Chatting with a TagMan client (who I can’t name) about the attribution data we provide them, I was really impressed with the approach they have taken in assessing the quality (and ROI) of campaigns and how they use this data in their media planning.

The digital currency of awarding credit is still on the last click that generated the sale, and this is what they use for awarding their affiliates and other CPA channels commission for the business they generate. However, they use the attribution analysis of the campaigns to work out if a CPA channel is producing a positive ROI – and therefore if they should continue to invest in it.

Non-brand SEO vs. Affiliates

I’d like to illustrate this by looking at two of the campaigns we are tracking for them: non branded SEO and the affiliate sales through a well known and respected network.

On a last-click win analysis (how commission is awarded), non-brand terms in natural search results generated 600 conversions with revenue of £18,000 and the affiliate generated 4,300 conversions with revenue of £170,000.

On the face of it, it doesn’t look like SEO non brand really does much for them, and that the affiliate is doing a far better job.

The catch comes when marketers have a hunch that due to cash-back and voucher-code sites, the affiliate is cannibalising the sales of the other campaigns – shall we call it goal-hanging – and make a decision to stop working with the affiliate on this hunch.

Applied attribution

However, if you look at the sales and revenue each campaign generated not by last click, but by an attribution model it tells a very different story and with the data you can make a much better decision.

Using a flat attribution model where the credit and revenue of each sale is split evenly between all the campaigns that show up in the path to conversion, we see that, over the same date range, the non-brand SEO attributed sales (that is the sales where non-brand natural results show in the conversion path) were 4,050 with revenue of £145,000 and the affiliate generated 1,900 attributed sales with £73,000 revenue.

This shows the marketers hunch was partly right, but the key number is the attributed revenue by both campaigns.  For ease of numbers, let’s say this client had a profit margin of 10%.  Therefore the profit on the SEO work was £14,500 while the profit of the affiliate was £7,300.

Change in budget spend

As it happened, this client didn’t spent nearly £14,500 on SEO marketing and as a result of this data now spend incredibly more and are looking forward to seeing this channel push up last click conversions to other channels.

Moreover, while the affiliate wasn’t generating as much value as reported by last click, the profit was still higher than the commission paid out – i.e. the affiliate is still a channel with positive ROI even with the cash-back and voucher-code sites, and so the client also continues to invest heavily in this area.

I purposefully haven’t provided the length of time this analysis was over as the idea can work for smaller companies just as much for larger companies.  Whether this data spans a single day or three months, it still ensures that as a marketer, you are basing decisions on data and not hunches.

NEW YORK (June 30, 2010) TagMan, the ad tag management system that solves the problems associated with site tagging and tracking of online marketing campaigns through universal- or server side- tag solutions, today announced the further expansion of its US-based team by naming Wendy L. Zenchyshyn Vice President  of Business Development and Aaron K. Gragg as Vice President of Sales, two newly created positions.

“Wendy is a proven strategic-thinking, results-oriented professional with years of sales and marketing experience with technology companies and Aaron is experienced in web content management, social computing and measurement, web analytics, document management, personalization/content delivery, and other aspects of enterprise content management,” says Jon Baron, General Manager of TagMan. “They will both be invaluable new members of the TagMan team as we continue to ramp up in the US market.”

Before coming to TagMan, Ms Zenchyshyn had been with Enquisite Search Analytics (San Francisco) as Director of Strategic Partnerships since May 2008 and where she developed strategy including SaaS pricing models and marketing programs to effectively recruit large advertising agencies and direct advertisers focused on search engine marketing. From August 2007 to May 2008, Ms Zenchyshyn was Director, Business Development for Lyris, Inc. managing technology partners whose products were integrated into Lyris’ solutions. Before that, she was for four years Director, Worldwide Channel Sales for ClickTracks Analytics (which was acquired by Lyris, Inc.).

Earlier in her career Ms Zenchyshyn was a Regional Account Manager for WebTrends Corporation; a Channel Sales Manager – International for VPNet Technologies (Avaya); the Director, Global Channel Sales for Mobile Automation, Inc,;  Channel Sales Program Manager for Cisco Systems and spent ten years with Merisel, Inc  in positions of increasing responsibility and authority, the last being Director Worldwide Sales Services, Product and Marketing. She is graduate of Waterloo, Canada’s Wilfrid Laurier University.

Mr. Gragg comes to TagMan from WebTrends (Portland) where he has been a Strategic Account Executive since May 2008 responsible for $4.2 million in software and on demand sales for enterprise web analytics in Southeastern US. Prior to that, he was a Regional Sales Manager for RedDot Solutions/Hummingbird/Open Text from 2004 to 2008 and before that, a Financial Services Practice Manager at Verian Technologies. Earlier in his career, Mr. Gragg was an Account Executive with FileNet Corporation and served in sales and sales management positions with eGrail, Interwoven, Parametric Technology Corporation and the Mars Mission Research Center. He holds Bachelor of Science in Aerospace Engineering from N.C. State University.

TagMan (www.TagMan.com), the first independent tag and pixel management system, was built and developed by web analytics pioneer Paul Cook as a solution to the problems of implementing new tracking tags on advertiser websites. TagMan has revealed that up to 25% of a typical e-commerce advertiser’s commissions are duplicates.  TagMan’s universal tag solution  instantly deduplicates sales and attribute credit in real time across ALL online channels so that for every $1 spent with TagMan, clients see up to a $41 return on their investments.  Existing platforms do not offer this conversion report. The negative impact of too many pixels on a client’s website (contributing to shopping basket abandonment) drove TagMan’s focus on latency and pixel reduction as a core part of the platform used by clients globally. Clients include online advertisers and agencies in the UK, US and Germany, including Virgin Atlantic, Subaru, Boden, Laura Ashley, Thomas Cook and Alliance & Leicester.

Founded in 2007, TagMan is privately owned and funded and has offices in New York and London. It has received funding from Cambridge Angels and the London Business School E100.

Just to let you know, Paul Cook has posted a piece on marketing attribution and tracking the path to conversion on his econsultancy blog – http://econsultancy.com/blog/3731-better-technology-better-marketing-attribution-4)