From Physical to Digital: Four Attribution Solutions for Action-Based Marketing

Writer: Amanda Johnson
Date: August 22, 2024

In the ever-evolving world of digital advertising, one of the hottest topics as of late has been Google’s decision not to deprecate third-party cookies, a reversal from their earlier stance. Third-party cookies are currently leveraged to track users across websites, allowing advertisers to understand user journeys and link conversions to advertising. This ability to obtain attribution data is a key tool for optimizing ad spend and ensuring campaigns’ effectiveness.

While Simpli.fi has remained ahead of the curve with cookieless solutions and a slate of results-based targeting tactics, marketers have worried about the loss of a direct attribution model. Ultimately, the decision to retain third-party cookies was driven by industry concerns over business disruptions and the lack of ready alternatives.

Here’s what this means for digital advertising attribution:

1. Stability:
   Advertisers can continue using their current attribution models for the time being.

2. Hybrid Solutions:
   As the industry moves towards privacy-centric methods, albeit a little slower, combining cookie-based tracking with new solutions like first-party data and contextual advertising will be a key step and will give marketers more breathing room to incorporate these tactics.

3. First-Party Data and Foot Traffic:
   Enhancing first-party data collection and analysis will become increasingly valuable.

4. Regulatory Compliance:
   Awareness of privacy laws like General Data Protection Regulation (GDPR) and the California Consumer Protection Act (CCPA) is critical. Transparent data practices and user consent are increasingly important as privacy regulations continue to evolve.

Putting Attribution Solutions to Work for Your Business

Understanding the impact of your marketing efforts is key for optimizing campaigns and maximizing your ROI. This is where digital advertising attribution solutions come into play. This data helps you track and measure the effectiveness of your campaigns across different touchpoints. Take a look at these four common attribution solutions to be mindful of following Google’s decision to keep its hand in the cookie jar.

1. Foot Traffic Attribution measures the number of physical store visits tied to digital ad campaigns. This is particularly valuable for businesses with brick-and-mortar locations such as a Quick Service Restaurant or a local hardware store.
   • How It Works: Want to know if your ad is driving store traffic? This method uses location data from mobile devices to determine if a user who was served or interacted with an ad visited a physical store location. In order to track this form of attribution, a Conversion Zone is typically used after implementing Geo-Fencing or Addressable Geo-Fencing targeting tactics. See this come to life for Visit Boise Tourism through their partnership with Duft Watterson and Simpli.fi.
   • Benefits: Helps bridge the gap between online ads and offline sales, providing a more comprehensive view of ad performance. In addition, this form of attribution does not require the use of a third-party cookie or pixel to track users.
2. Pixel-Based Attribution uses tracking pixels embedded in web pages to monitor user interactions and attribute conversions.
   • How It Works: Want to focus on online actions versus in-store traffic? This solution provides data back to the advertiser about user behavior such as completing a form on a web page or making an online purchase. A handy tracking pixel is a small piece of code that loads an invisible image when a user visits a web page.
   • Benefits: Offers granular insights related to user actions, from ad clicks to website visits and purchases. This form of attribution will ultimately be impacted when and if the third-party cookie is deprecated. However, due to Google’s recent announcement, all pixel-based attribution will continue to work for the foreseeable future.
3. Transaction Value Attribution focuses on the revenue generated from conversions attributed to digital ad campaigns.
   • How It Works: Every marketer wants to know if their campaign investment is generating revenue. This method tracks the monetary value of online transactions resulting from advertising. It’s often used in e-commerce to link sales directly to specific ads or campaigns. For instance, if a user clicks an ad for a pair of shoes and completes an online purchase, you can then attribute the sale to your advertising campaign.
   • Benefits: Provides clear ROI metrics, allowing businesses to understand the financial impact of their marketing efforts. Similar to other forms of pixel-based attribution, transaction value attribution will continue working until Google ultimately decides to phase out third-party cookies.
4. Cookieless Attribution allows for tracking and attributing conversions without relying on third-party cookies or pixels.
   • How It Works: With an eye on the future, this method uses alternative solutions such as first-party data and partnerships to help advertisers attribute online and offline sales back to advertising campaigns.
   • Benefits: Enhances user privacy and complies with regulations like GDPR and CCPA, while still providing actionable insights.

How Do You Choose the Right Attribution Solutions for Your Business?

Simpli.fi is ready to dive into your unique business challenges to ensure you select the best solution for your needs. This process depends on several factors, including your business model, marketing goals, data availability, and privacy considerations. Marketers need a partner that is there every step of the journey. We will guide you through several steps to help you choose the right solution:

• Define Your Objectives:
  Are you looking to drive online sales, increase foot traffic, or enhance overall brand awareness?

• Assess Your Data:
  How can you best leverage the quality and quantity of your data?

• Consider Privacy Regulations:
  Ensure your chosen solution complies with privacy laws and regulations in your state or region.

• Invest in Your Customer Data:
  You may want to invest in additional tools and technologies to implement and maintain your attribution model effectively.

Ready to Link Engagement to Action?

Strong attribution solutions are essential for understanding and optimizing your marketing efforts. Whether you’re measuring foot traffic, transaction value, or navigating the shift to cookieless solutions, selecting the right method of measurement will help you gain actionable insights and drive a better return on your investment. The team at Simpli.fi is here to help you stay informed and adaptable, so you can leverage all of these tools to maintain a competitive edge in the ever-evolving digital landscape.

 
Ready to make your attribution strategy work harder?
Fill out the form below, contact your Simpli.fi representative, or email us at hi@simpli.fi for next steps.