There are five main types of attribution modeling that you'll see advertisers use, so it's important to choose the right one for your business's goals.
Last-touch attribution modeling
A last interaction model is a type of attribution modeling that gives full credit to the last touchpoint a lead had with a campaign.
For example, say someone interacted with your website, signed up for your email newsletter in exchange for a discount, and eventually responded to an email campaign before converting.
In this case, 100% of the credit would go to the email campaign because that was the last touchpoint before the customer converted.
Last-touch attribution modeling is best for businesses with short buying cycles because it's easy to implement and understand. With last-touch attribution modeling, you can quickly identify the exact touchpoint that leads to customer conversion.
First-touch attribution modeling
A first-interaction attribution model is the complete opposite of a last-interaction model because all the credit for the conversion goes to the first touchpoint.
For example, in the case above, full credit would go to the website because that is where the customer journey started. First-touch attribution modeling is best for businesses with a short buying cycle because you need to focus on that initial interaction someone has with your business.
Linear attribution modeling
A linear attribution model disperses equal credit across all the channels and touchpoints a customer interacts with. So in the case above, equal credit would go to the website, newsletter, and email campaign.
Linear attribution modeling is an easy way to identify the ROI of each channel because it doesn't take into consideration complex metrics or analytics.
Time-decay attribution modeling
The time-decay attribution model gives credit to all the touchpoints and channels, but it also takes into consideration how long a person spent at each point. This can help advertisers determine which channels are most effective and which could use improvement.
The touchpoints that occurred closest to the point of conversion have the most value. This type of attribution model is best for longer sales cycles to determine which channels your customers spend the most time on.
Position-based attribution modeling
Position-based attribution model, also known as a U-shaped attribution model, distributes credit between the first and last touchpoints.
In most cases, 40% of the credit is given to the first touchpoint, 40% is given to the last, and 20% is spread out across all the touchpoints that happened in between.
A position-based attribution model is best for businesses with several touch points before a conversion. This allows you to see each touchpoint individually so you can identify which are performing the best.