The Future of Marketing: Embracing Algorithmic Attribution for Success

Algorithmic Attribution, or AA, is one of the most efficient methods marketers can use to measure and optimize the effectiveness of each of their channels for marketing. AA helps marketers increase their ROI by making better investments for every dollar spent.

Not all businesses are qualified for algorithmic attribution even though it has many advantages. There are many who do not have access Google Analytics 360/Premium Accounts, which can make algorithmic attribution feasible.

The benefits of Algorithmic Attribution

Algorithmic attribution (or Attribute Evaluation Optimization or AAE) is an effective, data-driven method for evaluating and optimizing marketing channels. It aids marketers to determine which channels are most efficient in driving conversions, and at the same time optimizes budget for all media channels.

Algorithmic Attribution Models (AAMs) are built using Machine Learning and can be continuously updated and improved for increased accuracy. They can gain knowledge from new data sources, while also adapting their models to reflect modifications in marketing strategy or products offered.

Marketers that use algorithmic allocation have seen greater rates of conversion, and an increase in the value of their advertising budgets. Marketing data can be improved by marketers who are able adapt quickly to changes in the market and keep up with their competitors strategy.

Algorithmic Attribution is another tool that can help marketers determine content that converts and help them prioritize their marketing efforts that bring in the most revenue while reducing those which don't.

The Drawbacks Of Algorithmic Attribution

Algorithmic Attribution (AA) is the modern approach to attributing marketing efforts. It employs advanced machines and statistical techniques to quantify objectively all marketing activities that occur during the journey towards conversion.

Marketers can assess the impact of their campaigns and identify high-yield conversion catalysts using this information, as well as planning budgets more effectively and prioritizing channels.

Many companies are struggling to implement this type of analysis as algorithmic attribution demands large amounts of data and numerous sources.

The most common reason is due to companies not having enough data or the required technology to effectively mine the data.

Solution: A cloud-based integrated data warehouse is the only source of absolute truth for marketing data. Through providing a comprehensive overview of customer interactions and touchpoints which allows for faster insight, increased relevancy and more accurate attributing results.

The Advantages of Last-Click Attribution

It's no surprise that last-click attribution is fast become one of the most sought-after options for attribution. This model allows credit to be granted to the most recent ad, campaign or keyword that led to the most conversion. It is easy to implement and doesn't need any data interpretation from marketers.

However, this attribution model does not provide a complete picture of customer journey. It ignores any marketing interaction prior to conversion as a barrier and could be costly due to lost conversions.

These models will help you get an improved understanding of your buyer's journey. They can also aid you in determining which marketing channels will be most effective in converting your clients. These models cover linear, time decay, as well as data-driven attribution.

The disadvantages of Last Click Attribution

Last-click attribution technology has become one of the most commonly used methods of attribution used by marketing teams. It's an ideal choice for marketers looking for an easy method of determining which channels contribute most directly to conversions. However, its use must be considered with care prior to it being implemented.

Last-click attribute is a marketing technique that allows marketers to only give credit to the point of contact with a client prior to conversion. This could result in incorrect and biased performance metrics.

First click attribution takes a different strategy, which rewards the customer's initial contact with marketing before making the purchase.

On a small scale, this approach can be helpful, but can become misleading when trying to optimize campaigns and prove worth to the stakeholders.

As this method only considers the effects of one marketing contact point, it is not able to provide important information regarding the brand awareness campaign's efficacy.

Essential AND Attainable for every Entrepreneur

Innovation is essential in any business…It’s a key component to differentiating yourself from your competition, and giving you a unique competitive advantage. 

Striving to be new, better and different allows your company to stay relevant and service your clients even better. 

Innovation also helps to distinguish between the leaders and the followers. 

It helps you achieve optimal market advantages and uncover new opportunities. 

Innovation also leads to change. 

Which in turn causes angst and resistance among many business stakeholders and/or team members. 

When I sense someone fears change, I simply reposition what innovation really means…

Continual improvement. 

When you think about it this way, it doesn’t seem so overwhelming, does it? 

What business owner doesn’t have at least one thing they’d like to improve in their business?

I don’t know one who doesn’t. 

No matter how big or small it is… Always remember that the smallest hinges can swing the biggest doors. 

The truth is, it really takes VERY LITTLE effort (on a consistent basis) to improve significantly over time. 

If you just improve one percent every day, over time that progress compounds (just like money earning interest). 

Here’s the only trick to this simple formula…

It’s only the ones who are committed to those small percentages each day that achieve the big results at the end. 

One of the best ways to ignite changes you’d like to see in your business is by collaborating with your team. 

Trust me, they know more about improvements that could and probably should be made in your business more than almost anyone else would. 

Keep in mind, your team is also pivotal in realistically achieving any kind of innovation in your business. 

These are the people who are going to make it happen. 

So RENEW your vision and rally your team! 

Share your vision and purpose with them. 

Convey the deep passion you feel for that purpose. 

Many don’t know this, but passion is a HUGE driving force that will inspire your team to make your vision and purpose a reality…To make those small strides toward continual improvement. 

Having a purpose is vital, however without knowing the direction you want to head, you could be driving that purpose in circles.  Because of this, it’s important to think of your company’s purpose as the compass, (always guiding your company in the right direction), and think of passion as the powerful and compelling force that gets you there.  

Those who become passionate about your shared purpose will contribute the most to your company’s success. 

Passionate team members take initiative and constantly strive to improve their performance and the company as a whole. 

These are the people who speak up and share their ideas and create new resources or ways of doing things.

When they feel they’re making a difference with their work, they become emotionally engaged in the outcome.

This is how they become a part of your mission.    

Acknowledge those that show their passion, give them opportunities to improve their knowledge, skills, and performance, capitalize on the fact that passionate team members often inspire their peers to step up their game too.

  You can’t create passion in a team member, but you sure can nurture it.

Next, is your company ready to handle changes and innovation? 

Many times companies will integrate new products, services, processes, or systems before ensuring they have the proper infrastructure set up to successfully support it on all levels. 

Here are 5 elements to consider:  

1. Clear Intentions

Are goals and objectives clear to everyone involved? Have all steps been thought through and laid out? 

 2. Innovation Sphere

What is the desired result? Where do we want this to position us in the marketplace? What becomes our unique competitive advantage? 

3. Success Measurement

What will we measure to track success milestones? How will we know if we are on the right track? 

4. Infrastructure Strength Test

Are all the necessary processes, systems and people in place to successfully support the objectives and initiatives from start to finish? 

5. Culture and Talent

Is this aligned with our culture, and will it attract more of the “right” talent? 

I’d love to hear an improvement you’ve made that really made a remarkable difference in your company. No matter how big or small…a win is a win! I’m always curious to hear new and better ways of doing something. 

Simply comment below.  

To your success, 

David

Clickfunnels expert