How do you assess the value of marketing spend? The ‘multi-touch attribution model’, a sophisticated attribution technique, was presented by Olga Nielsen, director of marketing and distribution analytics for Choice Hotels, at the EyeforTravel Smart Analytics conference in Atlanta earlier this year. Rather than ‘last click attribution’ this model can assess both internet-based and more traditional marketing approaches and statistically separate the incremental revenue value of each. Every touchpoint can be incorporated in the analysis, which is increasingly necessary as customer purchase decisions flow across multiple sites and touchpoints . Marketing initiatives themselves are often not the biggest driver of bookings. Factors that explain most of any growth or change in bookings include elements like: i) economic cyclicality or seasonality, ii) competitive factors like relative capacity growth and iii) market segmentation factors like growth in target demographic groups. As Nielsen noted, the MTM model could attribute as little as 5% to marketing initiatives. She notes that most companies, without the benefit of a sophisticated attribution model, attribute much more than they should to targeted promotions. In many cases, the other factors – macro-economic, competitive environment, long-term brand awareness – represent the largest factors in booking volume – all without any current spend. Get the full story at EyeForTravel