Multi Touch Attribution Evolution
“Multi-Touch Attribution (MTA) Is Not Dead, It's Evolved”,
~ says MTA pioneer & CEO of Provalytics Jeff Greenfield
Multi-Touch Attribution (MTA) has been a vital tool for marketers, but with the changing marketing landscape, some have questioned its viability. However, MTA pioneer and CEO of Provalytics, Jeff Greenfield, believes that MTA is not dead, it has simply evolved to meet the needs of the modern marketing landscape.
MTA Emergence
According to Greenfield, MTA emerged as a solution to the limitations of Marketing Mix Modeling (MMM), which was used for decades to evaluate the impact of marketing channels on sales. MMM utilized aggregate data and was not designed to accurately measure the digital path to purchase. As digital marketing grew, so did the need for a more granular and precise method of tracking and attributing success across different channels.
"MMM was a good starting point for understanding the impact of different marketing channels on sales, but it had its limitations. It was not designed to measure the complexity of the digital path to purchase, which required a more sophisticated approach," says Greenfield.
MTA was developed to fill this gap, allowing marketers to measure the contribution of each touchpoint in the customer journey. This level of detail provided a more accurate understanding of the consumer's path to purchase and enabled businesses to optimize their marketing strategies by allocating resources to the most effective channels.
"MTA was a game-changer for the industry because it provided a more granular and precise method of tracking and attributing success across different channels. This allowed marketers to better understand the customer journey and make more informed decisions about their marketing strategies," Greenfield explains.
The Evolution of MTA
The evolution of MTA can be traced back to the early days of digital marketing when marketers began to realize that traditional MMM was insufficient for capturing the intricacies of online consumer behavior. With the advent of search engines, social media, and other digital platforms, it became clear that the consumer journey was no longer a linear path but rather a complex web of interactions across multiple touchpoints.
To address this complexity, MTA models were designed to capture the influence of each individual touchpoint on a customer's decision to purchase, taking into account factors such as the viewability, order of interactions, the time between them, and the type of marketing channel. Early MTA models were relatively simple, often relying on heuristic approaches such as first-click, last-click, or linear attribution.
However, these approaches failed to consider the incremental impact of each touchpoint on a customer's decision to purchase, and thus did not provide a complete picture of the customer journey. This was a major limitation of early MTA models and led to a re-evaluation of the approach.
"As the digital landscape continued to evolve and the volume of available data increased, more sophisticated MTA models were developed that incorporated incrementality. These advanced models incorporated advanced statistical techniques to provide a more accurate picture of the customer journey," says Greenfield.
Challenges Facing MTA
Despite the undeniable benefits of MTA, the increasing focus on consumer privacy has presented new challenges for MTA providers. Marketers are now tasked with finding ways to maintain the granularity and accuracy of MTA models while respecting consumer privacy and adhering to emerging regulations.
These changes have resulted in new limitations on data collection and have made it nearly impossible for marketers to track user behavior across platforms and accurately measure the impact of marketing channels.
Some of the most significant challenges include:
- IOS Privacy Changes: Apple's implementation of privacy features, such as Intelligent Tracking Prevention (ITP) and App Tracking Transparency (ATT), has limited the ability of marketers to track user behavior across platforms, impacting the accuracy of MTA models.
- New Privacy Laws: The introduction of privacy laws, starting with the California Consumer Privacy Act (CCPA), has created a patchwork of regulations that marketers must navigate, complicating MTA measurement.
- Walled Gardens: Major platforms, such as Facebook and Google, restrict access to user-level data, creating "walled gardens" that hinder the ability of marketers to accurately attribute touchpoints within these ecosystems.
- Removal of Third-Party Cookies: Google's plan to phase out third-party cookies from Chrome by 2023 will further limit the data available for MTA, necessitating the development of alternative methods for tracking user behavior.
- New Digital Media Channels: The rise of new channels, such as podcasts and Connected TV (CTV), which lack the ability to attribute ‘clicks’, poses additional challenges for MTA measurement.
MTA providers should be looking to utilize aggregated, non-PII data versus user-level data which they would typically collect via website tags, says Greenfield. Advanced AI and ML algorithms now allow for the analysis of complex, daily-level data with the ability to output MTA type results.
