What Is Attribution Modeling and Why Its So Important

For the linear attribution model specifically, each touchpoint is given equal weight or credit. This one is especially great because it gives you the full picture of customer interactions. That said, not all interactions are created equal—so the downside is that the engagement priorities of this analysis are not considered.

marketing attribution definition

It becomes necessary to use attribution reports when you want to understand which channels are accruing leads, return customers, or most revenue. With this information, you can allocate your budget accordingly and choose which channels to develop, which to leave, and which to drop. Your attribution model will reveal how customers interact with your messages, touchpoints, and these platforms’ interactions.


Linear attribution, while more complex than a single source model, is the simplest type of MTA. By this model, that Facebook ad, YouTube ad and email marketing campaign are presumed to be equally responsible for persuading that particular user to sign up. Another type of single source attribution model, lead conversion touch attribution gives all the credit to whichever campaign generated the lead. The world of marketing is beautifully complex – it’s flooded with choices about which channels to use and which customers to target.

  • Optimising the budget on a CPA helps organisations to increase the quality and quantity of the desired outcomes.
  • It is only the first step towards a successful marketing performance evaluation.
  • But unsurprisingly, the sheer amount of reporting available can feel overwhelming.
  • Now more than ever, marketing and sales leaders are taking a critical look at where to allocate their resources and how to staff their teams.
  • There are a number of tools that have the ability to help with marketing attribution modeling — here are three options to help you get started.
  • Position-based attribution uses a pre-defined strategy to assign weight and credit to each type of touchpoint.

Algorithmic or data-driven models allocate credit to each touchpoint based on probability theory. They simulate the impact of the removal of a touchpoint in customer journeys. There are two commonly used models in data-driven marketing attribution modelling, the Markov model and the Shapley value model. There are many ways to measure attribution, and finding the right model will depend on a variety of factors. Businesses need to consider the length of their typical sales cycle, how touchpoints are most often spread across the customer journey, and what specific campaign goals they are targeting.

Definition of Marketing Attribution

Using last non-direct click attribution, you learn that it was actually Email that drove the final conversion. Direct will be an attributed channel in this model when the customers only trackable event is coming directly to your store. It gives 100% of the conversion credit to the last-clicked ad and corresponding keyword. As such, lower-funnel campaigns, such as branded search or retargeting campaigns, will be given more value while brand awareness and upper-funnel campaigns may receive none. For example, GA’s attribution models exclude direct website visits from attribution.

marketing attribution definition

Marketing attribution has never been more impactful, yet complicated as it is today. Thanks to the influx of marketing channels and devices, layers of complexity are added to what was, a few years ago, a simple funnel. This is a statistical technique used to measure the impact of marketing variables on sales. What’s nice is it doesnt need any attributed channel/campaign conversions.

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Usually, this happens when you just flip through different models until you see numbers that fit your story. Now, with that said, internal teams, departments and agencies are all heavily incentivized to show as big an impact as possible and some use sketchy techniques to pump up numbers. Together, these three elements form the basis of attribution marketing. Suppose prospects contact you first via Google Search, then look at your Instagram pages and sign up for your newsletter. The first and last touch points will get a 40% value, while the second touchpoint will get the remaining 20%.

There’s no shortage of marketing channels to engage with customers today and lead to the final sale. It’s for this reason that single-source attribution How To Start A Cryptocurrency Trade is widely considered archaic and inaccurate. You’ll need specialized software to attribute conversions to specific marketing channels.

How Last Click Attribution Helps Marketers Decode Conversion

Where the sales cycle is short and the first and last touches generally have more weight. For example, a B2B business might opt for the linear marketing attribution model to track all the different touchpoints that influence a sale. With the last-touch attribution model, all the credit for a conversion goes to the last touchpoint the customer had with your brand before making a purchase. Advanced marketing attribution programs require marketing teams to aggregate and normalize consumer data across channels to ensure each interaction is properly weighted.

marketing attribution definition

Cross-channel attribution modeling is often used interchangeably with multi-touch attribution. Although all attribution models look at the channels and touchpoints involved in a customer’s decision to convert, each of them weighs those channels and touchpoints differently. Marketing attribution modeling allows you to give credit to the marketing channels and touchpoints throughout the buyer’s journey that made a lead convert. Align sales and marketing channels for more useful attribution insights. First, this strategy connects marketing and sales outreach into a single customer journey. Next, it helps your team pinpoint disconnects in personas, KPIs, and customer data.

Why is marketing attribution important?

Some enterprises believe that only having an attribution modeling software is what they need to do in order to fix the problem. If you are part of a small or medium enterprise, you can reap all the benefits of attribution modeling similar to large enterprises. As most of the marketing attribution software’s are designed for the enterprises, which can afford any price tag. Some software costs well over 6 figures and even 7 figures in annual recurring expenses. Typically, attribution modeling is analyzed and understood using the help of an attribution modeling software. Here is a list of 10 common myths about attribution modeling that every marketer needs to understand and of course, leave behind.

For example, Google Analytics supports backend tracking through what they call the Measurement Protocol. This alternative to client-side tracking is typically done with Javascript. This step may sound obvious, but if you’ve ever tried to pull together a report only to find that you’re missing essential data, you’re not alone.

And as consumer behavior evolves with the times, it becomes even trickier. There are a number of tools that have the ability to help with marketing attribution modeling — here are three options to help you get started. HubSpot Dashboard and Reporting software is excellent for attribution reporting. This is because it makes it simple to pull marketing, sales, and service data into a single report. The software allows users to measure the performance of all their marketing campaigns in one place.

How to Implement Marketing Attribution

A touchpoint refers to customer interactions on their journey to purchasing your products or services. For example, a touchpoint can be an email, contact form, or phone call. Additionally, if you need to be able to see the very specific touchpoints (like a specific email sent or an ad clicked), then you need a full-funnel attribution system that shows this level of granularity. As you can see, choosing the “right” model can be a contentious issue, as each model gives a percentage of credit to a specific interaction or placement along the path toward becoming a customer. This is a common challenge for enterprise marketers who have web assets across multiple websites, channels, and teams. Now more than ever, marketing and sales leaders are taking a critical look at where to allocate their resources and how to staff their teams.

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