Are We Attributing Conversions Correctly?
Digital marketing is an ever-changing industry. As a result, Insights ABM is constantly reevaluating current online advertising practices. This allows us to maintain our status as a world-class performance-based digital marketing company.
Recently, we have begun to take a closer look at the way that most clients attribute conversions. What we found is that many of our clients assume that a particular platform produced “X” number of conversions.
However, the modern marketing funnel is much more complex than that. While your favorite Google Ads campaign might have helped to seal the deal, other marketing channels probably played a role in generating buzz about your product. Without the help of those other marketing efforts, consumers might not have been receptive to your Google Ads.
Why the Stage of Your Business Matters
At times, attributing all of your conversions to a particular advertising medium may be practical. However, this will not always give a complete picture. We’ve found that the most relevant factor in deciding how to attribute conversions is the age and stage of a business. A brand-new company will need to attribute conversions differently than an established corporation.
For instance, let’s say that you are launching a new startup that has no online presence. Hopefully, you take the time to develop a strong marketing mix that leverages multiple advertising channels. With that being said, generating organic traffic through SEO will not occur overnight.
When your business is in its earliest stages, virtually all of your sales will come from paid ads. In this scenario, attributing all conversions to a single channel like Google Ads is the most logical approach.
Once your business develops a strong SEO footprint, however, you will need to attribute conversions differently. But how? To accomplish this goal, we recommend looking at the entire conversion pathway.
Conversions and Conversion Pathways: What’s the Difference?
While Facebook, Google, and virtually every other advertising medium will offer free analytics tools, they are far from benevolent. Each of these tech giants wants you to believe that they are responsible for the majority of your conversions. After all, if you think that Google generated 90% of last month’s conversions, you are probably going to increase spending on their platform.
Unfortunately, this can cause you to neglect other useful mediums, such as social media. This could actually cause your conversions to drop the following month. This is especially true when you consider the fact that 73% of marketers are using social media platforms to increase new customer acquisition.
In order to avoid misleading data, we recommend assessing entire conversion pathways instead of attributing sales to single platforms. Doing so requires you to look at analytics from various platforms and compare the data. Find out which pathways are being used most frequently by your clients.
For example, your most popular conversion path may go something like this:
- You post compelling content on Instagram
- Your Instagram post is shared by a current follower
- One of that follower’s friends views the post
- That person has no knowledge of your company
- Interested to learn more, they conduct a Google search
- This new prospect clicks on your paid Google ad
- The user skims through your products and makes their first order
If you look at traditional analytics alone, Google will get credit for that conversion. But the process all started with your Instagram marketing efforts. That tells you that Instagram is a vital part of your conversion pathway. Therefore, you should continue focusing on both Instagram and paid Google advertising.
A Performance-Based Digital Marketing Company in Dallas
Building a business is hard work. It requires long hours, commitment, and a dedication to serving your clients. Just because growing your company is challenging, though, doesn’t mean that you have to tackle every project alone.
If you are ready to grow your online presence and connect with more prospective customers, Insights ABM can help. We are a performance-based digital marketing company that specializes in making brands stand out!
Ready to learn more? If so, then contact our pros today!