Despite the staggering growth of e-commerce in recent years, physical stores are not exactly out of business yet. Far from it, in fact. According to the most recent statistics, 90% of overall shopping spends still happen in physical stores. Moreover, 91% shoppers are webroomers, i.e. their purchase journeys start online with research but the final purchase is closed in a store. That is not all. E-commerce giants like Amazon and Alibaba are joining traditional retailers in malls and physical stores – this has been a recurring trend through 2017 and 2018. If anything, we are headed towards omni-channel retail experiences and physical stores are a significant part of this ecosystem. Marketing measurement metrics on the other hand are all digital! That does not make a lot of sense, does it? Read on to learn how location based attribution can make a difference.
Measuring digital success the traditional way
Today, marketers are struggling to justify their online advertising spends. As a comparatively new industry vis a vis traditional TV and OOH advertising, the measurement metrics of digital advertising are still evolving. The most commonly used metrics – CPC for instance – focus entirely on users’ online behaviour resulting from an ad exposure. But does a click, a landing page visit, or a video view always mean interest and purchase intent? Does it signal that the user will in the near to mid-term, visit a store and close the purchase? Far from it.
Today, marketers are struggling to justify their online advertising spends. As a comparatively new industry vis a vis traditional TV and OOH advertising, the measurement metrics of digital advertising are still evolving.
The industry at large agrees that something here is broken and needs to be fixed. Lately, marketers too have started seeing through the ineffectiveness of online-only metrics. In a research conducted by Interactive Advertising Bureau (IAB) Singapore, marketers are demanding more sophisticated measurement frameworks for digital marketing and they rate the current frameworks a measly 4 out of 10. Only 28 per cent of marketers indicated satisfaction with how campaigns were being measured in their companies. A staggering 88%of marketers cited in the study said that current metrics are plain ineffective or just somewhat effective.
A new framework that puts business outcomes back in focus
With the ineffectiveness of online metrics sealed and stamped, marketers are demanding new metrics that indicate business outcomes in the real world. According to the IAB study, “The cumulative effect of many metrics and limited understanding of how these demonstrate success leads to a focus on quantity over quality, performance/price over the effectiveness of the campaign, or short term metrics being used to evaluate a long term marketing strategy. Put simply, this lack of sophistication results in limited or no correlation between metrics used and business impact.”
In the end, no matter how marketing campaigns are executed, which technology, platforms and channels they adopt and who the audience is, what businesses need are outcomes that eventually lead to revenue generation. This revenue generation, in the case of retail, still comes from store visits that result in purchase. Digital advertising is no different. The ideal marketing framework has to reflect this outcome. Beyond measuring clicks and shares, brands should now focus more on measuring store visits as a success metric
How location-based marketing attribution helps
Location can play a significant role in revolutionizing online advertising and marketing measurement frameworks in ways that are relevant to business. A location-based measurement framework is an always-on indication to show marketers which of their tactics, platforms, and campaigns are driving new customers and old loyalists into the store. Since 91% of shoppers are still completing their purchases in-store, clearly a store-visit is far, far more indicative of purchase intent than a click on an online ad.
Digital marketing success should be measured on business impact. Offline attribution can help address gaps and ensure you measure the realsuccess of your campaigns
The good news is that with Lifesight’s Attribution Platform, marketers finally have access to a location-based measurement platform that does just this. Designed in an iterative process in close collaboration with marketers and advertisers around the world, the primary goal of Lifesight Attribution is to account for the real life outcomes of advertising and marketing spends. This revamped measurement and attribution framework uses consumers’ physical world behaviours and journeys to measure the effectiveness of the ads, messages, and marketing assets they recently engaged with online.
How can Lifesight help?
Here;s what Lifesight Attribution can help you achieve:
- Validate campaign performance by measuring the impact of digital campaigns on footfalls in store or other relevant locations such as road shows and MBOs
- Optimize omnichannel spends by understanding which media channels bring maximum visits to locations
- Measure web-to-visit to understand website and app visitors’ offline behaviours and patterns and how that impacts your sales
Essentially, Lifesight Attribution is designed to give CMOs and brand marketers a straight answer to “Is my ad spend bringing footfall to my outlet”. No unnecessary complexity, no jargons, and in the words of Mark Ritson, no mess and obfuscation!
Are you ready to revamp your marketing attribution framework and measure business outcomes instead of clicks and website visits? Holler for a demo!