February 22, 2023 - The current digital media landscape requires a new/more sophisticated approach to program measurement.
Marketers Must Adapt to Industry Changes
The combination of recent and upcoming technical & regulatory industry changes (e.g., CCPA, GDPR, IDFA removal, cookie deprecation) dramatically impact all aspects of digital campaign management including targeting, optimization, and measurement.
As a result of these changes, the most commonly used digital measurement approaches such as cross-channel last-touch attribution, view-through attribution, multi-touch attribution, etc. will either totally lose or see significantly diminished functionality.
In addition, walled gardens & corresponding industry data passing limitations exacerbate cross-channel measurement challenges.
At Napkyn we’re actively leading clients through this transition, developing future-proofed measurement approaches, and ensuring clients’ mar-tech/ad-tech infrastructure is implemented/integrated properly to respond to the changing digital ecosystem.
How Napkyn’s Layered Approach Solves Key Measurement Challenges
Building a Measurement Plan
There are three core building blocks for clients to address when developing a comprehensive measurement plan.
Layered, Cross-Channel Measurement Framework
We strongly recommend clients establish a layered campaign measurement approach to address the data challenges referenced above. Using multiple measurement methodologies simultaneously allows Napkyn and client teams to analyze data from multiple sources, triangulate around true campaign impact, and ensure all short- and long-term decisions align with desired business objectives.
As standard practice, we partner with clients to balance:
(a) calibration of the in-platform conversion events and corresponding values that inform daily optimization and
(b) deployment of ongoing lift testing and Media Mix Modeling to guide larger and longer-term channel-level investment decisions.
Successful Deployment
Creating a connected measurement framework is critical to maximizing success, and involves five interlocking requirements:
1. Data Infrastructure: Re-tool on site data capture, conversion tracking, and systems integration to address IDFA and cookie-related changes. Specific approaches include:
- Identifying opportunities to enhance and expand first party data collection via meaningful value exchange.
- Implementing conversion integration approaches (e.g., Conversions API) across all available platforms.
- Implementing comprehensive systems integration to drive more informed campaign optimization.
2. Lift Testing: Select optimal mix of brand and performance lift testing approaches to align with business objectives, enable evaluation of media’s impact on incremental business outcomes. Examples include matched-market testing, brand search lift testing, and in-platform conversion lift testing.
3. MMM Model Development: Deploy Media Mix Modeling (MMM) as the overarching, cross-channel methodology to evaluate the relative contribution of each marketing channel – (as MMM is not impacted by industry changes).
4. MMM Model Application: Leverage MMM insights to recalibrate media channel and in-platform performance targets, enabling more effective cross-channel investment approach.
5. Proxy KPIs: Within media platforms, establish proxy KPIs that correlate to longer-term business metrics (i.e., incremental revenue and/or transaction volume as measured by MMM outputs). These are used for daily optimization, and to enable rapid-cycle decision-making and maximum potential program impact. At Napkyn, we’ve successfully deployed this approach for B2C and B2B marketers with long and/or disconnected conversion processes to drive ongoing program improvement and optimization.
Results: Layered approach to campaign measurement drove 52% ROAS improvement at 25% greater scale across the full media plan
Napkyn worked with a retail client to transition its measurement approach away from last-touch attribution (Reported ROAS) which historically had overemphasized bottom funnel investment. Napkyn designed and implemented a layered approach, balancing short and long term optimization activity, to (a) improve insight into which media channels and tactics drove true incrementality and (b) inform investment reallocations yielded greater total business impact.
Build a future-proof Measurement Plan with Napkyn
Are you interested in working with Napkyn to drive meaningful business improvements with media mix modeling? We understand not all clients have the expertise, time or in-house team to do this on their own. Let’s talk
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Ready to drive meaningful business improvements with media mix modeling?
