In this video, we shed light on how your attribution model is hiding the true value of your media and introduce GrowthOS as a solution designed to address this issue head-on.
Optimizing Return on Advertising Spend (ROAS) may seem like the logical approach when consumer confidence is falling and sales are at stake. However, we highlight the inherent bias in attribution measurement, which is commonly used to track ROAS. Attribution models tend to attribute all sales based on recent touchpoints, failing to consider the possibility that some purchases would have occurred without marketing efforts.
To overcome this limitation, we introduce the concept of contribution measurement. While attribution focuses on linking sales to specific touchpoints, contribution measurement evaluates the incremental impact of marketing above and beyond expected sales. By assessing incrementality, marketers gain a clearer understanding of the true effectiveness of their marketing strategy.
We emphasize the importance of optimizing marketing activities to Return on Investment (ROI) rather than solely focusing on ROAS. ROI represents the incremental sales driven by marketing efforts, distinguishing them from sales that would have occurred organically. While measuring incrementality directly can be challenging, solutions like GrowthOS offer approaches such as holdout groups or econometric analysis to infer incremental impact accurately.
Understanding the true contribution of marketing activities enables advertisers to make data-driven decisions and allocate resources for ad spend more effectively. By optimizing ROI, advertisers can ensure their strategies and advertising efforts drive meaningful results and deliver measurable growth.
Join us in this insightful video as we uncover the risks associated with attribution models and explore the power of optimizing to ROI for enhanced marketing performance. Uncover how your attribution model is hiding the true value of your media.