First Click Attribution - Why it Matters
At what point do you high five and pat your advertising and marketing plan on the back? Is it when a customer finds a phone number on your website and calls, when a client clicks an ad you've placed, or when a coupon is used during a purchase? Do you rate the effectiveness of an advertisement solely on the final outcome, or should you look further up the line giving credit to multiple initiatives?
In the advertising world, we often give credit to the last channel, click, coupon or ad a consumer saw that enticed them to your business.
Businesses and digital marketing agencies traditionally have used a model of last click attribution for quite some time. Today, that model is changing as we look deeper into the first point a potential consumer came into contact with our advertising efforts. We define last click attribution as the final process or channel a consumer engaged with you, giving 100 percent of the credit of that "click" for the conversion.
Ultimately, we need to understand the effectiveness of each advertising effort which eventually leads the customer to the sale. We attribute each solution with a cost and return on investment (ROI). More specifically, we want to put a value on the very first (and all subsequent) interactions a potential customer came across during your advertising and marketing efforts.
The Conversion Funnel
Imagine your marketing and advertising efforts as a giant funnel that leads a potential consumer to your business. First click attribution would be at (or near) the top of the funnel working it's way eventually (and hopefully) towards the bottom.
Last click attribution typically will be found nearer the bottom of the funnel or sales process. This method of measurement creates a dilemma: how effective and how valuable are the marketing efforts you’re putting in place throughout the funnel if they aren't producing an immediate customer?
(Stat: Broken down in the attribution model, first click marketing generated 38% more revenue than last click, based on per visitor to US websites. Adobe 2012)
The Integrated Approach
Integrating multiple digital marketing services into traditional advertising solutions you’re currently using allows you to learn more about your consumer and about how effective your marketing is. An efficient digital marketing agency can take all of your online marketing efforts and attribute the value to each channel you’re using to target potential customers. Detailed data gives you the necessary information to understand how effective your entire marketing solutions are and what leads the consumer to the end of the funnel.
We simply can’t overvalue the last click; we have to attribute credit to each touch point a consumer runs into your business. Today, consumers are smarter, they’re looking for the best deals, the best reviews and they are interacting and listening to their networks online. So often, a consumer isn’t ready to make the final purchase without doing a little research; they’re shopping around clicking on ads and not converting. The best solution is to allow consumers to recognize, remember and become familiar with your brand. First click attribution and integrated marketing solutions build recognition with potential consumers – and that is invaluable for your business.
By Mike Hines