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Understanding how credit is assigned to marketing channels is crucial for optimizing advertising strategies. Two common models are Single Touch Attribution and Multi Touch Attribution.
What Is Single Touch Attribution?
Single Touch Attribution credits the entire conversion to the first or last interaction a customer has with a marketing channel. This model is simple and easy to implement, making it popular among marketers.
Types of Single Touch Attribution
- First Touch: Gives all credit to the initial point of contact.
- Last Touch: Attributes the conversion to the final interaction before purchase.
For example, if a customer clicks on a Google ad first and later makes a purchase after a direct visit, the Last Touch model would credit the direct visit.
What Is Multi Touch Attribution?
Multi Touch Attribution distributes credit across multiple marketing interactions throughout the customer journey. This approach provides a more comprehensive view of how various channels contribute to conversions.
Common Multi Touch Models
- Linear: Assigns equal credit to all touchpoints.
- Time Decay: Gives more credit to interactions closer to the conversion.
- Position-Based: Credits 40% to the first and last touchpoints, with the remaining 20% spread across middle interactions.
For instance, if a customer interacts with a social media ad, an email, and a search ad before purchasing, Multi Touch models allocate credit to each of these channels based on the chosen methodology.
Pros and Cons of Each Model
Single Touch
- Pros: Simple to implement and understand.
- Cons: Oversimplifies the customer journey and may misallocate credit.
Multi Touch
- Pros: Offers a detailed view of channel contributions.
- Cons: More complex to set up and analyze.
Choosing the right attribution model depends on your business goals and resources. Many companies start with Single Touch and gradually adopt Multi Touch for deeper insights.