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What is Attribution? What are Attribution Models?

Attribution is a process of assigning credit for a conversion to different marketing channels. Attribution models are used to identify which channels are most effective in driving conversions. Attribution models use data points such as clicks, views, and interactions to understand which channels are the most successful in converting users.

Examples of Attribution Models

Attribution models can be useful in understanding which channels are the most effective in achieving specific goals, such as increasing sales, or driving website visits. They can also be used to understand which channels are the most cost-effective in driving conversions.

Attribution models can be divided into single-touch and multi-touch models. Single-touch models assign all credit for a conversion to the last touchpoint before the conversion happened. Multi-touch models assign credit to multiple touchpoints.

Single-touch Models

Single-touch models are the simplest and most commonly used attribution models. They assign all credit to the first or last touchpoint before the conversion happened. 

Multi-touch Models

Multi-touch models assign credit to multiple touchpoints. These models assign a portion of the credit to each touchpoint, depending on how far away it is from the conversion. For example, if a user clicked on an ad, visited a website, and then eventually converted, the ad, website, and conversion all receive credit for the conversion.

There are several types of multi-touch models. Weighted models assign different weights to different touchpoints, depending on how important they are. Linear models assign an equal amount of credit to each touchpoint. Time decay models assign more credit to touchpoints that are closer to the conversion.

Attribution models can be used to identify which channels are the most effective for driving conversions. They can also be used to understand which channels are the most cost-effective in driving conversions. By understanding which channels are the most successful in driving conversions, businesses can optimize their marketing strategies and maximize their return on investment.

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