Marketing analysis is dynamic in that it continues to change in unison with technological advancement.
Effective marketing analysis requires the use of attribution models. Research marketing attribution models, and you’ll likely find several that can help your business capture more market share.
Marketing Analysis Performed The Right Way
Those willing to closely analyze the buyer journey find most customers have a surprisingly lengthy journey to conversion. Some customers see an ad on TV or the internet that creates a metaphorical seed in the mind. The seed grows through watering (additional marketing material that is both inbound and outbound).
Inbound is marketing material through the web. Outbound marketing material is traditional advertising through commercials on TV, radio ads, magazines, newspapers, etc. Ideally, inbound and outbound marketing will reinforce one another to amount to a whole greater than the sum of the parts.
It is possible that a customer will have passed through several campaigns and channels, both online and offline, prior to conversion. In some cases, buyers interact with brands through inbound and outbound marketing material several dozen times prior to conversion.
Marketing Attribution Explained
Marketing attribution is a rule set that determines how credit for conversion is attributed throughout the buyer journey. Attribution helps identify the specific touchpoints that prompted conversion. The challenge lies in finding the best model(s) for your business. There is some debate as to which touchpoints are the most important, as evidenced by the diverse attribution models.
Let’s take a quick look at some of the most commonly used attribution models.
» Position Models
The U-shaped model is synonymous with the position-based model and attributes sales credit to the two most important touchpoints. Exactly 80% of credit is given to the first and last touchpoints, with half going to each. The other touchpoints that the customer progressed through are awarded the remaining credit.
» Last Touch Attribution
The last touch model, sometimes called last-click attribution, awards the entirety of the credit to the marketing touchpoint that occurs immediately before conversion. The logic in using the last touch attribution model is that it helps businesses identify the interaction that prompts the lead to convert into a buyer.
» Cross-Channel Linear Attribution
The cross-channel linear attribution approach is data-driven. This attribution model employs machine learning algorithms, using advertising data to determine the specific contributions each touchpoint had throughout the conversion process.
The traditional linear approach is a bit different in that it is less data-intensive, providing a macro view of the overarching marketing strategy. The conventional linear attribution model is particularly helpful when attempting to keep prospects aware throughout the entirety of the conversion process.
Is The First Click The Most Important?
Some marketing professionals insist it is the initial click or point of engagement with a brand that is most important. The first click model is the polar opposite of the last click model in that it puts the entirety of the focus on the initial click.
It is the first point of interaction that paints a clear picture of the specific channels that generate brand awareness. Even if the customer takes a dozen or more steps toward the finish line of conversion, the first-touch attribution model will always prioritize the initial interaction.
The Temporal Factor
The time decay model is often used by businesses that have comparatively short sales cycles, including promotions. The time decay model considers the element of timing in terms of when touchpoints occur. As an example, consider the following attribution distribution in the time decay model:
- 40% attributed to a paid ad placed on social media
- 40% organic search
- 20% YouTube
However, this breakdown is just one example of how the temporal model attributes credit.
One Or Multiple Attribution Models? That Is The Question
Though marketing attribution models provide valuable insight, that insight is limited when just one is examined. As a result, most business owners, managers, and advertisers use several attribution models as necessary. However, there is the potential for hurdles to arise in the form of cross-channel management.
Though uncomfortable to admit, it is in the interest of every business owner and advertiser to recognize there is the potential for inaccurate or insufficient analytics tagging and other factors to influence modeling. Make an effort to accurately track ad viewer and online visitor behavior, and you’ll minimize obfuscations and inaccuracies.
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