Marketing Attribution

Marketing Attribution

You may be wondering exactly what marketing attribution is? To put it simply it’s the analysis of how your customers interact with different marketing touchpoints and assigning credit or value to each touchpoint based on its impact on the customers purchasing decision. In short, it helps businesses understand the effectiveness of their marketing efforts in order to optimize their strategies and make data driven decisions. There are various types of marketing attribution models, each offering a different perspective on how credit should be assigned to touchpoints.

Single-Touch Attribution Models

First-Touch Attribution

This model gives all the credit to the first touchpoint a customer interacts with. It helps businesses understand which marketing activities attract customers initially. For example, if a customer's first interaction is through a Google Ad, first-touch attribution credits that ad as the catalyst for their engagement.

Last-Touch Attribution

In contrast to first touch attributions, last-touch attributions assign all credit to the final touchpoint before conversion. This model is most favored by businesses with short buying cycles, as the last interaction is considered the most influential in motivating the purchase. For instance, if a customer sees a retargeting Facebook ad and makes a purchase, the last-touch model attributes the conversion solely to that ad.

Last Non-Direct Click Attribution

Just like the last-touch attribution, this model discounts direct traffic and gives credit to the touchpoint just before the direct visit. It is useful when customers convert quickly after adding a product to their cart but leave without converting. The model attributes credit to the follow-up email or subsequent touchpoints that led to the final direct visit and conversion.

Multi-Touch Attribution Models

Linear Attribution

The linear attribution model gives equal credit to all touchpoints in the customer's journey. It provides a balanced view of each touchpoint's contribution throughout the entire journey. So, if there are six touchpoints, each touchpoint would receive an equal share of the credit. 

Position-Based Attribution

Also known as a U-shaped attribution, this model gives most of the weight to the first and last touchpoints, each receiving approximately 40% credit, while the rest of the touchpoints equally share the remaining 20%. This model is best suited for longer sales cycles with multiple touchpoints and recognizes the importance of both the initial engagement and the final conversion.

Time Decay Attribution

The time decay attribution model distributes credit based on how much time has passed since each touchpoint. The final touchpoint receives the most credit, while the first touchpoint receives the least. It is useful when relationship-building is a key factor as it emphasizes the impact of recent touchpoints. The model assigns higher credit to touchpoints closer to the conversion.

‍Implementing a marketing attribution is crucial for businesses of all sizes as it enables them to:

  • Understand the effectiveness of different marketing tactics and channels.
  • Allocate resources and budget more effectively based on attribution insights.
  • Optimize messaging and tactics for each touchpoint to improve engagement and conversion rates.
  • Make data-driven decisions to enhance marketing strategies and achieve better results.

‍By leveraging marketing attribution models, businesses can gain valuable insights into their customers behavior, while optimizing their marketing efforts and driving improved performance and ROI.

Contact us today to see which marketing attribution model best suits your business. 

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