When it comes to updating software we tend to delay changing out the systems we already use, which is why making a partnership with an attribution modeling company is crucial.
The last click attribution model isn’t just antiquated in today’s advertising and marketing world — it’s been outmoded for years. In order to remain competitive, brands that have not kept pace should consider partnering with an advanced attribution modeling company.
Let’s take a closer look at why the last click model is lacking, and how businesses can develop newer and more effective approaches.
Turning the page on last click
Conversions, generally, come after a series of touch points between the consumer and the individual elements within the marketing funnel. Given this multitude of touch points (and lacking access to each consumer’s thinking process), assigning credit for conversions has historically been a challenging task.
The last click model offers a simple — but highly inadequate — solution to this problem: The last click or ad event gets all the credit. Of course, in many cases the last click or ad event may have been entirely irrelevant. In fact, it may have even been a net negative in the conversion process, giving the consumer a moment of doubt before converting. Nevertheless, under this model, it earns full credit to the exclusion of all other touch points.
Despite these profound limitations, last click remains widely used. According to data from eMarketer, 87% of companies with more than 100 workers and at least one digital advertising channel will use attribution modeling. Yet only 58.3% of these companies will use multichannel modeling, which assigns credit to multiple touch points.
So why are so many organizations sticking with a process that provides such limited visibility into the efficacy of a campaign? There are a few reasons. First, implementing new, more sophisticated models is a challenge, while last click is simple. Organizational inertia — and the fear of integrating more complicated approaches — helps keep last click in play.
Observers also point out that data is often siloed, and marketers aren’t incentivized to share information across an organization. Additionally, many in the C-suite haven’t taken steps to push marketers away from last click modeling, either due to a lack of understanding or by simply viewing it as a low priority.
A better solution
As eMarketer points out, there has long been skepticism among C-suite executives about certain aspects of digital marketing. Namely, concern about marketers using vanity metrics that make them look good and a lack of a clear link to concrete outcomes.
Dumping last click in favor of a more sophisticated modeling approach can play an instrumental part in diminishing such concerns. With a more fine-tuned modeling methodology linked to core outcomes, brands can gain much deeper visibility into the efficacy of their efforts, determining causality rather than correlation.
- Linear models (which assign credit equally)
- Time decay models (where more credit is given closer to the conversion)
- Position-based models (where the first and last touch points earn the largest credit)
- Data-driven models (which harness machine learning technology to assign credit and can learn over time).
At BIGEYE, we’re committed to providing our clients with sophisticated attribution models that provide greater clarity into the buying process and campaign performance.
If you would like to hear more about what an attribution modeling company can do for you, please don’t hesitate to reach out to us today.