Types Of Marketing Attribution Models
Martech Outlook | Tuesday, January 28, 2020
Marketing attribution is a catch-all word that refers to the departments, people, and technology responsible for evaluating which marketing approaches and channels contribute to sales, conversions, and leads.
FREMONT, CA: Attribution marketing quantifies and credits any channel or touchpoint that affects a company's pipeline or revenue. However, the attribution issue is that client journeys in B2B, and B2C are becoming more complex.
Attribution modeling in the traditional sense focuses on interpreting static ROI indicators in a dynamic marketing context. If marketers do not delve deeper, this can result in inaccurate assumptions—and incorrect attribution.
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A dynamic marketing environment is a marketing term that alludes to the nonlinear nature of the modern consumer journey. It describes how each piece of content, interaction, and experience contributes to the purchase journey's conclusion (e.g., the sale, lead, or conversion).
Marketers employ various types of marketing attribution models to provide credit to their endeavors. It is critical to grasp them if you wish to perform marketing attribution correctly.
First-touch attribution: This model attributes 100 percent of the credit for a conversion or sale to the initial customer interaction. Consider paid search or social clicks. It's easy to attribute a sale entirely to a sponsored search or social ad because the click-to-sell funnel is visible in the Google Analytics report.
However, this strategy also uses third-party cookies to convey the data. Additionally, it disregards any previous or subsequent interactions the buyer may have had before or between the ad click and the final sale. This model is most likely to irritate the sales force, as credit is given to the channel that generated the lead rather than the labor required to close the deal.
Last-touch attribution: This attribute attributes 100 percent of the credit for a conversion or sale to the final touchpoint with which the customer interacted before converting. Sales teams prefer this strategy because it prioritizes sales materials such as eBooks, webinars, and demos over top-of-funnel touchpoints such as search advertisements.
Multi-touch attribution: Multi-touch credit for each touchpoint and contact during a customer's purchasing journey contributes to the ultimate conversion or sale. Traditional multi-touch models are typically linear, which means that each touchpoint is equally weighted. There has been considerable disagreement over the utility of forming assumptions only based on measurements (e.g., more leads equals more success).
In an ideal world of multi-touch attribution, marketers would be able to weigh the impact of each touchpoint based on its effect on the ultimate sale or conversion.
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