{"id":103589,"date":"2016-07-20T20:04:00","date_gmt":"2016-07-21T01:04:00","guid":{"rendered":"https:\/\/www.dacgroup.com\/attribution-modeling-giving-credit-credit-due-2\/"},"modified":"2024-12-19T16:42:13","modified_gmt":"2024-12-19T21:42:13","slug":"attribution-modeling-giving-credit-credit-due-2","status":"publish","type":"post","link":"https:\/\/www.dacgroup.com\/en-gb\/insights\/blog\/analytics\/attribution-modeling-giving-credit-credit-due-2\/","title":{"rendered":"Attribution Modeling \u2013 Giving Credit Where Credit Is Due"},"content":{"rendered":"

Even as a digital marketer I can\u2019t pretend to operate in isolation. As a brand, you have multiple channels to choose to invest in including digital, OOH, TV, radio and print. All of these have the potential to exert influence on a consumer\u2019s path to purchase and all of them are vying for your brand’s precious marketing pounds (\u00a3). So isn\u2019t it important to know which channel(s) are actually driving sales?<\/p>\n

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What Is This Thing You Speak Of?<\/u><\/strong><\/h2>\n

Attribution is pretty straightforward<\/a>. It is understanding how various tactics are interconnected and the part they play in reaching the desired outcome. For businesses this could be generating leads, increasing conversions, building brand awareness or improving customer sentiment.<\/p>\n

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Different Strokes For Different Folks<\/u><\/strong><\/h2>\n

There are many \u2018out-of-the-box\u2019 models to choose from. Some are simple and narrow in focus. Others are more complex and holistic. (I personally don\u2019t find a lot of utility in the first few models but that doesn\u2019t mean they won\u2019t offer insights to your organisation):<\/p>\n

Last Interaction<\/strong> \u2013 this is an oversimplified concept that isn\u2019t necessarily realistic. It states that the last touch point prior to the conversion receives all of the credit. So even if a consumer encountered email marketing, display ads, and a television commercial before visiting the website the site would get 100% of the credit. Show an example<\/p>\n

Last Non-Direct Click<\/strong> \u2013 this is similar to the last interaction model but takes one step back. The philosophy is to give 100% credit to the second last touch point because the assumption is that that is what drove you to take an action. For example, a compelling native advertisement created the interest and the decision to buy was already made before interacting with the direct channel.<\/p>\n

First Interaction <\/strong>\u2013 I like to think of this as the \u2018love-at-first-sight\u2019 model. It states that the first channel was so compelling the consumer was immediately smitten and was blind to all of the touch points that followed. Show an example<\/p>\n

Linear<\/strong> \u2013 we are told at an early age that life is not always fair but the linear model firmly disagrees. Think of this as the \u2018participation ribbon\u2019 model \u2013 whether right or wrong each channel gets an equal slice of the credit pie. So if there were 4 distinct channels in play each would receive 25% credit. Show an example<\/p>\n

Time Decay<\/strong> \u2013 who knew marketing could share similarities with radioactive isotopes (and I don\u2019t mean that marketing is toxic!). This model applies a half-life formula (of your choosing) to each channel. The last touch point gets the most credit and the preceding channels get increasingly less credit after a pre-defined period. So, if a path to purchase takes 20 days and you had 3 different interactions the model could look like 60%\/25%\/15% respectively.<\/p>\n

Position Based \u2013<\/strong> I call this the sandwich model. The \u2018bread\u2019 (first and last channel) each gets 40% of the credit and the remaining 20% gets split evenly between the remaining \u2018ingredients\u2019.<\/p>\n

Custom Models <\/strong>\u2013 if you, or someone in your organisation, is an actuarial guru you can also develop custom models that address the specific needs of your organisation or that fill in the gaps left by other models.<\/p>\n

There is no silver bullet for selecting one that fits your needs. Make an educated decision on which to apply that can be justified and test it out.<\/p>\n

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