GOOGLE ATTRIBUTION MODEL:
Research suggests that 94% of first time visitors to your website do not convert. And yet, the majority of us still use Google’s most simplistic attribution model, which is based on last click. By using last click, you are not getting a true view of your channel performance.
By changing the attribution model, you will start to get a better understanding of the true performance of your digital advertising campaigns.
Last Click is traditionally the default attribution model, and is also the most commonly used. In last click, the conversion is attributed to the last digital touchpoint.
Last click is great for businesses that are all about instant sales, and with no consideration phase at all. However if you are a business with large average order values, last click will wrongly attribute the revenue to the wrong channel.
As the name would suggest, it’s the complete opposite to Last Click. First Click attributes the conversion to the first digital touchpoint in the customer journey. For instance, if the first interaction for a customer is paid search, then Google under this model will attribute the conversion to this touchpoint.
First click models are useful for businesses that are running brand awareness campaigns.
LAST NON DIRECT CLICK:
Under the last non direct click model, the conversion is attributed to the last touchpoint prior to any direct visits. This model works out what was the visit prior to the user directly visiting the website, and then attributes the conversion to that channel.
This model is useful for multi step journeys where the user may have already decided they want to purchase a product and simply does a direct visit to the site to purchase, which is very common. In which case, the conversion should not be attributed to direct, but the touchpoint that took place before the direct visit.
LAST ADWORDS CLICK:
Under this model, it attributes the conversion to the last Adwords interaction.
In a linear attribution model, every channel that has been a touchpoint prior to the conversion taking place is attributed an equal share of the conversion. So if there are 3 touch points that took place before a user has converted, the conversion is split between the three channels equally.
The Time Decay Attribution Model is based on the concept that the closer a touchpoint is to a conversion, the more influence that touchpoint had and therefore higher the percentage of the conversion that should be attributed to that channel. Time Decay model exponentially decay the value of each touch point as it gets further from the conversion.
The Positional Based model is a combination of all the other models. In the standard positional model, 40% of the conversion is attributed to the first and last digital touchpoint. The other 20% is split evenly across the other channels.
Positional based models should be used if there are multiple campaigns running at the same time that are designed to generate both brand awareness and more conversion focussed.
If you require help in better understanding what attribution model works best for your business, drop us a line at firstname.lastname@example.org and we will be more than happy to help.
Contributor: Shehan Wijetillake (Head of Customer Experience)