Webinar The Forrester Wave Interactive Attribution Vendors Q
Webinar The Forrester Wave™: Interactive Attribution Vendors, Q 2 2012 Ari Osur, Principal Analyst May 3, 2012. Call in at 12: 55 p. m. Eastern time 1 © 2009 2012 Forrester Research, Inc. Reproduction Prohibited
2 © 2012 Forrester Research, Inc. Reproduction Prohibited
“Half the money I spend on advertising is wasted; the trouble is I don't know which half. ” — John Wanamaker (1838 to 1922) 3 © 2012 Forrester Research, Inc. Reproduction Prohibited
It’s a little overdue, but we have some good news for John Wanamaker. 4 © 2012 Forrester Research, Inc. Reproduction Prohibited
Agenda How interactive marketers use interactive attribution today The Forrester Wave™: Interactive Attribution Vendors, Q 2 2012 Vendor overviews Recommendations for selecting the right vendor 5 © 2012 Forrester Research, Inc. Reproduction Prohibited
Spending on interactive marketing continues to grow 6 Source: August 24, 2011, “US Interactive Marketing Forecast, 2011 To 2016” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited
Measurement isn’t getting easier as digital touch points proliferate and customer journeys become more complex. 7 © 2012 Forrester Research, Inc. Reproduction Prohibited
Customers interact with various marketing contacts throughout their digital journeys 8 © 2012 Forrester Research, Inc. Reproduction Prohibited
And eventually they convert 9 © 2012 Forrester Research, Inc. Reproduction Prohibited
With “last click” measurement, only the interaction that precedes a conversion gets the credit $0 $0 $200 10 $200 © 2012 Forrester Research, Inc. Reproduction Prohibited
“Last click” distorts your marketing insights and leads to inefficient allocations of money and resources § Ignores the bulk of the customer journey: – Average number of touch points in a purchase path: 3. 8 (source: Clear. Saleing) § Over-values closing interactions § And under-values introducing and influencing interactions § Misrepresentation of reality obstructs effective planning and strategy 11 © 2012 Forrester Research, Inc. Reproduction Prohibited
Advanced attribution assigns partial value for interactions that contribute to a desired action $75 $50 12 $200 © 2012 Forrester Research, Inc. Reproduction Prohibited
Interactive attribution can provide marketers with multiple benefits § Place smarter digital bets – Identify and eliminate marketing and media plan waste – Focus on what works § Be nimble with greater precision – Inform media buys and search term bidding with attributed data – Build more effective contact strategies and campaigns § Consolidate interactive marketing performance data – Establish a single source of truth – Improve reporting capabilities 13 © 2012 Forrester Research, Inc. Reproduction Prohibited
Attribution addresses a range of measurement, planning, and operational objectives 14 Source: Forrester Research Interactive Attribution Customer Reference Survey © 2012 Forrester Research, Inc. Reproduction Prohibited
Marketers incorporate a range of digital channels in their attribution models 15 Source: Forrester Research Interactive Attribution Customer Reference Survey © 2012 Forrester Research, Inc. Reproduction Prohibited
Marketers incorporate a range of digital channels in their attribution models (cont. ) 16 Source: Forrester Research Interactive Attribution Customer Reference Survey © 2012 Forrester Research, Inc. Reproduction Prohibited
Vendors equip marketers with various attribution models to calculate the contribution value of contacts § Simplistic: first/last click § Rules-based – Even-weighted – Position-based: first, influencing, last – Time decay: recent interactions weighted higher – Customized weights § Algorithmic: statistical methodologies like regression or probabilistic models to set weights – Four of the eight vendors evaluated in the Wave offer an algorithmic approach. 17 © 2012 Forrester Research, Inc. Reproduction Prohibited
Agenda How interactive marketers use interactive attribution today The Forrester Wave™: Interactive Attribution Vendors, Q 2 2012 Vendor overviews Recommendations for selecting the right vendor 18 © 2012 Forrester Research, Inc. Reproduction Prohibited
Evaluated vendors: vendor information and selection criteria 19 © 2012 Forrester Research, Inc. Reproduction Prohibited
