Webinar The Forrester Wave™: Interactive Attribution Vendors, Q2 2012

1. Webinar The Forrester Wave™: Interactive Attribution Vendors, Q2 2012 Ari Osur, Principal Analyst May 3, 2012. Call in at 12:55 p.m. Eastern time

3. “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” — John Wanamaker(1838 to 1922)

4. It’s a little overdue, but we have some good news for John Wanamaker.

5. Agenda

6. Spending on interactive marketing continues to grow Source: August 24, 2011, “US Interactive Marketing Forecast, 2011 To 2016” Forrester report

7. Measurement isn’t getting easier as digital touch points proliferate and customer journeys become more complex.

8. Customers interact with various marketing contacts throughout their digital journeys

9. And eventually they convert

10. With “last click” measurement, only the interaction that precedes a conversion gets the credit $0 $0 $200 $200

11. Ignores the bulk of the customer journey: Average number of touch points in a purchase path: 3.8 (source: ClearSaleing) Over-values closing interactions And under-values introducing and influencing interactions Misrepresentation of reality obstructs effective planning and strategy “Last click” distorts your marketing insights and leads to inefficient allocations of money and resources

12. Advanced attribution assigns partial value for interactions that contribute to a desired action $75 $75 $50 $200

13. Place smarter digital bets Identify and eliminate marketing and media plan waste Focus on what works Be nimble with greater precision Inform media buys and search term bidding with attributed data Build more effective contact strategies and campaigns Consolidate interactive marketing performance data Establish a single source of truth Improve reporting capabilities Interactive attribution can provide marketers with multiple benefits

14. Attribution addresses a range of measurement, planning, and operational objectives Source: Forrester Research Interactive Attribution Customer Reference Survey

15. Marketers incorporate a range of digital channels in their attribution models Source: Forrester Research Interactive Attribution Customer Reference Survey

16. Marketers incorporate a range of digital channels in their attribution models (cont.) Source: Forrester Research Interactive Attribution Customer Reference Survey

17. Simplistic: first/last click Rules-based Even-weighted Position-based: first, influencing, last Time decay: recent interactions weighted higher Customized weights Algorithmic: statistical methodologies like regression or probabilistic models to set weights Four of the eight vendors evaluated in the Wave offer an algorithmic approach. Vendors equip marketers with various attribution models to calculate the contribution value of contacts

18. Agenda

19. Evaluated vendors: vendor information and selection criteria

20. Current offering Attribution model development and statistical approach Input management Implementation Ease of use Reporting and analysis Actionability of outputs Service and support Privacy Strategy Corporate focus, strength of management team, vision, and product strategy Market presence Attribution revenue Financial stability Number and quality of employee base Customer satisfaction and sophistication We assessed the selected vendors across 45 criteria

21. Forrester Wave™: Interactive Attribution, Q2 2012 Source: April 30, 2012, “The Forrester Wave™: Interactive Attribution Vendors, Q2 2012” Forrester report

22. A more defined and established category of attribution providers Greater interest in attribution from senior marketing and finance leaders More consistently available integrations — often bi-directional — with major digital marketing execution partners Search: Kenshoo, Marin Software Ad servers: Google DFA, Atlas Tag management: TagMan, Ensighten, BrightTag Email service providers: e-Dialog, ExactTarget, Experian, Responsys Emerging integrations with media buying partners such as DSPs and agency trading desks to close the loop Wider use of algorithmic attribution models Several players with media plan optimization and scenario planning Category has evolved since previous Wave: more sophisticated, consistent, and capable

23. Agenda

24. Founded in 2006. Focus on attribution since inception Concentration of clients in financial services/insurance, retail, and automotive categories Algorithmic approach Focuses on tag-less data collection more than tag-based data collection, but can accommodate both Strong reporting and data visualization Comprehensive scenario-planning and optimization tools that recommend more efficient plans; available as an addition module Very high client satisfaction Appropriate for analytically inclined direct response and brand marketers with big digital budgets Visual IQ

25. Heritage in ad verification. Launched attribution offering in April 2011. Client focus on heavy display advertisers with concentration in retail, financial services, and automotive Algorithmic approach Data collection via tags or log files/data warehouse Detects and supports ad viewability. Strong data management capabilities Native integrations with third-party data providers (e.g., Datalogix, eXelate) to enhance audience profiling within attribution analysis Optimization capabilities included in platform as part of base offering. Adometry

