Attribution is the holy grail in advertising. Nowadays, users go through multiple touch points (multiple devices) before making the final transaction. According to studies, e-commerce alone, contributes to approximately 10 percent of total retail sales in the US, when driven by advertising (with the ad spend being close to $2500.) Therefore, businesses cannot rely on the last click attribution only to achieve better campaign performance because it often presents a picture that highlights one particular channel. channel as the ultimate hero. With this article, we take a shot at helping marketers to scale their business by cracking the puzzle of attribution by aiding in the identification of marketing channels that significantly contribute to a user’s buying journey.
Why is Last Click Attribution Not Enough?
By considering the last channel that the user interacted, as the star of the entire transaction, most marketers act biased without even knowing it. Nowadays, there are a number of channels that work in tandem to influence users into making the transaction. Therefore, shoving more and more money into the last channel might not be the solution you seek to improve your ad’s performance.
On the contrary, if you are just starting and getting less than 100 orders a day, it would make sense to attribute the last channel. However, if you are getting a 1000 orders or more per day, you will need to see which channels are helping in getting the users to the point of conversion. Again, this will also depend on the type of business you have and the fact whether you sell high-value products or not. As the business grows, it is advisable to analyze multiple touch points that encourage users and attribute credit to the right channels.
Assisted Channels are Key to Understanding Buyer Journey
Assisted channels are channels, which engage with the users (even more than once) before they go on to actually make the purchase. For example, a user visits a footwear store in the morning and goes through the designs. In the afternoon, the same user is shown ads on Facebook, and in some time, a push notification pops up on their laptop, announcing discounts on the shoe collection. Thereafter, the user receives an Email in the night, about the hot deals on shoes and are finally convinced to buy a pair.
In above example, most marketers would believe that it was the email that had brought the conversion. However, it was the collective efforts of the push notifications, the Facebook ad and the store visit that delivered the purchase on the same day.
Attribution With Complicated Buying Cycles
While dealing with multiple marketing channels, attribution becomes both tricky and necessary because it helps you facilitate revenue tracking and keep track of the channels, which provide the highest ROI. That said, the duration that you set while analyzing conversion also depends on the type of products or services you are selling. If we talk about Google Analytics, it takes the last click by default, except for the direct click. Overall the question remains – what is the right number that you need to be tracking? The possible answer is to track the right set of metrics according to the stage of your business – there is not just one ‘right attribution model’.