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PART IX: MEASUREMENT<br />

ATTRIBUTION<br />

Often marketers feel that it’s hard to demonstrate the impact that their marketing program has<br />

on revenue—particularly with digital ads. With the right combination of metrics and an<br />

attribution model that makes sense for your business and stakeholders, you will easily be able<br />

to share insights into your various digital advertising programs’ levels of effectiveness.<br />

Attribution models offer marketers a<br />

set of guidelines that help determine<br />

which activities get credit for sales<br />

and conversions. Different models<br />

will impact the valuation of your<br />

marketing activities and channels.<br />

Google offers marketers a<br />

convenient Model Comparison Tool<br />

that allows you to input an example<br />

and view the various results,<br />

illustrating the impact that different<br />

models have on attribution. Let’s<br />

explore the various methods of<br />

program attribution with this<br />

example from Google:<br />

A customer finds your site by<br />

clicking one of your Facebook<br />

display ads. He returns a few days<br />

later by clicking over from Google<br />

Display Ad. Later, he arrives via an<br />

email from a campaign you sent.<br />

And then later that same day he<br />

comes back and makes a purchase<br />

from your website.<br />

Now let’s take a look at how we<br />

can think about measuring<br />

these touches:<br />

First Touch Attribution:<br />

In this model the first<br />

touch-point—in this case<br />

the Facebook display ad—would<br />

receive 100% of the credit for the<br />

sale. This model works best if your<br />

top goal for running ads is to create<br />

initial awareness.<br />

Last Touch Attribution:<br />

In this model the last touchpoint—in<br />

this case the direct<br />

channel (your website)—would<br />

receive 100% of the credit for the<br />

sale. This model works best if your<br />

ads are designed to attract people at<br />

the moment of action (often<br />

purchase), or if your business has a<br />

mostly transactional sales cycle.<br />

Multi Touch Attribution:<br />

In this model every touchpoint<br />

in the conversion<br />

path—in this case, Facebook, Google,<br />

email marketing, and your website—<br />

share equal credit for the sale (25%<br />

each.) This model works best if your<br />

ad campaigns are designed to<br />

maintain interest, awareness, and<br />

contact throughout the sales cycle.<br />

Time Decay<br />

Attribution: In this<br />

model the touch-points<br />

that are closest in time (most<br />

recent) to the sale get more of the<br />

credit. For this example, the direct<br />

and email channels would get the<br />

most credit because the<br />

customer interacted with them<br />

within hours of purchase, and<br />

Facebook and Google would<br />

receive less credit, since the<br />

interaction occurred almost a<br />

week prior. This model works<br />

best if your sales cycle has a very<br />

short consideration phase, or if<br />

you are running short promotion<br />

type campaigns.<br />

110

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