Attribution models in online marketing are crucial tools for measuring and optimizing the success of marketing measures. They help you to understand which channels and touchpoints in the customer journey contribute most effectively to conversion. By using different attribution models, you can make informed decisions to improve your marketing strategies and maximize your return on investment (ROI).

Definition of attribution models

An attribution model is a set of rules or a methodology that determines how a conversion is attributed to the various touchpoints in the customer journey. These models are designed to help evaluate the contribution of different marketing channels and measures to the success of the website.

Importance of attribution models

The importance of attribution models lies in their ability to provide detailed insights into the effectiveness of your marketing channels. Here are some of the key benefits:

  • Optimization of the marketing budget: By identifying the most effective channels, you can target your budget.
  • Improve the customer journey: Understand how customers interact with your content and optimize the user experience.
  • Increase ROI: Increase ROI by focusing your marketing efforts on the channels that contribute the most to conversions.

Various attribution models

1. last-click attribution

Definition of

With last-click attribution, the entire conversion is attributed to the last touchpoint in the customer journey. This is the simplest and most frequently used model.

Advantages

  • Easy to implement and understand.
  • Useful to see which channels lead directly to conversions.

Disadvantages

  • Ignores the contributions of previous touchpoints.
  • Can lead to a distorted view of the effectiveness of the channels.

2. first-click attribution

Definition of

First-click attribution attributes the entire conversion to the first touchpoint in the customer journey.

Advantages

  • Helps to understand which channels trigger successful journeys.
  • Useful for campaigns to generate new customers.

Disadvantages

  • Ignores the contributions of later touchpoints.
  • Can lead to an incomplete view of the customer journey.

3. linear attribution

Definition of

With linear attribution, the conversion is distributed evenly across all touchpoints in the customer journey.

Advantages

  • Considers all touchpoints equally.
  • Provides a holistic view of the customer journey.

Disadvantages

  • Treats all touchpoints equally, regardless of their actual impact.
  • May overestimate or underestimate the importance of certain touchpoints.

4. time decay attribution

Definition of

The time decay attribution weights touchpoints based on their temporal proximity to the conversion. Touchpoints closer to the conversion receive a higher share.

Advantages

  • Takes into account the temporal relevance of the touchpoints.
  • Useful for longer customer journeys.

Disadvantages

  • Often difficult to implement.
  • Requires detailed data on the customer journey.

5. position-based attribution (U-shaped attribution or also called bathtub model)

Definition of

With position-based attribution, the first and last touchpoint each receive the largest share of the conversion, while the rest is distributed evenly among the other touchpoints.

Advantages

  • Emphasizes the importance of the first and last touchpoint.
  • Provides a balanced view of the customer journey.

Disadvantages

  • Can underestimate the contributions of the middle touchpoints.
  • More complex than simple models such as load and first click.

6. data-driven attribution

Definition of

Data-driven attribution uses machine learning and algorithms to determine the actual impact of each touchpoint based on historical data.

Advantages

  • Provides the most accurate and detailed analysis.
  • Takes into account the interactions between different touchpoints.

Disadvantages

  • Very complex and resource-intensive.
  • Requires large amounts of data for precise results.

Selection of attribution models

The choice of the right attribution model depends mainly on the complexity of the customer journeys. In etracker analytics, it is possible to switch between the different models and compare them with a single click.

In addition, special customer journey reports are available that show very simply whether there are many longer journeys with different campaign contacts. It should also be borne in mind that journeys lasting several days may only be merged with consent.

Data-driven models can also be used by exporting raw data. However, it was found that only in a few cases can a significant uplift be achieved through budget or bid optimization with data-driven models.

Conclusion

Attribution models are an important analysis tool in online marketing that help you to understand the contribution of different channels and touchpoints to conversion. By analysing the findings from multiple models, you gain valuable insights to optimize your marketing budget and increase the effectiveness of your campaigns.