Accurate attribution has become increasingly important aspect in digital advertising due to the fact that users are being reached through multiple channels and touchpoints. And to determine the ROI from a particular channel or touch point, it is extremely important that returns are rightly attributed. This not only helps in better understanding of the results of the campaign already executed but it will also provide a great insight and direction on what should be the media planning for future campaigns.
The concept of purchase funnel which starts with creating awareness then generating interest and later invoking desire which finally results in an action, has not been built into digital advertising systems (which mostly depend on last click model). As these systems are maturing, attribution reporting and modeling is being added which will help in accurate ROI calculation.
Attribution reporting is basically retroactive reporting which helps to compare contribution of each type of touch point and ad events while attribution modeling is more like a proactive “what if” analysis which helps in optimizing the ways ad events occur based on attribution model. For example, a campaign which is creating awareness for a newly launched product will give most importance to last impression and reducing it with further with old impressions (decay). When a conversion happens, the attribution will be given to all the touch points which happened to be in the path to conversion based on the attribution model designed.
Attribution modeling can also help in better bidding with RTB systems as the bid will be determined using attribution model. It can also provide optimization opportunities based on consumer responses. But due to the impact it has, the modeling has to be done with caution. With Adatrix, we are building attribution reporting and providing ability to specify simple attribution models. In future, we will bring attribution modeling in bidding process and trend based optimization.