Digital advertising budgets in Asia Pacific show no signs of slowing down. According to a report by WARC, marketers in the region will outspend their international counterparts in digital channels this year. An estimated 45% of all ad spend is predicted to go into digital compared to an average 40% in other markets. In fact, 2018 is destined to be the year when digital ad spends will finally exceed that of TV. At the same time, despite the prophecies about the impending death of traditional advertising and TV losing ad spend share, it will continue to clock a growth rate of 2.2%.
Commerce itself is prospering across channels – both on online marketplaces and in physical stores. Ecommerce is now a US $1.9 trillion global market. And yet, 90% of purchases are still closed in brick-and-mortar stores.
An era of transformation and flux
These numbers point to a single fact – that ad spends as well as commerce are in a state of flux and transformation in the Asia Pacific region. Marketers are increasingly preparing themselves for the omnichannel future of marketing and shedding their four-walled approach to all things advertising.
Consumers too are changing. Their physical world behaviours are increasingly guided by what they see and engage with online. Their buying journeys are no longer linear. 91% shoppers are now webroomers, i.e. their purchase journeys start online with research but the final purchase is closed in a store. In fact, buying journeys now include innumerable micro-moments in which consumers pick up their devices for product and pricing research. In parallel, consumers’ exposure to OOH and TV advertising, mobile promotions, and contextual online advertising also has a role to play in their final purchase decisions and store visits.
All of this has resulted in some tough questions for marketers. The most crucial one is how to measure which specific brand interactions and micro-moments are influencing purchase decisions the most. They need to evaluate which online channels resulted in a desired outcome in the real world. What marketers are increasingly realizing is that marketing measurement is not complete till it takes into account the online-to-offline (O2O) buying journeys of the connected consumers.
And that is why O2O attribution is the new holy grail of ROI-driven marketing decisions.
What is O2O attribution?
O2O attribution is a marketing measurement model that will shape the future of marketing. It uses location intelligence to identify consumer behaviour in the real world as a direct outcome of their online exposure. O2O attribution enables marketers to move away from ‘feel-good’ metrics – CPC for example – and measure real world outcomes like Cost Per Visit (CPV). These real world outcomes make more sense to businesses and truly impact ROI.
What marketers are increasingly realising is that marketing measurement is not complete until it takes into account the online-to-offline (O2O) buying journeys of the connected consumers
The benefits of O2O attribution are both long-term and short-term. It helps marketers make long-term platform selection decisions that guide annual marketing budgets. At the same time, digital marketing by its very nature is extremely dynamic. Its ROIs are the strongest when continuous insight-driven optimization is an essential and ongoing part of campaigns. For example, if a social media ad is driving store footfalls, marketers should find out in near real-time and be able to redirect additional ad spend to the specific creative and platform. O2O attribution makes these tactical, everyday decisions insight-driven too.
Many brands are now using Lifesight-powered O2O attribution to make strategic marketing decisions as well as to consistently measure and optimize their most crucial campaigns. For example, a German luxury car brand worked with Lifesight Attribution to measure how its launch marketing initiatives on various digital platforms were affecting test drive footfall at roadshows. They used insights from Lifesight Attribution to continuously optimize their platform selection and messaging throughout the campaign. This helped the brand achieve over 40 per cent click to visit ratio for their online launch campaign – a staggering outcome for the USD 250,000+ luxury car segment.
Taking O2O attribution beyond paid media
We are in an era of omnichannel marketing and influencing purchase decisions throughout the marketing funnel. This means brands are not only investing in digital and traditional marketing channels but also in owned media – apps, landing pages, branded content among others. Influencer reviews and aggregator sites also form an extremely important part of the marketing mix for many consumer-facing brands. Location-based O2O attribution can help marketers leverage the true value of each of these investments. It gives marketers a single view into end-to-end marketing investments and the impact of each touchpoint in consumers’ final purchase decisions.
We are placing our bet on O2O attribution. It will be pivotal in helping marketers finally achieve the pipe dream of data-centricity by finally bringing all consumer touchpoints under one measurement umbrella. Over the next few years, we foresee location-based O2O attribution impacting not just platform selection but also long-term marketing strategy, ad spends, and creative.
Request a demo to kick-start your brand’s O2O attribution – we’re here to help!