Shared attribution models have become essential for understanding how various platforms contribute to conversions. Unlike single-touch models, shared attribution acknowledges that multiple touchpoints can influence a user’s decision to convert. This creates the need for robust methods to evaluate platform efficiency in such an environment. Here are the top five means to achieve that:
1. Incrementality Testing
Incrementality testing measures the true lift provided by a platform by comparing the behavior of users exposed to ads with a control group that isn’t exposed.
Approach:
- Divide your audience into test and control groups, ensuring both are statistically significant.
- Run campaigns for the test group while excluding the control group from seeing ads.
- Measure the difference in conversion rates to determine the incremental impact.
Why it works: By isolating the effect of the ads, incrementality testing provides a clear view of whether a platform is genuinely driving conversions or simply claiming credit for users who would have converted anyway.
2. Multi-Touch Attribution (MTA) Modeling
MTA assigns credit to each touchpoint along the customer journey, allowing marketers to see how different platforms contribute to conversions.
Approach:
- Implement a data-driven MTA model using third-party attribution tools or in-house solutions.
- Analyze how different platforms perform in terms of first-touch, mid-funnel, and last-touch contributions.
- Regularly update your model to reflect changing user behaviors.
Why it works: MTA provides a more balanced view of performance by recognizing all platforms involved in the journey, making it easier to identify which ones drive the most value.
3. Cost per Action (CPA) by Conversion Stage
Evaluating CPA across different stages of the funnel helps in understanding where a platform excels—whether it’s in generating awareness, nurturing leads, or driving final conversions.
Approach:
- Break down your funnel into distinct stages: awareness, consideration, and conversion.
- Measure the CPA for each platform at each stage.
- Compare performance across platforms and stages to identify strengths and weaknesses.
Why it works: A granular CPA analysis helps you pinpoint which platforms are efficient at specific points in the customer journey, enabling better allocation of budget.
4. Assisted Conversions Analysis
Assisted conversions track how often a platform appears in conversion paths without being the final touchpoint, highlighting its role in supporting the conversion process.
Approach:
- Use analytics tools to track assisted conversions.
- Compare assisted conversion data across platforms.
- Identify platforms with high assist rates but low direct conversions, as these may be undervalued.
Why it works: Platforms with high assist rates play a critical role in nurturing prospects. Recognizing their contribution ensures that you don’t underinvest in key supporting channels.
5. Return on Ad Spend (ROAS) with Attribution Adjustments
ROAS is a fundamental metric, but in a shared attribution environment, it should be adjusted based on the contribution each platform makes.
Approach:
- Calculate ROAS for each platform using both last-click and multi-touch attribution models.
- Adjust your ROAS targets based on incremental contribution and assisted conversions.
- Use this adjusted ROAS to guide budget allocation.
Why it works: An attribution-adjusted ROAS accounts for the real value platforms bring, ensuring that your budget is directed towards channels that genuinely drive incremental revenue.
Conclusion
Evaluating platform efficiency in a shared attribution environment requires a nuanced approach. Incrementality testing, multi-touch attribution modeling, stage-specific CPA analysis, assisted conversions tracking, and attribution-adjusted ROAS are five of the most effective methods. By implementing these techniques, marketers can gain a clearer understanding of platform performance and make smarter decisions about where to invest their advertising dollars.
In a world where touchpoints are increasingly interconnected, adopting these advanced evaluation methods is key to maintaining a competitive edge and maximizing ROI.