The attribution mirage is a term that describes a phenomenon that leads modern B2B marketers astray. It impacts every aspect of B2B marketing – from staffing to budgeting, and everything marketing teams work on.
What is it?
An attribution mirage is a phenomenon that occurs when a person, organization, or system attributes a success or failure to the wrong cause. This can happen when the true cause of something is complex or difficult to determine, and people instead attribute it to a simpler or more easily identifiable factors.
How did the Attribution Mirage Emerge?
No one intended to create The Attribution Mirage. It “emerged” as a negative byproduct of our good intentions to show accountability and ROI from marketing investments.
We can trace three “eras” in how B2B buyers have discovered, researched, and evaluated products and solutions.
Analog Era
- Few sources of product information
- Buyers go to trade shows, consult with analysts
- Sellers mostly control the flow of information
- Buyers spend more time with vendor representatives to gather information
- Buyers allow trusted sellers access to reach them
- Relatively few choices in any product category
Website Era
- Lots of sources of ‘always on’ information across the internet
- Buyers can complete entire evaluation and purchase process without a sales rep
- Purchase process involves a wider set of stakeholders
- Increasing number of choices in any product category
Dark Social Era
- Overwhelming number of sources of information
- Hyper-connected B2B peers use digital channels like social networks, communities, and other forms
of word-of-mouth to share information, opinions, education, and advocacy
- Buyers can do their own research, tapping trusted peers and with the ability to remain anonymous
until they are ready to start a sales conversation
- Buyer is often the end-user; user-led decisions control the buying experience; emotions and peer
influences play a bigger role
- Overwhelming number of choices in any product category
Attribution first became important in the 1950’s to gauge the effectiveness of mass media advertising. Self-reported “recall” and “awareness” were two key measures of campaign success.
With the rise of the internet, digital ads and email marketing in the late 1990s and early 2000s, electronic attribution through trackable URLs, browser cookies, and other tactics developed. A key date: Google Analytics became broadly available in August 2006.
Unlike tradeshows, seminars, print ads and direct mail, digital marketing and digital marketing vendors promise an ability to measure results more precisely. Compared to traditional “awareness” and “recall” measures, these digital tracking technologies provide a cornucopia of information for analysis, and fuel automated reporting and workflows. Marketing technology vendors taught us the importance of impressions, opens, clicks, click-through-rate, conversions, conversion rates, cost per conversion, etc.
But in our delight from an avalanche of available digital attribution analytics, marketers overlooked a subtle, yet vitally important issue. Digital tracking technology, and self-reported awareness and recall measures are often capturing two different types of insights: where people first hear about a vendor or solution, verses where people first interact digitally with a vendor or solution.
How Does The Attribution Mirage Happen?
Imagine this very typical scenario -- A CMO investigating technology for her company.
How will the marketing departments for these four companies “attribute” these clicks and conversions?
Using software-based attribution, two companies would assign click and conversion success to SEO, and two companies would assign click and conversion success to Paid Ads. Hooray! “Our SEO and paid ads are bringing us more leads.”
But if we asked our CMO for her self-reported attribution, she knows that for Company’s A, B, and C the real source originates from a Slack community thread. Only for Company D, whose paid ad caught her eye, is electronic attribution software ‘accurately’ attributing the clicks and conversions.
Our CMO could easily have learned about solutions through an ever-increasing range of sources: from her peers and respected professional colleagues to social networks, communities, and podcasts, for example.
What’s the Impact of The Attribution Mirage?
The software-based attribution mirage rewards online resources and digital activity that software can detect. Software-based attribution:
- Dramatically over-reports organic search and direct links to your website
- Significantly under-reports social media sources
- Doesn’t track or measure interactions between people that happen in:
- Social networks: LinkedIn, Facebook, TikTok, Instagram…
- Content platforms: YouTube, Spotify, Apple Podcasts…
- Communities and Groups: Facebook or LinkedIn Groups, Slack Communities
- Internal company communications: Slack or Teams Channels, Zoom communities…
- Direct “word of mouth”: Phone calls, Text messages, DMs…
- Meet-ups and events: physical and virtual meetings and mixers…
Today, these untracked interactions between people are called “dark social” because they happen out of sight of our attribution software.
This unbalanced attribution model can skew budgets, teams, and marketing activity toward what “seems to be working.” As the saying goes, if you can measure it, you can improve it. But what if you’re not measuring something at all?
The Attribution Mirage Revealed – A Year of Research Data and Results
We conducted a 12-month test to simultaneously capture data collected by both software-based and self-reported attribution. Our research objective was to better understand any potential gap between the two attribution sources. We wanted to identify what sources – in what quantities – are driving conversions to Marketing Soured Opportunities and Closed/Won business.
We added a mandatory free-text field to our key declared intent conversion form (“Book a Strategy Call”): “How did you hear about us?” There was no leading text or suggestions to prompt responses on the form. Data from this field was then reviewed in parallel with software attribution data from Hubspot.
