What is marketing attribution and why does it matter
Marketing attribution is the process of determining how different marketing channels work together to achieve a desired outcome, such as a sale. Achieving an accurate attribution picture is important for two reasons: first, it allows businesses to determine which channels are most effective and should be invested in more heavily; and second, it helps identify any areas of improvement so that future campaigns can be even more successful.
Why does attribution matter?
Because without it, you wouldn't be able to accurately measure the success of your marketing campaigns, or properly attribute budget and resources. You also wouldn't be able to identify which channels and activities are most effective in driving conversions, and where you should focus your efforts going forward.
In other words, attribution is essential for understanding which marketing activities are working and which ones aren't. By providing insights into how customers interact with your brand, it allows you to make informed decisions about your marketing strategy that can lead to more successful campaigns and better ROI. It's important to note that there are different types of attribution to be aware of.
The different types of marketing attribution
As we mentioned earlier, there are several different types of attribution models that can be used to attribute credit for conversion. Some of the most common include:
• First-touch attribution: Assigns 100% credit for conversion to the first marketing touchpoint that the customer interacts with.
• Last-touch attribution: Assigns 100% credit for conversion to the last touchpoint before conversion occurs.
• Linear attribution: Evenly distributes credit across all touchpoints.
• Time decay attribution: Gives more credit to touchpoints that occur close in time to conversion.
• Position-based attribution: Gives 40% credit each top two channels and 20% credit equally to remaining channels involved.
In summary, attribution modelling is an essential tool for any CMO looking to justify their marketing spend and prove their impact on bottom-line results. By understanding the different types of attribution models and how they work, you can choose the right model for your business and use it to improve your marketing campaigns and drive better business outcomes.