Has the digital agency become obsolete?

digital media agencyThe digital agency has been through a lot lately. In less than a decade of rapid changes in technology and human behavior, the digital agency has gone from “new kid” to “shiny object” to “acquisition target” to something that is now looked at as an also-ran to the thriving world of social media, emerging technologies, and the increasingly competitive world of the app.

It’s gotten to the point where, on an alarmingly frequent basis, we find ourselves fielding questions from clients like, “Do we really need a website?” or “Why pay for an online ad buy if we have a Facebook and Twitter account?

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WTF is a digital media attribution model

Your options for visualising and better understanding the combination of media that assist sale across multiple touchpoints on the “path to purchase”

Back in 2008 I did an interview with Gary Angel, an analytics consultant at Semphonic, where I asked him about attribution approaches.  What he said two years on is still equally relevant:

Attribution remains a significant issue for clients. In our view, there is no one right answer to attribution. We all know that first or last doesn’t cut it. But it turns out that channels interact quite differently for different organizations. It also turns out to be nightmarishly difficult to produce coherent reports on channel interactions that capture anything like reality.

Building an attribution model usually seems to involve a significant company-specific deep-dive analysis followed by the creation of a set of business attribution rules that are applied to ongoing reporting. This is an area where we tend to emphasize Analytic Reporting (reports that have a model built-in using programmatic code) to achieve reports that capture the complex reality but can actually be digested.

This challenge certainly remains in 2010 and I expect to gain increased attention in 2011. But the difference now is that there is a wider range of tools to help with this challenge.

What is digital media channel attribution?

To take an example, from my Internet Marketing book, here a search for a car rental the overall customer journey or “path-to-purchase” can involve multiple touch points from an affiliate to natural search to a banner ad.

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Follow these ten steps to measure the effectiveness of your online media spend

online measurementonline measurementI am amazed at how companies spend millions of dollars on online advertising but none to actually measure if it was successful or not. I have come across several companies in past few years so thought I will share my 10 step process to measuring the success and ultimately improving the ROI.

Below are two eye-opener real life examples that will show why I thought this was a subject that I should blog about:

  • A customer spent 8 million on a huge online campaign but had not clue weather they were getting their money’s worth or not. All they got was banner impressions and initial click through rate (CTR ) from their agency. This initial CTR was in line with what their agency had expected so they were contended with the results. As far as measuring beyond the initial CTR they had no idea. Their answer was that we do not sell anything so we can not see if this is generating money or not, all we need to do it generate brand awareness. Well were they generating brand awareness? In few minutes we were able to see that that they had 90% bounce rate (yes they had WA tool implemented but were not looking at it, yah I know what you are thinking). That is 90% of the money down the drain. It is true that everybody who gets to the site has been exposed to the brand but is that enough? 90% bounce rate was pretty substantial considering that initial click through was close to 1%. I don’t think they were able to generate brand awareness.
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