We’d all like to believe that we know exactly how our customers are behaving and that the campaigns we put out are the most effective they can be. Reality, however, tells us that this is much easier said than done.
Today, consumers come across dozens of touchpoints on various channels which are trying to convert them for different kinds of goals. Marketers should put sufficient amounts of effort into correctly understanding the way their customers interact with their ads before making a purchase.
Understanding which steps your customers take before they buy your products or subscribe to your services should be one of every business’ top priority.
Implementing attribution modelling into your online marketing strategy not only allows you to efficiently allocate your budget to the best performing campaigns and channels (which would ultimately improve your ROI), it also helps you understand how different marketing channels work together and eventually give you a better insight into your customers’ behaviour.
So what are we actually talking about here?
Let’s take a look at it.
In marketing ‘attribution modelling’ is a framework for crediting touchpoints or channels for a conversion. There are multiple attribution models which all distribute credit in a different way. In total, there are around 7 attribution models you need to know about. There’s no ‘one’ good model, as it highly depends on the conversion goal you’ve set or for the kind of buying cycle you’re working with.
By using various models to assess a certain ‘performance’, be that a Facebook Ad or a display ad via Google, you can get a better understanding of certain touchpoints in the customer journey. For reporting purposes, however, you could employ only one or two models.
As was mentioned before, it’s becoming even more important to have accurate knowledge of your customers’ purchasing path before converting. Did Jake really instantly subscribe to your newsletter after only seeing one of your amazing Facebook video ads, or were there other touchpoints influencing his decision?
Now, if you want to track the path your customer took, you'll need to use attribution models as we'll describe down below.
Both Google and Facebook make use of attribution models to assign credit to their platforms for your conversions.
8 Attribution models used by
- Last interaction/click model
The last touchpoint that was interacted with will receive all credit for the conversion.
- Last non-direct click model
All direct traffic is ignored and all credit for the conversion is given to the last channel the customer clicked through from before converting.
- Last Google Ads click model
The first and only click to the Paid Search channel will receive all credit for the conversion.
- First Interaction model
The first touchpoint will receive all credit for the conversions.
- Linear model
Each conversion in the conversion path will share equal credit for the conversion.
- Time decay model
The touchpoints closest in time to the conversion get most of the credit.
- Position based model
40% of the credit is assigned to both the first and last touchpoints that were interacted with, while the remaining 20% is distributed evenly among the middle touchpoints.
- Data-driven model
Actual data is used from your Analytics account to generate a custom model for assigning conversion credit to marketing touchpoints throughout the entire customer journey.
6 Attribution models used by
- Data-driven model
Assigns fractional credit for a conversion to Facebook touchpoints based on their estimated incremental impact.
- Even credit
This model gives an equal percentage of the credit for a conversion to each touchpoint on a conversion path.
- Last Click or visit
All credit is given to the last click or visit that happened in a conversion path.
- Last touch
The last click or visit that happened in a conversion path. If there was no click or visit, the model will credit the last impression.
- Positional (30% or 40%)
The positional attribution model gives a specific percentage of the credit for a conversion to the first and last touchpoints in a conversion path, with the remaining credit distributed evenly across all other touchpoints.
- Time Decay
The time decay attribution model gives an increasing percentage of the credit for a conversion to touchpoints as they get closer in time to
Now that you know a bit about KPIs and the different attribution models, let's find out how we can bring this all together in platforms that will provide you with a clear overview and visually appealing dashboards!