What is Alvie attribution?
Alvie Attribution was designed for the modern marketer, for the ones who don't care about clicks, but instead what the return on your investment is. At Precis, we’ve leveraged our technological expertise and experience across hundreds of thousands of campaigns to create a model that more accurately reflects the impact across the full marketing funnel.
Alvie Attribution is a new approach to marketing attribution that uses statistical techniques to model the relationship between marketing spend and business outcomes. By applying regression analysis, it helps marketers understand how different factors like advertising spend on various channels contribute to business goals, such as sales or conversions.
Unlike traditional models, Alvie Attribution is built on advanced probabilistic methods that incorporate a Bayesian framework. This allows for the inclusion of prior knowledge and marketing intuition, providing a more flexible and sophisticated approach to attribution.
Core concepts of Alvie Attribution
There are several elements of Alvie Attribution that set our model apart from alternative solutions.
1. Regression analysis
At its core, regression analysis is used to identify the relationship between a business KPI (such as revenue) and independent variables (like marketing spend). This statistical method helps predict how changes in marketing investments will affect the business outcome, offering valuable insights into the effectiveness of different channels.
2. Saturation and carryover effects
One of the key strengths of Alvie Attribution is its ability to account for saturation and carryover effects. Saturation occurs when increasing marketing spend results in diminishing returns, while carryover reflects the long-term impact of a campaign. By adjusting for these effects, the model delivers a more realistic representation of marketing performance over time.
3. Bayesian framework
Alvie Attribution uses Bayesian inference, which refines predictions based on new data. By starting with prior knowledge—such as expected results from marketing tests—and updating these assumptions as new information becomes available, the model provides more accurate and dynamic insights.
The benefits of Alvie Attribution
Alvie attribution offers several clear benefits over traditional attribution methodologies.
1. Streamlined data integration
Unlike other models, Alvie Attribution doesn’t rely on BigQuery exports. Instead, it directly retrieves data from sources like Google Analytics 4 (GA4) APIs, simplifying the data integration process and speeding up the onboarding experience.
2. Incorporation of marketing expertise
By embedding prior marketing knowledge into the model, Alvie Attribution allows marketers to include test results and expert insights as part of the predictive process, which improves the model’s accuracy and relevance.
3. Effective handling of complex relationships
With its ability to model intricate interactions, Alvie Attribution can assess how different marketing strategies work together or evolve over time, offering a deeper understanding of campaign dynamics.
4. Informed decision-making through uncertainty analysis
Instead of providing a single-point estimate, Bayesian methods generate a range of potential outcomes, allowing businesses to assess risk and uncertainty in their marketing efforts.
5. Independence from platform manipulation
Alvie Attribution operates on verified data sources like marketing spend and KPIs, ensuring it remains independent of any potential data manipulation by advertising platforms. However, for unpaid channels, it currently depends on data from GA4.
6. Future-proof and privacy-friendly
The model is designed with privacy in mind. By avoiding user-level tracking, it aligns with modern privacy regulations, making it a more sustainable choice in a future where data privacy concerns are becoming increasingly important.
Usage of Alvie attribution
While Alvie Attribution is a powerful tool, there are two things you should be aware of before implementing our solution:
1. Data requirements
Although there are no strict data prerequisites, the model performs best with ample data. For optimal results, it is recommended to have at least a year’s worth of data and include as many marketing channels as possible.
2. Targeting Limitations
At present, Alvie Attribution is limited to targets available through the Google Analytics 4 API, such as revenue and conversion counts. The team is working on expanding this range to include more business KPIs in the future.
In summary
Alvie Attribution represents a significant step forward in marketing attribution, offering businesses a more robust, flexible, and privacy-friendly way to measure the impact of their campaigns. With its reliance on Bayesian statistics, integration of expert knowledge, and ability to handle complex relationships, it provides valuable insights that help marketers optimise their strategies. However, as with any model, it comes with limitations—particularly around data availability and target flexibility—that must be considered.
If you're interested in leveraging this advanced attribution model, check out our Budget Optimiser+ solution or reach out to the Alvie team to explore how it can benefit your business.The model is designed with privacy in mind. By avoiding user-level tracking, it aligns with modern privacy regulations, making it a more sustainable choice in a future where data privacy concerns are becoming increasingly important.
