What IS Attribution Modeling?
Ever wonder why the conversion data in your Analytics account is different from AdWords? That is because of attribution modeling. An attribution model is a rule or multiple rules that are assigned to different touchpoints in a conversion path. Consumers may interact with multiple touchpoints during their purchasing journey. Attribution models help marketers develop a better understanding of how to optimize their website and online advertising to facilitate a consumer’s conversion path. There are 6 Attribution Models: Last Click, First Click, Linear, Time Decay, and Position-Based.
Last Click Model
The last click model gives all credit of the conversion to the last ad and the corresponding keyword. This model is best suited for when your advertising goal is to attract people at the moment of purchase, or your sales cycle does not include a consideration phase. This is the default model in AdWords.
In the automotive purchasing journey, car shoppers experience many touchpoints before they commit to a purchase. According to Google, a consumer can have over 900 digital interactions over a 3-month period. By only tracking with the last click model, we are missing out on the hundreds of interactions before the final conversion.
First Click Model
The first click model gives all credit of the conversion to the first clicked ad and keyword. This model is helpful when tracking initial brand awareness. If you are trying to build your brand, this model will help track when your customers are first exposed to your brand.
The linear model gives credit of the conversion across all of the touchpoints in the path. For example, your Paid, Organic, and Social channels will all equally contribute to the conversion. You will use this model if you want to maintain a presence with the customer throughout the entire purchasing journey. All of your campaigns are equally important during the buying process.
Time Decay Model
This model gives more credit to clicks that happen closer to the time of the conversion. If a customer clicked on your Facebook ad a week ago and never converted, but converted an hour after clicking your paid search ad, your paid search ad will be given more credit to the conversion than the Facebook ad. Advertisers who run short promotions will find this model most useful to give more credit to interactions that happened during the days of the promotion.
Position-based model gives 40% of the credit to the first and last clicked ads, and spreads the remaining 20% across all other touchpoints. Advertisers who use this model value the first interaction that introduced the costumer to the brand, and the last interaction that lead to a sale.
Fractional conversion credits are available to accounts that follow an attribution model that attribute fractional credit for each conversion across multiple clicks. The fractions are represented as a decimal such as 0.33 or 0.5 to give an accurate representation of the credit of the keyword or ad.
At Strathcom Media, our advertising experts have the skills and the tools to track all of the necessary touchpoints to understand your consumer purchasing journey. Interested in making the most of your online advertising with attribution modeling? Contact our sales team today to get started on a smarter way to advertise online!