Marketing attribution is a crucial aspect of any marketing strategy as it helps businesses understand the impact of their marketing efforts and optimise their investments. With the increasing complexity of the customer journey and the proliferation of touchpoints, attribution has become an increasingly important tool for marketers. In this article, we will explore the different types of marketing attribution models and provide examples of when each model may be most appropriate for a given business.
Last-click attribution: This model assigns 100% credit to the last touchpoint before a conversion. It is the simplest form of attribution and is often used by businesses that want to measure the direct impact of their marketing efforts. For example, a business that sells products online through a single website may use last-click attribution to understand which marketing channels are driving the most sales. In this case, the last touchpoint before a conversion would be the click on the website that led to a purchase.
First-click attribution: This model assigns 100% credit to the first touchpoint that drove a user to convert. This model is often used by businesses that want to understand the impact of their brand building efforts. For example, a business that sells products through multiple retail channels may use first-click attribution to understand which marketing channels are driving awareness and interest in the brand. In this case, the first touchpoint may be a social media post or a display ad that introduced the brand to the customer.
Linear attribution: This model divides credit equally among all touchpoints in the conversion path. This model is often used by businesses that want to understand the impact of all touchpoints in the customer journey and do not have a strong bias towards either the first or last touchpoint. For example, a business that sells products through multiple retail channels and online may use linear attribution to understand the impact of each touchpoint across the entire customer journey. In this case, all touchpoints would receive equal credit, whether it’s a display ad, a search ad, an email, or a social media post.
Time decay attribution: This model gives more credit to touchpoints closer in time to the conversion. This model is often used by businesses that want to understand the impact of recent touchpoints on conversions. For example, a business that sells products through a single website may use time decay attribution to understand which marketing channels are driving the most recent sales. In this case, touchpoints closer in time to the conversion would receive more credit than touchpoints further in the past.
U-shaped attribution: This model gives 40% credit to both the first and last touchpoints, and 20% credit to touchpoints in the middle. This model is often used by businesses that want to give equal weight to both the first and last touchpoints in the customer journey, while also considering the impact of touchpoints in the middle. For example, a business that sells products through multiple retail channels and online may use U-shaped attribution to understand the impact of both the first and last touchpoints in the customer journey, as well as the impact of touchpoints in between.
W-shaped attribution: This model gives 30% credit to the first touchpoint, 40% to the middle touchpoints, and 30% to the last touchpoint. This model is often used by businesses that want to give more weight to the middle touchpoints in the customer journey, while also considering the impact of the first and last touchpoints. For example, a business that sells products through multiple retail channels and online may use W-shaped attribution to understand the impact of the middle touchpoints in the customer journey, such as email campaigns, retargeting ads, or display ads.
Each of these attribution models has its own strengths and limitations, and the choice of the most appropriate model will depend on the business’s goals and objectives, as well as the structure of the customer journey. It’s important to note that no single model is the “best” for all businesses, and that a combination of models may be used to gain a more complete understanding of the customer journey.
One approach is to use a combination of models, such as using last-click attribution to measure the impact of direct marketing efforts, and using linear or time decay attribution to measure the impact of brand building efforts. This approach can provide a more comprehensive view of the customer journey and help businesses optimise their marketing investments.
In conclusion, marketing attribution is a powerful tool that can help businesses understand the impact of their marketing efforts and optimise their investments. Different businesses will have different goals and objectives, and the choice of the most appropriate attribution model will depend on these goals and the structure of the customer journey. By using a combination of models, businesses can gain a more complete understanding of the customer journey and make data-driven decisions to improve their marketing efforts.
Chris Barnard has spent over 15 years delivering exceptional digital marketing performance for leading businesses in the UK, European and American markets.
FeedbackFans provides a unique next-generation managed technology and marketing platform that delivers outstanding results for businesses across industries in finance, retail, leisure, and professional services.
With our unparalleled expertise in creating cutting-edge solutions and environments, we empower our clients and users to thrive in the digital age.
Chris Barnard is Managing Director of FeedbackFans.
