Survey Uncovers Roadblocks to Faster Optimization, Including Inflexible Budgets, Data Management Challenges and an Inability to Update Models & Metrics on a Daily Basis
NEEDHAM, Mass. – Visual IQ, the leading cross channel marketing attribution software provider, announced the publication of “Bring Algorithmic Attribution Up to Speed: Accelerate Your Attribution Insights for More Effective Digital Channel Optimization,” an August 2016 commissioned study conducted by Forrester Consulting on behalf of Visual IQ that explores the state of the marketing attribution marketplace. The study concludes that today’s marketers are utilizing algorithmic attribution to accurately track the increasingly complicated customer journey and optimize cross channel spend, yet currently cannot do so at the speed they would like.
“Bring Algorithmic Attribution Up to Speed: Accelerate Your Attribution Insights for More Effective Digital Channel Optimization”
A multi-dimensional algorithmic modeling approach to attribution provides granular cross channel insights and data-driven optimization recommendations, leading to better performance and higher return on marketing spend. Based on in-depth surveys with more than 50 U.S. and U.K. marketing professionals responsible for digital channel optimization at their organization and utilizing algorithmic attribution models, the study finds that algorithmic attribution is essential for marketers to optimize media investments. Seventy-five percent of respondents note that they use algorithmic attribution informed insights to develop a more precise reach strategy, and 71 percent use those insights to target the right audiences more effectively. Furthermore, 67 percent of marketers use these insights to adjust media spend across channels, while 63 percent use them to adjust tactics within individual channels.
While the benefits of attribution are vast, marketers must be agile and able to react quickly to changes in market conditions and keep pace with competitors’ ever-changing strategies. The study reveals that being able to quickly optimize marketing channels on a daily basis is important or very important for many marketers (58 percent), yet only one-third say they can do so today.
When probed about the barriers to faster optimization, marketers indicate that inflexible marketing and media budgets (41 percent), data consolidation challenges (37 percent), and partner and/or agency contracts that limit budget changes across channels and campaigns (29 percent) are key inhibitors. Additionally, 29 percent of marketers that use algorithmic attribution don’t receive fresh data fast enough to optimize on the most current results.
Other key findings of the study include:
- Algorithmic attribution has quantifiable benefits. Three-quarters of marketers experience improvements in customer targeting and brand engagement from utilizing algorithmic attribution, with 80 percent reporting that they reach the right customers and 74 percent saying they serve more effective creative to customers at the right time.
- Speedy algorithmic attribution is critical to achieving top marketing goals. The top goals defined by marketing organizations are improving profitability (43 percent), targeting more effectively (43 percent) and increasing brand engagement (39 percent). Yet marketers that cling to traditional media buying and measurement practices, or use attribution technologies that are unable to update models and insights on a daily basis risk falling behind the competition.
- Daily optimization is critical during key time periods. The rebuilding of attribution models on a daily basis – based on the most recent marketing performance data available and enabling real-time optimization informed by this data – is vital during critical time periods, including when competition is live in the market (55 percent), during the start of a campaign (53 percent) and during key sale seasons (51 percent).
“Marketers are challenged to make the most of media budgets, and legacy measurement solutions that don’t accurately allocate credit between touchpoints and channels or identify the right audiences to target are no longer an option,” said Manu Mathew, co-founder and CEO of Visual IQ. “The results of this study confirm the major role that algorithmic attribution plays in helping marketers make the right media investment decisions, yet there is clearly an appetite for near real-time updates and daily optimization. Getting there means choosing technologies that support a daily optimization cadence.”
To learn more or download the full study, click here.
About Visual IQ
Visual IQ produces the world’s most powerful cross channel marketing attribution software products. As a pioneer in the space, the company has been offering products since 2006. Its SaaS-based IQ Intelligence Suite reveals cross channel performance insights hidden deep within companies’ marketing data, providing actionable recommendations and optimized media plans to improve marketing effectiveness. These recommendations enable marketers and agencies to adjust their advertising strategies and tactics to significantly increase marketing ROI across their entire marketing mix – both online and offline. The functionality behind these products combines a powerful, user-friendly interface with multi-dimensional fractional attribution science and predictive analytics that clearly and accurately show marketers where opportunities exist for improvement.
Visual IQ was named a leader in cross channel attribution in 2014 by a leading market research firm, won The Drum’s 2015 Digital Trading Award for Best Attribution Solution, won the 2014 ASPY Award for Best Data or Analytics Solution, and was a finalist in theDigital Analytics Association Excellence Awards in 2013, 2014 and 2015. The company is a member of the Advertising Technology, Data, Public Policy and CFO Councils of the IAB, as well as on the Standards Committee of the Digital Analytics Association.