This let us see the variances between self-reported versus and software attribution reports for every form submission.
The chart below shows the results gathered from the 620 conversions in the sample.
The results:
- Software-based attribution reports that 78% of conversions were sourced from web searches (direct
and organic), whereas customers report web searches only 12% of the time.
- Self-reported attribution from customers records 85% of conversions were sourced from Dark Social
(social media, podcast, word of mouth, and community).
- % Calculation = # of SRA values/ # of SRA total mentions
- Podcast and community are not measured at all by software attribution.
Key takeaways:
- What people report and what software indicates is significantly different.
But are Opportunities created from self-reported dark social sources any good?
The chart below shows results for deals that progressed to Closed/Won.
Source: 2023 Analysis of Refine Labs software attribution vs self-reported response values.. NOTE: Self-reported answers often mention multiple sources.
Perhaps the most important take-away from this chart is that dark social sources far yield the most high-quality Opportunities that Close/Won – and software-based attribution is blind to this.
- Self-reported attribution from customers records they heard about our brand through Dark Social
(social media, podcast, word of mouth, community) for 98% of our closed won revenue.
-Software attribution indicates 79% of conversions were sourced from web search (direct/organic/paid
search), whereas customers report these sources only 3% of the time.
- ‘Podcast’ has the highest percentage contribution and jump in overall value at Closed/Won. Buyers
who mention our podcast convert to revenue at the highest rate
This full data study is published in The Vault if you want to see the entire report. Learn more here.
We at Refine Labs have a GTM strategy based on active social media and podcast presence. If we relied only on software-based attribution, it would look like our social media and podcast strategy were failing. But by capturing self-reported attribution we can see a very different story.
How Can You Fix The Attribution Mirage?
What our software-based attribution uncovers is where and when people are interacting with our company’s digital presence. From a vendor-centric point of view, we often consider this is when we “captured” that a prospect interacted with something of ours.
What software-based attribution does not reveal is where a prospects became aware of our company or solution, for example when our CMO asked her peers in a slack community for suggested vendors.
What we need is a new and more accurate way to think about attribution that provides a more comprehensive understanding. Attribution should be measured on two levels:
The combined results of self-reported and software-based attribution gives you hybrid attribution.
What is Self-Reported Attribution?
Self-Reported attribution is what we learn when we ask directly, “How did you hear about us?” and our prospect, in their own words, gives us their answer.
- “From the XYZ podcast”
- “I attended a Zoom session, and someone mentioned your company”
- “I’ve been following one of your employee’s posts on LinkedIn”
- “I’ve seen your ads on Facebook”
- “I was referred to your company by someone in a Slack channel”
- “I know one of your customers. He uses you and has nothing but good things to say about your
customer service”
- “I saw reviews on review site X”
- “I did a google search”
These types of real-world answers demonstrate how awareness so often precedes any search engine queries or hyperlink clicks.
We can capture self-reported attribution by adding a mandatory open text-field question, without drop-down menus or suggestions, to key ‘intake’ forms so prospects can describe in their own words – unaided -- how they recall becoming aware of us.
Nowadays, these types of freeform answers can be automatically classified quite easily. (Advanced SRA Playbook Coming Soon)
Self-reported attribution gives you the insight to identify where demand is being created. This is critical information to balance against software-based attribution that identifies where demand is being captured.
The Attribution Mirage Disconnect is Growing
The problem is getting worse. Today, B2B buyers increasingly learn about vendors and solutions through a range of sources: from peers and respected professional colleagues to social networks, communities, and podcasts. The more this happens, the more software-based attribution fails to provide a comprehensive picture of how and where prospects become aware of your company and its solutions, because software-based attribution can only pick up on digital signals.
Buyers are turning to these dark-social channels as a response to today’s B2B solution purchasing realities. So many categories of solution. So many vendors and solutions in each category. So much well produced information from vendors making similar claims. Buyers are overwhelmed.
Buyers nowadays use their professional social connections to accelerate and simplify their solution discovery and exploration process. Said another way, buyers are using their social connections to speed their way through the first two stages of the Buyers Journey: Awareness and Interest.
Conclusion
Attribution seeks to reward what’s working. Budgets are always tight, and marketers need to show positive ROI on their investments. Software-based attribution is good at measuring where individuals interact with your company’s digital footprint. Self-reported attribution is good at measuring the increasing variety of places where people first learn about solutions. Software and self-reported attribution are both needed to build a complete picture of what creates demand and captures demand.
Would you like to know more?
Spotify
- The Attribution Mirage | Demand Gen Live S2 x50
- How to Rethink Attribution in Your Company | State of Demand Gen 239
YouTube
- Check out our first video about the Attribution Mirage. The Attribution Mirage | Demand Gen Live S2 x50