Marketing attribution refers to a company being able to attribute a lead back to the channel where the lead was acquired. In order to do this, a company must have marketing attribution tracking in place. This can be done through a number of different software platforms, but the most important thing is that it is done correctly.
There are a few different ways that marketing attribution can be tracked, but the most common is by using cookies. Cookies are small pieces of code that are placed on a user’s computer when they visit a website. These cookies can then be used to track the user as they move from site to site and eventually make a purchase.
It is extremely helpful to know where your leads are coming from. Knowing what channels are being utilized supports and helps identify which marketing campaigns are working, and/or could be improved. When marketers know where to improve, or what's working, they can increase revenue by spending more money on that channel or campaign.
Why is Marketing Attribution important?
Marketing attribution is important because it allows marketers to identify which channels, campaigns, and tactics are driving the most conversions and revenue. This information can then be used to optimize marketing efforts and allocate budgets more effectively.
How does Marketing Attribution work?
Marketing attribution works by tracking user behavior across multiple channels and assigning a “weight” or value to each touchpoint in the customer journey. This data can then be used to measure the effectiveness of different marketing efforts and optimize strategies accordingly.
Attribution Marketing Examples
- First-Touch Attribution: In this model, a customer's first touchpoint with a brand is given full credit for converting the customer. For example, if a user clicks on a Google ad and then makes a purchase, the credit for the sale goes entirely to the Google ad.
- Last-Touch Attribution: This model attributes all credit for a conversion to the last touchpoint before the customer converts. For instance, if a customer clicks on a social media post and purchases, the platform receives all the credit.
- Linear Attribution: In this model, credit for a conversion is distributed equally among all touchpoints in the customer journey. If a customer interacted with a brand through an email, social media ad, and a Google search before making a purchase, each touchpoint would receive an equal share of the credit.
- Time Decay Attribution: This model gives more credit to touchpoints closer to the conversion event. For instance, a customer who interacts with a brand multiple times over a few days before making a purchase would have the touchpoints closer to the purchase receive more credit than earlier interactions.
- U-Shaped (or Position-Based) Attribution: This model assigns a higher percentage of credit to the first and last touchpoints, with the rest distributed evenly among the touchpoints. It recognizes the importance of initial and final interactions in the customer journey.
How to Measure Marketing Attribution
Marketing attribution identifies and assigns credit to the marketing channels or touchpoints contributing to a conversion. Some standard methods to measure marketing attribution include:
- First-Touch Attribution: Giving full credit for a conversion to the first marketing touchpoint a user interacts with.
- Last-Touch Attribution: Assigning full credit to the last marketing touchpoint before the conversion.
- Linear Attribution: Distributing credit evenly across all marketing touchpoints in the customer journey.
- Time Decay Attribution: Giving more credit to touchpoints closer to the conversion event.
- Data-Driven (Algorithmic) Attribution: Using advanced algorithms to analyze customer data and attribute credit based on actual impact.
Fun Fact:
"According to a study by Econsultancy, 78% of marketers believe that marketing attribution is important for their organization's success (Econsultancy, 2018)."
