GEO Digital Marketing

One of the biggest challenges for businesses engaged in digital marketing is accurately measuring the return on investment (ROI) from their efforts. While it’s relatively easy to track clicks, likes, and other engagement metrics, these measures do not necessarily correlate with revenue or ROI. To truly understand the impact of digital marketing on the bottom line, businesses need to use attribution modelling. In this post, we’ll explore the importance of attribution modelling in digital marketing and discuss different models businesses can use to measure the ROI of their marketing efforts.

What is Attribution Modelling?

Attribution modeling is a method used to determine the value of each touchpoint in a customer’s journey that leads to a conversion. In other words, it’s a way to assign credit for a conversion to the marketing channels and tactics that contributed to it. There are various attribution models available, each of which gives different weight to different touchpoints.

Types of Attribution Models

1. First-touch attribution model: This model gives all the credit for a conversion to the first touchpoint a customer had with the business. For example, if a customer first found the business through a Google search and then later made a purchase through a Facebook ad, the first-touch attribution model would give all the credit to the Google search.
2. Last-touch attribution model: This model gives all the credit for a conversion to the last touchpoint a customer had with the business. Using the example above, the last-touch attribution model would give all the credit to the Facebook ad.
3. Linear attribution model: This model assigns equal credit to each touchpoint in the customer’s journey that led to a conversion. So, in the example above, both the Google search and Facebook ad would get equal credit for the sale.
4. Time-decay attribution model: This model assigns more credit to touchpoints that occur closer in time to the conversion. So, in the example above, the Facebook ad might get more credit than the Google search because it was closer in time to the purchase.
5. Position-based attribution model: This model assigns more credit to touchpoints that occur at the beginning and end of the customer’s journey. So, in the example above, both the Google search and Facebook ad would get more credit than any touchpoints in the middle of the customer’s journey.

Conclusion

Measuring the ROI of digital marketing efforts requires more than just tracking clicks and engagement metrics. Attribution modelling is a crucial tool that businesses can use to assign credit for conversions to the channels and tactics that contributed to them. By using different attribution models, businesses can gain a more accurate understanding of the impact of their marketing efforts on revenue and ROI.