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    The Evolution of Attribution

    Moving from Traditional Models to Google's Data-Driven Approach

    2nd October 2023 - 5 min read

    In the world of digital marketing, staying updated with emerging trends is paramount. One notable shift we've observed is in attribution modelling. To help our clients grasp this concept, imagine you own a shop and place multiple sales boards around your local area. A visitor notices several of these before deciding to make a purchase at your store. Now, which board deserves the credit for drawing them in? This simple dilemma captures the essence of digital attribution modelling.

    Bidding Farewell to Some Classic Attribution Models

    Attribution models serve as the backbone for understanding ad performance. They essentially determine which of your ads gets the credit when a potential customer interacts with multiple ones before making a purchase or a desired action.

    Traditionally, Google presented several models:

    • First Click: The initial ad the user clicked on gets all the credit.
    • Linear: Every ad a user interacted with shares the credit equally.
    • Time Decay: The closer the ad interaction is to the conversion, the more credit it gets.
    • Position-Based: The majority of the credit is given to the first and last ads a user clicked, with other interactions receiving less.

    However, the digital marketing giant recently shared that they'd be phasing out support for many of these models, prompting businesses to rethink their attribution strategy.

    The Rise of the Data-Driven Model

    Transitioning from these conventional models, Google is now championing its 'Data-driven attribution'. Instead of strictly following preset rules, this approach leverages machine learning to analyze and assign value to each ad interaction leading up to a conversion. The benefits of this innovative model include:

    • Precision: It offers a genuine reflection of your ads' impact based on concrete data.
    • Adaptability: The model evolves as audience behaviours change.
    • Efficiency: No more guesswork; know precisely which ads drive results.
    • Enhanced Decision Making: Pinpoint the most impactful ads to guide your budget and strategy.

    The "Last Click" Model: An Oldie but Goodie

    While the data-driven model is a game-changer, there are instances where the "Last click" model—crediting the final ad clicked before conversion—might be more fitting. This model shines when:

    • Sales Cycles are Brief: If purchase decisions are made quickly, the last ad can indeed be the most impactful.
    • Simplified Customer Paths: When customers generally follow a direct route without multiple interactions, the last-click offers a straightforward insight.

    In Conclusion

    Attribution models, while seemingly complex, can be understood as a system to determine which "sales board" (or ad) had the most influence on a customer's decision. As the landscape evolves, embracing data-driven approaches will position businesses at the forefront of modern advertising. By adopting Google's recommended models, you're adapting to change and optimizing for future success.

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