Upper management wants to measure the tangible ROI of every interaction to see if a certain campaign is effective,” she says.