GOOGLE'S NEW ATTRIBUTION MODELS: MUST-KNOW INSIGHTS FOR ADVERTISERS

BY HEIDI MCIVOR ALLEN

Google is all about automation and less control for advertisers these days. Older features are often phased out in favor of newer, simpler ones. The latest casualty includes first-click, linear, time decay, and position-based attribution models.

“When you change one thing, you have the ability to change EVERYTHING.”

Google made the announcement earlier this year and now we’ve reached the point where these attribution models are no longer available. If you had conversions set up using any of them, they would automatically switch to the data-driven attribution model. So, what’s the impact on advertisers moving forward? In this article, I’ll break down the changes and explore how they might impact your Google Ads strategy.

TRADITIONAL ATTRIBUTION MODELS

Before we jump into what this means for the future, let’s first examine how traditional attribution models tracked conversions and understand how they differ from the data-driven and last-click models that are still in use:

Last Click (Still Available)

This model attributes all the credit to the final interaction a user has with an ad before converting.

First Click

First-click attribution gives all the credit to the first interaction in the customer journey, regardless of subsequent interactions.

Linear

The linear model evenly distributes credit across all touchpoints throughout the customer journey.

Time Decay

First-click attribution gives all the credit to the first interaction in the customer journey, regardless of subsequent interactions.

Position-Based

This model gives more credit to the first and last interactions, while the middle interactions receive less credit.

WHAT IS DATA-DRIVEN ATTRIBUTION?

To comprehend why Google decided to retire traditional attribution models, we’ll dive into the world of data-driven attribution.

Data-driven conversion tracking in Google Ads is a sophisticated approach to tracking and attributing conversions to particular keywords, ads, and campaigns. It leverages historical data and machine learning algorithms to offer advertisers more precise insights into the impact of their advertising endeavors.

HOW DATA-DRIVEN ATTRIBUTION WORKS

Here’s how data-driven attribution works:

Data Collection

Google Ads gathers a wealth of information concerning user interactions with your ads and website. This encompasses click data, user engagement on your site, and conversion data such as purchases, form submissions, and phone calls.

Machine Learning Algorithms

Google employs machine learning algorithms to examine this data and spot patterns and trends. It considers factors like the time of day, device type, location, and more to gain insights into what influences conversions.

Attribution Modeling

Data-driven conversion tracking utilizes sophisticated attribution modeling methods to assign significance to various touchpoints within the customer journey. It evaluates the complete conversion path, taking into account multiple interactions with your ads leading up to a conversion.

Conversion Prediction

Using historical data and machine learning insights, Google Ads anticipates the likelihood of a conversion occurring with each click on your ad. This prediction aids in identifying which ad clicks are more inclined to result in a conversion.

Optimization

Google Ads applies this predictive data to enhance your bidding strategy. It can make real-time adjustments, directing a larger budget towards keywords and ads with a higher probability of generating conversions. This can effectively boost the return on investment (ROI) for your advertising expenditure.

Performance Reporting

In Google Ads, you have access to comprehensive performance reports that illustrate the contributions of various keywords, ads, and campaigns to conversions. These insights empower you to make well-informed decisions regarding your advertising strategy.

WHAT IS LAST-CLICK ATTRIBUTION?

There’s a bright spot for traditional attribution advertisers: last-click attribution is still hanging in there, at least for now. If you’re not too familiar with it, last-click conversion tracking in Google Ads is a straightforward model that gives full credit for a conversion to the last ad click a user made before converting. In other words, if a user interacts with multiple ads from various campaigns or keywords before converting, only the very last click gets the credit for the conversion.

HOW LAST-CLICK ATTRIBUTION WORKS

User Interaction

A user engages with multiple touchpoints connected to your ads. For instance, they could start by clicking on an ad in a search result, later come across a display ad, and eventually return directly to your website using a bookmark.

Conversion Event

Finally, the user takes action, which could be making a purchase, subscribing to a newsletter, or filling out a form on your website.

