Marketing Attribution: Everything You Need to Know

In marketing, attribution is the process of assigning credit for a conversion to the touchpoints that led to it. In other words, attribution tells you which channels and tactics are most effective in driving conversions.

A marketing attribution model is a framework that helps marketers determine how to credit each touchpoint in the customer journey. By understanding which touchpoints are most influential at each stage of the journey, marketers can optimize their campaigns and better understand which channels and strategies are most effective.

For example, let's say a customer sees an ad for a product on Facebook, clicks on the ad, and then purchases the product from the company's website. In this scenario, Facebook would get 40% of the credit for the sale because it was the first touchpoint. The company's website would get 60% of the credit because it was the last touchpoint.

This attribution model is a good way to measure the effectiveness of different marketing channels in real-time. It can also help marketers allocate budget and resources more effectively.

There are many different attribution models, but the most common ones are last-click attribution and first-click attribution. Last-click attribution gives 100% credit to the last touchpoint before a conversion (e.g. a Google Ad), while first-click attribution gives 100% credit to the first touchpoint (e.g. organic search).

Other popular attribution models include linear attribution (which gives equal credit to all touchpoints), time decay attribution (which gives more credit to touchpoints that occurred closer in time to the conversion), and position-based attribution (which gives more credit to touchpoints that occurred earlier in the customer journey).

The choice of attribution model can have a big impact on your marketing strategy. For example, if you're using last-click attribution, you might focus on driving traffic to your site through paid ads, since those are the touchpoints that will get the credit for any resulting conversions. On the other hand, if you're using first-click attribution, you might focus on driving traffic through organic search or other channels that allow you to get in front of customers early on in their journey.

Ways to measure Marketing Attribution

There are a number of ways to measure marketing attribution, and the most appropriate method will depend on the objectives of the campaign and the data that is available. Some common methods include:

1.Single-touch attribution: This assigns credit to the first touchpoint that a customer has with a brand. This is often used for campaigns with a very specific goal, such as generating awareness or driving conversions.

2. Multi-touch attribution: This assigns credit to all of the touchpoints that a customer has with a brand. This is often used for campaigns where multiple touchpoints are needed to achieve the desired outcome, such as complex sales or loyalty programs.

3. Last-touch attribution: This assigns credit to the last touchpoint that a customer has with a brand. This is often used for campaigns where the primary goal is to drive conversions or sales.

4. Position-based attribution: This assigns credit to touchpoints based on their position in the customer journey. For example, 50% of the credit may be assigned to the first touchpoint and 30% to the last touchpoint, with the remaining 20% divided evenly among all other touchpoints.

5. Rule-based attribution: This assigns credit based on predefined rules, such as assigning equal credit to all touchpoints or giving more credit to certain types of touchpoints (such as paid search or email).

6. Data-driven attribution: This uses statistical models to calculate the credit for each touchpoint, based on data such as conversion rates, click-through rates, and time to conversion.

7. Custom attribution: This is a custom attribution model that is tailored to the specific objectives of a campaign.

8. No attribution: This is when no credit is assigned to any touchpoints and all credit goes to the final outcome (such as a sale).

Which attribution model is best for your business will depend on your specific objectives and the data that is available. However, multi-touch attribution is generally considered to be the most accurate method, as it takes into account all of the customer touchpoints that contribute to a sale or conversion. Data-driven attribution is also gaining popularity, as it uses statistical models to calculate the credit for each touchpoint, based on actual data.

If you're not sure which attribution model to use, start with a simple one like last-touch or single-touch and then experiment with other models to see what works best for your business. Whichever model you choose, make sure that it aligns with your overall marketing objectives.

Benefits of Marketing Attribution

There are a number of advantages that marketing attribution can bring to an organization's marketing efforts. Perhaps most importantly, attribution can help marketers better understand which touchpoints in the customer journey are most important in driving conversions and other desired outcomes. This understanding can then be used to inform future marketing strategies and budgets, as well as optimize ongoing campaigns.

Additionally, attribution can assist in identifying any potential holes or weaknesses in the customer journey, which can be addressed accordingly. Furthermore, by attributing value to different marketing channels and tactics, organizations can more accurately measure return on investment (ROI) and make data-driven decisions about where to allocate resources.

Three Simple steps

If you're looking to create a real-time marketing attribution model for your business, there are a few things you should keep in mind. First, make sure you understand how customers interact with your brand across different channels. Second, allocate weights to each touchpoint based on its importance. And third, use data and analytics to track and measure results. By following these steps, you'll be well on your way to creating an effective real-time marketing attribution model for your business.

Conclusion

There's no right or wrong answer when it comes to attribution modelling; it all depends on your business goals and which model best aligns with those goals. Whichever model you choose, the important thing is to be consistent in your attribution reporting, so that you can accurately compare results across channels and tactics.