The position-based attribution model is one of the newest models to be implemented in the digital advertising space.
With this method, advertisers compete to place their ads on a device or in an environment - and where does the credit go?
Sometimes it comes down to how long the ad was on that device for, but more often than not, it is based upon what type of conversion occurred as a result of that advertiser's ad.
Get all the details on this fascinating new model and how it works
What is an Attribution model :
An attribution model is a tool used by marketers to determine how much of any sales activity was generated through their own marketing efforts, and how much was generated by other marketing efforts.
A typical attribution model will determine the proportion of any given sales activity that can be attributed to each of an organization's digital channels.
Internet marketers use attribution modeling technology to track the performance of their campaigns and the value they are delivering to their customers.
This provides a way for them to measure the effectiveness of their marketing campaigns and deliver better quality, more targeted digital products.
Without attribution, marketers can't know how well their campaigns are performing and whether they're delivering value to their customers.
The first step in building an attribution model is to identify each of your business's sales channels.
When you do this, don't just focus on the department or product that generates the majority of revenue for your organization.
In fact, if you don't segment your data properly, you are likely to skew the data that you get from traditional analytics tools.
You need to have your data accurately segmented in order to obtain the most accurate attribution.
You also want to know where new customers are coming from and how much traffic each channel is delivering to your site.
What is the position-based attribution model:
The position-based attribution model is a marketing technique that groups visitors into categories based on their geographical location.
The idea of this strategy is to increase clicks to your website's homepage by targeting specific geographic locations.
Website owners can use the position-based attribution model to see where visitors come from and how many visitors arrive from each location.
The Position-Based attribution model attributes credit to all touchpoints along the conversion journey by granting the top click 40% credit, the second click 40%, the last click 40 percent, and the resting 20% to the rest.
This means that the rest of the credit is attributed to other touchpoints in the process.
The main goal when using this model is to increase the conversion rate of your website.
Using the position-based attribution model, you can measure the conversion rate of each click and its impact on the overall campaign performance.
The result will be insight into which content, features and campaigns are effectively increasing your effectiveness.
Relevance and trust, while not the most important drivers of conversion, can certainly be an important part of it.
So you would want to focus on what you want to achieve, and make sure that it is relevant to your target audience.
Why choose a position-based attribution model:
Position-based attribution models are well suited to agencies, publishers, and other businesses that have little control over the way content is being created.
With these models, the creator of a piece of content can be credited for their position in the distribution process, rather than for their effort or contribution.
Position-based attribution models are a convenient way to quantify attribution and take a more active role in the content creation process, especially for agencies, publishers, and other businesses that may not have the ability to impact where content is shared.
Position-based attribution models make the assumption that some influencers are better than others.
It’s often said that when it comes to social media, only a few influencers (or “influencers”) can move the needle.
In the case of social media, it’s different animal altogether.
When it comes to social media, most people have a small handful of influencers that they follow or are followed by.
The influencers that typically matter are those people who have a large number of followers, are respected by their peers and can move the needle.
Benefits of position base attribution model:
1) Higher ROI
Businesses can significantly increase ROI with the help of a position-based attribution model. This attribution model is typically implemented with a single, unified view of accounts, giving marketers more opportunities to capitalize on customer behavior data.
Multiple roles can be assigned to a single customer, which allows you to identify the source of an action.
This leads to improved cross-selling opportunities and ultimately, increased revenue.
2) More accurate attribution
Position-based attribution model is a method of attributing ratings to consumers that uses their behavior, and not the products they buy.
The use of a position-based attribution model may be expensive to implement, as it requires the tracking of the shopping habits of large groups of consumers to be able to determine how a rating of a specific product is received on different platforms.
However, the use of such models will help accurate attribution , as it is not affected by individual consumer differences in consumption behavior or preferences.
3) Faster inclusion
Position-based attribution models are gaining more popularity because of their advantages.
The main benefits of this kind of model are that it is faster to include, there is less manipulation, and they can be applied both in organic as well as paid search, which means that you can use them across different channels.
4) Helps prevent fraud
An interesting aspect of positioning-based attribution is that it helps prevent fraud.
Even though a customer may not have interacted with the brand at all, they may still be driven to visit the website and purchase the product.
This is because of the powerful positioning that has been built up through advertising and customer loyalty programs.
By using a positioning-based attribution model, you know that the person who purchased the product was not just a coincidence.
And this provides a much stronger level of confidence that the person’s actions were genuine, rather than just an error in your database.
Drawbacks of Position based attribution model:
- With the advent of social media marketing, position-based attribution has become a highly sought after stat to track.
- Despite its popularity, many marketers are beginning to recognize some limitations of this approach due to the way it underestimates how users experience the brand.
- When the user engages, it affects the brand in a short-term basis. However, when that user interacts with other customers, it is a long-term effect.
- In other words, an interaction with one user does not represent the same interaction to another customer.
- The other major drawback of position-based attribution is that it does not accurately reflect the brand’s overall effectiveness on the market.
- The way consumers use the brand determines how effective it is.
- In other words, the brand’s overall impact on the market is more important than where it has been placed on particular search engines.
The position based attribution model is a major improvement over the legacy ad-based model.
With the position based attribution model, you can finally see your ads in context, not just on its own.
I hope this article has given you a better understanding of position based attribution model and its possibilities.
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