Advertisers who switch to data-driven attribution from another attribution model typically see a 6% average increase in conversions. With data-driven attribution, machine learning algorithms assign fractional credit to customer touch points which may have previously been undervalued. Smart Bidding can then react to these opportunities, resulting in performance gains.
Last year, for example, Mercedes-Benz Germany drove growth by implementing Smart Bidding with data-driven attribution. Originally, the company ran conversions using a last-click attribution model. With the help of their agency TeamX and Google’s best practices, Mercedes-Benz Germany, set up an experiment across multiple campaigns to test which bidding strategy, Maximize conversions or Maximize clicks, would perform better with data-driven attribution.
After running the experiment for six weeks, the campaigns using data-driven attribution with Maximize conversions saw a 37% increase in conversions.
“The performance results speak for themselves. We have proven that the combination of conversion based bidding and data-driven attribution increases performance significantly. The attribution model also helps us to distinguish better between the impact of brand and generic campaigns. This experiment is a milestone for Mercedes. “ — Katrin Thorant, Deputy Director Activation SEA, TeamX
Mercedes-Benz Germany has since upgraded all of its conversions to data-driven attribution and scaled out the use of Smart Bidding across all campaigns. The company has also scaled Smart Bidding and data-driven attribution across other business units within Germany and are now utilizing other Smart Bidding strategies such as Target CPA. Data-driven attribution continues to be an important part of the company’s marketing strategy.