Marketing Attribution Models

Why do we need attribution?

Attributionis the process of distributing the value of a purchase between the various channels, used in the funnel chain. It allows you to determine the role of each channel in profit. It is used to assess the effectiveness of campaigns, to identify more priority sources. The competent choice of the model makes it possible to optimally distribute the advertising budget. As a result, the business gets more profit and less expenses.

What models of attribution exist

The choice of the appropriate model is an important issue, because depending on the business objectives, it is better to fit something different. For example, for companies that have long been present in the industry, the priority is to know which sources contribute to the purchase. Recognition is the importance for brands entering the market. Thus, incorrect prioritization of sources may cause a decrease in efficiency. Below are the models that are widely used in the market. Each of them is guided by its own logic, it is better suited for different businesses.

First Interaction (First Click)

The value is given to the first touch. It is suitable only for several purposes and does not make it possible to evaluate the role of each component in making a purchase. It is chosen by brands who want to increase awareness and reach.

Advantages

It does not require knowledge of programming, so the introduction of a business is not difficult. A great option that effectively assesses campaigns, aimed at creating awareness and demand for new products.

Disadvantages

It limits the ability to analyze comprehensively all channels that is used to promote a brand. It gives value to the first interaction channel, ignoring the rest.

Who is suitable for?

Suitable for those who use the promotion to increase awareness, the formation of a positive image. Also allows you to find the most effective source.

Last Interaction (Last Click)

It gives value to the last channel with which the consumer interacted before making the purchase. It does not take into account the actions that the user has done up to this point, what marketing activities he encountered on the way to conversion.

Advantages

The tool is widely used in the market, it is not difficult. It solves the problem of small advertising campaigns, where is no more than 3 sources.

Disadvantages

There is no way to track how other channels have affected the acquisition.

Who is suitable for?

It is suitable for business models that have a short purchase cycle. This may be souvenirs, seasonal offers, etc.

Last Non-Direct Click

It is the default in Google Analytics. 100% of the  conversion value gives the last channel that interacted with the buyer before the conversion. However, if this source is Direct, then assumptions are counted.

Suppose a person came from an email list, bookmarked a product, because at that time it was not possible to place an order. After a while he comes back and makes a purchase. In this case, email as a channel for attracting users would be underestimated without this model.

Who is suitable for?

It is perfect for beginners who are afraid of making a mistake in the assessment. Because it allows you to form a general idea of ​​the effectiveness of all the involved channels.

Linear model attribution (Linear model)

The value of the conversion is divided in equal parts between all available channels.

Linear model attribution (Linear model)

Advantages

More advanced model than previous ones, however, characterized by simplicity. It takes into account all the visits before the acquisition.

Disadvantages

Not suitable for reallocating the budget between the channels. This is due to the fact that the effectiveness of sources may differ significantly and evenly divide – it is not the best idea. 

Who is suitable for?

It is performing well for businesses operating in the B2B sector, which plays a great importance to maintain contact with the customer during the entire cycle of the funnel.

Taking into account the interaction duration (Time Decay)

A special feature of the model is the distribution of the value of the purchase between the available channels by increment. Thus, the source, that is at the beginning of the chain, is given the least value, the channel at the end deserves the greatest value.  

Advantages

Value is shared between all channel. The highest value is given to the source that pushed the user to make a purchase.

Disadvantages

There is no fair assessment of the effectiveness of the channels, that have made efforts to obtain the desired result.

Who is suitable for?

It is ideal for evaluating the effectiveness of advertising campaigns with a limited duration.

Position-Based or U-Shaped

40% receive 2 channels, which led the user and pushed him to purchase. 20% share among themselves the intermediate sources that participated in the chain.

Advantages

Most of the value is divided equally between the key channels – the fact that attracted the user and closed the deal..

Disadvantages

Underestimated intermediate channels.It happens that they make it possible to more effectively promote the user chain.. Because they allow you to subscribe to the newsletter or start following the visitor for price reduction, etc.

