Unfortunately, it’s not a reality if you think your leads find your blog or click an ad and instantly convert into a sale or lead. For conversions and sales, marketers require strategies that assist them in making the best decisions. One of these strategies is digital marketing attribution, allowing you to assign the credit for a customer’s buying decision to the correct sources. The insights allow you to allocate the marketing budget more efficiently and bring you closer to unique customers finding you through each channel. Media attribution can be especially useful for optimizing your campaigns.
Enterprises that invest money into marketing activities, paid media or their own media, want to know exactly what is working well and what is not. Knowing the performance of marketing activities and return on Ad spend helps you to refine the strategy and repeat. .
Paid media is an essential component of revenue growth and brand awareness for online businesses. It is one of the marketing efforts to attract consumers that involve a paid placement.
This article will introduce you to:
- What includes paid media marketing?
- What is the marketing attribution model?
- Types of marketing attribution model (first touch, last touch, multi touch)
- Find the right attribution model for your paid media campaign
What includes paid media marketing?
PPC advertising, branded content, and display ads.
Paid media is a digital marketing strategy that involves paid placement. Marketers can directly connect with the target audience through direct engagement. The paid media marketing includes pay-per-click (PPC) ads, paid social media ads, and search engine marketing (SEM).
Pay per click (PPC) is an online advertising model where an advertiser pays the publisher for each user clicks on their ads. Most common type of PPC ad is a paid search ad that appears in Google.
Branded content, also called branded entertainment, is the content produced by an advertiser or the content being funded by an advertiser. Branded content is advertisements in television, film, online content, video games, events, and other application installations.
The display advertising method attracts the audience from different platforms like websites, social media, or digital mediums to click the ad. The ads can be text-based, image, or video advertisements that urge the audience to purchase through clicks. Display ad campaigns are charged according to cost per click (CPC). Advertisers get charged for every ad click. The charging rate is based on overall bidding strategy. Display ads are one of the founding fathers of online paid media which includes:
Social media advertising:
Social media advertising includes generating content on social media platforms, engaging with followers, and driving social media advertisements. Social media advertising is a much more effective way to nourish leads and convert prospective customers. Social media allows you to engage and interact with consumers, unlike any other advertising platform.
Search engine marketing (SEM):
SEM is a digital marketing strategy utilized to enhance the visibility of a website in search engine results pages (SERPs). SEM is also alternately mentioned as paid search or pay per click (PPC).
Video ads blend two things that grab user attention, including movement and sound. These both play a vital role in communicating an efficient message, and it leads to improved engagement.
The intimate and high-quality environment of podcasts allows brands to influence highly engaged audiences. Podcast ads inspire meaningful engagement for advertisers, including brand-building and direct response objectives. The podcast allows advertisers to deliver their messages through trusted voices or leverage more audio creative options that suit their criteria.
According to the stats Word of mouth marketing prompts $6 trillion of annual consumer spending and is expected to account for 13% of consumer sales. The Word of Mouth marketing impression results in 5 times more sales than a paid media impression. Therefore, people are 90% more likely to trust and purchase from a brand suggested by a friend.
There are so many touchpoints that can bridge the gap between the brand and the potential consumer. An attribution model helps you determine your prospect’s preferred path of product discovery and helps you spend an optimal ad spend to drive them to the purchase site.
What is the marketing attribution model?
Marketing attribution is the procedure used by marketers to assess the value or ROI of the channels that link them to prospects. This attribution allows you to segregate the marketing efforts that give you good returns and the campaigns that offer real credits. It helps in dividing those campaigns and channels that can be reinvested. Attribution provides accurate data, thus excludes the guesswork out of your decision-making. It leads to sure conversion paths and top-assisted conversions.
There are multiple attribution models that the marketers use to suffice the needs and get maximum ROAS. It is fairly simple to know what attributes to your revenues in the first-touch or a last-touch attribution.
First touch, last touch, multi touch: Types of marketing attribution models
There are two major types of Marketing Attribution Models:
1. Single Touch Attribution Models:
These attribution models assign full conversion credit to one marketing touchpoint. For example, if a customer saw 20 ads before converting, then the single-touch attribution will ascertain that only 1 of the 20 ads earns conversion credit.
Single-touch attribution models are easy to implement because of their low level of complexity.
In a single touch, you either weigh the first touch or last touch. These linear models could be used over a multi-touch attribution to understand the key trigger over a predetermined buyer journey path.
a. First Touch Attribution (FTA):
This type of attribution assumes that the customer decides to convert after they see and engage with your first Ad. FTA credits only the first marketing channel/campaign, regardless of how many interactions it took for your prospect before they converted.
b. Last Touch Attribution:
This model gives conversion credit to the last advertising channel that the audience interacted with before converting. It does not consider the number of interactions the user had done with the brand before conversion.
Where will you add media pixels?
You would add media pixels to your display ads, social media ads on Facebook or Twitter, or to video thumbnails. You may also use pixels to track how many of them came to your landing page and completed the event or action. This could further differ on the end goal defined on the final destination. It could be a form completion or completing a transaction after adding goods to a cart.
Expert tip: Don’t launch your pixels from the browsers. They won’t provide accurate data for you to measure a campaign.
But, this measuring scenario would change completely when you have more than one touchpoint that matters to the success of an event or purchase in your ad campaign.
2. Multi-Touch Attribution Models:
These models count all touchpoint information that the consumers engage with before making a purchase. This attribution touchpoint information can be used to understand the efficiency of marketing channels. In addition, it allows marketers to fund resources and plan future strategies accordingly. Therefore, this attribution model is considered more accurate than the single-touch attribution model.
Linear multi-touch attribution
If you want to weigh every touchpoint in a journey equally and let’s say you are measuring a campaign with five touchpoints. You would score each one of them as a 20% contribution. This may even prove valid when the consumer has no other distraction but to visit all steps in a jumbled order to achieve the final goal. However, this is not the ideal scenario, if your ad campaign is leading the consumer to a product page that may cause bounce rate through different distractions.
U-shaped, W-shaped or time-decay attribution model
These are a few other types of popular attribution models put to use. They help in evaluating the user behavior in different scenarios.
If you run a campaign and are using a time-decay attribution model, did you know with new browser restrictions, client-side tags won’t last long and may provide inaccurate results. Using tactics such as extending cookie duration with user consent and publishing your media pixels from that server-side with integrations provide accurate data across your preferred attribution models.
What will you give the most credit to? Find the suitable attribution model
|What do you want to achieve?||Preferred Attribution Model|
|1. Relationship building is a big factor in a business’ success|
2. Expensive B2B purchase with a long sales cycle
|Time Decay attribution|
|3. If your advertising is limited to one or two channels||First-click attribution|
|4. Optimization and A/B testing efforts||Multi-touch attribution|
|5. To demonstrate how each channel does have value.||Linear-attribution model|
|6. Measure the “decision factor” that resulted in sales.||Last-click attribution model|
|7. Place the credit with the channel that most likely should be attributed with a sale. |
8. Attribute conversion to a display ad.
|Last Non-Direct Click Attribution Model|
|9. Find out which channels to focus on for bringing new customers in and which channels to focus on when trying to convert at a high rate.||Position Based Attribution Model|
Tracking media pixels for ads is complex if they cannot be traced back with data collected in the server. Browsers no longer align cookies with data being collected to assign them to a user. Use the attribution model that helps you achieve your marketing goal and launch media pixels by configuring them to fire only as necessary.
Magic Pixel allows you to automate firing these pixels based on the campaign that is active. It provides a master dashboard that reflects how you have implemented your attribution model in the form of the data collected.