Every marketing activity has some level of goals that are predefined. There has to be a way to measure the desired objectives in the marketing process and this is what attribution modeling is all about. This is a process that will help the advertiser understand the contribution of each marketing activity and how they were combined so as to influence the decision of the consumer to buy. When a buyer is attracted by different marketing channels and ends up in the store with the intention of making a purchase, this is said to be a conversion. Conversions can also be measured in various ways depending on the actions that were expected.
Tracing the Root of Attribution
Fritz Heider is credited with coming up with the attribution theory, which is the main foundation of marketing attribution. The various models of attribution came into use when marketing and advertising shifted from the conventional platforms to digital marketing. This made it possible to apply the theory through this transition. There are various digital media channels, with the main categories of online marketing being paid and organic search options. Some of the most popular marketing channels include email marketing, PPC advertising, search engine marketing, social media marketing and so much more.
Understanding the Concept
The only way that marketers would be able to use the attribution models is when they can fully understand how they work. The main purpose of the process is to able to measure the amount of influence each advertising process has on the target consumers. The influence is measured based on the goals that had been defined before, which may be in the form of sales, leads, impressions or conversions. When you are able to trace the type of platform that yields the highest return on investment, you will be able to make informed decisions on where to spend your money. It would be very unlikely for one marketing channel to deliver the expected outcome on its own.
Through attribution modeling, you will be able to understand the entire conversion path and pick the best marketing mix that brings it optimal results. When choosing the marketing combination to use, it is important to also factor in other key factors like costs involved, target market, devices used and so much more.
Attribution Models Categories
The growth of digital marketing has led to the expansion of the marketing channels. There are a number of essential factors that are used in determining the type of model that will be used and this is what defines the models available. We have broken them down into three main classes as follows:
- Single Source: This is a type of attribution model that will allocate the entire credit for the conversion to a single occurrence. The most common models in this class are last click and first click attribution models.
- Fractional Attribution: In this model, equal weight is given to all the factors that have contributed to the conversion or the sale. The best example of this type of model is the linear model which will factor in all the channels in the appropriate manner.
- Algorithmic Attribution: In this model, science will come into play and automated algorithms are used in determining the type of model that deserves the credit and the exact percentage that each model gets.
The more you use attribution modeling in your marketing, the easier it becomes to identify the marketing channels that work best for you.