Attribution Modeling is not just about technology or only optimizing the marketing, rather, it is about putting an idea in place and testing it. In advertising, an attribution model will allow marketers to look at the team of ads that contribute to a sale or conversion over an extended period of time. The Attribution Modeling tool makes it easy to create and compare models so you can improve your future marketing activities. Attribution Modeling provides comparative values across paid search, organic search, mobile ads, email, and more to your business. By using this, you can obtain insight into the impact of marketing tactics to drive sales or conversion generation & it also provides a method to create budgets based on real values and improve campaign results.
Attribution Modeling is the science of determining the value of each customer touch point leading to a conversion. If you are uncertain about how to allocate marketing spend and what to measure, then you are not alone. Identifying possible attribution issues has been possible for some time in Google Analytics. The biggest challenge to setting up an attribution model is identifying how much credit to assign each attribution. As a result, many marketers are now paying close attention to the emerging field of attribution modeling and analysis to define better strategies to allocate their precious marketing budgets across different channels.
Traditional one-to-one, last-touch methods of allocating demand to marketing efforts are outdated and lead to a suboptimal marketing mix. Attribution modeling welcomes internet retailers to take into consideration a holistic view of their entire advertising campaign and as well know what ration are truly making its conversions. While using useful points assigning attribution allows for, manufactures will deliver an individual’s advertising campaigns laser-like focus, by using a person’s work alone – TV ads among proven track public records related with conversions. Attribution Modeling give you the ability to compare up to 3 models to observe what changes in value a channel has based on these models.
Most Common Types of Attribution Modeling
First Click: attributes 100% to the first touch point & helps you understand which campaigns create awareness for your brand/product.
Last Click: attributes 100% of the value to the last channel, before a conversion or sale.
Equal Value: provide equal value to all tactics, regarding current campaign.
Attribution modeling helps to determine the impact and contribution of each channel on sales, offering a more accurate picture of marketing spend and allowing companies to budget their marketing dollars accordingly. Attribution modeling will help you gain invaluable insights based on the most meaningful data for your business. & you can more intelligently allocate funds to the channels that are paying off. Google Analytics doesn’t offer easy-to-use attribution modeling by default, but it is included in their Google Analytics Premium package.
Pros & Cons
Good for planning new campaigns and making decisions on adding/cutting a whole campaign, site, creative category.
Good for working with new and significantly higher total budget & if starting a new media channel.
Not recommended for making small delta changes on existing buys
Not robust with significantly increased new budget or a new channel not used before.