Conversion Attribution Modelling
Conversion Attribution Modelling
Definition:
Conversion attribution modelling is a technique that assigns credit or value to the different interactions a user has with a website or campaign, leading up to a conversion. It helps marketers understand the effectiveness of various marketing channels, campaigns, or tactics in influencing user behaviour and driving conversions.
Examples:
1. First Touch Attribution:
The first touchpoint or interaction from a user is given full credit for the conversion. For example, if a user clicks on an ad and then makes a purchase. The credit for the conversion would be the initial click on the ad.
2. Last Touch Attribution:
The last touchpoint or interaction that a user has before converting is given full credit for the conversion. For example, if a user clicks on an ad, visits the website multiple times, and then makes a purchase. The credit for the conversion would be the last interaction before the purchase.
3. Multi-Touch Attribution:
Credit for the conversion is assigned to multiple touchpoints or interactions that a user has. For example, if a user clicks on an ad, visits the website, subscribes to a newsletter, and then makes a purchase. Credit could be divided among all these based on the weights or rules.
Evidence:
Several studies have shown the importance of conversion attribution modelling. For example, a study by Google found that businesses that used data-driven attribution models were able to make more decisions about their marketing budgets and allocate resources more effectively. Resulting in a 10% increase in conversions on average.
Furthermore, a case study by Adobe showed that a multi-touch attribution model helped a company identify that their paid search campaigns were driving more conversions. Leading to a reallocation of budget and an increase in overall ROI.
Summary:
Conversion attribution modelling is a powerful technique that allows marketers to better understand the contribution of different touchpoints in the customer journey towards conversions. It helps in allocating resources effectively, and making data-driven decisions. By using various attribution models, businesses can gain insights into which channels, campaigns, or tactics are most effective and improving their overall marketing performance.
Useful Resources:
- Conversion marketing – Glossary of Conversion Marketing.
- Over 300 tools reviewed – Digital Marketing Toolbox.
- “The Google Attribution Playbook” – A comprehensive guide by Google on different attribution models and how to implement them effectively.
- “The Multi-Touch Attribution Maturity Model” – A whitepaper by Adobe that provides a framework for implementing multi-touch attribution modelling.
- “Digital Marketing Analytics: Making Sense of Consumer Data in a Digital World” by Chuck Hemann and Ken Burbary – A book that provides in-depth insights into various attribution models.