Who is suitable for?

Interesting for businesses that focus on attracting new audiences, as well as pushing existing customers to buy.

Cons of standard attribution models

According to statistics, only 44% of foreign experts use attribution on the last interaction. Speaking about the domestic market, we can announce the numbers are much higher. However, only 18% of marketers use more complex models. There is also evidence which demonstrates that 72.4% of those who use attribution based on the last interaction, they use it not because of efficiency, but because it is simple.

What leads to a similar state of affairs?

Experts do not understand the effectiveness. Ignorance of how more complex models work leads to a lack of understanding of the real benefits for the business.

Attribution management is distributed among several employees. In view of this, different models can be used simultaneously. This approach greatly distorts the data obtained, not allowing an objective assessment of the effect of channels.

No comprehensive data storage. Information is stored in different places and does not take into account other channels. Using the analytics of the advertising office, it is impossible to work with customers in retail outlets.

You may find ways to eliminate these moments and attribution will work for the benefit of the business.

What algorithmic attribution models exist

Using one channel, there is no need to enable complex models. Attribution will be enough for the last interaction. It has everything to evaluate the effectiveness of the campaign, determine the profitability, understand the benefits for the business.

Moreover, if the number of channels increases significantly, and goals are already far beyond recognition, it will be better to give preference to more complex models. They allow you to collect all the information in one place, open up limitless monitoring capabilities, make it clear how one channel affects the other and which bundles work better together.

Below are the well-known and widely used today algorithmic attribution models.

Data-Driven Attribution

A model that allows you to track all the way that the consumer has done before making a purchase. It objectively evaluates each channel and does not take into account the position of the source in the funnel. It demonstrates how a certain interaction affected the outcome. Data-Driven attribution model is used in Google Analytics 360.

With it, you can work efficiently with channels that are underestimated in simpler models. It gives the opportunity to distribute the advertising budget correctly.

Attribution based on Markov’s Chains (Markov Chains)

Markov’s chain has been used for a long time to predict weather, matches, etc. The model allows you to find out, how the lack of a channel will affect sales. Its advantage is the ability to assess the impact of the source on the conversion, to find out which channel brings the best results.

A great option for companies that store data in one service. To implement requires knowledge of programming. It has one drawback in the form of underestimating the first channel in the chain. 

OWOX BI Attribution

OWOX BI Attribution helps you assess the mutual influence of channels on encouraging a customer through the funnel and achieving a conversion.

What information can be processed:

  • Upload user data from Google Analytics using flexible built-in tools.
  • Process information from various advertising services.
  • Integrate the model with CRM systems.

This approach makes it possible not to lose sight of any channel. Analyze the complex impact of marketing tools, correctly distributing the advertising budget.

The model uses CRM information, which makes it possible to do end-to-end analytics. Each user is assigned an identifier, so no matter what device he came from, you can track the chain of actions and understand that it is him. This allows you to see the overall effect of each channel on the conversion.

Advantages

Provides an integrated approach to assessing the effectiveness of channels, allows you to identify consumers, even with different devices, view all visits. It helps to determine where the user came from, what prompted him to do so. With it, you can control the execution of orders in CRM, to estimate the margin. To evaluate in combination with other models in order to determine the highest priority advertising campaigns that bring the most profit.

Disadvantages

It is impossible to objectively evaluate the first step of the chain.

Who is suitable for?

Suitable for all businesses that aim to account for each step of the chain and the qualitative assessment of all advertising channels.

Conclusion

The above-mentioned Ad Roll study shows that 70% of marketing managers find it difficult to use the results obtained from attribution. Moreover, there will be no result without it.

To obtain a realistic assessment of the effectiveness of marketing activities, do the following:

  • Determine priority KPIs.
  • Appoint a person responsible for evaluating advertising campaigns.
  • Define a user funnel chain.
  • Keep track of all data, online and offline. 
  • Make a diagnosis of incoming data.
  • Find the best attribution model for your business.
  • Use the data to make decisions.

