Re-thinking Marketing Metrics: Contribution over Attribution

When it comes to marketing, figuring out what strategies actually lead to sales can be tricky. It's like trying to find out what ingredients in a recipe made the cake taste so good. There are two main ways businesses do this: attribution and contribution. Let’s break these down with an easy example.

Imagine you see an ad for a cool new gadget on Facebook and click it. You don't buy it right away but sign up for the company's emails. A few days later, you get an email, and you click on it but still don't buy anything. Finally, you see a Google ad for the same gadget, click on it, and buy it for $100.

In the marketing world, figuring out which touchpoint gets the credit for your purchase is a big deal.

The Limits of Attribution

Attribution is like giving slices of a pie. There are different ways to slice it:

1. First-Click Attribution: This method says, "The Facebook ad started it all," and gives all the credit ($100) to Facebook.
2. Last-Click Attribution: This one says, "The Google ad finally convinced them," and gives all the credit ($100) to Google.
3. Linear Attribution: This method divides the credit equally. So, Facebook, the email, and Google each get $33.33.

But here's the problem: People aren't pies. We can't really split the reasons we buy something into neat slices. That’s where contribution comes in.

Contribution: Looking at the Whole Picture

Contribution is like a team sport. Every player (or in this case, every touchpoint) works together to score a goal (your purchase). It doesn't worry about dividing the credit but looks at how each part helps.

So, in our example, contribution says:

• The Facebook ad got your attention.
• The email kept you interested.
• The Google ad was there at the right time to seal the deal.

Each of these steps played a crucial role. If you missed one, maybe you wouldn't have bought the gadget. Contribution understands that it's about the journey, not just the final step.

Why Contribution Wins

Contribution is about the whole customer journey, not individual glory of the media buyer or the email marketer. It recognizes that in today’s world, where customers interact with multiple ads and touchpoints across different platforms, focusing on just one touchpoint is too narrow.

Here’s why contribution stands out:

1. Holistic View: It considers the entire customer journey, giving a more complete understanding of what influences purchases.
2. Realistic: It aligns more closely with how people make decisions in a world full of multiple marketing messages.
3. Encourages Integrated Marketing: By valuing all touchpoints, contribution encourages marketers to create more cohesive, multi-channel campaigns.

Did X Touchpoint Contribute to the Conversion

While attribution offers a simpler, more straightforward way to assign credit, it often oversimplifies the customer's journey. Contribution, on the other hand, offers a fuller, more realistic view of how different marketing efforts work together to lead to a sale. In today's interconnected world, you should be asking "did X touchpoint contribute to the conversion", not "which touchpoint can I attribute this revenue to".