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Attribution models and how to use them

Attribution is a powerful, but complex insight for e-commerce teams. Learn about different attribution models and what insight each can provide you to make better marketing decisions.

What is attribution?

Attribution in e-commerce is the practice of ‘giving credit’ for a purchase or conversion. You can attribute purchases to any kind of marketing or sales activity that you and your team engage in. The underlying goal of attribution is to pinpoint which marketing activities, channels, campaigns or ads yield a desired return and make better-informed decisions on what to do next.

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Did you know that author Claude C. Hopkins already described an early form of attribution in his 1932 book ‘Scientific Advertising’ by way of handing out vouchers with unique coupons to track where customers came from?

Different attribution models

An attribution model is the framework by which measured touchpoints are given credit for a purchase or conversion down the line. Attribution models are often visualised with monetary values, meaning if you have purchase of EUR 100,- an attribution model will spread that value across measured touchpoints along the chosen framework. Depending on your business model, strategy or hypotheses that you are working with, different models might be right for you

First- and last touch attribution

First touch attribution gives all credit for a purchase or conversion to the first touchpoint measured, while last touch attribution gives all credit to the last touchpoint before conversion. While both these models are not very ‘balanced’, they can have a high impact in figuring out which channels are best at creating initial awareness and interest in your brand and which are best in converting people to make a purchase.

Linear attribution

Linear attribution models spread the credit for a purchase or conversion evenly across all measure touchpoints. for example; if your server-side tracking setup has measured has measured five different, click-based touchpoints with your brand before a purchase was made, each of those five touchpoint will receive 20% of the credit. Linear attribution gives great insight into your total marketing mix and which touchpoints play a role in moving your audience through the funnel towards a purchase.

Time decay attribution

Time decay attribution gives more credit to touchpoints closer in time to the purchase or conversion and less credit to touchpoints further away in time, or higher up in the funnel. When applying time decay attribution, you are assuming that touchpoints later in the funnel have more impact on the actual conversion, while also acknowledging the impact of early touchpoints. Time decay can be instrumental in understanding and optimizing different phased of the customer journey.

U-shaped attribution

U-shaped attribution gives most credit to the first- and last touchpoints measured before a conversion or purchase, and spreads out evenly across touchpoints in between. The u-shaped attribution model can be powerful when you have a clear understanding of your typical customer journey and want to optimize for both top of the funnel input and bottom of the funnel conversion.

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Attribution models and how to use them
What is attribution?
Different attribution models
First- and last touch attribution
Linear attribution
Time decay attribution
U-shaped attribution