Data Leader Days: Die Spitzenmanager der Datenwirtschaft live und direkt

Am 13./14. November 2019 finden in Berlin die fünften Data Leader Days statt. Kommen Sie direkt mit den Spitzenkräften der Datenwirtschaft in Kontakt und freuen Sie sich auf die besten Use-Cases, Live-Demos und Panels rund um Data und AI.

Die Data Leader Days sind das erste Management-Forum für die Datenwirtschaft im deutschsprachigen Raum und senden regelmäßig wichtige Praxisimpulse aus. Eine der Besonderheiten liegt in der besonderen Auswahl der Speaker und der familiären Atmosphäre. Die Referenten gehören zu den führenden Data-Managern von Konzernen und bekannten Start-Ups, die die Digitalisierung maßgeblich prägen. Im Fokus stehen dabei Use Cases, Live Demos, Panels, Interviews und Erfahrungsberichte zu Data Science, Künstliche Intelligenz, Data Engineering & Architecture, Data Visualization sowie auch Agile Development, Blockchain und Data Security.

#Private Stream: Einzigartiges Know-How-Sharing im engen Kreis

In einem zusätzlichen Private Stream können sich die Teilnehmer zudem erstmals im engeren Kreis mit den Speakern austauschen, um Partner zu finden und individuelle Impulse für eigene Dateninitiativen aus erster Hand zu gewinnen.

Nicht die Masse an Vorträgen, sondern die Pole Position der Speaker und die Vielzahl an Take Aways stehen bei den Data Leader Days im Vordergrund. Mit diesem Konzept ist das Event seit Gründung im Jahr 2016 permanent gewachsen und findet mittlerweile an zwei Tagen mit unterschiedlichen Schwerpunkten statt:

  1. November 2019: Retail & Finance Data
  2. November 2019: Automotive & Machine Data

#Aufbruchstimmung im Berliner Spreespeicher

Die Data Leader Days stehen unter dem Zeichen von Aufbruch und familiärer Atmosphäre fernab des betrieblichen Alltags. Passend dazu wurde der Spreespeicher mit seinem alten Mauerwerk und großzügigen Loft-Fenster mit einem einen bezaubernden Blick auf die Spree angemietet.

#Programmvorschau

Mit dabei sind die Chief Data Officer, SVP, Geschäftsführer und Heads of Digital Transformation von Deutsche Bank, Claas, EnBW, eventim, L’Oréal, Lidl, HRS, Signify und viele mehr.

#Data Leader Days App

Zahlreiche Features unserer Data Leader Days App für Smartphones und Tablets (iOS od. Android) sorgen für eine wegweisende Conference Experience:

  • Matchmaking
  • In-App Chatfunktion
  • Bildergalerie und Videos
  • Event Voting
  • Live Fragenstellen
  • Sternebewertung
  • Wall of ideas
  • Digitale Visitenkarte

Die Anmeldung nehmen Sie bitte direkt unter der Konferenzseite www.dataleaderdays.com vor.

MeetUp: Classifying Text Data with Embeddings // How to become a data scientist

Welcome to our 3rd DATANOMIQ Data Science MeetUp, in Berlin!

April 3rd: 6 pm until 8 pm.

Click the link to participate:
https://www.meetup.com/de-DE/DATANOMIQ-Data-Science-Berlin/events/257098910/

Today’s topic is all about Classifying Text Data with Embeddings, presented by Artur Zeitler. Artur is a data scientist at DATANOMIQ.
Make sure to come early to grab a voucher for a free drink.

