As a DTC brand, how can you think about attributing your paid media spend in a world where signal loss is increasing?
Our Co-Founders sat down to discuss.
There’s a big opportunity to massively overcomplicate attribution and the businesses that get it right ultimately keep it really simple.
The key thing to remember is that all of your marketing channels, whether online or offline – even your pure organic – all interact with each other.
This is no one channel that’s solely responsible for a single conversion. That is never the case.
No one ever just sees an ad and immediately converts without any other touch point; they click through the Instagram page, or they check your other organic pages and read reviews, or they speak to people about you, or any number of things.
And so the brands that get it right often understand that there’s never a black and white answer, and that it’s very difficult to get a pure CAC by channel.
The best way to approach it is to understand the key metrics your business needs to hit as a whole to be profitable, and to acquire customers at the right cost, and then begin to construct experiments with your channel mix.
As an extreme, illustrative example, maybe you decide you’re going to increase your spend on Meta by 50% and reduce it on Google by 50%.
If your results are the same – your revenue is the same and your ROAS is flat – you can be confident that a pound spent on Meta is of the same value as a pound spent on search, at your scale.
That’s at the crux of what you’d call media mix modelling.
And you’re basically constructing these experiments, where you control for as many variables as possible and increase an activity or tactic significantly to measure its uplift on your business.
