A CMO’s guide to choosing a marketing attribution model

Choosing a marketing attribution model is the first step towards making smarter, more strategic marketing decisions.

Viewing your customer journey holistically allows you to interpret and measure the impact of your marketing activities, leading to a host of benefits.

But you won’t fully access those benefits if you choose the wrong attribution model.

As a CMO, Marketing Director, or Marketing Manager, we know you already have a lot on your plate, so we’ve provided you with a breakdown of which marketing attribution model you should select for your business.

Why Does It Matter What Attribution Model You Use?

The overarching purpose of any marketing attribution model is to provide deeper insight into the performance of your marketing mix and how each channel contributes to the success of a campaign or your business growth.

To gain the full picture of your marketing, it is crucial to understand which attribution model is the most appropriate for your business goals and objectives, otherwise, you could miss out on valuable data.

The attribution model you choose should give you a rounded view of your marketing and accurately reflect the impact of each channel on your overall success.

Factors like…

• Your marketing goals
• The complexity of your customer journey
• The touch points involved
• The channels within your mix
• And the data sources you already have in place

should all be taken into consideration, as each one can have an impact on the effectiveness of your chosen model.

The Consequences of Choosing the Wrong Model

Opting to implement a model that doesn’t satisfy the specific needs of your business or make sense for your goals can lead to negative consequences. These can include:

• Wasting time and resources on a model that doesn’t deliver results
• Missing out on potential opportunities for growth and success
• Confusing or frustrating your customers with inconsistent messaging across channels
• Incorrect data interpretation, leading to flawed decision-making
• Losing a potential competitive advantage in the market

Explaining Your Options: MTA & MMM Attribution Models

What are the options when it comes to choosing a marketing attribution model?

We’re going to discuss the two most effective: Multi-Touch Attribution and Marketing Mix Modelling (or Econometrics).

Multi-Touch Attribution (MTA)

Multi-Touch Attribution (MTA) is a method of assigning credit to multiple touchpoints in a customer’s journey. It takes into account all the interactions a customer has with a brand before making a purchase.

For example, a customer may have discovered a product through a social media ad, then later clicked on a display ad, and finally made the purchase after receiving an email newsletter. MTA would assign credit to all three touchpoints in this scenario.

It recognises that customers, being human, don’t act or behave in a linear or predictable manner, therefore, all touchpoints should be acknowledged and attributed accordingly.

This model can also provide granularity into individual campaigns and channels, so you can identify the share of sales, cost of acquisition, and ROI for each.

While it’s a powerful tool for understanding the overall impact of touchpoints, MTA, when used in isolation, often exaggerates the role of direct channels because it doesn’t account for external factors, such as seasonality, the wider market state, and indirect channels in your mix.

Econometrics (MMM)

The second approach, Econometrics or Marketing Mix Modelling (MMM), evaluates the impact of each marketing channel on sales by using statistical models.

Unlike MTA, MMM takes into account various external factors and indirect channels in addition to direct touchpoints. Therefore, if your business’s marketing mix involves multiple, complex channels, MMM can provide a more accurate understanding of how each channel affects sales.

MMM typically involves three main steps: data collection, model building, and analysis.

What is the Best Marketing Attribution Model?

So, if those are your two most effective options for marketing attribution models, which should you choose?

We’re going to throw a spanner into the works, and tell you neither of them. But rather both of them.

A combination of MTA and MMM will give you the most accurate and comprehensive view of your activities.

The Benefits of Combining MTA With MMM

Earlier, we mentioned that MTA is limited in its overstatement of direct channels. MMM acts as a wrapper of sorts, providing insight into the causality and removing the exaggeration of MTA.

By combining the two models, you’ll be able to see not only the direct impact of your marketing efforts, but also the indirect effects, allowing you to shape your strategy accordingly.

Once you start making more tactical marketing decisions, you’ll be able to refine and optimise the allocation of your budget, too.

