According to Google
An attribution model is the rule, or set of rules, that determines how credit for sales and conversions is assigned to touchpoints in conversion paths.
Alright! So this particular “search term” is very much “in market” these days in the marketing world and it’s quite fascinating to know the concepts behind it. I was awestruck when I first heard about this a couple of years ago.
There are a lot of articles out there which explains the attribution model concept and are really informative. This is my attempt to present my learning so far in a slightly different format for all of us.
For all those who are aware of this, Just try and answer the simple situation that I have presented here and test your knowledge on this 🙂
Let’s get started with the situation!
Mr.Modi, Google searched for “Buy Nike shoes” in Gujarat on day 1 of December. Saw your paid ad along with the organic listings. However, he finds the “up to 60% off” text on your paid ad more lucrative and hence clicked on that ad, visited the website, browsed a couple of products but didn’t find anything exciting, so he left the website.
A few days later, he sees another ad in Delhi white tweeting about the current affairs. Again he clicks the ad, visited the website but didn’t make any purchase.
A few days later, he had to visit Washington for some official work and made a Google search again, this time he clicks on the organic listing, likes few items on the website and initiates the payment process.
However, he was not able to complete it due to the poor internet connection in the hotel.
Finally, after making so many attempts to make the purchase, he had remembered the web address and on one fine Sunday on 17th of December post finishing up the Yoga seminar of Mr.Dev, he sat on his chair at home, typed in the URL in the browser, visited your site and finally made the purchase 🙂
Now, Mr.Modi is happy with the purchase, but how do we (Marketers/E-tailers) decide the channel that should get the credit for this purchase?
For all those who are aware of the Attribution, can go ahead and answer this.
Everyone else, read through this and it will clear all your doubts 🙂
In the Last Click attribution model, the last touchpoint—in this case, the Direct channel—would receive 100% of the credit for the sale.
In the Last Non-Direct Click attribution model, all direct traffic is ignored, and 100% of the credit for the sale goes to the last channel that the customer clicked through from before converting—in this case, the Twitter Paid channel.
In the Last AdWords Click attribution model, the last AdWords click—in this case, the first and only click to the Paid Search channel —would receive 100% of the credit for the sale.
In the First Click attribution model, the first touchpoint—in this case, the Paid Search channel—would receive 100% of the credit for the sale.
In the Linear attribution model, each touchpoint in the conversion path—in this case, the Paid Search, Twitter paid, Organic, and Direct channels—would share equal credit (25% each) for the sale.
In the Time Decay attribution model, the touchpoints closest in time to the sale or conversion get most of the credit. In this particular sale, the Direct and Organic channels would receive the most credit because the customer interacted with them within a few days of conversion.
The Twitter channel would receive less credit than either the Direct or Organic channels. Since the Paid Search interaction occurred two week earlier, this channel would receive significantly less credit.
In the Position Based attribution model, 40% credit is assigned to each the first and last interaction, and the remaining 20% credit is distributed evenly to the middle interactions. In this example, the Paid Search and Direct channels would each receive 40% credit, while the Twitter paid and Organic channels would each receive 10% credit.
So, the final numbers would something like this.
Are we missing something?? Yeah! You are right 🙂
In the above calculation, we missed Data-Driven Attribution Modeling.
Google has recently introduced this model and the absolute beauty of this model is that it’s different for each client, unlike all other attribution models.
Data-Driven Attribution Modeling understands the user’s data for your campaigns and allocates value on the basis of the channel that has the highest probability of completing the conversion.
Little complicated, right? Let me try and see if I can simplify it for you.
Let’s say you own a Premium bus transport company in Maharashtra, and you use conversion tracking to track when customers purchase tickets on your website.
In particular, you have one conversion action to track purchases of a Mumbai-Pune Volvo tickets. Customers often clicks a few of your ads before deciding to purchase a ticket.
Your data-driven attribution model finds that customers who click your “Volvo to Pune” ad first, and then later click “Book Pune Volvo” are more likely to purchase a ticket than users who only click on “Book Pune Volvo.”
So the model redistributes credit in favor of the “Volvo to Pune” ad and its associated keywords, ad groups, and campaigns.
You need to have at least 15,000 clicks and 600 conversions in the last 30 days in your AdWords account to enable this. The learning from this model is used by the automation bidding for optimizing the campaigns.
Now, when you look at your reports, you have a complete information about which ads are most valuable to your business. Hope I was able to clear few of your doubts regarding the various attributions models.
In the next post, I’ll try and cover “Google Attribution” – The Product that Google has launched after acquiring “Adometry” and some of the insights from the same basis my experience.
Do share your thoughts and suggestions 🙂
Traditional E-Commerce sales closely follow the marketing funnel
Awareness → Consideration → Purchase → Loyalty.
Combination of customer engagement channels including Website, Mobile App, Organic, Paid Search, Social, Display and Re-engagement, play a pivotal role in fulfilling every step of the marketing funnel.
Given the complex nature for the E-Commerce transaction, OnlineSales E-Commerce Marketing Platform implements the multivariate cross-channel attribution framework.
Rather than the archaic attribution models – last-click, first-click – every channel click is given a weightage according to the contribution to the funnel.
The rounded approach ensures that the platform can deliver on multiple goals – the Top-line (first-time customer visits), Bottom-line (Transactions at highest ROI), App Installs, Engagement and LTV.
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