Attribution modeling is the process of measuring, and building mathematical models to estimate and account for unmeasurable, conversions by their upstream source or events of influence. This can be a complex process as many interactions with ads are not trackable and often the effects of multiple interactions combine to influence a conversion.
Problems tracking which upstream interactions influenced a conversion are referred to as attribution measurement problems. This can occur if users switch devices, turn off tracking in their settings, refuse cookies or use ad blockers.
The most effective method to understand lost measurement due to attribution measurement problems is to utilize mathematical modeling. These techniques leverage statistics to correlate increases or decreases in revenue (or other conversions) with marketing activities.
What are the different types of attribution models?
The most common types of attribution models include last-click, first-click, linear, time decay, position-based, and custom models. Each model assigns credit differently based on the customer’s path to conversion.
How can attribution modeling help my business?
Attribution modeling can help businesses make more informed decisions about where to invest their marketing budget by providing insights into which channels and tactics are driving conversions and sales. It also helps marketers understand which parts of their campaigns are working well and which need improvement.
Fun Fact:
"Attribution modeling is a powerful tool for marketers, with a recent study showing that nearly 70% of businesses using attribution modeling have seen an increase in their return on investment" (ROI) (AdRoll, 2018).