When we were faced with our first campaigns in Google AdwordsWe have all found ourselves in the situation of having to choose attribution models for counting our conversions often without knowing very well what we are talking about. Last Click Attribution Model, Data Driven, According to the position .... What are they? Which one do I choose?
Don't worry, in Geotelecom we help you to choose the one that best suits your business.
First of all... What is a Conversion?
When in Digital Marketing we refer to Conversion, we are talking about a value action for us and our company in the marketing strategy. This will help us to achieve the objectives set. These conversions can be phone calls, lead collection, a file download or a purchase.
Now that we know what a conversion is, we are ready to measure where the conversions are coming from. This is where the Attribution.
Attribution Models or How do we divide the pie?
Attribution Models are based on the fact that people, before performing a Conversion, perform several actions.
75% of Internet users start their activity on one device and end it on another.
Something similar happens with search terms. In many cases, you start the interaction with more generic terms to reach the conversion through more specific terms.
Imagine that you are going to buy a cell phone and you are searching for it. The first search terms are more generic while the last ones are more specific and conversion oriented.
So what is it that has more value to determine the conversion? the first interaction? the last? To determine this, there are the Google Attribution Models.
Until recently, when there was a conversion in Adwords, the credit for it went to the last interaction with Adwords campaigns. We could not know what happened before that conversion.
To solve this, Google has established the different Attribution Models.
Models that we can find in Google Adwords
- Last Click: This is the default in Google Analytics and Google Adwords and the most used. It assigns the credit for the conversion to the last channel through which the user has passed before making the conversion. This model should be used when your business strategy is oriented to the final sale, without taking into account the previous phases of consideration. It is not the most recommended model.
- First Click: This is the opposite attribution model to "Last Click". It assigns all the credit for the conversion to the first channel that attracted the user's attention and made him click. This model can be useful in branding campaigns. The goal is to give visibility to your brand by assigning 100% of the conversion value to your brand's first contact with the user.
- Linear: Spread the value of a conversion evenly across all clicks along the path. If the goal of your advertising strategy is to maintain contact with the customer throughout the entire conversion funnel, from the first interaction to the purchase, this is the model for you.
- Decline over time: Attributes more value to clicks that occur closer to a conversion. The value is distributed based on a lifetime of seven days. In other words, a click made eight days before a conversion takes half the value of a click made one day before. It is very useful for businesses that are very well positioned in the market and want to maintain their positioning. Focus on closing the sale, giving value to all touch points.
- Depending on the position: The model attributes 40 % of the value of a conversion to the first ad clicked and another 40 % to the last ad clicked, the remaining 20 % is distributed among the other clicks in the path. If your business is growing and you have a lot of competition this attribution model will be very useful.
- Data Driven: The Value of a conversion is distributed based on the history data of that conversion action. It is only available on accounts that have sufficient data, as it uses Artificial Intelligence. In order to use this model, an account must have received at least 15,000 clicks and must have recorded at least 600 conversions in 30 days. This is the ideal model for all businesses, but is only available for high volume accounts.
The fairest model and the one that Google recommends is the Data-driven model. When not available, the following are recommended models According to Position o decline over time. Once you are familiar with the attribution models, you must choose the model that best suits your business.
Converter Channels and Assistive Channels
Now that we know the attribution models we can determine the fair value of different campaigns and channels. Thanks to this we can see that there are channels that convert better than others. How can we optimize the channels that convert the worst?
First of all, do not rush to restrict the channels that have the least conversions. It is possible that they have a fundamental weight in the conversion. This can be guessed thanks to the Attendance Rate.
This is calculated by dividing assisted conversions by last click conversions. This tells us whether a channel is more likely to convert or assist the final conversion.
If the attendance rate is greater than 1, that channel is primarily an assistant to others. It does not generate sales but is crucial in conversion. If this rate is Less than 1, it means that this channel is mainly a "finisher" of conversions.
This way we have a much clearer view of what is working for us for Conversions and we can optimize based on this information.
These are just a few hints that we hope have helped you understand attribution models and choose the one that best suits your business.
What about you? Which model do you use?