What Is Data-Driven Attribution Model in Analytics?

The data-driven attribution (DDA) model in analytics uses algorithms to find and analyze statistically significant data from multiple data sources. It uses actual data from an analytics account to generate a custom model. This helps in assigning the conversion credit to marketing touchpoints throughout the entire customer journey. A custom data-driven model offers a more thorough and actionable view of the best-performing digital channels and keywords, so better decisions can be made about where to invest the marketing resources. DDA analyzes data from all Google products linked to Analytics, such as AdWords, DoubleClick Campaign Manager, and Google Display Network plus data from organic search, direct traffic, and referral traffic. It also incorporates data imported via the Cost Data Upload feature.

The DDA methodology has two parts: (1) analysis of all the available path data in order to develop custom conversion probability models and (2) applying to the probabilistic data set a sophisticated algorithm that assigns partial conversion credit to the marketing touchpoints. DDA uses data from converting as well as non-converting users in order to understand how the presence of specific marketing touchpoints impacts the probability of conversion of your users. The resultant probability models show the likelihood of a user converting at any given point in the path according to a particular sequence of events. Then an algorithm is applied to this probabilistic data set based on a concept called the Shapley Value, developed by Lloyd S. Shapley, the economics Nobel Laureate. It was developed as an approach to fairly distributing the output of a team among the constituent team members.

According to the concept, the team that is analyzed has marketing touchpoints (e.g., Organic Search, Display, and Email) as team members. The team’s output is conversions. The DDA algorithm computes for each marketing touchpoint the counterfactual gains. In other words, DDA draws a comparison between the conversion probability of similar users who are exposed to these touchpoints and the probability scenario when one of these touchpoints doesn’t occur in the path position. 

For the conversion credit for each touchpoint, the actual calculation depends on a comparison of all the different permutations of touchpoints and then normalizing across them. Which means that the DDA algorithm considers the order in which each of the touchpoints occurs. It assigns different credits for different path positions.

Eligibility Checklist for Data-Driven Attribution Model

Not all businesses are eligible for using the DDA model. To use and benefit from DDA, your business must meet the following stringent requirements:

About author

Saurabh Kumar

A marketing enthusiast with a fascination for technology, an interest in tinkering with data and systems, and 4+ years of experience at ebookers, Saurabh Kumar Founder Envigo, a digital marketing agency, in the year 2007. His passion for Digital Marketing led him to launch a data-driven digital marketing solutions agency.

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