If you’re in the business of selling products or services, then you know that generating leads is essential to your success. But what’s the best way to generate leads? And more importantly, how do you know which methods are working and which ones aren’t?
Enter channel attribution. Channel attribution is the process of assigning value to each marketing channel that a lead interacts with before making a purchase. In other words, it’s a way of determining which marketing channels are most effective at generating leads and conversions. By understanding which channels are most effective, businesses can make smarter decisions about where to allocate their resources for maximum ROI.
Sounds great, right? But how does channel attribution actually work? Keep reading to find out.
There are two main types of channel attribution models: last-click attribution and first-click attribution.
Under last-click attribution, the credit for a sale is given to the last marketing channel that a lead interacted with before making a purchase. So, if a lead saw an ad on Facebook, clicked on a Google ad, and then finally made a purchase after visiting your website, the credit for that sale would be given to your website (the last channel that was interacted with).
First-click attribution works in the opposite way; the credit for a sale is given to the first marketing channel that a lead interacted with. Using the same example as before, if a lead saw an ad on Facebook, clicked on a Google ad, and then finally made a purchase after visiting your website, the credit for that sale would be given to Facebook (the first channel that was interacted with).
Now that we’ve answered the question “what is channel attribution,” it’s time to tackle the most important question: “how can channel attribution help my business save money?” The answer is simple: by helping you understand which marketing channels are most effective at driving leads and conversions, channel attribution can help you allocate your resources more efficiently and reduce wasted spend.
Let’s say that you’re allocating $10,000 per month to paid search ads and $5,000 per month to Facebook ads. After running an analysis of your channel attribution data, you realize that paid search ads are driving 80% of conversions while Facebook ads are only driving 20%. With this information in hand, you can make the decision to reduce spend on Facebook ads and redirect that money towards paid search ads—essentially cutting out wasted spend and increasing ROI in one fell swoop. Pretty nifty, huh?
Which model is better depends on your business goals. If you’re looking to increase brand awareness or drive traffic to your website, then first-click attribution might be the better option. On the other hand, if you’re focused on generating sales or leads, then last-click attribution might be more effective.
Channel attribution is a powerful tool that can help businesses save money by allocating their marketing budgets more effectively. By understanding which channels are most effective at generating leads and conversions, businesses can make better decisions about where to allocate their resources for maximum ROI. There are two main types of channel attribution models: last-click attribution and first-click attribution. The best model for your business will depend on your specific goals. Implementing channel attribution can help you get one step closer to achieving your desired results.