Originally posted on Corvidae, 18th April 2023
As marketers, we live and breathe metrics.
Whether it’s email, SEO, paid social… and everything in between. There’s a metric to tell us how successful (or not) our activity has been.
So, it goes without saying that when it comes to marketing attribution, there are some key metrics that should be considered when setting up your measurement.
In this blog, I’ll take you through an overview of the role of metrics in attribution and share which metrics are most important to include in your reporting.
Read on to learn:
- What are attribution metrics?
- Why are metrics important in attribution?
- What metrics should be included in your attribution tool?
What are attribution metrics?
Attribution metrics are used to determine the success of a particular marketing channel or activity.
We can plan future campaigns and inform the performance of previous campaigns by analysing which activity was the most cost-effective and influential.
Why are metrics important in attribution?
We all know that customer journeys are complex. And as such, measuring those journeys has become extremely complicated.
To give us the best chance of understanding how customers are interacting with our marketing activity, we need to make sure we’re monitoring and tracking everything that matters.
And your marketing metrics are a huge part of that.
Without knowing how many conversions a particular campaign, or even an individual ad on Facebook or Google, has contributed to and the corresponding Return on Investment (ROI) or Return on Ad Spend (ROAS), you can’t accurately report on your marketing effectiveness and build a business case to increase activity in certain channels.
What metrics should be included in your attribution tool?
The metrics you want to report on are going to vary depending on several different factors, including:
- The industry you’re in
- Which channels you’re using in your marketing mix
- The specific activity you want to track and report on
But as a rule of thumb, there are a few metrics that should be available as standard in your chosen analytics, or attribution, tool.
The number of users who have completed a pre-defined conversion on your website.
For example, submitting a ‘Request a demo’ form, downloading an eBook or making a purchase.
The percentage of users who have converted.
For example, if 50 users visited your Contact Us page and 5 of those submitted the form, your conversion rate is 10%.
Your conversion rate can also be split into more specific subcategories, such as:
- Cost per click (CPC)
The average cost for each click.
- Cost per lead (CPL)
The number of new leads acquired divided by the cost of the total activity or campaign.
- Cost per acquisition (CPA)
The number of new customers acquired divided by the cost of the total activity or campaign.
The total amount of money your marketing activity has generated for your business.
Revenue can also break down into a few subcategories for more granular reporting, such as:
- Return on Investment (ROI)
ROI shows how much revenue has been brought in comparison to the amount spent on a particular channel or campaign.
- Return on Ad Spend (ROAS)
ROAS shows how much revenue has been brought in comparison to the amount spent on a particular ad. This can be per individual ad, or per adset and even full channel activity.
How will the removal of cookies impact marketing?
The impending removal of third-party cookies from Google Chrome is going to have a huge impact on our ability to accurately measure marketing effectiveness.
So, when it comes to setting up your analytics — and defining which metrics are important for your business — it’s important to keep in mind that when Google flicks the switch, they may not be so easy to track moving forward.
We’ve created an eBook with some of our top tips for success in a cookieless future.
Download ‘How Will the Removal of Cookies Impact Marketing?‘ below to learn:
- The removal of cookies — what’s actually happening and why?
- What does this mean for advertisers and the wider market?
- How are marketers reacting to the change?
- 5 tips for surviving the third-party cookie apocalypse