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Duck Tales: How DuckDuckGo uses data science to measure marketing effectiveness, privately (Ep.29)
Description
In this episode, Cristina (CMO) and Baran (Data Science) discuss our privacy-first approach to marketing measurement, the role of incrementality, and how the team operates day to day.
Disclaimers: (1) The audio, video (above), and transcript (below) are unedited and may contain minor inaccuracies or transcription errors. (2) This website is operated by Substack. This is their privacy policy.
Cristina: Hi, and welcome to DuckTales, where we go behind the scenes at DuckDuckGo and discuss the stories, technology, and people that help build privacy tools for everyone. In each episode, you’ll hear from employees about our vision, product updates, engineering approach to AI, or how we operate as a company. I’m Cristina on the marketing team, and I’m here today with Baran on the data science. Would you like to say hi?
Baran: Hi everyone.
Cristina: So for our viewers, if you’ve already listened to episode 9 with me and Chuck, you know that, like our product philosophy, privacy is core to the ethos of our marketing. And most of the common marketing practices we just don’t do, identifying and targeting individual users, retargeting, using behavioral data, using third-party cookies and pixels, all that, all hard nos. We have very thoughtfully developed privacy-respecting measurement that is a bit unique, but includes techniques that I think and hope all marketers can adopt. Thankfully, we’ve come a long way from when I was doing the campaign analysis. And thanks to everyone’s data science background, we have much more sophisticated techniques and models. And I’d really like to dive in on a slice of that today. So first question, most companies measure their marketing through attribution, tracking who clicked on what and then installed. We sometimes do a version of when it’s possible to in aggregate and anonymously of course, but can you explain how does it work for us and is that even the right question to be asking?
Baran: Yeah, thank you, Cristina. On one hand, we have a self-built, simple and privacy-respecting attribution. And on the other hand, we have a few channels who do their own attribution. But with both of them, we have three issues. One, only a small percentage of our total impact through the campaigns is captured by attribution. Let’s take the most obvious one, TV campaigns. There might be a QR code on the screen, but most people would just go to the app or Play Store to download the app instead of scanning the QR code. And then it doesn’t work on all channels. Many channels only support the industry standards, more privacy in ways of attribution methods, not necessarily what we built. And third and most importantly, which is also valid for all other companies, is attribution is not the same as incrementality. It measures who clicked, but not which channel actually caused, let’s say, a metric like an install. And the real question is actually incrementality.
Cristina: Okay, so then if attribution doesn’t answer the real question, how do we introduce incrementality and how does that answer the question?
Baran: So ideally it would be A-B testing for incrementality for a channel within a channel’s advertising platform. But there is no way to do this. Channels don’t provide this. It could also be because this would make it very easy for marketing teams to understand the incremental impact. The clo