Navigating the New Realities of Marketing Attribution
Marketing attribution has always been a challenging aspect of the marketer’s toolkit. Thanks to various providers’ promises of pinpoint accuracy, marketing decision makers and company leaders have come to expect a level of precision that was never quite attainable to begin with.
Today, this challenge has only intensified. The decline of third-party cookies and the increased reluctance of major platforms to share first-party user data have added new layers of complexity to an already convoluted process.
As lower funnel efforts become harder to track and attribute, our agency has started to advocate for a more holistic approach to marketing—one that pairs brand and demand to drive growth across the funnel.
But how did we get here? Let’s dive into it.
How did we get here?
The Decline of Third-Party Cookies
Third-party cookies have been a cornerstone of digital marketing for years. They allowed marketers to track users across the web, providing valuable data on user behavior and preferences. However, increasing concerns over privacy have led to significant changes in how these cookies are collected and used. Regulations like GDPR and CCPA have required stricter opt-in settings. Browsers like Safari and Firefox have implemented cookie restrictions, and Google’s Chrome is set to introduce its own set of restrictions soon (after walking back their initial plans to sunset cookies altogether).
The implications are profound. Marketers can no longer rely on third-party cookies to gain full visibility into user journeys. This shift forces a reevaluation of how we understand and measure customer interactions across multiple touchpoints. As the visibility into these touchpoints diminishes, the challenge of attributing conversions—and cost per conversion—becomes more daunting.
The Walled Gardens of Social Media and Search Engines
Popular product research platforms such as LinkedIn and Google have their own incentives to keep users within their ecosystems. LinkedIn, for instance, prioritizes content that retains users on its platform rather than directing them to external sites. Think about the rapid proliferation of LinkedIn-hosted articles and newsletters lately: users are incentivized to publish directly in LinkedIn or face a decrease in reach and engagement. And when you do try to share an external link, the content preview has been relegated to much less real estate in the feed.
Similarly, Google’s search results are designed to keep users engaged with Google services, whether through featured snippets, local results, or direct answers. “Position zero” content has been a focus in search engine optimization strategies for a while now, and is the perfect example of this practice.
This trend toward “walled gardens” means that marketers receive muddied traffic attribution. Instead of clear pathways from social media or search engines to your website, you now see more circuitous routes. Users might engage with your content on a social platform, visit your site later through a different channel, and ultimately convert through yet another pathway. Like when you see an Instagram ad for a great sale on your phone, run a Google search for the company on your desktop a few days later and add things to your cart, then complete the purchase by going to the site directly the next morning.
This fragmentation makes it harder to track the true impact of each touchpoint, and in this scenario the social ad you saw may not appear in the attribution pathway.
The Imperfect Science of Offline Conversion Tracking
Offline conversion tracking relies on matching online user data with offline actions, such as in-store purchases or phone inquiries. Analytics providers like Google have promised to bridge the gap between online interactions and offline actions, but the reality often falls short. Even when third-party cookies were more prevalent, multi-touch tracking has never been an exact science.
Still, as promises of multi-touch and offline attribution grew grander, budget decision makers might have seen unattributable ad spend as a waste. As many marketers may have experienced in recent years, line item scrutiny has increased along with expectations to show results. But the disconnect between digital campaigns and real-world outcomes remains a significant hurdle, such as when trying to determine the effectiveness of an OOH campaign or print ad.
Without reliable ways to connect the dots, marketers are left to contend with a double whammy problem: an incomplete picture of their efforts’ effectiveness and frustrated executives who want clarity on money out and money in.
The Lengthening Buying Cycle
Adding to the complexity is the evolving nature of the buying cycle. In the B2B world, the decision-making process is becoming longer and more intricate. Buyers are conducting extensive research, engaging with multiple touchpoints, and involving various stakeholders before making a purchase decision. This extended cycle makes it even more challenging to attribute conversions accurately.
Multi-touch attribution models have been championed as the solution to these challenges. By assigning value to each interaction along the buyer’s journey, these models aim to provide a holistic view of marketing effectiveness. However, in the current landscape, these models are struggling to keep up with the reality of fragmented data and elongated buying processes.
Where do we go from here?
Embracing Alternative Strategies
The evolving landscape of marketing attribution calls for a shift in mindset. Decision-makers at B2B firms need to recognize that perfect dollar-for-dollar attribution is no longer feasible. The focus should instead be on understanding the broader patterns and trends in customer behavior. By embracing a more holistic approach, marketers can gain valuable insights despite the limitations.
Here are some strategies to consider for navigating the challenges of modern marketing attribution:
- Invest in First-Party Data: While third-party cookies may be on the decline, first-party data remains a valuable asset. By focusing on collecting and leveraging data from your own channels, you can gain insights into customer behavior and preferences. This data can be used to inform your attribution models and improve targeting.
- Prioritize Content and Engagement: In a landscape where direct attribution is challenging, focus on creating high-quality content and fostering engagement. Building strong relationships with your audience and delivering value through content can lead to more organic conversions and brand loyalty.
- Adopt a Holistic View: Instead of striving for perfect attribution, take a holistic view of your marketing efforts. Consider all touchpoints and interactions, and focus on overall trends and performance. This broader perspective can help you make more informed decisions and allocate resources effectively. Positioning your brand to use the right messages on the platforms your audience frequent remains paramount, and getting lost in the minutiae of channel attribution shouldn’t be a distraction from keeping your marketing house in order.
- Focus on Sales and Marketing Collaboration: Ensure every member of your sales and marketing teams understands their role in the funnel. By sharing insights and aligning on common goals, these teams can work together to create a more comprehensive view of the customer journey. This collaboration ensures that marketing efforts are aligned with sales outcomes, even if precise attribution remains elusive.
Stop Fine-Tuning and Start Big-Picturing
The landscape of marketing attribution is undoubtedly shifting. The decline of third-party cookies, the rise of walled gardens, and the increasing complexity of the buying cycle have all made it more difficult to show marketing’s impact on company bottom lines. While multi-touch attribution models have their merits, the new reality demands a more flexible and holistic approach.
In this new reality, decision-makers must recognize that perfect dollar-for-dollar attribution is not possible. Instead, the focus should be on leveraging available data, investing in understanding the customer, and prioritizing content and engagement. These inputs can help you find the right audience, the right message, the right place to deploy it, and the right time to do so. Measuring the impact of this approach might mean looking beyond the number of conversions directly attributed to that channel, and more at things like brand lift, total impressions, or direct traffic.
Trying to figure out where and how to reach your audiences? Our team can help. We work with clients every day to strengthen their marketing messaging and strategies. Get in touch to see how we can help you.
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