When designing your media mix, you have multiple marketing channels at your disposal to promote your brand, products, or services. These channels play a crucial role in your consumers’ buying journey. To understand how sales are attributed to these channels, you need an attribution model that determines the weight of each channel in the conversion path. This analysis of channel contribution helps optimize your media mix and refine your marketing strategies.
Currently, there are different attribution models available. Predefined models with a single point of contact, such as Last Click or Last Paid Click, as well as predefined models with multiple touchpoints like the linear model. However, these predefined models are now outdated and provide a limited view of reality. With the ever-evolving media landscape, enriched by new technologies, more sophisticated models have emerged: algorithmic models that offer precise management of the media mix based on consumer buying paths.
Understanding the contribution of marketing channels is crucial for your media strategy and optimizing your media mix. Each channel has its own objectives and role in consumer engagement. Some channels focus on prospecting, while others target retargeting audiences who have previously visited your site. The position of each channel in the purchase path reflects its role.
Consider this example: A consumer discovers a new brand through a sponsored post on Instagram, initiating their buying journey. They then engage with the brand’s website through various channels, such as a search engine or newsletter. These channels act as assistants along the journey. Finally, the consumer clicks on a retargeting banner ad, leading to a successful purchase.
Was the sale solely attributed to the last touchpoint, the retargeting ad? Such a conclusion seems simplistic, as it took a combination of all the channels to convert the consumer into a customer. Therefore, understanding the contribution of each channel in the sale becomes crucial. By accurately calculating their contribution, you can optimize your media mix and improve the ROI of your channels.
Without an algorithmic attribution model, it’s challenging to determine the true impact of each channel. Arbitrarily attributing the sale to a single channel in the path hinders drawing meaningful conclusions, especially as buying journeys become longer and more complex.
Analyzing channel contribution is vital for gaining a comprehensive understanding of your media mix’s effectiveness and optimizing it with precision. It provides valuable insights into the performance of each marketing channel, enabling you to make informed decisions and maximize your marketing strategies.
Unlock the full potential of your media mix by harnessing the power of attribution analysis and algorithmic models. Enhance your marketing efforts with data-driven insights and drive better results for your business.