last click

Has the affiliate channel outgrown the CPA last click model?

It’s well known that the affiliate channel works on a cost per acquisition (CPA) model, meaning that when the desired action is completed, be it a sale, lead or quote,  the affiliate is paid.

To be able to attribute the sale to an affiliate there needs to be an agreed metric by which a sale can be attributed.

Typically this is a ‘last click wins’ model: if the last click is attributed to a particular publisher then they receive the commission.

Facebook ads undervalued by last click

Last click attribution models undervalue the contribution of Facebook ads by up to 30% in cross-channel advertising campaigns.

The last click attribution model, which credits the last ad clicked before a sale or other conversion with all the value for that conversion, is still widely used to measure the contribution of advertising.  

However, a recent Kenshoo study focused on Facebook advertising helps expose its weaknesses.

Last-click attribution is undermining your hard work

Imagine you’re a football manager, your objective is to maximise the number of goals your team scores for your budget.

However, if you were to start assessing players based solely on their goal scoring ability, you’d end up with an unbalanced team full of strikers and probably let in a lot more goals than you’d manage to score.

The same story goes for cross channel media buys; each channel has a unique position on the team and serves a unique purpose, however they’re often measured on their ability to achieve the end goal independently of the other channels.

Buying your media in this way is attractive because it uses simple metrics and makes for great reporting, but if you’re still measuring prospecting based on your conversion pixel, you could be missing a lot of opportunities from further up the path.

How Air New Zealand used tag management for attribution

Most ecommerce businesses invest in a range of digital marketing channels, so working out the exact attribution and ROI can be incredibly complex.

For example, the importance of search can often be overstated, as that tends to be the last step on the path to conversion.

To try to develop a better understanding of its marketing attribution, Air New Zealand began using a tag management system two years ago.

The ecommerce team found that the assumptions and investments that it made based on a last-click model were hugely inaccurate, particularly when it came to display.

To find out more about how tag management impacted Air New Zealand’s attribution model, I spoke to UK and continental Europe online channel manager Chris Allison…

The false comforts of fractional attribution

Back in 2008 I thought fractional attribution was a complete solution but after the last four years working with brands, my opinion has changed.

I have discovered that while this method is not entirely without merit, it is disappointingly limited and doesn’t do much to help a marketer re-allocate spend meaningfully.

In 2008 Microsoft said ‘the company can now provide a scientifically based standard showing how well different media affect an eventual conversion’, this was engagement mapping, a classic example of fractional attribution and what have we learnt from it? 

My take on it is that user interface sliders and shiny bubble graphs are sexy but technology has to do more than look good, it must synthesise, it can’t just echo back what you tell it.

It’s important to try and learn about the successes and failures of your marketing spend, this is how we build successful programmes. Attribution analysis should enable you to examine the empirical value of your media and reallocate your spend accordingly.

Q&A: Center Parcs’ digital click attribution strategy

Search Ignite and Golley Slater have today released a case study to show how they have used click attribution to increase online bookings for Center Parcs. 

Center Parcs has previously used the last click attribution model, but has been using cross-channel measurement and attribution in its digital campaigns for the last six months.

I’ve been speaking to Mark Fagan, Digital Media Director at Golley Slater, as well as Search Ignite’s MD James Yancey and Managing Consultant Andy Betts about the case study…

Google focuses in on the funnel

When it comes to online advertising and tracking conversions, the first click is often just as important as the last click. And sometimes, it’s not even about clicks per se. But unfortunately many advertisers only track the last click.

Google is hoping to change that for AdWords advertisers with a new feature it introduced earlier this week called Search Funnels.