Oct 21 2011
Why Online Marketing is like Herding a Flock of Sheep
For a long time posts and threads across the web sprung up discussing concepts like “first-click attribution” and “last-click attribution” for conversions. While the common and default method among many web analytics packages attributed the last-click to a conversion, multiple methods to attribute the first-click to a conversion were shared and deployed across the online marketing community.
But until recently, the question was “what about the possible clicks between first and last click and those sources?” With the new Google Analytics (GA) interface, a feature referred to as multi-channel funnels (as mentioned back in April 2011) can show a fuller story of the click path before a conversion is made.
What are multi-channel funnels (MCF)?
With multi-channel funnels, advertisers are now able to see ALL clicks (from first to last) attributed to conversions. This means that credit for a conversion not only is given to the first or the last click but to all clicks across channels which ‘assisted’ the conversion. This helps us understand the online interactions across different channels ultimately leading to a conversion, which is very useful for us marketers!
For example, consider the following click path across a range of different channels:
Previously with last-click conversion attribution only the paid ad would have received credit for the conversion. And with first-click conversion attribution, only the referring website channel would have been credited for the conversion. But both of these conversion attribution methods do not tell the whole story. (Note: Currently, GA reports seven different types of channels which a click can be represented by).
3 insights you can get from MCF
Touch points and conversion points
Touch points can be referred to as first-click, and conversion points can be referred to as the last click.
With GA MCF you can see how important touch points are in playing a role as the first point of entry (contact) with your user. Consider the three different scenarios below:
- Touch point: paid advertising, conversion point organic search.
- Touch point: paid advertising, conversion point website referral.
- Touch point: paid advertising, conversion point organic search.
In each of the three scenarios, the touch point was made via the paid search channel; however the conversion point was attributed to another channel either organic search or a website referral.
Previously if an advertiser was to decide where to allocate their advertising budget based on last-click conversion attribution, they wouldn’t see that paid search advertising plays an important role in generating new visits which can ultimately lead to a desired action.
Assisted clicks
Much like touch points, if the effectiveness of marketing efforts across channels were only measured by the conversion point (last-click conversion attribution) and did not account for the clicks made from other channels in-between the touch and conversion point (“assisted” clicks) the clicks would not receive credit for helping to assist with a conversion.
In the example below, the touch point was made by organic search and the conversion point is represented by a website referral. The assisted clicks however, were all made by paid search advertising which, essentially contributed to the conversion!
Assisting keyword searches
Taking it a step further, let’s say you wanted to see how keywords played a part in conversions across source/mediums such as Google paid search and Google organic.
For example, let’s say you wanted to know how brand and non-brand keywords contribute to a conversion path. Here is how: Open up the “Top Conversion Paths” report and click to view the “Source Medium Path”. Then add a secondary dimension under traffic sources labelled as “Keyword Path”.
The report should then show the following two types of dimensions:
Dimension: Source Medium Path
Secondary Dimension: Keyword Path
Using the example above, five clicks across two different mediums combined with both generic and brand related keywords were made. Traditionally with last-click conversion attribution models, a filter like this would attribute the conversion by a Google organic search made by a brand related search. The problem with this attribution model is not only are the initial Google paid search clicks not credited for being the touch point but also, that the conversion path was initially started with a generic search.
Traditionally, with the absence of MCF, it would be easy for one to conclude that it is organic brand search that brings in conversions. However the truth is, without the Google paid non-brand click the conversions may never have happened.
For a deeper analysis of your web analytics and sound advice for how your website’s conversions really take place contact First Rate about a tailored solution that meets the demands of your marketing efforts.
