Introduction

Attribution modelling is the process of assigning credit to the different marketing channels that contributed to a conversion or sale. It helps businesses understand the effectiveness of their marketing efforts and optimize their campaigns to increase conversions. In this post, we’ll explore the different types of attribution models and how to implement them.

Why Attribution Modeling is Important

Attribution modelling is important because it provides insight into the effectiveness of different marketing channels. By understanding which channels are driving the most conversions, businesses can optimize their campaigns to maximize ROI. Without attribution modelling, businesses may be wasting resources on ineffective marketing channels.

Types of Attribution Models

First-Touch Attribution: This model assigns all credit for a conversion to the first touchpoint the customer had with the business. For example, if a customer clicked on a Facebook ad and then later made a purchase, all credit would be assigned to the Facebook ad.

Last-Touch Attribution: This model assigns all credit for a conversion to the last touchpoint the customer had with the business. For example, if a customer clicked on a Google Ad and then later made a purchase, all credit would be assigned to the Google Ad.

Linear Attribution: This model assigns equal credit to every touchpoint the customer had with the business. For example, if a customer clicked on a Facebook ad, then later clicked on a Google Ad, and then made a purchase, 33% of the credit would be assigned to each touchpoint.

Time-Decay Attribution: This model assigns more credit to touchpoints that are closer in time to the conversion. For example, if a customer clicked on a Facebook ad a week before making a purchase, and clicked on a Google Ad the day before making the purchase, more credit would be assigned to the Google Ad.

Position-Based Attribution: This model assigns more credit to touchpoints at the beginning and end of the customer journey. For example, if a customer clicked on a Facebook ad, then later clicked on a Google Ad, and then made a purchase, 40% of the credit would be assigned to the first touchpoint and last touchpoint, while the remaining 20% would be divided among the middle touchpoints.

How to Implement an Attribution Model

Define your Conversion Goals: Before implementing an attribution model, it’s important to define your conversion goals. What action do you want customers to take? This could be making a purchase, filling out a form, or subscribing to a newsletter.

Choose your Attribution Model: Once you have defined your conversion goals, choose an attribution model that aligns with your business objectives and customer journey.

Gather Data: In order to implement an attribution model, you need to gather data on customer interactions with your business. This could include website analytics, advertising data, and CRM data.

Analyze Results: Once you have implemented an attribution model and gathered data, it’s crucial to analyze the results. For example, are certain channels driving more conversions than others? How can you optimize your marketing campaigns to increase conversions?

Conclusion

Attribution modelling is a critical component of marketing analytics that helps businesses understand the effectiveness of their marketing efforts. By choosing the right attribution model and implementing it correctly, businesses can optimize their campaigns to increase conversions and maximize ROI. Keep in mind that attribution modelling is an ongoing process, and it’s important to regularly analyze and adjust your strategy based on new data and insights.