April 5, 2020
Optimizing online marketing budgets with Blueattribution

Optimizing online marketing budgets with Blueattribution

Meet Chris, the E-commerce
Manager at online shop. Now, he is planning marketing
and sales for the next year. As everyone nowadays he has
his targets: 50 million euro of sales. To accomplish that he can spend
2 million on online advertising. But which channels to choose? How can he know how much to spend on Google
Ads, Facebook, display or other sources? Should he focus on prospecting or rather
stick mainly to remarketing and search? So many questions, so little answers. Sounds familiar? These questions are often
asked by marketers. More often than you would assume. In Bluerank we run performance
projects for hundreds of clients and as Chris they often have doubts which
channels will yield the best results. In fact, more than 40% of our clients
claim they face problems in distributing online marketing budgets. And on average they can be responsible
for even up to 30 different offline channels. That is 30 budget decisions
they need to make every month! Not to mention they yearly budget planning. No surprise that they are so confused. What are the reasons for those problems? The main is inconsistent data.
Analysts call it data heterogeneity. For us it is just too many
data sources and metrics that even when called the same way,
are based on totally different criteria. Take for instance the number of conversions. Every marketing platform has its own ways
of calculating the influence on your sales. SEO is usually attributed
to last click models, Google Ads uses its own
data-driven attribution and other channels usually base
on post click or post impression data. It’s okay to analyze the data
in each platform separately. But the problem appears when you wish
to evaluate your marketing activities as a whole and compare
channels between themselves. Then you will find out that the sum
of conversions is nowhere near the real number of sales
you recorded in your system. What then? How can you tell what is the real cost
of conversion in each of those channels? How can you evaluate
the return of ad spent and more important – how can you say that
the budget is distributed in a proper way? This is where Blueattribution
comes into action. Together with our clients, we created
a tool that unifies the data and recommends how to split marketing
budgets to get the most sales possible. Want to know how it works? Blueattribution is based on Google Analytics,
so there is no additional config required. It downloads raw data and splits it
into individual conversion paths. Then, by using mathematical
models and elements of AI, it calculates what is the importance
of every single traffic source that happened on each of the paths. In other words, Blueattribution uses
data-driven attribution for evaluating what is the value of traffic sources
and then it distributes conversions and conversion values to those
sources in the most objective way. The data is then aggregated
and presented in a clear way by showing what is the real number
of conversions attributed to each channel. Moreover, thanks to
integrating the cost data, Blueattribution also shows
what are the costs per order and most importantly what are the returns
of ad spend on each of the channels. This makes it much easier to identify which
channels are underperforming and should be limited in budgets, and which are performing
very well and should get more money. That’s not all what Blueattribution can do! Blueattribution also contains an extremely
powerful model for simulating the most optimal budget split. It calculates cost per conversion
curves for each channels and simulates what combination
of budgets will yield the best return. As a result it automatically suggests
how to divide your budget to have most conversions
or highest return of ad spend. Our clients that use Blueattribution
on a monthly or weekly basis experience steady grow of
the number or value of sales without any increase in costs, just by transferring budgets from underperforming
sources to those with the best results. This, together with easy configuration
and access to historical data makes the tool ideal for any marketer
responsible for online budgets. Contact us and find out, how you can
make your business more effective with Blueattribution and
our team of data consultants.

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