Attribution model is a framework or set of rules that determines how credit for sales and conversions is assigned to touchpoints in conversion paths. In simpler terms, it is a method used in analytics to understand and assign credit to the various channels that have led a potential customer to your site for conversion. The model helps in understanding the customer journey and in turn helps in optimizing the marketing strategy.
The use of attribution models is most prevalent in digital marketing. Marketers use these models to measure the effectiveness of their campaigns across various channels. For instance, if a customer discovered your website through a Google search, clicked on a Facebook ad a week later, and finally made a purchase after receiving an email, the attribution model would help determine which of these touchpoints receives credit for the final sale. Different models assign credit differently. For example, the first touch attribution model would give all credit to the Google search, while the linear model would distribute the credit evenly across all touchpoints.
There are several types of attribution models including first touch, last touch, linear, time decay, and position based models. Each model has its pros and cons and is used based on the specific needs of the business.
An attribution model helps you understand which marketing channels are most effective in driving conversions. This allows you to optimize your marketing budget and strategy by investing more in the most effective channels.
Some of the popular software that provide attribution modeling include Google Analytics, Adobe Analytics, and Bizible.
The benefits of using an attribution model include a better understanding of the customer journey, improved return on investment, and the ability to make more informed marketing decisions.
In conclusion, an attribution model is an essential tool for any digital marketer. It provides valuable insights into the customer journey and helps optimize marketing strategies for better results.