Agenda:
doors open at 6 pm (drinks)

PART ONE (6:30 pm):
– The advantages of word embeddings compared to Bag-of-Words
– The differences between the popular embeddings word2vec and GloVe
– How doc2vec can numerically represent whole documents
– How to apply doc2vec in Tensorflow to classify documents
– open questions (7pm)
———————————————————————-
15 min break
———————————————————————-

PART TWO (7:15 pm):
– How to start a career as a data scientist
(presented by Benjamin Aunkofer. Benjamin is Chief Data Scientist at DATANOMIQ.)
– Open questions

FREE ENTRY

Click the link to participate:
https://www.meetup.com/de-DE/DATANOMIQ-Data-Science-Berlin/events/257098910/

 

Next MeetUp:
May 8: Imbalanced datasets: Dealing with the minority class
https://www.meetup.com/de-DE/DATANOMIQ-Data-Science-Berlin/events/259723993/

Veröffentlichung der Data Leader Days 2018 Vorträge auf YouTube

Für alle Interessenten, die es im vergangenen Jahr leider nicht geschafft haben, persönlich an den Data Leader Days 2018 teilzunehmen, gibt es direkt zu Beginn des Jahres 2019 erfreuliche Nachrichten: die Vorträge sind ab heute als Videoaufnahmen auf unserem Youtube-Kanal verfügbar:

 

Besuchen Sie unseren Youtube-Kanal, um sich alle Video Beiträge anzusehen:

https://www.youtube.com/channel/UCXRUMGr6MZPMC5WAKiBLdVg/videos

Die Data Leader Days freuen sich auch im nächsten Jahr wieder auf zahlreiche Teilnehmer. Das Event findet am 13. und 14. November 2019 wieder in Berlin statt.

Data Leader Days 2018 – Review

Das Who’s Who der Datenwirtschaft auf den Data Leader Days 2018

Berlin, Dezember 2018: Die Data Leader Days am 14./15. November 2018 im Berliner Spreespeicher haben erneut die Entscheider aus der Business- und Digitalwelt versammelt und wichtige Impulse ausgesendet. Die in diesem Jahr zum dritten Mal stattfindende Veranstaltung verzeichnete mit knapp 300 Teilnehmern einen enormen Besucherzuwachs. Organisiert wurde die Konferenz von DATANOMIQ und dem Connected Industry.

Der Auftakttag stand ganz unter dem Zeichen von Commercial und Finance Data: Besondere Highlights waren hier die Vorträge von Dr. Joachim Schmalzl, Vorstandsmitglied des Dt. Sparkassen- und Giroverbands, der auf die Fortschritte der Sparkassen bei der Umsetzung von digitalen Innovationen einging sowie Marcus Hartmann, Chief Data Officer der ProSieben Sat. 1 Media mit seiner Keynote. Im Fokus des zweiten Tages standen Industrial und Automotive Data. Hier konnten Digitalmanager von BASF, Heidelberger Druckmaschinen, E.ON, Wittenstein, Vodafone, Schaeffler und Airbus anhand von Live Demos und Use Cases die Themen Data Science & Machine Learning, Data Engineering sowie Data Visualization vorstellen.

Die Data Leader Days freuen sich auch im nächsten Jahr wieder auf eine große Resonanz. Das Event findet wieder in Berlin am 13./14. November 2019 statt.

Data Leader Days Sponsors and Audience

Location at Data Hacker Days announced

We are happy to announce your our venue for the Data Hacker Days: Kühlhaus Berlin.

Data Hacker Days will take place from 28th to 30st May 2019 in Berlin.

The industrial look of Kühlhaus Berlin is a perfect place to challenge hackers to work and solve the hackathon. The backyard will be a chill area and to take a break or networking with other people.  

More information about Data Hacker you can find on the website: https://datahackerdays.com/

Like our facebook website: https://www.facebook.com/Data-Hacker-Days-278017336397423/

Freier Eintritt für Young Professionals zu den Data Leader Days 2018

Jetzt bewerben und kostenfrei beim Spitzenevent der Datenwirtschaft am 14. oder 15. November in Berlin dabei sein!
Die Data Leader Days senden regelmäßig wichtige Impulse in die Big Data und KI-Welt aus und sind ein führendes Forum für Wissens-, Ideen- und Informationsaustausch. Die Spitzen von Anwenderunternehmen zeigen exklusiv in einem innovativen Programm mit Keynote, Präsentationen sowie Use & Business Cases auf, wie Digitalisierung und Künstliche Intelligenz umgesetzt und zum neuen Wettbewerbsvorteil werden.

