Position-Based Attribution Model
A method in digital marketing that assigns credit for conversions to different touchpoints based on their position in the customer journey.
Description
The Position-Based Attribution Model, also known as the U-shaped model, is a way to allocate the value of a conversion across various interactions a customer has with a brand. Instead of giving all the credit to the first or last interaction, this model emphasizes the importance of both the first interaction that introduces the customer to the brand and the last interaction that leads to the conversion. Typically, 40% of the credit is given to the first touchpoint, 40% to the last touchpoint, and the remaining 20% is distributed among the additional interactions in between. This model is particularly useful for businesses that have longer sales cycles and multiple touchpoints, as it provides a more balanced understanding of which marketing efforts are contributing to conversions.
Examples
- A potential customer first discovers a beauty brand through a Facebook ad, later reads a blog post about skincare routines on the brand's website, and finally makes a purchase after receiving a promotional email. In this case, the Position-Based Attribution Model would assign 40% of the conversion credit to the Facebook ad, 40% to the promotional email, and the remaining 20% to the blog post engagement.
- An online retailer sees a customer click on a Google search ad, sign up for a newsletter after browsing the site, and then make a purchase through a retargeting ad. Here, the Google search ad and the retargeting ad would each receive 40% credit, while the newsletter sign-up would be allocated 20%.
Additional Information
- Helps marketers understand the value of upper-funnel activities that initiate customer engagement.
- Balances the credit distribution, preventing overemphasis on the final click or interaction.