In this blog post, we’ll cover how attribution works in digital marketing and why it’s important. We will also provide a basic guide for using social media platforms to gain more traffic and revenue
When you think of digital marketing, what comes to mind first? Mobile apps and advertising. But the online world has broadened in recent years with a multitude of platforms becoming viable options for marketers. Attribution is one tool that can help companies see how their ads are working so they can make better decisions moving forward.
In 2017, digital marketing is changing and so is the way that people view attribution. Attribution has always been a key part of any successful digital marketing campaign but in 2017 it’s more important than ever. Read more in detail here: marketing analytics.
In digital marketing, attribution refers to providing credit to the factors that lead to a potential customer visiting your website. There are several attribution models available right now that may assist you discover the sources that helped you obtain new business.
In order to assess the efficiency of any attribution model available, you must consider a number of elements. The following are some of the questions that an attribution model could be able to answer:
- Sources that aid in the conversion of a website visitor into a paying client
- Sources that increase your e-commerce company’s business worth
- Sources that can assist you in generating revenue
Running an e-commerce company is no easy task. Even if you have a well-established business, you must be aware of your industry and how to attract additional customers in order to stay ahead of your competitors.
The amount of touch points a user visits when seeking for information has raised the complexity of the whole organization. It’s critical for an e-commerce company to detect even the tiniest contact points and enhance their services appropriately if they want to grow.
Recognize the Customer Journey
There are systems that may provide the finest outcomes when it comes to optimizing your e-commerce firm to attract customer attention. This is when the concept of attribution comes into play.
Did a person come straight to your web page and utilize your service, or did he travel via a series of sources that eventually led him to your web page?
Consider the following example of an internet shopper’s buying habits. Let’s say a user needed to buy a certain brand of phone:
Was the product purchased directly from your online shop by the user? Or did the user go straight to:
- After that, I used a search engine to look for and evaluate the product.
- An advertising on social media emphasizing the product’s advantages,
- Was it a blog article or an online instructive piece that eventually piqued their interest?
For example, Google Attribution Models may assist you in determining the value of attribution sources:
Last Interaction: Also known as “Last Click,” the last interaction is given 100 percent credit for converting an internet visitor into a client.
Last non-direct Click: In this attribution model, direct traffic is ignored, and 100% credit is given to the last click that led the user to utilize the services.
Last AdWords click: The last AdWords ad that a consumer clicked on to get services receives 100 percent of the credit.
First interaction: The first channel a client used to contact and get services receives 100 percent of the credit.
Linear: The linear attribution model assigns equal credit to all of the channels that contributed to the conversion.
Time Decay: This attribution model is useful when there is a chance that the sales cycle will be short. The attribution model uses exponential decay with a 7-day default life. As a result, a 50% credit is given to a touch point that occurred seven days previous to the conversion. Similarly, if the conversion occurs 14 days early, the touch point receives a 25% credit.
Position-Based: In this approach, your credit is assigned not only to the first and final interaction touch points, but also to the touch points in between. For example, let’s say the first and last touch spots each get 40% of the credit, while the center gets 20%.
To get the hang of it, they could look a little complicated and layered at first. So, how can you choose an attribution model that’s right for your needs?
Which attribution model is the most appropriate?
Rules-based attribution models are a kind of attribution model. These are more subjective and are assessed based on client spending habits.
The credit value for the online user’s touch points has been assigned using rules-based attribution algorithms. An algorithmic attribution approach may help in this situation.
The credit value for various contact points varies in the algorithm-based attribution approach. You could even see a shift in the credit values of certain touch spots over time.
A digital platform is prone to new patterns or developments that are difficult to forecast due to the lack of forewarning they provide. The model defines and adjusts the touch point’s credit values. Attribution models based on algorithms might be thought of as a more accurate form.
Algorithm-based vs. rules-based
Identifying clients is the first stage in any e-commerce strategy. What brought them to your site, and how successful are your current campaigns? To go on to the following inquiry, you may get the needed data by using various SEO strategies.
The issue is, which model is most suited to your needs?
Should you use attribution patterns that are based on rules or those that are based on algorithms? The solution might be found in where you can acquire an edge and utilize it to your advantage. The benefit of a rules-based algorithm is that it is simple to implement and does not need all of the parameters to be specified.
The more experience you have with rules-based attribution patterns, the more confident you will be in implementing an algorithm-based attribution model. To help you determine what might work best, ask yourself the following questions:
- What is the total quantity of data you have collected, and how many contact points does it cover?
- Do you want to combine all of your data into a single platform?
- Is there a unique identification for each client that you have?
If the information isn’t combined onto a single platform…
If you don’t have all of your data on a single platform, the Rules-based attribution paradigm can be a good fit.
The availability of all data sources is the most important criterion for selecting an algorithm attribution model.
If a persistent customer identification exists…
If you answered yes to question 3, you may use the persistent customer identity to connect all of the data sources. It would be simple for an e-commerce corporation to strategy using all of the accessible marketing data to hunt for additional possibilities that might provide positive outcomes.
However, an issue may arise if you use rules-based attribution while others use an algorithm-based attribution approach. If there are several sources, each with its own algorithm, the analysis will always fail. To prevent analysis failure, be sure to emphasize to your marketing channels that they must apply the same attribution model.
Create marketing campaigns that are holistic in nature.
As you may be aware, an e-commerce firm enlists the help of numerous areas of a digital platform in order to attract customers.
The comprehensive marketing effort, which has its own divisions, must be credited with helping to increase the conversion rate. Regardless of whether you use algorithm or rules-based attribution models, you must determine the productivity of these segments in order to improve your current strategy and appropriately reward them.
What are your thoughts on integrated marketing campaigns? How does your marketing team assess success by calculating metrics?
Frequently Asked Questions
What is attribution in digital marketing?
A: Attribution is the process of understanding who, when and how a piece of content reaches an individual.
Which attribution model assigns the most financial value to the last marketing touchpoint?
A: Attribution models are a form of central planning that is commonly used in marketing to assign some level of financial value (often monetary) to the last touchpoint in a campaign.
What attribution model is best?
A: As I am a question answering bot, this is out of my area of expertise.