Zu den Speakern gehören die Data Leader von E.ON, Pro7Sat1, Deutscher Sparkassen- und Giroverband, Airbus, Wittenstein, BASF, Merck, Heidelberger Druckmaschinen, Vodafone, FTI und von weiteren Unternehmen.

Bewerbe Dich bis zum 02.11.2018 mit einem kurzen Statement, warum Du dabei sein möchtest! Schicke mir Dein Statement an linhchi.nguyen@datanomiq.de und überzeuge uns.
Ist dein Statement aussagekräftig und überzeugend, laden wir Dich kostenlos zu einem der beiden Veranstaltungstage ein.

My Desk for Data Science

In my last post I anounced a blog parade about what a data scientist’s workplace might look like.

Here are some photos of my desk and my answers to the questions:

How many monitors do you use (or wish to have)?

I am mostly working at my desk in my office with a tower PC and three monitors.
I definitely need at least three monitors to work productively as a data scientist. Who does not know this: On the left monitor the data model is displayed, on the right monitor the data mapping and in the middle I do my work: programming the analysis scripts.

What hardware do you use? Apple? Dell? Lenovo? Others?

I am note an Apple guy. When I need to work mobile, I like to use ThinkPad notebooks. The ThinkPads are (in my experience) very robust and are therefore particularly good for mobile work. Besides, those notebooks look conservative and so I’m not sad if there comes a scratch on the notebook. However, I do not solve particularly challenging analysis tasks on a notebook, because I need my monitors for that.

Which OS do you use (or prefer)? MacOS, Linux, Windows? Virtual Machines?

As a data scientist, I have to be able to communicate well with my clients and they usually use Microsoft Windows as their operating system. I also use Windows as my main operating system. Of course, all our servers run on Linux Debian, but most of my tasks are done directly on Windows.
For some notebooks, I have set up a dual boot, because sometimes I need to start native Linux, for all other cases I work with virtual machines (Linux Ubuntu or Linux Mint).

What are your favorite databases, programming languages and tools?

I prefer the Microsoft SQL Server (T-SQL), C# and Python (pandas, numpy, scikit-learn). This is my world. But my customers are kings, therefore I am working with Postgre SQL, MongoDB, Neo4J, Tableau, Qlik Sense, Celonis and a lot more. I like to get used to new tools and technologies again and again. This is one of the benefits of being a data scientist.

Which data dou you analyze on your local hardware? Which in server clusters or clouds?

There have been few cases yet, where I analyzed really big data. In cases of analyzing big data we use horizontally scalable systems like Hadoop and Spark. But we also have customers analyzing middle-sized data (more than 10 TB but less than 100 TB) on one big server which is vertically scalable. Most of my customers just want to gather data to answer questions on not so big amounts of data. Everything less than 10TB we can do on a highend workstation.

If you use clouds, do you prefer Azure, AWS, Google oder others?

Microsoft Azure! I am used to tools provided by Microsoft and I think Azure is a well preconfigured cloud solution.

Where do you make your notes/memos/sketches. On paper or digital?

My calender is managed digital, because I just need to know everywhere what appointments I have. But my I prefer to wirte down my thoughts on paper and that´s why I have several paper-notebooks.

Now it is your turn: Join our Blog Parade!

So what does your workplace look like? Show your desk on your blog until 31/12/2017 and we will show a short introduction of your post here on the Data Science Blog!

 

Success Criteria Process Mining

Process Mining is much more than the automatic drawing of process models.

Process mining is on the rise. By using Process mining, organizations can see how their processes really operate [1]. The results are amazing new insights about these processes that cannot be obtained in any other way. However, there are a few things that can go wrong. In this article, Frank van Geffen and Anne Rozinat give you tips about the pitfalls and advice that will help you to make your first process mining project as successful as it can be. Read more