Buyers typically have several interaction points with a product on various marketing channels before they buy. Attribution Models determine which marketing channel is credited for the sale.
• The First Interaction Model gives the first channel 100% of the credit.
• The Last Interaction Model gives 100% of the credit to the last channel.
• The Last Non-Direct Click Model gives 100% of the credit to the last channel that drove the customer to the website.
• The Last Ads Click Model gives 100% of the credit to the last ads click.
• The Linear Model awards equal credit to all channels.
• The Time Decay Model gives the most credit to the channel closest in time to the sale.
• The Position-Based Model gives the first and last channels 40% each, and the rest is distributed equally between all other touch points.
By using the right attribution model and understanding which channels contribute most to profits, revenue, new business, and customer retention, sellers can focus their advertising on the channels that contribute most to their bottom line.