Marketing Attribution: 5 Models to Track Campaign Performance and Optimise Spend

Business owners should be confident about the return on their investments and be familiar with which marketing efforts are working best for their companies – especially if they’re investing heavily into their campaigns.

Unfortunately, things aren’t always clear. Business owners using multiple marketing channels (e.g., social media advertising, email marketing, influencer partnerships, and paid search campaigns) may not be well-versed with their analytics tools and won’t know exactly what is driving sales. In these circumstances, decision-makers won’t feel good paying for new campaigns.

To get the highest possible return, businesses must optimise their campaign costs and invest in the most effective projects. To understand what those are, it’s a good idea to turn to marketing attribution models. This blog will explain what those are, the different types, and describe how you can get started:

What are marketing attribution models?

Marketing attribution models are frameworks used to analyse and assign credit to various marketing touchpoints that customers interact with before making a purchase. These models help businesses understand which marketing channels and campaigns are most effective in driving sales or conversions.

We’ll cover 5 marketing attribution models:

1. First-touch attribution assigns all credit to the first interaction a customer has with a brand. It’s useful for understanding which initial marketing efforts are bringing new customers to the brand.

2. Last-touch attribution assigns all credit to the final interaction before conversion – it helps identify the most influential touchpoint right before the purchase.

(Bear in mind that first and last-touch attribution models are limiting as they don’t capture the entire customer journey.)

3. Linear attribution distributes credit evenly across all touchpoints in the customer journey, providing a balanced view of how each interaction contributes to the conversion. However, it arguably oversimplifies the contributions of different touchpoints.

4. Time-decay attribution gives more credit to touchpoints that are closer in time to the conversion, acknowledging that recent interactions are more likely to influence the final decision. This model is ideal for businesses with longer sales cycles.

5. Data-driven (algorithmic) attribution uses machine learning and data analytics to assign credit based on the actual impact of each touchpoint. It adjusts dynamically based on data and patterns in customer behaviour. This model requires substantial data and advanced analytics capabilities, making it ideal for businesses with larger datasets.

To conduct your analysis, it’s a good idea to use an online tool. Here’s what you can expect from the most popular software:

• Google Analytics will provide basic attribution modelling, including last-touch, first-touch, linear, time-decay, and position-based models. GA is pretty comprehensive and user-friendly, offering free and paid plans with varying features and data capabilities.
• Adobe Analytics offers comprehensive attribution modelling tools as part of the Adobe Experience Cloud. It includes advanced features like custom attribution models and, naturally, integration with other Adobe marketing products.
• Ruler Analytics specialises in marketing attribution and provides multi-touch attribution capabilities. This tool integrates with CRM and marketing automation platforms, offering more detailed insights into your customers’ journeys.

Equipped with an understanding of these models, the next step is to learn how to implement and leverage them effectively in your marketing strategy:

How to use marketing attribution models

To make the most of marketing attribution, follow these steps to ensure you’re set up for success:

1. Assessing your current situation

You should start by reviewing the marketing data you’ve already collected from various sources like website analytics, social media insights, email marketing platforms, and sales data. Next, clearly define what it is you wish to achieve with marketing attribution. Some potential goals include understanding your customers’ journeys, improving campaign efficacy, increasing retention rate, or optimising costs.

2. Decide if you want help

If you have a moderate level of technical skill and a willingness to learn, you can use existing tools to implement marketing attribution yourself. On the other hand, you may prefer to hire a marketing analyst or consultant. This way, your attribution process is managed while you focus on other business activities.

3. Using a tool: Google Analytics

Using GA as an example, you’ll first need to set up your tool.

Make sure your tool is properly integrated with your website, social media accounts, and other marketing channels. You’ll need to enable enhanced e-commerce for insights into sales and customer behaviour. Click the ‘Advertising’ section to view attribution models and start analysing your data.

4. Consolidate your data

All your data must be collected and integrated into your chosen platform, and you’ll need to select specific goals (e.g., purchases or sign-ups) in order to track those conversions accurately.

5. Start analysing your data and adapting campaigns

Use the attribution modelling tool in Google Analytics to explore different models and see different perspectives on your marketing efforts. First-touch might show that social media is great for attracting interest, while last-touch might show that email marketing is better at closing sales.