Greenfield believes that the challenges facing MTA have made it a more valuable tool for marketers. "By developing new privacy-preserving techniques, MTA providers are actually improving the accuracy and usefulness of their attribution models," he says. "These innovations are making it easier for marketers to gain insights into consumer behavior and optimize their marketing campaigns, even in the face of privacy concerns and data limitations."
2023 MTA Playbook
The 2023 MTA Playbook, an essential guide for marketers, has been meticulously curated by Greenfield since 2010. This year's playbook (available as a free download from https://provalytics.com/playbook) offers an in-depth analysis of multi-touch attribution (MTA) companies based on 22 different criteria, enabling marketers to identify the most suitable vendor that aligns with their organization's specific measurement and marketing requirements.
The criteria in the playbook are grouped into five categories: Methodology, Privacy, Channels, Reporting & Planning, and Fees. These categories encompass a wide range of essential factors that marketers must consider when selecting the right MTA vendor to support their campaigns and objectives.
The Methodology category delves into the vendor's approach to MTA modeling, including their algorithms, integration capabilities, and accuracy. It allows marketers to evaluate whether a vendor's approach to attribution is in sync with their company's needs and philosophy.
The Privacy category examines how vendors handle user data and adhere to regulations such as GDPR and CCPA. With data privacy becoming increasingly important, this category is essential for organizations looking to protect their customer's information and avoid legal complications.
The Channels category assesses the range of marketing channels covered by the MTA vendor, including digital, offline, mobile, and social media channels. It helps marketers determine whether the vendor can accurately measure and attribute success across their entire marketing mix.
The Reporting & Planning category focuses on the tools and capabilities provided by the vendor for campaign analysis, forecasting, and optimization. This category is particularly important for organizations seeking a data-driven approach to their marketing strategies and effective decision-making.
The Fees category investigates the cost structure of each vendor's services, helping marketers determine which vendor provides the best value for their organization's budget.
This indispensable resource empowers organizations to make informed decisions that align with their unique measurement and marketing requirements, ultimately leading to more successful campaigns and improved ROI.
Cynopsis Measurement & Data Conference
Greenfield will speak on Attribution at the Cynopsis Measurement & Data Conference in New York City held June 13 – 14.
During a session titled “What is Attribution and ROI/ROA measurement?” Greenfield will discuss the evolution of Attribution to solve today’s issues including: Walled Gardens, privacy regulation & the upcoming ‘cookie collapse’. Other speakers include Bill Harvey, Jane Clarke, Alice K. Sylvester, Jim Spaeth, and others.
The Cynopsis two-day Measurement & Data Conference, covers critical topics with the leaders spearheading the attribution revolution and addresses the measurement questions that really matter to marketers.
Learn more about the conference here: https://www.cynopsis.com/events/measurement-data-conference-2023/
FAQ
Multi-Touch Attribution (MTA) is a marketing analytics technique that helps marketers understand the contribution of each touchpoint in a customer's journey towards a conversion or purchase. MTA allows businesses to gain insights into consumer behavior and optimize their marketing strategies by allocating resources to the most effective channels.
MTA has evolved to address the increasing complexity of the digital marketing landscape. Initially, it relied on heuristic approaches, such as first-click, last-click, or linear attribution. However, with advances in technology and access to more granular data, MTA models now incorporate advanced statistical techniques and machine learning algorithms to provide a more accurate picture of the customer journey.
MTA faces challenges due to increased focus on consumer privacy, new privacy laws, walled gardens created by major platforms, the removal of third-party cookies, and the emergence of new digital media channels. These factors have led to limitations in data collection and the ability to accurately measure marketing channel impact, requiring MTA providers to adapt and develop new privacy-preserving techniques.
The 2023 MTA Playbook provides an in-depth analysis of MTA vendors based on 22 criteria across five categories: Methodology, Privacy, Channels, Reporting & Planning, and Fees. This comprehensive framework enables marketers to evaluate and compare vendors based on their organization's specific measurement and marketing requirements, ensuring they make informed decisions that lead to more successful campaigns and improved ROI.