Attribution

Overview

Marketing attribution provides a level of understanding of what combination of events in what particular order influence individuals to engage in a desired behavior, typically referred to as a conversion. It takes into consideration all the different touchpoints a consumer interacts with on their journey to making a purchase.

Types of Attribution Models

Single-Touch Attribution Models

Single-Touch Attribution Models assign 100% of the credit to one touchpoint, either the first or the last one the customer interacted with before a conversion. Two common types are:

• First-Touch Attribution: This model gives all the credit to the customer's first touchpoint with the company. It's useful to understand which channels are best at generating new leads.

• Last-Touch Attribution: This model assigns all the credit to the last touchpoint before conversion. It's often used to understand what finally convinces customers to make a purchase.

Multi-Touch Attribution Models

Multi-Touch Attribution Models distribute the credit for the sale among multiple touchpoints. This approach recognizes that multiple interactions often contribute to a sale. They include:

• Linear Attribution: This model assigns equal credit to every touchpoint along the customer journey.

• Time-Decay Attribution: In this model, the touchpoints closest to the time of conversion get most of the credit.

• Position-Based Attribution: This model attributes 40% of the credit to the first and last touchpoints, with the remaining 20% distributed evenly among other touchpoints.

Usage Types

Attribution can be used in various ways within a digital marketing strategy:

• Budget Allocation: Marketers use attribution to understand the effectiveness of different marketing channels and allocate budget accordingly.

• ROI Measurement: By understanding which channels are driving conversions, marketers can measure the return on investment for their marketing campaigns.

• Customer Journey Analysis: Attribution models help marketers visualize the customer's path to purchase and identify important touchpoints.

• Channel Optimization: Attribution data can help marketers optimize their channel strategy to improve conversions and customer acquisition.