Kenshoo Research Analytics Team Lead, Yossi Synett, discusses the topic of conversion attribution at a Kenshoo and Figaro Digital Seminar in August 2012.

1. Smart Reinvestment:
The Case for Conversion Attribution
23 August 2012
Yossi Synett – Research Analytics Team Lead
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2. History of Attribution
Reinvestment = Attribution
Agenda
Types of Attribution Models
Viewing Data via Different
Models
How to choose the right model
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3. History of Conversion
Attribution
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4. The early days of PPC
2003 Yahoo! buys Overture
2002 AdWords goes to PPC Model
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5. The assumption: One Conversion = One Click
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6. Discovering the need for conversion attribution
Green T-Shirt Blue T-Shirt Red T-Shirt
Great Prices Great Prices XL Size Available
T-shirt.com T-shirt.com T-shirt.com
Keyword 1 Keyword 2 Keyword 3
Last Click Attribution Model:
•Solves conversion duplication issue
•Assumes last click is most important
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7. Reinvestment = Conversion
Attribution
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8. Reinvestment based on data
All strategic decisions in Paid Search are based on data
Forecasting & Scenarios
Algorithm Configuration
Algorithm Selection
Geographies
Devices
Sites and Content
Campaign Structure
Ad Copy & Testing
Keyword Selection
Attribution Model
Multi-Channel Data Connections
Multi-Source Data Reconciliation
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9. GroovyTravel.com investment strategy (with last touch attribution)
cheap flights to Mexico GroovyTravel.com
Total ROAS = 1.88
ROAS = 0.83 ROAS = 5
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10. GroovyTravel.com investment strategy (with last touch attribution)
cheap flights to Mexico GroovyTravel.com
Total ROAS = 1.63
ROAS = 0.9 ROAS = 2
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11. GroovyTravel.com path to conversion
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12. GroovyTravel.com investment strategy (with divide equally attribution)
cheap flights to Mexico GroovyTravel.com
Total ROAS = 1.88
ROAS = 1.54 ROAS = 2.88
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13. GroovyTravel.com investment strategy (with divide equally attribution)
cheap flights to Mexico GroovyTravel.com
Total ROAS = 1.64
ROAS = 1.38 ROAS = 2.33
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14. Last Click Attribution Undervalues
FB Performance
Increase in Facebook ROI for Retail
Advertiser Based on Revenue Attribution
First Prefer Distribute U-Shaped Prefer Last
Only First Evenly Last Touch
• Last Touch
20% 40% 60% 80% 100%
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15. Last Click Attribution Undervalues
FB Performance
Increase in Facebook ROI for Retail
Advertiser Based on Revenue Attribution
First Prefer Distribute U-Shaped Prefer Last
Only First Evenly Last Touch
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%
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16. Last Click Attribution Undervalues
FB Performance
Increase in Facebook ROI for Retail
Advertiser Based on Revenue Attribution
First Prefer Distribute U-Shaped Prefer Last
Only First Evenly Last Touch
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%
16

17. Last Click Attribution Undervalues
FB Performance
Increase in Facebook ROI for Retail
Advertiser Based on Revenue Attribution
First Prefer Distribute U-Shaped Prefer Last
Only First Evenly Last Touch
• Distribute Evenly
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%
17

18. Last Click Attribution Undervalues
FB Performance
Increase in Facebook ROI for Retail
Advertiser Based on Revenue Attribution
First Prefer Distribute U-Shaped Prefer Last
Only First Evenly Last Touch
• Prefer First
• Distribute Evenly
• U-Shaped
• Prefer Last
• Last Touch
20% 40% 60% 80% 100%
18

19. Last Click Attribution Undervalues
FB Performance
Increase in Facebook ROI for Retail
Advertiser Based on Revenue Attribution
First Prefer Distribute U-Shaped Prefer Last
Only First Evenly Last Touch
• First Only
•Prefer First
• Distribute Evenly
• U-Shaped
•
• Last Touch
20% 40% 60% 80% 100%
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20. Types of Attribution
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21. Attribution Models: Last click
Blue T-Shirt Red T-Shirt
Green T-Shirt
Great Prices XL Size
Great Prices Available
T-shirt.com T-shirt.com
T-shirt.com
Keyword 1 Keyword 2 Keyword 3
Industry Default Model
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22. Attribution Models: Linear
Blue T-Shirt Red T-Shirt
Green T-Shirt
Great Prices XL Size
Great Prices Available
T-shirt.com T-shirt.com
T-shirt.com
Keyword 1 Keyword 2 Keyword 3
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)
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23. Attribution Models: Non Linear
Blue T-Shirt Red T-Shirt
Green T-Shirt
Great Prices XL Size
Great Prices Available
T-shirt.com T-shirt.com
T-shirt.com
Keyword 1 Keyword 2 Keyword 3
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)
23

24. Attribution Models: Distribute evenly
Blue T-Shirt Red T-Shirt
Green T-Shirt
Great Prices XL Size
Great Prices Available
T-shirt.com T-shirt.com
T-shirt.com
Keyword 1 Keyword 2 Keyword 3
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)
24

25. Attribution Models: Single Point
Blue T-Shirt Red T-Shirt
Green T-Shirt
Great Prices XL Size
Great Prices Available
T-shirt.com T-shirt.com
T-shirt.com
Keyword 1 Keyword 2 Keyword 3
Attribution Models
Linear Ratio
U Shaped
Distribute Evenly
Single Click Only (First or Last)
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26. Viewing Data via Different
Models
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27. Considering multiple
channels using the Kenshoo
Attribution Model Simulator
Leading pet supply cataloger using
last touch attribution
Brought data from various
channels (e-mail, CSE, display)
into Kenshoo
Using the Kenshoo Attribution
Model Simulator, they were able
see the best and worst case ROI
for a given channel under different
models
They could also determine which
model was the best fit for their
business by seeing how different
channels would benefit or lose
from changing models
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28. Case Study: Moving away from last click
U.S. national service center chain increases ROI by changing attribution model
following a multi-model attribution analysis
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Key Lessons
• Different regions have different
behaviors
• Last click model was holding
back potential new to file
customers
• Prefer last model better
allocated money
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29. How to choose the right model
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30. Get insights
• Any single model will only show a single viewpoint, compare different models
for the most comprehensive view
• Lower costs by pruning ads that have no touch-points in any conversion
attribution model
• Expand assisting keywords to find new traffic generators and widen you
market reach
• Don’t miss the forest for the trees, apply real world categories and use your
own business logic to make attribution model decisions
❙[Don’t worry, Kenshoo can help with this]
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31. Thank you
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