Credit Assignment

With last-click attribution, all the credit for the conversion goes to the final click that led the user to your website. As mentioned earlier, the direct visit would be credited with 100% of the conversion.

PROS & CONS OF LAST-CLICK ATTRIBUTION

Here are some pros and cons of using last-click attribution to track conversions.

PROS

CONS

Simplicity

Last-click attribution is straightforward and easy to grasp. It provides a clear, uncomplicated view of which ads or keywords drive immediate conversions.

Inadequate for Complex Journeys

In today’s digital landscape, customer journeys often follow intricate paths, involving multiple touchpoints across various channels and devices. Last-click attribution overlooks the influence of all interactions except the last click, resulting in an incomplete understanding of user behavior.

Historical Use

Last-click attribution has been the go-to and widely adopted model for a long time. It’s familiar to many advertisers and often the default setting in reporting platforms.

Unfair Distribution of Credit

It can unfairly credit the last-clicked ad, even if earlier clicks played a pivotal role in the user’s decision-making process.

Data Availability

In some instances, particularly for smaller advertisers or those with limited tracking capabilities, last-click attribution may be the only practical choice due to data constraints.

Misallocation of Budget

Solely relying on last-click attribution can lead to a misallocation of ad spend. This may cause overinvestment in keywords or campaigns that appear to perform well only because they are the last in the click path.

THE OUTLOOK FOR GOOGLE ADS
ATTRIBUTION MODELS: WHAT LIES AHEAD?

For now, you have the choice between Google’s data-driven and last-click attribution models. The decision may come down to personal preference or how you prefer to interpret performance data.

Personally, we have a preference for last-click attribution, which might not align with the views of other experts in the field. We appreciate its simplicity and directness, especially for lead generation. It allows us to clearly attribute which keyword and ad is directed to each lead. Many clients need clarification on the scattered and fractional attribution of conversions. It’s a straightforward path: click, lead, opportunity, sale.

However, we have also been using data-driven attribution for a while. It may eventually become the standard choice, partly because it can enhance intelligent bidding through machine learning. In some ways, we have to embrace these advancements in artificial intelligence and digital advertising, even if they feel imposed or unnecessary.

Ultimately, your choice should be based on the attribution model that best serves your needs in measuring and tracking performance to achieve your marketing goals.

HOW MCIVOR MARKETING CAN HELP YOU CHOOSE WHICH ATTRIBUTION MODEL IS RIGHT FOR YOU

McIvor Marketing can assist you in selecting the ideal attribution model for your specific needs by leveraging our expertise and industry insights. Here’s how we can help:

In-Depth Consultation

We’ll begin by understanding your business objectives, advertising goals, and the nature of your customer journey. Through detailed discussions, we’ll gain insights into your unique requirements.

Data Analysis

Our team will conduct a thorough analysis of your historical advertising data. This analysis will provide valuable insights into how different attribution models may impact your campaigns and ROI.

Customized Recommendations

Based on our consultation and data analysis, we’ll provide you with tailored recommendations. We’ll explain the pros and cons of various attribution models, including last-click and data-driven, and how each aligns with your objectives.

Implementation Support

Once you’ve made a decision, we’ll assist you in implementing the chosen attribution model within your Google Ads account. We’ll ensure that all tracking and reporting mechanisms are set up correctly.

Continuous Optimization

Attribution models may need fine-tuning over time. We’ll continuously monitor the performance of your chosen model and make adjustments as needed to maximize your advertising ROI.

Education and Training

We’ll ensure that you and your team fully understand how the selected attribution model works and how to interpret the data it provides. This knowledge will allow you to make informed decisions in the future.

Adapting to Industry Changes

The digital advertising landscape is ever-evolving. We’ll stay up-to-date with industry trends and changes in Google Ads attribution models, helping you adapt and stay competitive.

At McIvor Marketing, our goal is to empower your business to make informed decisions regarding attribution models, ultimately helping you achieve your marketing objectives with precision and efficiency.

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