Navigating the Landscape: A Guide to Attribution Models

The attribution model to gauge the impact of marketing that your business selects might be quite different from that used by competing companies. Some businesses use a wide variety of attribution models while others restrict their use to one.

This is your in-depth guide to the many different marketing attribution models.

The First-click Attribution Model

The first-click attribution model credits the entirety of the conversion to the initial ad or other touchpoint a customer interacted with before conversion. The primary advantage of using the first-click attribution model is the fact that it is simple.

First-click attribution is ideal for gauging the success of the marketing efforts that occur at the top of the funnel. As an example, most businesses use lead magnets to generate attention. First-click attribution makes it easy to study the results of those lead magnets.

However, there is also an argument to be made that judging the efficacy of a marketing campaign based on the initial click or touchpoint is a simplification of the buyer’s journey toward the endpoint of conversion.

The Last-click Attribution Model

The last-click attribution model is analogous to the first-click attribution model but inverted. Instead of awarding the entirety of credit to the initial click or touchpoint, the last-click attribution model awards the entirety of credit to the final ad or other point of interaction before conversion. After all, it is the last point of interaction that often determines whether an individual will convert into a paying customer or revert into a passive observer open to competing value offerings.

Therefore, it makes sense to attribute credit for sales to the final click or interaction. However, some marketing professionals argue that the last interaction before purchase is the result of several prior interactions, meaning it is undeserving of full credit for the sale.

The Linear Attribution Model

Linear attribution is widely favored as it attributes conversion credit equally to the entirety of customer interactions throughout the path toward conversion. The linear approach provides a balanced view of the comprehensive advertising campaign instead of merely focusing on one event such as the first or final point of interaction.

The main drawback to the linear approach model is that it discounts the fact that some advertising efforts are less impactful than others.

The Position-based Attribution Model

Most businesses rely on several touch points that justify the use of position-based attribution. The position-based model awards 40% of the credit to the final and initial touchpoints. The other 20% of the credit is distributed throughout the remaining interactions that occur along the path to the finish line of prospect conversion. The logic in using position-based attribution modeling is that several touchpoints are provided with deserving credit.

The drawback to the position-based model is that it overweighs the first and last interactions with company material. Critical thinkers justifiably point out those first and last interactions do not always drive conversions more than the touchpoints in between the extremes.

The Time Decay Attribution Model

The time decay method of marketing attribution assigns credit for interactions that occur closest to the point in time when conversion occurs. The traditional time decay attribution model relies on a half-life of a full calendar week. In plain terms, this mathematical approach indicates that an interaction with an ad a week before the point of conversion is provided with half the attribution credit as an interaction with a touchpoint that occurs one day before conversion.

The model ultimately provides weighted credit to the ads one interacts with before the point of conversion. However, most businesses do not strictly rely on the time decay attribution model for studying campaign success unless their sales cycle is lengthy. The time decay approach is primarily limited to companies that desire relationships with customers across the entirety of the buyer journey for an ongoing rapport and continued patronage.

Those who are intellectually honest readily admit the time decay attribution model minimizes the impact of the marketing strategies that occur at the top of the funnel, with a prioritization of the efficacy of marketing efforts across posterity.

Data-powered Attribution

The data-based attribution model for gauging marketing success is distinct from other models in that it uses data to quantify the impact of several interactions that occur across the buyer journey. The data-fueled model analyzes everything from individual ads to specific keywords and more to juxtapose the actions of converts and those who refused to convert.

The purpose of data-powered attribution is to pinpoint patterns that empower one to highlight specific marketing approaches and strategies that make the maximum impact. Such data-powered attribution is highly accurate when compared to other models as it reveals the interactions that have the highest possible probability of spurring a lead toward conversion as a paying customer.