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What is Attribution Modeling, Why Does it Matter?

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Attribution Model – What is Attribution Modeling, Why Does it Matter?

An attribution model is a rule or set of rules, that determines how credit for sales and conversions is assigned to touchpoints in conversion paths.

In the Last Interaction attribution model, the last touchpoint—in this case, the Direct channel—would receive 100% of the credit for the sale.

First Interaction model icon In the First Interaction attribution model, the first touchpoint-in this case, the Paid Search channel—would receive 100% of the credit for the sale.

Linear model icon In the Linear attribution model, each touchpoint in the conversion path-in this case, the Paid Search, Social Network, Email, and Direct channels—would share equal credit (25% each) for sale.

Time Decay model icon In the Time Decay attribution model, the touchpoints closest in time to the sale or conversion get most of the credit. In this particular sale, the Direct and Email channels would receive the most credit because the customer interacted with them within a few hours of conversion. The Social Network channel would receive less credit than the Direct or Email channels. Since the Paid Search interaction occurred one week earlier, this channel would receive significantly less credit.

In the Position Based attribution model, 40% credit is assigned to each the first and last interaction, and the remaining 20% credit is distributed evenly to the middle interactions.

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Viren is having 6+ years of experience in Digital Marketing across different industries & verticles. He is in expert Paid Advertising & SEO.

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