Changes To AdWords Campaigns Can Affect Your Strategy

Changes To AdWords Campaigns Can Affect Your Strategy

Google explains that an attribution model is the rule that decides how credit for sales and conversions is assigned during points of contact along the conversion path. Currently, Google AdWords defaults to last-click attribution, which applies 100% attribution credit to the click just before the conversion. Since every company has very different goals, the latest changes to the attribution models can make a difference in overall strategies.

Viewing A Change Before You Make A Change

Making a change to your attribution models won’t change the account performance. It can, however, change your perception of performance when it is based on the changes you make to determine what counts as a conversion. Different models have different reporting when it comes to existing data on your accounts, and changing is easy as long as you inform your stakeholders of the major differences they’ll see.

Rest assured that a new attribution model won’t throw your account into immediate disarray. You have the ability to view the attribution models page to discover what the various models are saying about your data without having to make a change to your default reporting. You can get to the tool by going to conversions > attribution > model comparison tool in Google Analytics.

The Five Different Attribution Models

Here are the five different attribution models that you can choose from in AdWords:

  • Linear model. Every touch point that contributed to a conversion gets the same score on this model, from the first click to the last click. This model can be beneficial for companies who want to give as much credit as possible to all keywords that played a role in the conversion consideration process of the user, including long-tail keywords.
  • Time decay model.  The touch points closest to the sale or conversion will get the most credit here. Keywords that consumers seek out within hours of the conversion are weighted the highest. Being so similar to the last-click model, this is considered the most mildly conservative change you can make to an existing account.
  • Position-based model. 20% of the credit is distributed evenly to middle interactions, while 40% is given to both the first and last interactions. A model that is not commonly used, it looks to take some credit away from the last click, limit credit on repetitive searches in the middle, and give more credit to the very first interaction.
  • First-click model.  100% of the credit is given to the first touch point. Typically used when a company is looking to grow and focusing on new user acquisition, it could be used to introduce your offerings to new prospects you can remarket to.
  • Data-driven attribution model. Of all the attribution models, this one has the most functionality when viewed from the outside. This method analyzes different data to determine the specific weighting when a conversion occurs by redistributing credit to focus on associated keywords, ad groups, and campaigns.

What To Expect From Data-Driven Attribution

Data-Driven Attribution (DDA) differs from the rules-based attribution models in that is uses the conversion data from your account to calculate how each search ad click contributes along the conversion path. The model looks at what your customers are doing prior to converting, and when they don’t convert, to measure the statistics that are important. By using Google’s machine learning, the models will become fine-tuned to enrich your business and lend valuable information.

Google has said that businesses can expect a 5%-10% increase in conversions from data-driven attribution, and it’s not unreasonable to expect a CPA increase of 10% to 20% when using Google’s automated products. If you need more information on Google AdWords and other automated software applications, contact today.