Are third party attribution tools helping or leading you astray?
TL;DR (but also please read this blog, because we think it’s great info 🙂): Third-party attribution tools can be incredibly valuable for digital marketers by offering insights into customer behavior, are able to consolidate data from multiple sources, and allow for versatile analysis of advertising campaigns. However, these platforms may lead marketers astray due to the fact that the sheer volume of information can be overwhelming and, if not interpreted correctly, can lead to marketers to make the wrong optimizations. It's crucial to approach these tools with a clear understanding of your business objectives and a willingness to test and adjust your strategies based on the insights gained, as well as understand the data so that it isn’t information overload.
Now for the rest of the blog…
Third-party attribution tools like TripleWhale and Northbeam have become increasingly prevalent in digital marketing landscapes. They serve as critical diagnostic tools for marketers and brand owners, assisting in tracking actual results from digital advertising campaigns on platforms like Meta ads, TikTok ads, Google/PPC ads, email (Klaviyo), and others, as well as can incorporate post purchase surveys like KNO Commerce or Enquire as self-reported conversions and de-dupe them with reporting from the ad platforms to ensure the highest level available of reporting accuracy.
However, the question remains: are these tools genuinely helping marketers discern true success and profitable ads, or are they merely a source of confusion and misdirection?
This issue was recently discussed in a Foxwell Founders Membership discussion in the Ad Performance, Profitability & Reporting cohort (not a member yet but love content like this? We’d LOVE to have you).
TripleWhale and Northbeam serve as valuable diagnostic tools for brand owners and digital advertisers, allowing marketers to analyze their ads' performance, identify anomalies, and adjust accordingly. For instance, an ad with a high click-through rate but no purchases could indicate that the ad's content or design is enticing clicks but failing to convert users. Anomalous patterns like this suggest the ad may be clickbaity, leading to unintentional and unproductive traffic. With this understanding, advertisers can adjust their strategies accordingly. These insights could help marketers make strategic changes to improve their ads' effectiveness.
However, these tools aren't used exclusively for optimization. They also serve a crucial role in consolidating data. Both Triple Whale and Northbeam, for instance, allow marketers to have a holistic view of their customer journey, media mix, and overall spending, inclusive of each media platform they integrate with (Triple Whale allows connections to: Facebook, Google Ads, Gorgias, Klaviyo, Snapchat, TikTok, Slack, Pinterest, Fairing [formerly Enquire], KNO Commerce, Amazon, Google Sheets, Microsoft Ads, and Twitter; Northbeam connects with Facebook, Ads, Google Ads, Instagram Shop, LinkedIn Ads, YouTube Organic, Pinterests, Twitter, Klaviyo, Organic Instagram and Facebook, Reddit, LinkTree, TikTok Ads, YouTube Ads, Tatari, Google Analytics, Retention Science, and Snapchat Ads).
The ability to swap between ad attribution windows is another significant benefit of these tools (i.e. quickly toggling between 7-day click vs. 28-day click vs. adding in 1-day view up to 28-day view, etc.). By exploring different attribution models, marketers can gain a more comprehensive understanding of their ad campaigns' impact and adjust their strategies accordingly.
Keep in mind that the effectiveness of third-party tools also depends on what they are used for. The multitude of metrics available for analysis and review can lead to analysis paralysis, as there is no 'most important' metric. It requires a comprehensive understanding and continuous evaluation to draw actionable insights.
Despite their benefits, these tools also have their drawbacks. The consensus among many advertisers is that third-party attribution tools could potentially lead marketers astray without a clear understanding of their business Key Performance Indicators (KPIs) and how the data relates to these metrics. The perfection of attribution is inherently elusive due to the complexity of the customer journey. The more we strive for precise measurement, the more we risk getting bogged down in minute details that might not significantly impact the broader strategy.
Furthermore, one of the recurring themes throughout the discussion was the risk of "information overload." With so much data available, marketers could fall into the trap of trying to identify the "most important metric." Instead, it's crucial to evaluate each metric's value over long periods and understand how different factors interplay in shaping the overall campaign results.
In conclusion, third-party attribution tools like TripleWhale and Northbeam can be incredibly valuable for digital marketers. They offer insights into customer behavior, consolidate data from multiple sources, and allow for versatile analysis of advertising campaigns. However, it's crucial to approach these tools with a clear understanding of your business objectives and a willingness to test and adjust your strategies based on the insights gained. Like any tool, their efficacy depends largely on how well users understand their business, interpret the data, and apply the insights. The debate on these tools' worth is far from over, but what remains undeniable is their growing influence in the world of digital marketing.
When used thoughtfully, these tools can significantly enhance your digital marketing strategies, leading to more effective and profitable advertising campaigns.
If you’re into up-to-date (and even to the minute) content like this, you NEED to be in the Foxwell Founders Ad Buying Membership.
Watch a clip of the Ad Performance, Profitability, & Reporting Cohort call from the Foxwell Founders Membership where we discussed this topic: