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Why Traditional Attribution Models Are Making Way for Data-Driven Strategies

Recently, you may have received an email from Google informing you that starting from May 2023, several attribution models, including First Click, Linear, Time Decay, and Position-Based, will be retired. But don’t worry; this change brings exciting opportunities for better data analysis and decision-making.

Why Are These Attribution Models Going Away?

The primary reason behind this change is the significant drop in the use of rules-based attribution models. With the introduction of Data-Driven Attribution (DDA), fewer than 3% of conversion actions in Google Ads currently use these models. DDA has become the default choice due to its broad adoption and accessibility for all businesses, regardless of their data requirements.

DDA has been around for three years now and has been widely embraced by the majority of our clients here at Door4. It offers a more holistic view of the customer journey, making it an invaluable tool for modern marketers.

Understanding Data-Driven Attribution

Here are some key principles and components of Data-Driven Attribution:

  • Data Collection: Successful implementation of DDA begins with collecting detailed data on user interactions and conversions. This data can originate from various sources, such as web analytics, ad platforms, and CRM systems.
  • Multi-Touch Attribution: DDA recognizes that customer journeys are complex, involving multiple touchpoints across various channels. It moves beyond simplistic single-touch attribution models to provide a more comprehensive view of the customer experience.
  • Algorithmic Modelling: DDA utilises advanced algorithms and machine learning models to analyze data and assign credit to each touchpoint based on its true influence on conversions. It considers factors like the order of touchpoints and time lags between interactions.
  • Weighted Credit: Instead of treating all touchpoints equally, DDA assigns varying weights to each touchpoint based on its contribution. Touchpoints with a more significant impact on conversions receive a greater share of the credit.
  • Customisation: DDA models can be customised to align with specific business goals and objectives, allowing you to emphasise certain touchpoints or channels that are critical to your marketing strategy.
  • Continuous Optimisation: DDA is an ongoing process. As new data becomes available and customer behaviour evolves, the attribution model can be retrained and optimized to accurately reflect the changing landscape.
  • Actionable Insights: Insights from DDA empower marketers to make informed decisions about budget allocation, campaign optimisation, and channel selection. It offers a granular view of which marketing efforts drive results.

In summary, Data-Driven Attribution is a data-driven approach that accurately represents the customer journey and how credit should be assigned to various touchpoints. It enables you to make more informed decisions with your data, which is why the older attribution models are no longer needed.

What Should You Use Now?

If you’re wondering what attribution model to use in the wake of these changes, the answer is clear. When Data-Driven Attribution was introduced, it quickly became the preferred choice. However, for accounts with limited data sets, we often recommended Last-Click Attribution.

But keep in mind that Last-Click Attribution has its limitations:

  • It ignores the entire customer journey.
  • It often misrepresents the influence of various marketing channels.
  • It overvalues late-stage touchpoints and undervalues early-stage ones.
  • It doesn’t account for cross-channel impact.
  • It provides limited insights into customer behaviour.
  • It can lead to inefficient resource allocation.
  • It makes campaign optimisation challenging.

In contrast, Data-Driven Attribution offers a more comprehensive and accurate view of your marketing performance. It’s the way forward for data-driven decision-making.

In conclusion, embrace Data-Driven Attribution whenever possible. If you’re constrained by a limited dataset, use Last-Click Attribution temporarily to transition to DDA as your data matures. This shift promises more precise insights and improved marketing strategies for your business.

If you have any questions or need assistance with this transition, don’t hesitate to reach out to our team at Door4. We’re here to help you navigate this transition, optimise your strategies, and achieve exceptional results.

Contact us today to embark on a data-driven journey toward marketing success!


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