Experiment with different models to get the most information; you’ll be able to see which channels are driving conversions and how different touchpoints contribute. Using the insights you discover, you can go ahead and adjust your marketing campaigns accordingly.

What can marketing attribution models achieve?

By now, you should have a good grasp of how to use these models. Let’s explore what you can achieve with marketing attribution:

If you want to understand your customers’ journeys…

You want to know how your customers interact with different touchpoints before making a purchase. Do they first see an Instagram ad, then visit your website via a Google search, and finally make a purchase after receiving an email? To see how each touchpoint contributes to conversions, you’d use a linear attribution model.

To optimise your marketing costs…

A data-driven attribution model can help you identify the most impactful channels, allowing you to allocate your budget accordingly.

If you want to increase your customer retention rate…

To build long-term relationships with customers, you’ll need to be adept at nurturing repeat purchases. A time-decay attribution model could help with this as it will indicate which touchpoints are most effective in the days leading up to repeat purchases. As a result, you can create campaigns that are better targeted and more effective at encouraging repeat business.

To understand how your campaigns start or finish…

To get a better idea of how new customers learn about your business, a first-touch attribution model will reveal which touchpoints attract the most customers. Meanwhile, you can opt for a last-touch attribution model to learn which methods secure conversions most effectively. Either way, insights will reveal whether your campaigns should use retargeting ads, follow-up emails, etc.

Choosing the best fit for your business

Choosing the right marketing attribution model depends on your specific business goals, the complexity of your customer journey, and the resources you have available for data analysis. Here’s some advice to help you determine which model might be the best fit for your business:

1. First-touch attribution

Best for: businesses aiming to understand the effectiveness of their initial marketing efforts.

If your primary goal is to identify which channels are most effective in attracting new customers, first-touch attribution will help you pinpoint the sources of initial interest. This model is particularly useful for businesses launching new products or entering new markets, as it highlights the entry points of customer journeys.

2. Last-touch attribution

Best for: businesses focused on understanding the final steps before a conversion.

When the emphasis is on identifying the last action that converts leads into customers, last-touch attribution provides clear insights. This model is ideal for e-commerce businesses that want to optimise the final touchpoints, such as retargeting ads or checkout processes, to maximise conversions.

3. Linear attribution

Best for: businesses looking for a balanced view of their marketing efforts.

For companies that want to understand the overall impact of their marketing touchpoints equally, linear attribution offers a comprehensive overview. This is particularly useful for businesses with long sales cycles or multiple customer interactions, as it ensures all touchpoints are recognised equally.

4. Time-decay attribution

Best for: businesses with longer sales cycles that want to prioritise recent interactions.

If your business deals with high-value purchases or B2B sales where the decision-making process is prolonged, time-decay attribution is beneficial. It gives more credit to touchpoints closer to the conversion, helping you identify the interactions that are most influential as the customer approaches the decision point.

5. Data-driven (algorithmic) attribution

Best for: businesses with access to large amounts of data and advanced analytics capabilities.

For businesses that have the resources to leverage machine learning and data analytics, data-driven attribution offers the most accurate insights. It dynamically adjusts based on real customer data and behaviour patterns, making it ideal for companies looking to optimise their entire marketing strategy with precision.

Alternative choice: multi-touch attribution

Best for: businesses wanting a holistic view of their customer journey.

Multi-touch attribution, which considers multiple touchpoints, is excellent for companies aiming to understand the complete customer journey. This method is particularly beneficial for businesses with complex marketing funnels, as it helps identify how different touchpoints work together to drive conversions. By understanding the combined impact of various interactions, you can optimise each stage of the customer journey effectively.

Final thoughts

As you navigate the complexities of modern marketing, it’s important to remember that no single attribution model is universally perfect. Each model has its strengths and limitations, and the best choice often depends on your specific business context and marketing goals. Embrace a flexible mindset and be willing to experiment with different models to uncover the insights that matter most to your business.

Investing in marketing attribution is more than just a technical exercise; it’s a strategic move that can transform how you understand and engage with your customers. By leveraging these

models, you not only optimise your marketing spend but also gain a deeper understanding of your customer journey, enabling more personalised and effective marketing strategies.