4 Compelling Reasons to Invest in Marketing Attribution

In the post-pandemic world, having a robust digital footprint isn’t optional. Digital is the first and often the last line of communication. However, with multiple avenues to market a business digitally, brands face two significant challenges – identifying the perfect customer and once identified, how to reach them.

According to the latest research, an estimated 15-30% of the digital marketing spend is wasted on campaigns that don’t boost engagement. If you see thousands of dollars spent on campaigns that don’t fetch reasonable returns, it’s time to take stock of your campaign strategy. Fortunately, Marketing Attribution has the answers to both these challenges. It offers you actionable information on how to target your customers when to target them, and by what means.

What is Marketing Attribution?

Marketing attribution is an analytical science used to measure the impact of different marketing strategies on sales or conversions. Marketing attribution modeling assigns credits to various stages in the customer’s journey based on their role in the marketing goal.

You can identify the most productive touchpoints in a customer’s buying journey and figure out strategies that worked for you in the past. Marketers use different marketing attribution models to measure the impact of their campaigns. These include –

• First Touch Attribution Model
• Last Touch Attribution Model
• Linear Attribution Model
• U-Shaped Attribution Model
• W-Shaped Attribution Model
• Time-Decay Attribution Model
• Custom Attribution Model

4 Reasons to Invest in Marketing Attribution

• • Identify What’s Working

In a multi-channel marketing world, not every channel offers your business the same reach and engagement. Marketing Attribution modeling lets you gain deeper insights into your organization’s different marketing
channels. Attribution models track various channels, including email, web, social, and ads, to offer actionable intelligence on marketing channels that drive maximum growth for your business. It also lets you identify campaigns that drive your brand’s most engagement and conversion.

• • Optimize Marketing Spend

To achieve maximum ROI, you must spend your marketing budget judiciously. Marketing attribution helps optimize the marketing budget and allocate a large portion of the marketing budget to channels that lead to higher engagement and conversions. Once you identify the channels that bring high-value customers `For example, if social media contributes to 50% of your conversions, it would be wise to spend more on social media marketing instead of channels that aren’t working.

• • Improve Personalization

Apart from reach and engagement, Marketing Attribution also lets you manage personalized campaigns. You get better insights into your target audience and their behavior and have a bird’s eye view of their buying journey. You can understand their needs and aspirations better and run personalized campaigns. Divide your target audience into segments based on their behavior and need to create custom campaigns with a business outcome in mind.

• • Increase ROMI

The last and most compelling reason is the increase in return on investment. As a marketer, you know the importance of spending every dollar on your campaign budget to maximize returns. Once you know the best-performing channels
that drive your growth, you can optimize your campaign. You will be able to target customers at the most critical touchpoints of their buying journey. For example, if your PPC campaign leads to more conversions, going aggressive on
paid ads would make sense, as these speeds up lead conversion and revenue.

Wrapping Up

Marketing attribution is not optional; it is a must-have tool to run a successful digital marketing campaign. Better insights lead to better decision-making and can put your business ahead of the competition.