When talking about attribution we tend to talk about media channels and touchpoints. But which other factors influence your business and should be taken into account?
What are some examples of such factors of influence?
We can distinguish between two groups of factors: external and internal. Companies have no control over external factors that impact their business – think of the weather, salary weeks or holidays. Companies have control over internal factors. Price, proposition and branding are some good examples.
How do you find out which factors have an impact on media?
We can’t repeat this often enough: always start with the business question. Determine which factors have an impact on your consumers’ buying behavior. This behavior is what you are trying to influence with your media activities. The factors that have an impact on behavior are also likely to have an impact on the effectiveness of your media.
Once you know which factors have an impact, you can incorporate them in your attribution models.
Where does the data come from?
Many datasets on external factors are freely available. Involving all the right stakeholders ensures you have access to internal data sources.
So why take external factors into account?
Not taking these factors into account could lead to overvaluation of your media effectiveness. Imagine you had a very strong pricing in a certain period, and several media channels are extremely effective during this period. If you don’t take price into account, you will probably over overvalue some channels and undervalue others. Understanding the interaction effects also help you steer your media channels and plan for the next period.