This is a copy of the presentation used at several Thought Leadership Thursday events describing the fundamentals of marketing attribution from digital, cross-channel and marketing planning perspectives.

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Introduction to Marketing Attribution
IBM Thought Leadership Thursday
Blair Reeves - Product Leader
IBM Digital Marketing Optimization
BlairReeves

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• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital Marketing Attribution
• Advanced Attribution: Cross-Channel and Marketing Planning
• Case Study: Digital Attribution
• Q&A

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Fly First is an international
airline that has been
collecting and analyzing
customer data over many
years.
But Jay, the CMO of Fly
First, knew that the
organization was just
scratching the surface.

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Jay and his team built detailed, individual pictures of
customers by combining multiple data sources from behind
and outside the firewall. They used interaction data like
marketing responses, attitudinal data from social
media, behavioral data including flight history and descriptive
data such as seat preferences.

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Jay had long leveraged analytics to identify
profitable customers and increase customer
retention. Now he is using it to predict
behavior like upgrading seats or buying in-
flight meals, as well as leveraging social
network analysis to understand his customers'
social networks.

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Using Attribution to Improve the Customer Experience
Meet Rick and Andrea, two Fly First passengers waiting
at a gate to board their flight to Chicago.
Customer Registration Data
• Name, DOB, Location, Email, preferences, etc.
Transactional Data
•Trip “Extras” Purchased
•Purchase History
•Loyalty Program
Digital Behavior
• Content Preferences
• Product/Promotion Affinities
• Search, Browsing Data
• Products/Itineraries Viewed
• Messages/Promotions Received
• Customer Responses

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• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital Marketing Attribution
• Advanced Attribution: Cross-Channel and Marketing Planning
• Case Study: Digital Attribution
• Q&A

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Identifying marketing influence on downstream objectives by analyzing
marketing interaction sequences, affinities and weighted contributions.
What is Marketing Attribution?

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Business Challenges Addressed by Attribution
And how do I
divide credit?”
“What influences
conversions?”

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Business Challenges Addressed by Attribution
And how do I
divide credit?”
“What influences
conversions?”
Attributed Metrics:
• Forward/Backward-facing
attribution windows
• Impression attribution
• Search

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Business Challenges Addressed by Attribution
And how do I
divide credit?”
“What influences
conversions?”
“What influences
customers to
migrate through the
conversion cycle?”
“What campaign channel
combinations drive the highest lift?”
“How long should I wait between
customer communications?”

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Business Challenges Addressed by Attribution
And how do I
divide credit?”
“What influences
conversions?”
“What influences
customers to
migrate through the
conversion cycle?”
“What campaign channel
combinations drive the highest lift?”
“How long should I wait between
customer communications?”
Attributed Journeys:
• Customer lifecycle attribution
• Multichannel attribution
• Mobile device pathing
• Social media

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• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital Marketing Attribution
• Advanced Attribution: Cross-Channel and Marketing Planning
• Case Study: Digital Attribution
• Q&A

15. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib15
Attribution
Attributed
Metrics
Click
(Credit clicked channels)
Impression
(Credit viewed channels)
Attributed
Journeys
Sequences
(Paths, Affinities)
Segments
(Multi-channel, Lifecycle)
Attribution Types

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Challenge Solution
How do I divide credit among all the
marketing sources that influence visitor
conversion?
Attribution Metrics
Which marketing sources most frequently
influence conversions and site activity?
Attribution Metrics
Are we under or over invested in particular
marketing channels or campaigns?
Attribution Metrics
How do I credit marketing impressions
regardless of whether or not they were
clicked?
Impression Attribution
Do those who view our shoes ads ultimately
purchase shoes?
Impression Attribution
Business Challenges – Attribution Metrics

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Direction
Backward: Which campaigns influenced/drove this conversion/activity? Looks backward
in time to attribute credit to the appropriate marketing source(s).
Forward: What is the latent success of this campaign? Considers a marketing campaign
and looks forward in time to attribute credit to the campaign.
Time Window The number of days for which activity will be analyzed.
Credit Logic
First: Apply all credit to the first source in the time window.
Last: Apply all credit to the last source in the time window.
Average: Apply equal credit to all sources in the time window.
Custom: Apply x% credit to the first source, y% credit to the last source, and z% credit
split across all middle sources.
First
Time Window
Last
Time Window
Average
Time Window
35%
Time Window
Custom
$30 $30
$10 $10 $10
$10.50
$13.50
45%$6
20%
Allocating a $30 conversion…
Attributed Metric Definitions/Options

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Analyze multiple attribution logic types
First, Equal, Last, Custom
Analyze multiple
attribution windows
Create calculated Metrics
Strong cycle initiator
Strong cycle closer
Analyze across all
channels
Analyzing Attribution Metrics

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Drill down to the
detail level
Analyze forward
and backward
attribution Analyze a wide variety of metrics
Analyzing Attribution Metrics

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Analyze attributed
margin
Attribute Search ROI

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Customizing Attribution Logic

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Impression Attribution
Measure the return on un-
clicked display ads and their
impact on the visitor

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Challenge Solution
How should I sequence my customer
contact strategy? How long should I wait
between communications?
Visitor Journey Insight:
• Channel Combinations
• Top Visitor/Customer Insight
• Automated Customer
Lifecycle Analysis
What campaign channel combinations drive
the highest lift?
How do my top contributors behave? How
do I get more to act like them?
What influences our visitor to migrate to
new milestones (e.g. buyers, 3x buyers,
advocates, fanatics, etc)
What online marketing activities lead to
offline transactions?
Multi-Channel Segmentation
Business Challenges – Attributed Journeys

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Measuring the Customer Journey is Vital
24

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• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital Marketing Attribution
• Advanced Attribution: Cross-Channel and Marketing Planning
• Case Study: Digital Attribution
• Q&A

26. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib26
Business Challenges Addressed by Attribution
“What influences
customers to
migrate through the
conversion cycle?”
“What campaign channel
combinations drive the highest lift?”
“How long should I wait between
customer communications?”
What is my optimal
marketing mix?
What channels
should we
invest in?
And how do I
divide credit?”
“What influences
conversions?”

27. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib27
Business Challenges Addressed by Attribution
“What influences
customers to
migrate through the
conversion cycle?”
“What campaign channel
combinations drive the highest lift?”
“How long should I wait between
customer communications?”
What is my optimal
marketing mix?
What channels
should we
invest in?
And how do I
divide credit?”
“What influences
conversions?”
Marketing Mix Modeling:
• Managing cross-channel marketing
spend
• Cross-channel attribution
• Statistically inferred attribution

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Cross-channel attribution drives marketing planning
eGoogle
Cross-channel data mart that
contains stimuli and
responses
Statistically driven prediction
of the contribution of
marketing stimuli to a desired
marketing result
Marketing performance
reports within each
channel and across
channels
Optimally plan & optimize cross-
channel media spend on
attributed performance of past
campaigns & other insights
Attribution
Modeler
Rules-based
Attribution
Attribution
Lift Analysis
Channel
Performance
Strategic
Planning
Channel Mix
Planning
Channel Mix
Optimization
Campaign Mix
Optimization
stimuli
responses
Attribution
Services
Performance
Reporting
Scenario
Planning
Marketing Mix
Optimization
Cross-channel
Interaction History

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Marketing Mix Analysis At a Retailer : Cross-Channel
Attribution Insights
• Responses might indicate more investment in SMS
• Purchase credit heavily skewed toward email
• Statistical Attribution Modeling helps rationally optimize channel mix
0
10
20
30
40
50
60
70
80
90
100
%
Attribution Credit by Channel Volume

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Marketing mix and cross-channel planning
 Marketing Mix prior to using Attribution Modeler and after – 5 channel view
%ofRevenueattributedtoChannel
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Baseline StatisticalModel
Web
Mail
Search
SMS
Email
Baseline using equal credit
rule

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Applications of Attribution Insight
Attributed Metrics:
• Forward/Backward-facing
attribution windows
• Impression attribution
• Search
Attributed Journeys:
• Customer lifecycle
• Multichannel attribution
• Channel/device pathing
• Social media analysis
Marketing Mix Modeling:
• Cross-channel attribution
• Performance-based budgeting
• Attribution modeling based on
statistical analysis
Site
Data
Capture
Digital
Data
Analytics
Cross-
Channel
Planning
• Optimization of discrete assets
• Message testing
• Display ad analysis/allocation
• Search term inventory
• Calculated metrics
• “Reality check”
• Touchpoint combinations
• Customer experience optimization
• Advanced segmentation and
retargeting
• Channel optimization
• Data-driven investment
• Campaign mix optimization
• Marketing performance
measurement

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Direct Mail - ROI
Double
counting
Marketing Leader’s pain – ROI numbers that don’t enable
effective marketing planning
eMail - ROI Search - ROI Social - ROI
No insight into overall
marketing ROI
Difficult to plan and
optimize marketing mix

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Double
counting
Understand Effectiveness Across Channels
Cross-Channel ROI
Understand overall
marketing ROI
Optimizes marketing mix
based on aggregated
channel performance

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So What Does This Mean for Andrea and Rick?
Good candidate for:
• Social media outreach
• Upsell promotions
• Affiliate marketing
Good candidate for:
• Social media outreach
• Last-minute deals
• Targeted messages
Analysis of digital
interactions and
multichannel data
Scoring with
attribution modeling
and statistical analysis

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• A Story: Fly First
• Digital Attribution 101
• Basic Components of Digital Marketing Attribution
• Advanced Attribution: Cross-Channel and Marketing Planning
• Case Study: Digital Attribution
• Q&A

36. © 2013 IBM Corporation@IBMEMM#AskMktgAttrib36
 Data revealed no cannibalization problem
 Visitors who shift channels go to unpaid
channels, alleviating concerns of double payment for
customer acquisition
 Branded keywords play a larger role than perceived
 10% of multi-click purchasers began with a branded term
 Cross-channel collaboration visibility was enhanced with
data discoveries; new strategies sprang from this
understanding
 PETCO wanted more than ‘last click’ to gain insight into
the impact of other channels on conversion
 Generated actionable reports and models with IBM
Digital Analytics to measure attribution metrics
 First, middle, and last click over time periods revealed
actionable insights
Challenge
Results
Solution
PETCO is a privately held specialty retailer
that provides products, services, and
advice that make it easier for customers to
be great pet parents. The company
operates more than 1,000 stores in 50
states and the District of Columbia, as well
as a leading pet products and information
destination at www.petco.com.
Customer Profile
PETCO’s understanding of paths-to-purchase helps optimize spend

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Learn More:
• Enterprise Marketing Management: IBM.com/marketing-solutions
• Digital Marketing Optimization: IBM.com/digitalmarketing
• Digital Marketing Optimization blog: SmarterCommerceBlog.com/digitalmarketing
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