What are the best practices for setting up and testing attribution models?

1 Understand your goals and KPIs

Before you select an attribution model, you need to define your goals and key performance indicators (KPIs) for your paid media campaigns. What are you trying to achieve with your advertising? How will you measure your success? Depending on your objectives, you may want to focus on different metrics, such as conversions, revenue, return on ad spend, or customer lifetime value. Your goals and KPIs will guide you to choose the most relevant attribution model for your business.

2 Know the pros and cons of different attribution models

There are many types of attribution models, each with its own advantages and disadvantages. Last-click attribution gives all the credit to the last touchpoint before the conversion, while first-click attribution gives all the credit to the first touchpoint that introduced the customer to your brand. Linear attribution gives equal credit to all touchpoints, while time-decay attribution gives more credit to touchpoints closer to the conversion. Position-based attribution gives more credit to first and last touchpoints, and data-driven attribution uses machine learning and historical data to assign credit. It is important to understand the pros and cons of each model and how they align with your goals and KPIs, as well as consider the availability and quality of your data, complexity, and cost of implementation.

3 Test and compare different attribution models

Once you have a shortlist of potential attribution models, you should test and compare them to see how they affect your campaign performance and insights. You can use tools like Google Analytics, Facebook Attribution, or other third-party platforms to run experiments and simulations with different models. You should compare the results across different channels, campaigns, audiences, and time periods. You should also look for any discrepancies, anomalies, or biases in your data that may affect your attribution.

4 Monitor and adjust your attribution model

Attribution modeling is not a one-time exercise. You should monitor and adjust your attribution model regularly to account for changes in your business environment, customer behavior, and market trends. You should also review your goals and KPIs periodically to ensure that they are still relevant and aligned with your attribution model. You should keep testing and learning from your data and feedback, and optimize your attribution model accordingly.

5 Communicate and educate your stakeholders

Attribution modeling is not only a technical process, but also a strategic and cultural one. You should communicate and educate your stakeholders about your attribution model, its benefits, and its limitations. You should explain how your attribution model supports your business goals and how it informs your paid media decisions. You should also address any questions or concerns that your stakeholders may have, and provide them with clear and actionable reports and recommendations.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?