What is the Importance of Attribution Models for Marketers?
Martech Outlook | Tuesday, October 20, 2020
When trying to display the clients, the value of each marketing channel can be difficult, and with different touchpoints in the customer journey, each channel plays its part.
Fremont, CA: Attribution modeling is a framework used for analyzing which touchpoints or the marketing channels should receive credit for a conversion. Each attribution model distributes the value of conversion throughout each touchpoint differently. A model comparison tool enables the user to analyze how each model distributes the value of a conversion. Attribution modeling is an analysis tool, and the user doesn't have to limit themself to one and stick with it. Compare performance under every model to understand the value of multiple touchpoints in the customer's journey.
Here are a few kinds of attribution modeling.[vendor_logo_first]
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Last Interaction Attribution
Last Interaction Attribution is also called the "last-click" or "last-touch." As the name suggests, this model provides 100 percent of the credit to the last interaction a business had with a lead prior they convert. For instance, a visitor finds a website through an organic search. A week later, they see a Facebook Ad and click the ad. Later that day, they visit the website directly and make a purchase. In this case, the direct traffic gets all of the credit for that purchase. One hundred percent of the value is assigned to that last touchpoint.
First Interaction Attribution
The first interaction is very similar to the last interaction, which gives 100 percent of the credit to one single interaction. The first interaction provides all of the credit for a conversion to the business' first interaction with the customer.
For example, if a customer first finds a business on Pinterest, then Pinterest gets all of the credit for any sale that takes place after that interaction. It doesn't matter if the customer found the business on Pinterest, then clicked a display ad a week later, and then went to the site directly. Pinterest, in this example, secures the full credit.
Last Non-Direct Click
The Last Non-Direct Click Model is a little more helpful than a standard last-click model. A hundred percent of the value is still assigned to a single interaction. But, with the last non-direct click, it eradicates any "direct" interactions that happen right before the conversion.
Direct traffic is when anyone goes directly to a site by manually entering the URL or clicking a bookmarked link that means this visitor already knows about the company.
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