When it comes to attribution modeling, it’s important to remember that it exists both for the whole marketing strategy and within individual platforms. For example, broader attribution models aim to ascertain the value of touchpoints across the strategy; this includes email, social media, search ads, and other channels. Meanwhile, attribution models in Google Ads, for example, value ads, ad groups, and keywords depending on their performance.
If you don’t pay attention to attribution models in Google Ads, you may not get as much value from the platform as you otherwise could. Without attribution models, you don’t learn the value of each ad and how they contribute to conversions. By extension, you don’t invest accurately, and the best-performing campaigns can go ignored.
In this guide, we want to uncover the different attribution models and how they work. In other words, these are the different ways that credit is given to ads in the customer journey. While some give credit to one single ad, others apportion credit using various systems. Throughout the guide, we’ll also explain the potential benefits and drawbacks of the different models.
Ultimately, we want you to walk away from this article as a more confident marketer. A marketer or business that knows what they’re talking about when it comes to attribution modeling - no more pretending to understand and nodding along!
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Last-Click Attribution (Default)
If you’ve never changed the settings of your Google Ads account and avoid looking at attribution modeling at all costs, you’re using last-click attribution because this is the default option. Even if you’ve never investigated the field of attribution modeling, you can probably guess the part of the customer journey that receives 100% of the credit with this model. That’s right - the last click.
Even if the customer engaged with six different ads, only the last click gets the credit for the conversion. While this model is simple and helps you to see what people click before converting, one of the biggest problems is that many are direct conversions. In other words, they’ve already made up their mind to purchase from you. In these cases, you don’t learn what caused them to reach this decision, and this is potentially damaging.
As a result of this problem, ads that sometimes contribute heavily to conversions are ignored and don’t get the credit they deserve. While this model can help beginners with its simplicity, many marketers and businesses look for more.
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First-Click Attribution
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If the previous model gave credit to the last click, this one gives all the credit to the first click. Suddenly, you remove the issue of direct conversions. Of course, this model comes with its own problems because the first click may have captured their attention, but it may not have persuaded them to purchase from you. If they went on to interact with nine other ads, you might say that the impact of the first ad was relatively small. Yet, it gets 100% credit using this model.
Despite the negative, first-click attribution does have its benefits. For example, the fact that people are clicking shows that your targeting is strong. Also, it proves the efficacy of keywords, CTAs, and awareness campaigns. If brand awareness is your main goal, first-click attribution can work wonders. Otherwise, it’s worth exploring the other options on this list.
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Time-Decay Attribution
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At this stage, we’re getting to the more complex models rather than just giving 100% of the credit to one click. With a time-decay attribution model, the idea is to reward the clicks closest to the conversion. As an example, let’s say that somebody interacted with six clicks over several months. While those closest to the conversion receive a larger share of the credit, those further away are only given smaller percentages.
In our experience, this model is best for those with long campaigns and customer journeys. If you sell e-commerce products using Google Shopping, on the other hand, you won’t get too much value because the sales are too fast.
As well as apportioning credit, time-decay attribution is a great way to learn the length of your sales process. If in doubt, avoid this option because it may be too complex for simple campaigns.
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Linear Attribution
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Next, we have a very simple attribution model because it discovers all the clicks and gives them equal credit. If somebody interacts with five ads and keywords, they would all get 20% of the credit for the conversion. If you just want to know the ads with which people are interacting, this is a solid model because you learn this information. As soon as somebody converts, you see the ads they interacted with from start to finish because they all get credit.
Over time, you might notice some ads that don’t ever generate clicks. On the other hand, you’ll learn the campaigns that play a role in most conversions. Linear models are beneficial for those with complex campaigns where people are taken from broad organic search terms to conversion.
For instance, we’ve spoken to businesses who use this attribution model when starting with broad keywords, remarketing clicks, and then reaching out with RLSAs.
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Position-Based Attribution
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With the final rule-based attribution model, the idea is to give a higher percentage of the credit to the first and last clicks while the rest is split between clicks in between. To be precise, the first and last click both get 40% each while all other clicks share the remaining 20%. With this model, you learn the click that encouraged conversion, the click that first got the attention of the lead, and those that pushed them through the funnel in between.
As a result, this is a popular attribution model these days. Instead of giving 100% credit to one click or sharing equally, this is somewhat of a compromise. Generally speaking, this model is best for those who want a balance between closing and awareness. Due to the nature of the model, it doesn’t close off one end of the funnel, unlike others on this list.
Soon enough, you’ll learn the best keywords for awareness as well as the best keywords for closing. So long as you pay attention to the insights, you’ll learn to invest your budget more effectively than ever before.
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Data-Driven Attribution
This time, we move away from the world of rule-based attribution models and into the field of algorithmic models. As a newer option in Google Ads, the idea is to give credit to influential keywords using an algorithm. If you don’t want to choose between the many models above, you may enjoy taking a step back and allowing the clever Google algorithm to work on your behalf.
However, it’s important to note that not every business and marketer will benefit from the model. For example, smaller businesses with few campaigns may struggle to meet the requirements. According to Google, you’ll need 3,000 clicks and 300 conversions within the last 30 days. Yet, it’s not enough to hit these targets once because Google will check that you maintain them. In reality, this means up to a $5,000 monthly budget on Google. If you’re only spending a few hundred, you’re unlikely to meet the requirements.
If you do meet the requirements, there’s no reason why you shouldn’t experiment because many users have already found success with the algorithm.
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Choosing an Attribution Model in Google Ads
Which attribution model should you select in Google Ads? Hopefully, you’ve noticed throughout this guide that each model works well in different scenarios. Ultimately, the model you choose depends on your goals and what you’re trying to learn.
From a practical standpoint, you can choose an attribution model by starting at your dashboard. Head into Tools, Measurement, and then Conversions. From here, you can edit existing conversion actions. As you edit the campaign settings, you’ll see that the model is set to last-click attribution if you haven’t previously changed anything.
If you aren’t eligible for data-driven attribution, this option is unavailable. Otherwise, you can still choose between last click, first click, time-decay, linear, and position-based attribution. Once you’ve chosen, click on the Save button and you’ll benefit from the new model almost immediately.
Furthermore, we recommend comparing different models to learn more about keywords and ads in the customer journey. From the tool dashboard again, click on Search Attribution and then Attribution Modeling on the left-hand side.
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Summary
At first, we can appreciate why attribution modeling can seem daunting - even the phrase itself can make you hide behind a cushion. Fortunately, it’s relatively simple (what a relief!). All in all, you’re deciding how to give credit for conversions. While some models apportion credit 100% to one click, others split credit equally or use a weighted system. Choose the system that matches your goals and campaigns, and it won’t be long before you’re investing more sensibly!
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