Marketers are often unable to prioritize the marketing spend on these channels in a way that accounts for their ability to influence and drive sales.
Given customers' increasing preference to switch channels while transacting, attributing a conversion to the channel where the transaction was completed can offer misleading or incorrect insights. Organizations can end up redirecting investments and marketing strategies to channels that, in reality, have little influence over their customers' experience and buying decisions. Capturing the contribution from various channels, both online and offline, can help design a marketing strategy that optimizes marketing spend.
Marketing attribution models can help companies analyze this data and identify the channels that yield optimal return on investment (ROI). These models assign values or credit to different
channels based on the extent they influence consumer purchase behavior. The higher the value, the greater is the likely contribution from that channel. Attribution also offers the ability to understand the impact of various channels on the entire sales cycle and leverage them to optimize the marketing spend.
Over time, backed by technology and analytics, many of the attribution methods have matured, allowing companies to migrate to a multi-click and cross-funnel view of the final purchase. From justifying to optimizing digital spend and rethinking the channel mix to improve performance, attribution models are proving critical for marketers across industries. By applying the right attribution model, marketers will be able to answer strategic questions on the ideal distribution of budget across advertising and marketing channels, as well as identify the channel that maximizes returns. By adopting the appropriate attribution model, companies can direct their spending and messaging to maximize influence and improve their chances of reaching the right customers, at the right time and place, with the right message.