How to overcome these challenges
Posted: Sat Dec 21, 2024 3:54 am
Part 3: What is "attribution analysis" necessary to determine the true effectiveness of advertising?
In the previous article , we introduced the problem that if you only believe the information displayed on the management screen of each advertising channel, even if there was actually only one conversion (CV), the CV will be measured on each advertising management screen you are using, resulting in "duplicate conversions." On the other hand, the CV counting of access analysis tools such as "Google Analytics" only evaluates the action immediately before the product purchase, in other words, the ad that led to the last click, which does not reflect the actual situation.
This time, we will introduce and manage advertising without underestimating or overestimating the effectiveness of advertising.
Visualize advertising contributions through attribution analysis and reallocate advertising budgets
One way to manage advertising without underestimating or overestimating its effectiveness is to use attribution analysis to visualize the contribution of advertising and reallocate the advertising budget.
Simply put, attribution analysis is "breaking down the phone number data base contribution based on historical data of campaign touch points leading to campaign goals (mainly conversions) and allocating it appropriately to each campaign ." However, since this explanation may not be clear, to give you a concrete image, we will show you an example of attribution analysis implementation to avoid underestimating the advertising effectiveness of last-click evaluation based on the number of clicks on search-linked ads.
The diagram below compares the difference between the evaluation on the advertising channel management screen (bottom left) and the evaluation when attribution is taken into account (bottom right) when a furniture online shopping site runs search-related advertising and a user clicks on an ad for the keywords "furniture," "storage," or "site name" and makes a purchase.
I'm sure you are all familiar with the numbers on the advertising channel management screen, so when taking attribution into account, if you pay attention to the part in the red frame, you will see that it has changed to Calculation method = Point distribution (equal model), TCV, TCPA.
Point allocation (equal allocation) refers to the evaluation model used to allocate contribution points in attribution. In this case, equal allocation means that the evaluation is allocated equally to each individual ad contact leading up to a conversion (purchase) .
Specifically, if the advertising keyword "site name" is evaluated equally, and a user comes into contact with the ad three times (furniture → storage → site name) and converts, then one ad contact is worth 1÷3=0.33 conversions, since there are three ad contacts for one conversion. Therefore, the site name is counted as 0.33 CV.
In the previous article , we introduced the problem that if you only believe the information displayed on the management screen of each advertising channel, even if there was actually only one conversion (CV), the CV will be measured on each advertising management screen you are using, resulting in "duplicate conversions." On the other hand, the CV counting of access analysis tools such as "Google Analytics" only evaluates the action immediately before the product purchase, in other words, the ad that led to the last click, which does not reflect the actual situation.
This time, we will introduce and manage advertising without underestimating or overestimating the effectiveness of advertising.
Visualize advertising contributions through attribution analysis and reallocate advertising budgets
One way to manage advertising without underestimating or overestimating its effectiveness is to use attribution analysis to visualize the contribution of advertising and reallocate the advertising budget.
Simply put, attribution analysis is "breaking down the phone number data base contribution based on historical data of campaign touch points leading to campaign goals (mainly conversions) and allocating it appropriately to each campaign ." However, since this explanation may not be clear, to give you a concrete image, we will show you an example of attribution analysis implementation to avoid underestimating the advertising effectiveness of last-click evaluation based on the number of clicks on search-linked ads.
The diagram below compares the difference between the evaluation on the advertising channel management screen (bottom left) and the evaluation when attribution is taken into account (bottom right) when a furniture online shopping site runs search-related advertising and a user clicks on an ad for the keywords "furniture," "storage," or "site name" and makes a purchase.
I'm sure you are all familiar with the numbers on the advertising channel management screen, so when taking attribution into account, if you pay attention to the part in the red frame, you will see that it has changed to Calculation method = Point distribution (equal model), TCV, TCPA.
Point allocation (equal allocation) refers to the evaluation model used to allocate contribution points in attribution. In this case, equal allocation means that the evaluation is allocated equally to each individual ad contact leading up to a conversion (purchase) .
Specifically, if the advertising keyword "site name" is evaluated equally, and a user comes into contact with the ad three times (furniture → storage → site name) and converts, then one ad contact is worth 1÷3=0.33 conversions, since there are three ad contacts for one conversion. Therefore, the site name is counted as 0.33 CV.