We assessed the selected vendors across 45 criteria § Current offering – Attribution model development and statistical approach – Input management – Implementation – Ease of use – Reporting and analysis – Actionability of outputs – Service and support – Privacy § Strategy – Corporate focus, strength of management team, vision, and product strategy § Market presence – Attribution revenue – Financial stability – Number and quality of employee base – Customer satisfaction and sophistication 20 © 2012 Forrester Research, Inc. Reproduction Prohibited
Forrester Wave™: Interactive Attribution, Q 2 2012 21 Source: April 30, 2012, “The Forrester Wave™: Interactive Attribution Vendors, Q 2 2012” Forrester report © 2012 Forrester Research, Inc. Reproduction Prohibited
Category has evolved since previous Wave: more sophisticated, consistent, and capable § A more defined and established category of attribution providers § Greater interest in attribution from senior marketing and finance leaders § More consistently available integrations — often bi-directional — with major digital marketing execution partners – Search: Kenshoo, Marin Software – Ad servers: Google DFA, Atlas – Tag management: Tag. Man, Ensighten, Bright. Tag – Email service providers: e-Dialog, Exact. Target, Experian, Responsys § Emerging integrations with media buying partners such as DSPs and agency trading desks to close the loop § Wider use of algorithmic attribution models § Several players with media plan optimization and scenario planning 22 © 2012 Forrester Research, Inc. Reproduction Prohibited
Agenda How interactive marketers use interactive attribution today The Forrester Wave™: Interactive Attribution Vendors, Q 2 2012 Vendor overviews Recommendations for selecting the right vendor 23 © 2012 Forrester Research, Inc. Reproduction Prohibited
Visual IQ § Founded in 2006. Focus on attribution sinception § Concentration of clients in financial services/insurance, retail, and automotive categories § Algorithmic approach § Focuses on tag-less data collection more than tag-based data collection, but can accommodate both § Strong reporting and data visualization § Comprehensive scenario-planning and optimization tools that recommend more efficient plans; available as an addition module § Very high client satisfaction § Appropriate for analytically inclined direct response and brand marketers with big digital budgets 24 © 2012 Forrester Research, Inc. Reproduction Prohibited
Adometry § Heritage in ad verification. Launched attribution offering in April 2011. § Client focus on heavy display advertisers with concentration in retail, financial services, and automotive § Algorithmic approach § Data collection via tags or log files/data warehouse § Detects and supports ad viewability. § Strong data management capabilities § Native integrations with third-party data providers (e. g. , Datalogix, e. Xelate) to enhance audience profiling within attribution analysis § Optimization capabilities included in platform as part of base offering. 25 © 2012 Forrester Research, Inc. Reproduction Prohibited
Clear. Saleing § Veteran of the attribution space, a leader in previous Wave § Deep experience in retail vertical with concentrations in travel/hospitality and other industries § Recently launched algorithmic offering; most clients currently using rulesbased models § Collects data through a first-party cookie, integration with container tags, or via tag-less approach (log files). § Wide range of native integrations with digital channel execution partners § Built-in exogenous data for model development (i. e. , economic indices) and benchmarks for reporting § Optimization capabilities on product road map 26 © 2012 Forrester Research, Inc. Reproduction Prohibited
IBM § Evaluated attribution capabilities of the Coremetrics web analytics product § Repeat participant in Wave § Large installed base of clients § Data collection mostly through existing web analytics tracking but also supports batch imports and tagging integration § Notable strengths include reporting and “attributed journeys. ” § Reference clients note less guidance on attribution compared to those of pure plays. § Lacks algorithmic models and optimization in current offering, but plans to include in future releases. 27 © 2012 Forrester Research, Inc. Reproduction Prohibited
Convertro § Launched offering in 2011. § Client concentration in e. Commerce with other industries including automotive § Relies on rules-based models; offers algorithmic approach but used by few clients. § Data collection via own tag-based tracking methodology and also log files § Able to track viewed impressions and incorporate into attribution model § High customer satisfaction scores § Offers optional fingerprinting technology to identify individuals without the use of cookies. § Looking to incorporate TV data into attribution models, but road map is light on optimization and planning capabilities 28 © 2012 Forrester Research, Inc. Reproduction Prohibited
