Attribution models are basically an algorithm that allows companies and agencies to identify which marketing actions are generating better business results for the company.
More thank 65% of the media agency professionals from USA would like to know about Attribution Model (eMarketer chart 172783). Attribution models are one of the most important tools that marketers can use to improve their business results.
Almost every main platform in today’s scene have conversion attribution tools that work in a similar way.
Last interaction: Last touchpoint receives 100% of the credit for the sale.
First Interaction: First touchpoint receives 100% of the credit for the sale.
Linear attribution: Every touchpoint receives the same credit for the sale.
Some platforms, like Google Analytics created other possibilities like:
Time decay: The touchpoints closest in time to the sale or conversion get most of the credit.
Position Based: In this case, 40% is assigned to the first and last interaction and the remaining 20% is distributed evenly among the remaining interactions.
Last Adword click: The last AdWords click would receive 100% of the credit for the sale.
Last Non-Direct Click: All Direct traffic is ignored and 100% of the credit for the sale goes to the last channel the customer clicked through from, before converting.
Are the above methods efficient in identifying which media investments are responsible for conversions? We believe is not. Why? Because the attribution models mentioned above are not focused toward identifying which channel or channels were responsible for one or a group of conversions. What those Attribution Models do is allowing to compare how each channel performs, based on each particular model. It seems that those models are more efficient in supporting an already-made decision than to identify what’s the best way of investing the media budget. You can choose the model which shows that your department was the most successful.
The attribution model should be based on information, not opinions. Your past (your past data series) is all you have to define what is the role of each media investment in the generated conversion and how would you invest your budget in a way that maximizes your results.
If you want to know more about the Intellignos Ad-Hoc attribution model design based on proprietary methods, contact us now.