See here for an explanation of the Terminology and Reporting Metrics used in XPO Report.
A conversion event in marketing today is often no longer a simple, straightforward event, but one that comprises of a series of interactions for a consumer. A conversion can be a sale of a product or a service, a download, a sign up and so on, depending on how a marketer would like to deem as a conversion event.
Attribution report provides conversion-related data including the types of conversions, touchpoints, transaction related data and more. The idea of using attribution and the different models (see below), is to assign due credit for the conversion events that happen at the various marketing touchpoints along a consumer’s journey. With respect to our context herein, a touchpoint is considered as any point of interaction a prospect or existing customer comes in contact and engages with your ad, at any stage either before, during, or after they "converted" of the customer journey.
Attribution lets marketers measure the impact each touchpoint has on your conversion goal. With such information, now you can have better insights into how customers are engaging with your brand, and which channels are worth investing in, and many other insights.
The Attribution Report can be viewed with the following parameters:
- Advertiser: to display all the click-through or view-through conversions for a selected advertiser
- Campaign: to display conversion of a selected campaign
- Ad group: to display conversion of selected strategy under a campaign
- Creative: to display the conversion of a selected creative
Learn how to generate an attribution report.
Attribution models in XPO
XPO supports the most commonly used attribution models. An attribution model is a set of rules that determine how credit for sales and conversions are assigned to the touchpoints along the conversion paths. These reports help to value the contribution from different vendors who are involved in running campaigns and understand the value brought by them. Attribution model can also be applied among channels or ad groups based on the need. There are 2 general models of attribution, where one is called a single-touch, and another is multi-touch.
Single-touch is a much more simplistic model where marketers assign full 100% credit to just one touchpoint, either the first or the last touchpoint whereas multi-touch considers also the middle points, which could be many more since nowadays consumers are spoiled with choices, and will undoubtedly interact with many different touchpoints before they finally convert.
These are the supported attribution models in XPO:
- First Touch: the first touchpoint receives 100% of the credit for the conversion.
- Last Touch: the last touchpoint receives 100% of the credit for the conversion.
- Linear: each touchpoint would share equal credit
- Time Decay: the touchpoints which are closest in time to the sale or conversion get the most of the credit, while the first touchpoint gets the least but increases as it gets closer to the touchpoint before conversion. This model assigns increasing credits with the rising levels of interest and commitment.
- Position Based: 40% credit is assigned to each of the first and last interactions and the remaining 20% credit is distributed evenly to the middle interactions
There is no right or wrong, nor best model. It’s important that you choose the model that suits your organization as it is going to drive the behavior for your marketers and how you are measuring them. Ultimately, the attribution models that you pick and use will provide marketers with insights of what's working and not, and effectively help to drive the behavior of customers and prospects that you are targeting.