Understanding AdWords Attribution Model

If want to maximize your AdWords budget, then it’s important to determine which keywords, ads, and campaigns get credit for conversions. Attribution modeling has become a major topic of interest everywhere.

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What is AdWords attribution modeling?

It is simply the practice of understanding and giving credit to ad groups, campaigns, and various keywords in AdWords which eventually lead to conversions. In simple terms, it is a set of some rules which determine how conversion credit needs to be attributed to the ad groups, campaigns, and various keywords in AdWords. This model used by AdWords is the last AdWords click’. This last AdWords click in the conversion path receives all the conversion credit in Google AdWords.

Why use attribution modeling?

The major reason for using attribution modeling in Google AdWords is to understand ad groups, keywords and campaigns in the initiation, assistance and completion of AdWords conversion. It is through the AdWords attribution modeling where one is able to understand how different users search for your product. However, before this, you need to have a clear understanding of how the conversions are counted in AdWords and also how they can be different from conversions that are reported by Google analytics.

Attribution models used by Google AdWords

1. Last click-The last click receives a credit for conversions. Whenever a particular customer clicks 2 of your ads, the AdWords credits the conversion to the second ad as well as the associated keyword and campaign.

2. First click-Here, the first click receives all the conversion credit. Whenever a customer clicks 2 or more of your ads, then AdWords credits the conversion to the first ad.

3. Linear- Conversion credit is equally distributed to each and every click a customer makes before converting.

4. Time decay- Each click from a customer receives some credit, although the closer the click in the final conversion journey, the more credit it gets. For instance, if a customer clicks today, and thereafter a week and converts the same day, the click today gets some conversion credit although the click after a week will get a lot more credit.

5. Position based- Whenever there are more than 2 clicks in the conversion journey, both the first and the last clicks will receive 40% of the conversion credit and then the remaining 20% will be evenly distributed to the intervening clicks.

6. Data driven- Here, Google checks at many signals to distribute conversion credit based on the algorithmic understanding of the general importance of each click to the final conversion. This particular method is majorly available for accounts that have a lot of data. Google hasn’t specified the amount of data that one should have, although tens of thousands of clicks each month seem to be the way forward.

In conclusion, if you use a more accurate attribution model, it will help you improve your return on investment. For many years, last click attribution has been a default attribution method. However, it is no generally the best model to use. Data driven attribution is recommended as the best model simply because Google algorithms analyze many signals before assigning credit to conversion clicks.