How limited visibility in your funnel boosts advertising costs
In the intricate world of paid advertising, businesses strive to chart a clear path through an ever-shifting landscape. With ceaseless technological advancements and changes in audience preferences, having a holistic and strategic view is vital for long-term and healthy growth. Yet, amid the turbulence, many businesses are neglecting a critical component – a comprehensive understanding of their marketing and/or customers’ journey.
Various developments have compromised the ability of marketers and/or businesses to track every touchpoint in their customers’ journey. The outcome? A worrying blind spot that could be inflating advertising costs, while also thwarting online growth and revenue.
The last-click Crisis.
Marketers have long relied on Last Click Attribution, which assigns full credit for a conversion to the last ad click before a conversion. However, this model has its limitations – chiefly, it doesn’t acknowledge the impact of your other marketing channels which may have played a significant role in your conversion.
Let’s illustrate this with a simple example. Suppose a customer discovers your product through an Instagram ad (view), then views some products through a Facebook ad a few days later (first click), and finally clicks on a search ad and makes a purchase (last click). In the Last Click Attribution model, the search ad receives full credit for the conversion, ignoring the crucial roles played by the Instagram and Facebook ads.
In many cases, channels such as Instagram and Facebook excel at creating awareness rather than driving immediate conversions and can be seen as viewability platforms. On the other hand, high-conversion platforms like Google Ads often attract more high-intent buyers, who actively seek out specific products or services.
In the last-click model, Google Ads might appear more valuable due to its direct conversion capabilities, overshadowing the crucial awareness-building role that platforms like Facebook and Instagram play in your marketing journey.
Recognizing the limitations of Last Click Attribution, marketers have begun exploring more inclusive models, such as Multi-Touch Attribution (MTA) and Unified Marketing Measurement (UMM).
Multi-Touch Attribution (MTA) assigns value to each touchpoint (starting from the first click) in the customer journey, acknowledging the contribution of each interaction to the final conversion. This gives a more holistic view of the marketing journey and allows for more accurate marketing decisions. Meaning you can track the efficiency of your marketing efforts over the whole journey, and thus distribute budgets accordingly. Making sure to balance visibility and findability, driving growth and conversions.
Unified Marketing Measurement (UMM) extends beyond Multi-Touch Attribution (MTA) by encompassing not just click or session interactions, but also the effect of views on your ultimate conversion. This means that it captures the contribution of viewability platforms, such as TikTok and Pinterest, giving you a holistic understanding of your customer’s journey.
The benefits of MTA and UMM.
Unified Marketing Measurement (UMM) and Multi-Touch Attribution (MTA) offer valuable alternatives to the last-click model, allowing marketers to gain a comprehensive view of their customers’ journey. Instead of crediting just the final interaction before a sale, they account for all touchpoints, delivering a more accurate picture of your marketing’s effectiveness. This more inclusive approach provides a deeper understanding of how different channels contribute to your conversions, and allows for better budget distribution.
By using UMM or MTA, marketers are better equipped to make informed decisions, optimizing marketing efficiency and profitability in today’s digital landscape.
In conclusion, in this era of dynamic online marketing, having a clear vision of your entire marketing journey is a necessity. By shedding light on the blind spots in your marketing efforts, you can ensure that every dollar of your advertising spend is working optimally for you.