26. Veteran of the attribution space, a leader in previous Wave Deep experience in retail vertical with concentrations in travel/hospitality and other industries Recently launched algorithmic offering; most clients currently using rules-based models Collects data through a first-party cookie, integration with container tags, or via tag-less approach (log files). Wide range of native integrations with digital channel execution partners Built-in exogenous data for model development (i.e., economic indices) and benchmarks for reporting Optimization capabilities on product road map ClearSaleing

27. Evaluated attribution capabilities of the Coremetrics web analytics product Repeat participant in Wave Large installed base of clients Data collection mostly through existing web analytics tracking but also supports batch imports and tagging integration Notable strengths include reporting and “attributed journeys.” Reference clients note less guidance on attribution compared to those of pure plays. Lacks algorithmic models and optimization in current offering, but plans to include in future releases. IBM

28. Launched offering in 2011. Client concentration in eCommerce with other industries including automotive Relies on rules-based models; offers algorithmic approach but used by few clients. Data collection via own tag-based tracking methodology and also log files Able to track viewed impressions and incorporate into attribution model High customer satisfaction scores Offers optional fingerprinting technology to identify individuals without the use of cookies. Looking to incorporate TV data into attribution models, but road map is light on optimization and planning capabilities Convertro

29. Small private company focused on attribution Client concentration on agencies, as well as marketers with heavy allocations in display media Rules-based methodology (no algorithmic) Proprietary data collection system; also accommodates tag-less methods Tracks viewed impressions Streamlined reporting capabilities with limited data exploration High marks for customer satisfaction and ease of use Minimal recommendation features and no optimization feature in platform Potential fit for small- to mid-market marketers and agencies seeking uncomplicated and inexpensive solution C3 Metrics

30. Evaluated the Insight product; also offers attribution through SiteCatalyst, SearchCenter, and recent Efficient Frontier acquisition. Rules-based models in current offering; algorithmic in development Data collection primarily through SiteCatalyst tagging and URL appends and direct integrations Strong reporting, analysis, and data management Optimization on product road map Reference clients express a deficit in support for attribution. Potential for a compelling attribution offering but must consolidate and integrate disjointed attribution capabilities Adobe

31. Evaluated the Attribution Modeling Tool included in Google Analytics Premium; newest offering in the evaluation Rules-based approach; algorithmic approach on product road map User-friendly interface with ability to quickly customize model weights Data inputs currently limited to Google Analytics-tracked conversions and ads, DoubleClick DFA, and Google search marketing; no external data can currently be loaded into the system Similarly, outbound integrations limited to Google display and search management Google

32. Looking for online + offline? Forrester Wave™: Cross-Channel Attribution Vendors, Q2 ’12 Source: April 30, 2012, “The Forrester Wave™: Cross-Channel Attribution Providers, Q2 2012”

33. Agenda

34. Interactive marketers emphasize analysis and input management capabilities for vendor selection Source: Forrester Research Interactive Attribution Customer Reference Survey

35. Measuring ROI on attribution and integrating data most often named attribution challenges Source: Forrester Research Interactive Attribution Customer Reference Survey

36. Think of attribution as an investment. It helps drive media efficiencies and informs smarter decision-making. Get your math people involved. Collaborate with your internal partners and vendors to determine the model approach that fits your organization. Determine how attribution fits into your operations and processes. Vendors differ in terms of how they work with your interactive marketing ecosystem, from data collection through marketing execution. Identify a main stakeholder with broad budget authority. Optimizing marketing strategies and tactics based on attribution impacts multiple channels. Make sure your organization is aligned to bring it to life. Customize the Wave scorecard. This is a starting point. Download the Excel model and adjust the weightings to match what’s most important to your organization. Recommendations for getting started and selecting a vendor

37. Forthcoming Forrester report, “Making The Case For Interactive Attribution In Your Organization” April 30, 2012, “The Forrester Wave™: Interactive Attribution Vendors, Q2 2012” April 30, 2012, “The Forrester Wave™: Cross-Channel Attribution Providers, Q2 2012” December 9, 2011, “A Measurement Maturity Framework for Interactive Marketers” Selected Forrester research

38. Ari Osur +1 212.857.0751 aosur@forrester.com Twitter: @aosur www.forrester.com Thank you