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State of the Screens

Attribution Issues Are About to Make Your Head Explode!

By February 26, 2018No Comments

The fragmentation of viewership across channels/screens is occurring faster than attribution tools can keep pace.

This is occurring in an ad environment where connected TV/OTT/streaming has not even begun to scale.

Other emerging channels that will start providing data for marketers:
1) Autonomous vehicles (Tesla, etc.)
2) Internet of things (Fitbit, etc.)
3) Virtual reality/augmented reality/mixed reality (Samsung VR, etc.)
4) Voice activation (Amazon Alexa, etc.)
5) In-store devices and sensors (store wi-fi, etc.)

How does attribution help marketers? The CEO @ TripAdvisor discussed changes that his company made to their overall marketing plan.

How does TripAdvisor make money? TripAdvisor provides a platform for consumers to rate/research hotels/destinations (think Yelp for travel). They generate revenue by referring traffic back to travel company sites.

What they learned:
1)
Some paid digital channels (search, etc.) added revenue, but at a greater cost.
2) TV advertising generates a higher ROI

Quote from Steve Kaufer — CEO @ TripAdvisor.
“As we have better information and models on attribution, we saw some of the spend was not profitable,”

This has been a recent theme in the travel industry with both Booking.com and Priceline moving money from digital to TV.

I find this very surprising since my assumption would have been that cost-per-click advertising would have had the highest ROI for travel.

Important reminder. The cost relative to alternatives can quickly turn something that is the “best” into a secondary option. This can happen with video (CPM $, $/view, etc.) or performance marketing ($/click, etc.).

The chart below compares $/click averages for the travel industry against other verticals.

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.