03 / SYSTEMS / CLOSED-LOOP ATTRIBUTION
SYS-005
Closed-loop attribution
From ad to gross profit, not from ad to lead.
The cheaper lead is not automatically the better lead.
FROM AD TO GROSS PROFIT
WHERE MOST CHAINS STOP
From ad to gross profit
ADLEAD…
The question stops being which ad got the most clicks and becomes which creative should receive more budget. A cheaper lead that never buys is not the better lead.
WHY THE CHEAPER LEAD IS NOT THE BETTER LEAD
CAMPAIGN A
COST PER LEAD
$18
LEADS
100
SALES
2
GROSS PROFIT
$3,000
CAMPAIGN B
COST PER LEAD
$37
LEADS
100
SALES
11
GROSS PROFIT
$18,000
A normal agency picks A. Closed to gross profit, B is six times the business. This is an illustration of the shape, not a client's figures — ARK's own attribution chain on MyRide reads not measured until the ad platforms are connected, and says so rather than showing a zero.
THE SAME CHAIN, THREE INDUSTRIES
AUTOMOTIVE
Campaign
Creative
Lead
Conversation
Appointment
Transaction
Revenue
Gross profit
REAL ESTATE
Lead
Consultation
Showing / listing
Close
Commission
COMMERCIAL
Lead
Qualification
Deal
Funding / transaction
Fee / commission