Attribution Modelling: How does it work and why should your company care?

There are many different click attribution models. One is the last-click model, which is also known as the “last touch” model. It assigns a higher value to the channel that was touched last. Another model is the first-click model, also known as the “first touch” model. It assigns a higher value to the earlier channel that was touched. There are many variations of these models based on factors such as transaction type and channels.

With first-click attribution, 100% of credit is given to the first touchpoint that a customer encounters. For example, if a person visits a site and sees a banner ad, and clicks on it, the company will receive full credit for the sale. This model is useful for marketers who want to know where they should be spending their time and money. 

First click attribution, a single-touch model, is regarded as inferior to last-click attribution, the more popular option. One singular touchpoint is what makes first-touch attribution inferior to last-click attribution. Google Analytics is one of the reasons why last-click attribution is practiced significantly more than first-click attribution. First-click attribution is a popular single-touch attribution model. The focus is on a single touchpoint and excluding other factors in assigning blame. The last-click attribution model has been proven to be more accurate, and it is practiced more than the first-click attribution model. First-click attribution is a perspective on how to attribute credit for a successful transaction. There are also multi-touch models. However, regarding multi touch attribution, Salesforce and Google (to name a few) are quite new and offer not the best solutions.

The first-click attribution model only recognizes the initiating touchpoint that led to a conversion, so it’s used to pinpoint sources in top of funnel. First-click attribution is the most popular among single-touch attribution methods. It focuses on one single touchpoint and leaves out all others in assigning attribution. Primarily, Google Analytics has led to the last-click attribution model becoming the preferred method, as its more simple and convenient to measure.