Through the Google Ads attribution model, advertisers can gain a clearer understanding of which ad interactions lead to conversions. With this information, you can optimize your Google Ads campaigns to increase sales and maximize profit for your business based on the amount spent. What is the Google Ads attribution model? Let’s find out with Optimal Agency in the article below!
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What are Google Ads attribution model?
During a customer’s journey on Google, they encounter various touchpoints with your business before taking a conversion action. The question is, which interactions should get credit for the sale?
This is where Google Ads attribution models come into play. They provide rules to allocate credit for sales and conversions across different touchpoints.
Through the Google Ads attribution model, businesses can understand user interactions with their ads and website before completing a desired action. It helps accurately identify which advertising campaigns influence customer behavior. From there, you can devise a suitable strategy to optimize your advertising campaigns for the best results.
However, leading customers to conversion isn’t just about users searching for the right keywords or clicking on ads. It’s a process. Implementing advertising attribution models provides data on channels that play a significant role in the customer conversion journey.
Why are Google Ads attribution model important?
Attribution models play a crucial role in Google Ads campaigns as follows:
Improve campaign performance
By using attribution models, you can identify underperforming marketing channels or touchpoints. If you find that certain channels or ads consistently deliver little or no conversion value, you can improve or reallocate resources to more effective channels. This ongoing process can enhance the overall performance of your campaign.
Optimize ad spending
Attribution models help distribute your advertising budget more effectively. Instead of spreading your budget across various advertising channels without understanding their impact, Google Ads attribution models inform you which touchpoints between your business and customers are driving conversions. This allows you to allocate more budget to effective touchpoints and maximize advertising ROI.
Reach customers earlier
Some Google Ads attribution models help you identify whether previous touchpoints are attracting customers. This enables businesses to engage and impact customers early in their journey, encouraging conversions.
Streamline bidding process
When you understand how your ads perform and which campaigns drive the most sales, it’s easier to make bidding decisions for advertising. Resources can be allocated to high-performing ads, optimizing Google Ads cost and saving time when running multiple campaigns simultaneously.
Current Google Ads attribution model
In Google Ads, various attribution models exist to understand the customer journey and determine how credit is allocated across different touchpoints. Each model has its advantages, disadvantages, and operating mechanisms.
Initially, Google Ads offered 6 attribution models for advertisers to choose the best model for their advertising campaign objectives. However, as of now, only two attribution models are available in Google Ads.
In April 2023, Google Ads announced that they would be phasing out 4 attribution models. These include the first-click, linear, time decay, and position-based attribution models.
Currently, the default attribution model in Google Ads is the Data-Driven model. Businesses can choose between the Data-Driven model or the last-click model for their conversion events. The Data-Driven attribution model has become the most popular model for automated bidding in Google Ads.
Last click attribution model
In this model, all the credit for a conversion is attributed to the last click and corresponding keyword that the customer interacted with your ad before completing the desired action.
Although this model is straightforward to implement, it doesn’t provide a comprehensive view of the customer journey as it ignores previous touchpoints. This model is suitable for businesses with shorter sales cycles, fewer touchpoints before conversion, or lower-value products that don’t require much consideration from customers.
Data-driven attribution models
This model changes the game for advertisers as it utilizes your data to distribute credit based on user behavior.
Unlike other models, the Google Ads Data-Driven attribution model leverages machine learning algorithms to analyze vast amounts of data from your Google Ads account, website interactions, and conversions.
This unique feature provides a more accurate reflection of how different touchpoints contribute to conversions. The Data-Driven model is also the new default attribution model for all allocation events in Google Ads.
The model then examines the impact of each interaction and determines the contribution value based on the actual influence of that interaction in driving conversions and adjusting ad campaigns to align with each unique customer journey.
This model is suitable for businesses with complex customer journeys or offering high-value products that require longer customer consideration.
How to choose the best Google Ads attribution model
Choosing the right attribution model will influence your advertising strategy and budget allocation. Selecting the appropriate model depends on various factors such as business goals, products or services, and customer behavior. Here are some criteria to consider when determining the best attribution model for your Google Ads campaign:
Customer journey
Understand how customers typically interact with your brand before making a conversion. Understanding this journey will help you adjust your attribution model to reality.
Identify key touchpoints
Identify the touchpoints that have the most impact in driving conversions for your business. Whether it’s the first interaction to build awareness, the last interaction to finalize a sale, or specific interactions in between, the best attribution model should provide appropriate credit for these key touchpoints.
Industry and product type
The type of business and nature of your product or service can influence the choice of the Google Ads attribution model. E-commerce businesses might find the last-click attribution model suitable, while businesses with long sales cycles or high-value products may find the Data-Driven model more appropriate.
Budget and resources
These are crucial factors to consider when deciding which attribution model to choose. Typically, data-driven attribution models are more expensive and require more data to implement. Therefore, if you have budget constraints, the last-click attribution model might be a more suitable option.
In conclusion, you now have a clearer understanding of the Google Ads attribution model and know how to choose the most suitable model. Hopefully, this information will assist you in implementing effective Google Ads campaigns.
Please see more:
- Tracking form using Google Tag Manager
- How to receive money from Google Adsense?
- How to create a Google Ads video campaigns easily
Frequently Asked Questions
When you select a model, and get all the data but want to test it, you can change to another attribution model as follows:
Go to your Google Ads account, in the navigation bar, click the Conversions drop-down menu and select Settings. Next, select the campaign you want to edit and click the Edit settings option in the bottom right corner.
You can use last-click attribution when your business has a short sales cycle or if you sell impulse-buy products. For example, let’s say you’re an e-commerce store running a limited-time sale.
