What is conversion attribution?
Conversion attribution is the process of trying to figure out which marketing channels and activities contributed to a conversion, such as a purchase, signup or other desired goal on your Web site. Imagine someone buys a product on your website after seeing an ad on Facebook, a newsletter and a search on Google. Conversion attribution helps you determine which of these channels contributed the most to the final purchase. It's like unraveling the route a customer took before reaching a decision.
There are several models for conversion attribution, including event-based and session-based models. An event-based model looks at individual interactions or events (events) within a session, such as clicking on an ad or viewing a product page. This model assigns value to each event that contributed to the final conversion. It is useful for understanding exactly what specific actions users take that bring them closer to a purchase. On the other hand, you have the session-based model, which focuses on the entire session as a single entity. Instead of analyzing each individual interaction, this model looks at which session ultimately led to the conversion, regardless of the individual events within that session. This is useful for seeing which channel or source was responsible for attracting the user in the session in which the conversion occurred.
In practice, conversion attribution is often applied using tools such as Google Analytics, which can track which marketing channels were involved in a conversion and how they contribute to the success of your campaigns. A best practice is to choose an attribution model that fits your business goals and marketing strategy. For example, if you want to know what specific behaviors within a session lead to a conversion, an event-based model may be useful. For a more holistic view of which channels generate the most traffic and conversions, a session-based model is appropriate. The key is to understand that not each channel stands alone; often they work together to persuade a customer. By applying conversion attribution properly, you can make more informed decisions about where your marketing budget goes and which channels are most effective in achieving your goals.
