In this video, we explain how your attribution model is skewing your media channel planning.
Many advertisers naturally focus on ROAS (Return on Advertising Spend) and optimizing channels that contribute to this metric. Marketers usually rely on attribution measurement to track ROAS. However, this video highlights the systematic bias inherent in attribution measurement. Les Binet’s insights shed light on the limitations of attribution, with its tendency to be fast, direct, cheap, and often wrong.
To overcome this bias, incremental measurement solutions like econometrics that use economic theory, statistical inference and mathematics, offer a more accurate understanding of marketing performance. By leveraging such solutions, we uncover the extent of attribution’s shortcomings and the dangers of sub-optimal channel planning. Especially in challenging times, maximizing the value of each media dollar becomes crucial. Optimizing channel investments presents an opportunity for significant gains in ROI and revenue when done well, but it can also harm media effectiveness if ill-informed.
The video below emphasizes the importance of calibrating attribution results using econometrics and tools like GrowthOS. This calibration helps align ROAS with the actual impact of different marketing activities, revealing how paid media and performance channels may be overestimated in their short-term effects, while underestimating the influence of brand-oriented channels. By adopting marketing econometrics and similar solutions, advertisers can optimize budget allocations and achieve more impactful outcomes. Join us as we dive into the world of optimizing channel investments for advertising success.
Watch more to understand how your attribution model is skewing your media channel planning below. More great videos are on our Youtube channel.
