Attribution models

An attribution model is a rule, or set of rules, used to determine what value is assigned to each of the touchpoints a user has passed through before becoming a customer.

In other words, the attribution model is a way of investigating and understanding the path a customer took before making a purchase. This allows you to monitor the process and create more effective marketing plans and improve ROI.

1. types of attribution models

There are different attribution models, which are applied depending on the type of business. Likewise, it is also common for several of them to be combined so that you can boost your internal strategies.

• Linear attribution model. In this case, the same percentage of value is given to all the channels or processes through which the customer passes until they reach conversion.
• First click attribution model. Here, the total value of the conversion is attributed to the first channel through which the customer made contact.
• Last click attribution model. This is the opposite case, the conversion is attributed to the last channel that led the customer to convert.
• Indirect last click model. In this case, the total conversion value is attributed to the channel that received the last click before the conversion was completed.
• Time decay attribution model. This is based on assigning more value to the channel that was closest to the conversion. The process that is furthest from the conversion will receive less value than the one that is closest.
• Position-based attribution model (U-Shaped Attribution). In this model, 40% of the value is assigned to the first and last touchpoints. The remaining 20% is distributed throughout the rest of the process.
• Last click attribution model (Google Ads). In a nutshell, this is based on attributing the total conversion value to the last Google Ads ad the user clicked on.
• Logarithmic attribution model (Data Driven). This is the most successful model and is based on the use of machine learning, which logarithmically assigns each touchpoint a value according to its importance to the conversion.
• Customized attribution models. Whenever desired, new attribution models can be created based on other models or any of the existing models can be adjusted.

2. Advantages of attribution marketing

Attribution marketing allows us to evaluate data from online and offline campaigns to determine the effectiveness of each of the touchpoints that customers pass through during conversion.

• It encourages more effective investment. As its main objective, it allows us to know where to find the most profitable channels and media for our campaigns, and thus make the most of the marketing budget.
• It is vital for understanding our customers and personalizing their experience. It offers data that helps identify the channels and types of messages preferred by customers, by tracking the path taken by the customer during conversion.
• It reveals the synergy between channels. Attribution marketing provides information on how the different channels relate to each other, facilitating optimization and appropriate intervention at the right time.
• It stimulates development and creativity. It facilitates the implementation of creative and innovative formulas to develop more attractive campaigns and better communication.