Last-Click, Lost Cause: Why Marketers Are Embracing Media Mix Modeling

A new report from Snap Inc. and EMARKETER is calling out last-click attribution, deeming it a “flawed metric … limiting marketing” while backing it up with receipts from marketers who reluctantly have to use it.

Though a full 78.4% use it to measure media efficacy, only 21.5% of those surveyed in the report are confident it’s a reasonably accurate reflection of long-term impacts, while nearly three-quarters (74.5%) are hoping to or are proactively steering away from it.?

“Relying on imperfect metrics to track campaigns and inform media decisions could lead to inefficient choices, like overinvesting in last-click-friendly ad formats that drive immediate clicks and underinvesting in marketing that leads consumers down the funnel,” the report says. “All this happens at the expense of brand equity.”

So while Paul Verna, EMARKETER’s vice president of content, calls last-click attribution the “devil marketers know” — and 77% agree that it’s the easiest way to track campaigns even if it’s not the best measurement — there’s no clear-cut alternative that budget-conscious marketers in particular can simply substitute.

“Many are looking to more holistic models, like media mix modeling (MMM), due to its ability to represent engagement across platforms and throughout the funnel … but these models are complicated and can be difficult to implement,” the report says, noting the $300+ billion that U.S. marketers are spending on digital advertising this year … as well as the historically expensive costs of such a comprehensive strategy.

When asked what type of measurement they believe is best, however, 30.1% said MMM, followed by web analytics (20.2%) and incrementally lift testing (19.9%). The report says automation has helped streamline certain MMM processes that used to take precious time to collate and analyze data, but it “remains more time-consuming than last-click attribution.”

“Despite these challenges, investing in MMM allows marketers to make more informed decisions reflective of how the ad market actually functions,” the report says. “Last-click attribution may not disappear anytime soon, but marketers will likely see MMM and other holistic measurement models continue to grow in popularity. This evolution will allow marketers to understand the impact of higher-funnel media buys on conversions as part of an overall industry trend toward a healthy mix of brand and performance marketing campaigns.”