Put simply attribution modelling is a set of rules which determine the credit each marketing channel will receive for their part in sales and conversions.
For example ‘First Interaction’ attribution will credit the first interaction (or click) with 100% of the credit for a sale or conversion, in essence giving the credit to the channel which started the path to conversion. ‘Last Interaction’ will give 100% credit to the channel witch completes the conversion path.
Attribution Model Options
Last interaction – Last customer interaction receives 100% credit for the conversion.
Last Non-Direct Click – Default model for non-multi-channel funnel reports. Ignores all direct visits to the website and 100% credit will go to the last marketing channel a customer interacted with.
Last AdWords Click –The last click on an advertisers AdWords ad will receive 100% credit for the conversion.
First Interaction – First customer interaction receives 100% credit for the conversion.
Linear – Will split credit between every marketing channel in the conversion path.
Time Decay – The interaction which is the closest in time to the conversion will receive the most credit.
Position Based – Hybrid of the first and last interactions model by splitting attribution between the two of them.
When using attribution models, the conversion value for your marketing channel will differ depending on the model you are using.
A customer finds the site via an AdWords ad, they return a week later via a social link, the same day they land on the site for a third time from an e-mail campaign and finally they come to the site direct and convert.
This is how each of the pre-set attribution models would credit the conversion:
Last interaction – Direct
Last Non-Direct Click – E-mail
Last AdWords Click –In this case the first and only Adwords clicks
First Interaction – Adwords
Linear – AdWords (25%), Social (25%), E-mail (25%) and Direct (25%)
Time Decay – AdWords (15%), Social (20%), E-mail (25%) and Direct (40%)
Position Based – 40% AdWords, 40% Direct, 10% E-mail and 10% Social
Picking The Best Attribution Model For you
It is important to pick the correct attribution model to reflect your advertising goals and business needs.
Here is an example of each model and how it could be used:
Last Interaction – If your campaigns are targeted at customers who are ready to purchase, or your industry involves no consideration time until conversion then a last interaction model would be best for you.
Last Non-Direct Click – If you consider direct visits to be customers which have been won through different marketing channels you would want to filter these visits out by the conversion path by using the Last Non-Direct Click model.
Last Adwords Click – If you want to credit the AdWords ad which has impacted in the most conversions, use the Last Adwords Click model.
First Interaction – If your campaigns are to create initial awareness, best for unknown brands who want to place credit to keywords and marketing channels which first introduced customers to the brand.
Linear – Best used for campaigns which have the aim of keeping the customer on the hook throughout the sales process, meaning all interactions are as important as each other.
Time Decay – If you see you’re most recent campaigns as the driving force behind conversions the Time Decay model would be the best model to use.
Position Based – Best used when you are most interested in the marketing channel which introduced a customer to your brand and then which closed the conversion.
If you want to fully utilize attribution models and discover the true value of your marketing efforts, get in touch with Zeal Media today.