Pay-For-Performance Advertising Solves Attribution & ROI Challenges

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The name of the game when running any advertising campaigns is testing. What channel worked? What content? What audience responded? Where’s the money being made? Pay-for-performance advertising, which allows advertisers to pay for the specific actions that match the objectives of their campaigns, is an answer to murky attribution.

Why Is It Difficult To Measure Advertising Attribution?

Many advertising campaigns, especially those focused on top-of-the-funnel objectives, are designed to achieve steps early in the customer journey, for example brand awareness. While brand awareness is important, the journey from brand awareness to purchase can be long and winding. 

There are many ways to calculate advertising attribution, including first-touch attribution, last-click attribution, linear attribution and more. Each attribution model provides valuable information, and each model has its weakness or gaps, especially if traditional advertising, which is harder to track than digital advertising, contributes to advertising success. 

How Can Pay-For-Performance Advertising Help Ensure Advertising ROI?

Pay-for-performance advertising models allow advertisers to pay only for pre-defined campaign actions, like a sale, an inbound call or a quote request. Although attribution challenges can still exist along the path to that action, from an advertising ROI standpoint, the attribution is irrelevant. With pay-for-performance campaigns, advertisers can put 100% attribution on the last touch, because the last touch is the only touch they are paying for. 

In today’s highly fragmented digital ecosystem, within which consumers are increasingly window shopping, pay-for-performance advertising is a solution that helps advertisers ensure they get and pay for actions that specifically align with their advertising objectives.

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About the author

Digital Media Solutions

Digital Media Solutions, Inc. is a leading provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers within auto, home, health and life insurance plus a long list of top consumer verticals. The DMS first-party data asset, proprietary advertising technology, significant proprietary media distribution and data-driven processes help digital advertising clients de-risk their advertising spend while scaling their customer bases. Learn more at https://digitalmediasolutions.com.