With this ‘bigger picture’ view of your marketing performance, you can identify which channels are driving the most value, and which ones may need to be scaled back. In other words, you can make smarter investments.

We have an insightful eBook that goes into more detail about an omnichannel approach to attribution, which you can download for free to learn more.

Next Stages: How to Implement a Marketing Attribution Model

Now that a combination of MMM and MTA has been established as the preferred method of measuring marketing effectiveness, the natural next step is implementation.

This is a complex process that involves data collection, integration, and analysis that most businesses struggle to action alone. The time, resources, and expertise required are extensive, which is why partnering with a marketing attribution vendor is a smart move.

Not only do you eliminate any risk of inaccuracy or bias in your data analysis, but you also gain access to advanced tools and technologies that make the process more efficient and effective.

An Innovative Solution for Intelligent Marketers

UniFida has pioneered the combination of MTA and Econometrics, and our solution has been proven across our case studies.

In addition to providing accurate and comprehensive measurement of marketing effectiveness, UniFida also offers actionable insights for optimisation.

Our platform allows you to identify high-performing channels, campaigns, and audience segments, so you can allocate your budget and resources accordingly. This not only helps you improve your ROMI, but also enables you to deliver more relevant and personalised experiences to your customers.

Our experience is customisable, so you will only be presented with relevant metrics that align with your specific goals and objectives. Whether you want to increase brand awareness, drive conversions, or improve customer retention, UniFida has the tools and features to help you achieve them.

Book a call to discuss how we can implement an innovative and data-driven approach to your marketing strategy.

Key Takeaways: Choosing the Right Marketing Attribution Model for Your Business Goals

Whatever your reason for investigating attribution models — be it to improve campaign performance, create a more personalised customer journey, or simply gain a better understanding of your marketing activities — it’s important to choose the right model for your goals.

We’ve talked through a lot in this article, so here are the key takeaways to remember:

• Your choice of attribution model comes down to your business goals, but ultimately, a combination of MTA and MMM is often the most effective
• Failing to correctly implement attribution modelling can lead to incorrect insights and strategies, so it’s important to take the time to understand the models and how they work.
• Marketing attribution is an essential component of a successful marketing strategy, as it allows you to allocate resources and measure the success of your efforts.
• Save on your resources, time and money by working with a vendor that can help you implement your attribution model.

Reach out to us to discuss your marketing measurement needs in depth, or head to our blog, where you’ll find even more resources on marketing attribution and other expert insights.

FAQs

Why is Marketing Attribution Complex to Implement?

Marketing attribution can be complex to implement because it involves collecting and analysing large amounts of data from various touchpoints, channels, and campaigns.

This requires a deep understanding of different tracking methods and technologies, as well as the ability to integrate data from multiple sources.

It is recommended to utilise a marketing attribution partner, who can provide the tools, knowledge, and resources needed to implement such a complex system effectively.

What is the Most Accurate Marketing Attribution Model?

A combination of Multi-Touch Attribution and Econometrics is considered the most accurate model, creating an omnichannel view of marketing performance while also taking into account external factors such as seasonality and economic conditions.

What Types of Questions Can Marketing Attribution Answer?

Marketing attribution can answer many questions relating to strategy, budget allocation, and performance evaluation. Some examples of questions that can be answered with marketing attribution include:

• Which channels are driving the most conversions?
• How much revenue is generated from each marketing channel?
• Which campaigns or tactics are most effective at driving conversions?
• How do different marketing touchpoints contribute to the overall customer journey?
• What is the return on investment (ROI) for each marketing channel or campaign?
• Are certain channels or campaigns more effective at reaching specific target audiences?

How Much Does It Cost to Implement a Marketing Attribution Solution?

There’s really no answer to this, as it depends on how much you are willing to invest in attribution.

We’ve done some of our own research into this and found that companies with a low budget (less than £1m) will often invest 2.5-5% of their budget into a combined MTA and MMM marketing attribution solution. Whereas those with a high budget (over £10m) will invest 1%.