What are the attribution models in digital marketing? 

Attribution models are the methods in digital marketing used to assign contributions to different online touchpoints in an online customer's journey to a conversion (usually defined as an activity that the customer performs eventually leading to a purchase in online systems - for example: filling up forms). 

Attribution models mostly have different approaches to crediting the different channels for the conversion journey. Below is an overview of some of the most common attribution models:

  • Last-Click Attribution

      • How it works: All the credit for the conversion goes to the last touchpoint (channel) that a customer interacted with before converting.
      • Best for: Simple campaigns or when you want to focus on the final action in the journey.

  • First-Click Attribution

      • How it works: All the credit goes to the first touchpoint that a customer interacts with, regardless of other touchpoints they encounter before converting.
      • Best for: Understanding how customers first discover your brand or product.

  • Linear Attribution

      • How it works: Credit is distributed equally among all touchpoints in the customer journey.
      • Best for: Recognizing the value of every interaction along the way, not just the first or last.

  • Time Decay Attribution

      • How it works: The closer a touchpoint is to the conversion, the more credit it receives. Touchpoints that happen closer to the conversion are weighted more heavily.
      • Best for: Campaigns with long consideration periods or when you want to focus on recent interactions.

  • Position-Based Attribution

      • How it works: A predefined percentage of the credit is given to the first and last touchpoints (e.g., 40% each), while the remaining 20% is distributed equally among the middle interactions.
      • Best for: Campaigns where both the initial and final interactions are important.

  • Data-Driven Attribution

      • How it works: Uses machine learning to analyze your campaign data and assigns credit to touchpoints based on how they impact conversions. This is a more advanced, dynamic model.
  • Most suited for: Businesses that have much data and seek in-depth insights into consumer behavior using extensive data.

Each attribution model carries its strengths and is suitable for different marketing objectives.

 The key is aligning the model with the customer journey you aim to understand better.

Position-Based Attribution Models in Digital Marketing

U-Shaped Attribution

  • How it works: This model gives significant credit to the first and last touchpoints (usually around 40% each), with the remaining 20% distributed among the middle touchpoints.
  • Best for: Marketers who want to give more importance to the initial and final touchpoints but still recognize the role of the middle interactions in the journey.

W-Shaped Attribution

  • How it works: This model assigns equal credit to the first touchpoint, the lead conversion touchpoint (such as signing up for a newsletter), and the last touchpoint. The remaining credit is evenly allocated across the middle touchpoints.
  • Best for: Businesses focused on tracking both lead generation and final conversion.

Full-Path Attribution

  • How it works: This model credits all significant touchpoints along the customer journey, including the first interaction, lead conversion, and final conversion, giving a more holistic view of the customer's path.
  • Best for: Brands wanting a complete overview of all stages in the sales funnel.

Custom Attribution

  • How it works: Custom attribution allows businesses to create their attribution model based on specific business goals or data.
  • Best for: Companies with specific needs that don't align perfectly with standard attribution models.

Conclusion

Knowing which attribution model to use will give you a view of the efficacy of your online marketing campaigns. Each model will provide different insights into the workings of the touchpoints with respect to conversions, thereby allowing you to make well-informed decisions. 

From initial impressions to final conversion pushes, or from considering all the touchpoint interactions that make up the whole journey, whatever the consideration will let you refine effortless strategies with better outcomes. Customize according to the business objectives so that the right channels are being invested in at the right time.

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