Understanding the role that each touchpoint plays in a conversion is crucial for budgeting, allowing devotion of funds to the most effective touchpoints while diverting funds away from ineffective channels.
Multi-touch attribution models have been proven ineffective for two reasons:
- the platforms are sealed off from each other in terms of attribution;
- the models are not good at tracking the real-life, messy-middle, customer journey and thus provide unreliable feedback.
At Booster Box we have built “MMMMachine – Marketing Mix Modeling Tester”, a terrific weapon to combat this, accurately measuring the value of different marketing efforts.
The cookieless wasteland
Source: Vyshnavi Bisani, Unsplash
The advertising world must face the change that the cookie apocalypse is bringing. As of now, almost half of open web users’ actions are untraceable on Firefox and Safari. This number is bound to increase with the upcoming loss of third-party cookies.
Faced with this situation, it is essential to safeguard the performance of marketing campaigns and limit any disruption to tracking and revenue. Unveiling the real path to conversion through Marketing Mix Modeling (a.k.a MMM) is a viable, ready-to-use solution in a landscape of new privacy norms.
Understanding incremental value
Source: Booster Box Photoshoot
Ad budgets don’t grow on trees or fall from the sky. Therefore, investing in ads where customers would have converted anyway, and/or investing in non-converting campaigns is a huge mistake and waste of resources.
Marketing teams who are keen to allocate capital efficiently are always at the frontline in the battle to understand incremental value, cross-channel impacts and marginal returns.They make data-driven ad spend decisions accordingly.
Not a pipe dream
A marketing team’s main ambition is to be able to forecast the likely outcomes when deploying a specific set of tactics, thus reducing any deadweight loss by reallocating inefficient spend to the most effective touchpoints. This can be achieved: with a lot of science, data analysis and modeling- three areas Booster Box excels in.
Come and see me present on this topic in more detail at Hero Conf London.
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