The future is upon us. Google has just announced that it’s making data-driven attribution the default attribution model for all new conversion events on Google Ads. What this means is that we can say goodbye to last-click attribution and say hello to what will eventually be the standard attribution process of the new age.
Here’s what Google had to say:
“Unlike other models, data-driven attribution gives you more accurate results by analyzing all of the relevant data about the marketing moments that led up to a conversion. Data-driven attribution in Google Ads takes multiple signals into account, including the ad format and the time between an ad interaction and the conversion. We also use results from holdback experiments to make our models more accurate and calibrate them to better reflect the true incremental value of your ads. “
For those who understand and are well acquainted with the idea of Search Engine Optimization (SEO), this is rather promising news, yet for the less aware, the same news might just end up enlarging the question mark. Just so we have everyone leveled, we’ll be providing context for a few things.
Conversion
“A conversion”, as defined by Google Ads Help, “is an action that’s counted whenever someone interacts with your ad or free product listing and then takes an action that you’ve defined as valuable to your business, such as an online purchase or a call to your business from a mobile phone”.
If a person interacts with your ad, regardless of where they encountered it, then responds in a way that was highly relevant or beneficial to your business, that’s a conversion.
Attribution
Attribution is more of a psychological concept defined as the action of regarding something caused by something else. For example, to say that an ant bite hurts is to attribute pain to being “bitten by an ant”.
Now that things have been cleared up a bit, just keep in mind that attributions give credit or “describe” conversions for the next sections.
It Pays To Be Precise
No other factor is more important than accuracy (just ask Facebook). Last-click attribution assigns the credit of conversion to whatever was the last element clicked. While it still gives you insight, it can only paint you the bigger picture. Sometimes, the bigger picture is too broad. You want insight that’s more specific and relevant – the juicier details.
While it still won’t measure the entire process, Google emphasizes data-driven attribution’s capacity to offer a more indicative measure when it comes to campaign performance. Where last-click attribution considers whatever was last clicked, data-driven attribution somewhat segments considerations, generally providing more insight and supplying more relevant data.
“There may be certain steps along the way that have a higher probability of leading a customer to complete a conversion. The model then gives more credit to those valuable ad interactions on the customer’s path.”
The Wrap
Nothing is ever just good news. Some would gladly welcome this new model, seeing it as an upgrade that helps make campaign management more streamlined and reasonable. In contrast, others would see it as a double-edged sword, increasing efficiency yet indirectly reducing the freedom of control. Advertising is a very dynamic concept, and in practice, it’s made all the more convoluted.
Some like things automated, and there are those who prefer doing things manually. When it comes to gauging the success and failure of ad performance, it always boils down to how well you can analyze cause and effect. Google plans to roll out data-driven attribution as a default starting in October, but will still have the five other attribution models available for those who might not be too keen on transitioning just yet.
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