C 3 Metrics § Small private company focused on attribution § Client concentration on agencies, as well as marketers with heavy allocations in display media § Rules-based methodology (no algorithmic) § Proprietary data collection system; also accommodates tag-less methods § Tracks viewed impressions § Streamlined reporting capabilities with limited data exploration § High marks for customer satisfaction and ease of use § Minimal recommendation features and no optimization feature in platform § Potential fit for small- to mid-marketers and agencies seeking uncomplicated and inexpensive solution 29 © 2012 Forrester Research, Inc. Reproduction Prohibited
Adobe § Evaluated the Insight product; also offers attribution through Site. Catalyst, Search. Center, and recent Efficient Frontier acquisition. § Rules-based models in current offering; algorithmic in development § Data collection primarily through Site. Catalyst tagging and URL appends and direct integrations § Strong reporting, analysis, and data management § Optimization on product road map § Reference clients express a deficit in support for attribution. § Potential for a compelling attribution offering but must consolidate and integrate disjointed attribution capabilities 30 © 2012 Forrester Research, Inc. Reproduction Prohibited
Google § Evaluated the Attribution Modeling Tool included in Google Analytics Premium; newest offering in the evaluation § Rules-based approach; algorithmic approach on product road map § User-friendly interface with ability to quickly customize model weights § Data inputs currently limited to Google Analytics-tracked conversions and ads, Double. Click DFA, and Google search marketing; no external data can currently be loaded into the system § Similarly, outbound integrations limited to Google display and search management 31 © 2012 Forrester Research, Inc. Reproduction Prohibited
Looking for online + offline? Forrester Wave™: Cross -Channel Attribution Vendors, Q 2 ’ 12 32 Source: April 30, 2012, “The Forrester Wave™: Cross-Channel Attribution Providers, Q 2 2012” © 2012 Forrester Research, Inc. Reproduction Prohibited
Agenda How interactive marketers use interactive attribution today The Forrester Wave™: Interactive Attribution Vendors, Q 2 2012 Vendor overviews Recommendations for selecting the right vendor 33 © 2012 Forrester Research, Inc. Reproduction Prohibited
Interactive marketers emphasize analysis and input management capabilities for vendor selection 34 Source: Forrester Research Interactive Attribution Customer Reference Survey © 2012 Forrester Research, Inc. Reproduction Prohibited
Measuring ROI on attribution and integrating data most often named attribution challenges 35 Source: Forrester Research Interactive Attribution Customer Reference Survey © 2012 Forrester Research, Inc. Reproduction Prohibited
Recommendations for getting started and selecting a vendor § Think of attribution as an investment. It helps drive media efficiencies and informs smarter decision-making. § Get your math people involved. Collaborate with your internal partners and vendors to determine the model approach that fits your organization. § Determine how attribution fits into your operations and processes. Vendors differ in terms of how they work with your interactive marketing ecosystem, from data collection through marketing execution. § Identify a main stakeholder with broad budget authority. Optimizing marketing strategies and tactics based on attribution impacts multiple channels. Make sure your organization is aligned to bring it to life. § Customize the Wave scorecard. This is a starting point. Download the Excel model and adjust the weightings to match what’s most important to your organization. 36 © 2012 Forrester Research, Inc. Reproduction Prohibited
Selected Forrester research § Forthcoming Forrester report, “Making The Case For Interactive Attribution In Your Organization” § April 30, 2012, “The Forrester Wave™: Interactive Attribution Vendors, Q 2 2012” § April 30, 2012, “The Forrester Wave™: Cross-Channel Attribution Providers, Q 2 2012” § December 9, 2011, “A Measurement Maturity Framework for Interactive Marketers” 37 © 2012 Forrester Research, Inc. Reproduction Prohibited
Thank you Ari Osur +1 212. 857. 0751 aosur@forrester. com Twitter: @aosur www. forrester. com © 2009 Forrester Research, Inc. Reproduction Prohibited
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