© Bigabid

Attribution Modeling

What is Attribution Modeling?

Attribution modeling involves a framework for assessing which touchpoints receive acknowledgment, and to what extent, during the journey towards a conversion.

Defining Attribution Modeling in the Mobile Ecosystem

Attribution modeling within the mobile ecosystem pertains to utilizing various approaches to identify the origins of non-organic installations.

Attribution modeling provides advertisers with a system to attribute and quantify the impact of diverse marketing strategies across different channels. This subsequently informs decisions about budget allocation and overall strategies for mobile marketing.

As attribution modeling revolves around assigning value to specific advertising actions performed by users within a defined time frame, advertisers can more accurately pinpoint which channels are most effective in alignment with the company’s objectives.

In essence, attribution modeling serves as a navigational guide for both advertisers and advertising networks. It aids in gauging the user journey and generating revenue from user interactions with advertisements.

3 Types of Attribution Modeling

Given that users often interact with multiple ads on various channels, there are several attribution modeling types:

  1. Last Touch Attribution This is the prevailing standard for attribution modeling. It occurs when an installation or re-engagement is linked to the last interaction, or touchpoint, in the user’s journey within the attribution window. The advertising network responsible for the last touch receives the credit and payment.

    For instance, if the cost per install in the user journey costs $2, the media source that was the last touch—network C—receives full credit.

  2. Multi-Touch Attribution Also referred to as fractional attribution, this approach identifies multiple touchpoints throughout a user’s journey that contribute to a conversion, whether it’s an installation, purchase, or another designated in-app action.

    Multi-touch attribution can occur within a single channel (across one device), span multiple channels (across devices like mobile, desktop, or TV), or even encompass offline interactions.

    In multi-touch attribution, networks A and B in the given example would be credited as assisting in the installation, while network C would receive credit for the installation.

    This form of attribution assigns weighted credit to media sources that indirectly contributed to the conversion. Although it’s not widely used currently, it’s considered a potential future alternative due to its detailed analysis and crediting process.

    The idea is that all media sources involved in the user’s journey prior to the last touch will receive a portion of the payment.

  3. Other Attribution Models The attribution ecosystem determines the specific attribution modeling method used for measurement and payment. Besides multi-touch attribution, other models like U-shaped/position-based attribution and W-shaped attribution adhere to similar principles.

Significance of Attribution Modeling

Attribution modeling enables advertisers to ascertain how to attribute and quantify the performance and value of their media sources in marketing endeavors.

Without a robust attribution model, advertisers lack a comprehensive understanding of user acquisition and revenue generation. This includes detailed insights into specific media sources, user interactions, ad traffic, user quality (retention and lifetime value), and long-term return on advertising spend (ROAS) and return on investment (ROI), among other metrics.

In relation to multi-touch attribution modeling, the multiple touchpoints leading to installations provide a more comprehensive insight into how and why a user converted. This information significantly influences decisions regarding future budget distribution.

Attribution modeling not only supports advertisers’ marketing efforts but also ensures accurate and equitable crediting and payment for installations on the network side. An impartial third-party attribution provider is vital for establishing a reliable, transaction-based attribution reporting system. This mechanism assigns both credit and accountability to networks as warranted.

In summary, attribution modeling serves as the framework within which attribution for mobile installations occurs. It maintains equilibrium and dynamism within the mobile ecosystem for both advertisers and media sources in the long run.

Contact us
Please fill out the form below to submit your interest.