Digital Marketing Class

Attribution modeling can be confusing, but choosing the right model can make or break digital analytics of websites or content. Attribution modeling is the analysis of content or website performance that gives credit for the sales and conversions to specific points along the conversion path. This will be translated to English as we go along.

The most commonly used attribution models are: First Interaction (Click), Last Interaction (Click), Linear, Position-Based, and Time Decay.

Digital marketers will choose between one of these or several other attribution models in order to provide credit to different points in the conversion path based on the priorities of a company. The conversion path is/are “the steps taken by a user of a website towards a desired end from the standpoint of the website operator or marketer.” [3]

Essentially, we are assigning what we perceive to be the value of each step a potential customer takes towards a purchase. For example:

Google Ad (first click) Social Media (second click)  Email Campaign (third click) Direct Click to Purchase (last click)

“First-Click Attribution is a type of web analytics model in which the first click that brings a visitor to a website is given credit for any sale or conversion that ultimately takes place.” Essentially, any link to the website itself, not just the product, is credited with the sale of a product or service. Generally speaking, this would be the advertisement. [1]

“Last-Click Attribution refers to a web analytics model in which the “last click” is given credit for a sale or conversion.” This is an analytics model which favors the last site, link, or advertisement that brought a user to the ultimate goal of the website, whether that be a purchase or a conversion of some kind. Notably, Google Analytics uses Last Click Attribution. [2]

In Linear Attribution Models, each touchpoint on the conversion path would share equal credit for the purchase or conversion. For example, say a customer saw a shared ad for a helmet, then went on the social media account of the helmet producer, then clicked on the link where they can purchase the helmet. Linear Attribution would give equal credit to the ad, the social media profile, and the purchasing link for the sale.

Position-Based Attribution Models generally credit 40% to first interaction, 40% to last interaction, and the remaining 20% is divided evenly amongst the intermediary touchpoints. Essentially, this model provides the most credit to your two most important touchpoints: the one that got them interested, and the one that made the sale.

In Time Decay Attribution Modeling, credit appreciates as a potential customer travels along the conversion path. The system gives the least credit to first interaction, the most to last interaction, and increases with each touchpoint in between. It’s AT&T’s favorite model. Get it? Raising the bars.