Sunday, April 4, 2010

Marcom Attribution Problem

Online Demand Generation/Marcom spends form an important portion of the Internet Marketing budget. The budget has to be spent wisely to ensure that the right funnel inputs get rewarded. Rewarding wrong vehicles can result in lower revenue/value for the company. Optimizing marcom spend is necessary to ensure firm value is maximized.

Case 1: Which vehicle should get the credit in the multi-visit multi-vehicle case?

Peter visited on Monday from a banner advertisement
He visited on Tuesday from an email advertisement
He visited on Thursday from paid search
Finally he came directly on Friday by typing URL in the browser and made a purchase.
Who should we give the credit to?

Case 2: Upto how many days after visit should a marcom vehicle get credit?
Suppose Peter came from an affiliate site to on Monday March 1st.
Suppose he bought on March 15th. Should you pay the affiliate site?

Affiliates usually charge 4-5% of the revenue that results from purchase and the payment model varies from 30 - 90 days after first visit depending on the equity between site and affiliate (Porter here :) -> Supplier Power/Vendor Power)

Knowing how your purchasers usually buy and what vehicle touchpoints they take is an important step to undertake before paying the ODG vehicles - that gives you good negotiating power and helps strike good deals
I will tackle case ii) in this post and case i) in a separate one.

Tackling case ii) - What is the ideal number of days to consider?

To find: How many purchases happen 1, 2, 3, 4, .........n days after the person came from Campaign. Say I want to find effectiveness of affiliates

Method: Usage of latency feature in Omniture Insight/Visual Sciences. Will outline this in a separate post

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