What is marketing attribution?
The goal of marketing attribution is to gain a clearer understanding of all the different interactions and touchpoints that customers have with your brand on the path to conversion.
It allows you to credit the channels and specific campaigns that contribute to a conversion to understand how and where to invest your money and attention.
6 types of marketing attribution models
There are six different types of marketing attribution models that you can choose from based on the goals of your business and where in the funnel you want to place the most value:
Last click
First click
Linear
Time decay
Position-based
Algorithmic (Custom)
1. Last click attribution
Last click attribution is the most commonly used model and is the default for most marketing platforms. This single-touch model is useful when you are aggressively trying to convert traffic into customers.
2. First click attribution
This single-touch attribution model sees the first touchpoint as the most important, as it gets 100% credit for bringing customers into your funnel in the first place. This is useful when you're prioritizing spending money on campaigns that build traffic and find new audiences.
3. Linear attribution
A linear attribution model distributes conversion credit equally across all clicks on the customer’s path to purchase. This is the simplest form of multi-touch attribution.
4. Time decay attribution
The time decay attribution model is similar to last click. However, it also gives some credit to the interactions that led up to the conversion, with more weight given to clicks that happened closer in time to the conversion.
5. Position-based attribution
A position-based (or U-shaped) attribution model gives equal weight to the first and last click—each of these interactions gets 40% of the credit. The remaining 20% is spread out across the other clicks in between.
6. Algorithmic attribution
This model is often referred to as custom attribution. When you have enough data available, you can allow machine learning to dictate which touchpoints deserve the most amount of credit in a customer’s journey.
Why Attribution Matters to Marketers?
One common challenge for marketers is performing in-depth analytics. You’re most likely marketing your product or service through a variety of channels so how do you know which channels are performing well and which ones aren’t?
Is the huge influx of traffic to your site from a Facebook ad or a piece of content you just published? Which of your marketing channels caused a spike in conversions that led to increased revenue?
#1: First-Touch Attribution Model
With the first-touch attribution model, you can see which channel first directed a lead to your product or drove a visitor to your website.
Pros
First-touch attribution is the easiest model to set up and doesn’t involve a lot of analysis and calculation. It’s simple to track and focuses on demand distribution rather than weight distribution.
Cons
This model is prone to errors. It emphasizes just the beginning of the customer journey, which only tells part of the story of how that customer was converted.
#2: Last-Touch Attribution Model
The last-touch attribution model is similar to the first-touch model. But instead of measuring where the lead first came in contact with your business, it attributes the whole sales process to the last touch, the end of the marketing funnel.
Pros
Last-touch attribution shows what directly led a customer to convert. If you’re only interested in conversion-based metrics, this is the best model for you. It’s simple to use and doesn’t have a
learning curve.
Cons
This model neglects everything that led up to a lead converting. This makes it difficult to analyze every aspect of your funnel such as whether your ads are working, your email marketing is converting, or your content marketing efforts are having any impact.
#3: Linear (Even-Weighted) Attribution Model
The linear model attributes credit equally to all of the touchpoints that led to a lead converting. Everything from first touch, lead creation, opportunity creation, and customer closing are all treated equally.
Pros
The linear model is a huge improvement from the first-touch and last-touch models. It gives marketers a more complete overview of everything that occurred from the beginning of the funnel to the end stage where the lead converts.
Cons
The linear attribution model doesn’t help you fully optimize, because in reality, not all touchpoints are equal.Certainly, some touchpoints will make more of an impact than others. It’s important for you to optimize those touchpoints and improve the areas that aren’t contributing as much.
#4: Time-Decay Attribution Model
The time-decay attribution model gives more significance to the touchpoints that are closer to where the conversion occurred than the top of the funnel. It’s a multi-touch model that’s similar to the linear attribution model.
Pros
Often, the touchpoints closest to the point of conversion have the most weight. This model helps you optimize those points that lead to conversions directly.
Cons
Devaluing the first touch might not always be the right thing to do. Depending on the circumstance, the first touchpoint may have played an important role in the conversion.
#5: U-Shaped (Position-Based) Attribution Model
The U-shaped attribution model gives credit to three main touchpoints. It credits 40% to the first and last touch, and attributes 20% to the middle point.
It emphasizes the first touchpoint (the point of first impact where the leads come in contact with your business) and the last touchpoint (the point at which the lead converts).
Pros
Unlike the first- and last-touch attribution models that place importance on just one aspect of the analysis, the U-shaped model gives equal importance to both values.
Cons
There are times when the first or last touchpoint isn’t as important. When doing an analysis, you should always check if the first touch is as important as the last point.
#6: Algorithmic Attribution Model
The algorithmic attribution model is the most accurate way to measure a user’s journey from prospect to conversion. The success rate in this model is higher than others because it’s uniquely created for each business.
Pros
You can give credit to the touchpoints that matter most to your business rather than just giving equal credit to the first, middle, and last touchpoints. It provides the most accurate data from the consumer journey.
Cons
This process is complex and involves calculations so it may require the skills of a data analyst and more advanced or powerful tools. These tools might not be available to smaller businesses because of their price points.
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