Not more than 40 years ago, understanding which point of contact with the consumer had been responsible for them finally buying something was not that difficult. The point of sale, advertising in the press, radio, television or public space were the options, to which the cinema was added, to a lesser extent.
However, the task today is infinitely more difficult, and is the responsibility of what is known as attribution marketing. In addition to the points mentioned, there are the different social networks, websites, blogs, email, videos and a long etcetera, which make it much more complex to attribute a user’s entry to the conversion funnel to one of these media or content.
Purchase journeys can be longer, and along the way, users are impacted by brands multiple times at different touchpoints.
So how do you know which of those points was the ultimate driver of the conversion?
For this, attribution models have been developed, which are a series of rules that assign value to the different points of contact based on their importance for the conversion.
Why is it important to know which touchpoint was responsible for the conversion?
Understanding how important each touchpoint is in converting is critical to efficiently managing your marketing budget. Logically, you will want to invest more in those media and actions that have a greater influence on conversion, and distribute the always scarce resources in an intelligent way.
Attribution models replace assumptions with clear metrics and help you better understand the buying journey and consumer behavior.
Depending on the objective of the company, different attribution models can be used, which will allow obtaining results according to what is sought to be achieved. The most used are the following:
- Last Click or last interaction model: It is possibly the most common and consists of giving 100% of the credit to the last medium with which the user interacted before generating the conversion.
- First Click model or first interaction: Credit is assigned 100% to the first channel the user had contact with that subsequently led to a conversion.
- Linear Attribution or linear attribution: In this model, all touchpoints receive the same percentage of credit for a conversation.
- Time Decay: A higher percentage of credit is given to touchpoints closest to the time of conversion. In this case, a medium to which the user was exposed hours
before making the conversion, it will have a greater weight than the point of contact with which the same person interacted weeks before when they began their journey.
- Position based: Allocate 40% credit to the first medium and 40% to the last medium before conversion. The remaining 20% is distributed to the media that participated between these two instances.
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