With the increasing complexity of the digital world which is getting amalgamated with the offline world, the task is becoming a huge challenge for digital marketers. To know which channel works for their specific requirements and how the marketing budget should be allocated, they must consider channel attribution analysis.
In simple words, channel attribution analysis answers the most pertinent question that every digital marketer has in his mind – “What part of my marketing efforts, should be credited for this specific sale?” Hence, connecting marketing spends and efforts with the sales made, is marketing attribution.
Channel Attribution Analysis
Channel attribution analysis is a boon for digital marketers. Marketing budgets are consistently soaring and cost per acquisition is rising across channels.
With the increasing complexities of the digital world, marketers struggle to understand which channel works for them and how to allocate budgets.
What is Channel Attribution Analysis?
Channel Attribution modeling is a framework for analyzing which touchpoints or marketing channels receives credit for a conversion. An attribution model distributes the value for a conversion across each touchpoint differently.
In simple words, channel attribution analysis answers the most pertinent question that every digital marketer has in their mind: “What part of my marketing efforts, should be credited for this specific sale?”
Why is Channel Attribution Analysis gaining momentum?
Marketing leaders always want to know how each marketing dollar performed and how it translated into sales. That’s where attribution modeling analysis helps them understand this mystery so that they can spend their budgets wisely.
Attribution covers a variety of parameters such as:
Multiple Digital Platforms
(Display Ads, Website, Apps etc.)
Multi-Media
(Online, Offline, Mix)
Multiple Screens
(Mobile, Tablets, Desktops etc.)
Multiple Sales Channels
(Online, Mobile, In-store etc.)
Channel Attribution Analysis Models
The area of channel attribution is still evolving & there are various techniques analysts can utilize.
Last-click model
Credit for purchase given to online customer touch point from which click to purchase occurred.
First-click/First touch point model
Credit is given to 1st identifiable click or ad impression/view recorded.
Average allocation model
Equal credit given to all the recorded touch points.
U-shape model
Higher credit is given to touch points at the beginning & end of the customer journey.
Time decay model
Credit is given to the touch points at the end of the customer path to purchase.
Channel Attribution Analysis Models
Why should Digital Marketers invest time in Channel Attribution Analysis?
Advantages of advanced Channel Attribution Analytics
Optimize customer journey
Better understanding of customer journey hence optimize media mix.
Giving credit where it’s due
Allocate fair share of credit to each contributing channel based on their impact on the key conversion metric.
Reducing cost per acquisition
Avoid wasting media impressions while boosting channel level ROI by right investment.
Optimizing multi-channel media spends
Identify the best channels that converts and invest more accordingly.
How to get started with channel attribution analytics?
Powerful tools and analytics models are now available for marketers to get started with channel attribution analytics, or go a rung higher on the ladder with advanced analytics that is customized for their business needs. Since the field is still in the evolving stage, there is no single cookie-cutter solution that can give you all the answers.
Conclude
Despite the challenges of offline channels, channel attribution is becoming a priority. Marketers can get a better understanding of marketing impact and focus on better performing channels now.
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