Mastering Google’s Attribution Model Changes: How To Adapt Your Advertising Strategy
Are you ready to grow beyond your own expectations?
Google’s bomb drop by removing some of its existing popular attribution models has brought significant changes to the world of digital advertising.
This move is likely to affect various businesses that rely on these models to track their marketing efforts’ success. Advertisers who have relied on these models to analyze their marketing campaigns’ effectiveness and allocate budgets efficiently, now face a new reality.
However, despite initial concerns, this change also provides an opportunity for businesses to enhance their advertising strategies, gain more in-depth insights into consumer behavior, and achieve better returns on their ad spend.
What Are Attribution Models and Why the Change?
Attribution models are algorithms used to determine how much credit each marketing channel deserves for a conversion. They use a variety of data points, including time spent on site, device type and location, to assign credit for conversions. These models have been in place since Google launched its first attribution model back in 2014.
Google’s original model was called “first click” and it assigned 100% of the conversion value to whichever ad or keyword drove traffic directly to your website–the first click that led consumers from their search results page (SERP) to yours.
This was useful because it allowed advertisers who invested heavily in paid ads but didn’t have organic SEO efforts underway yet an easy way of measuring how successful those investments were at driving qualified leads; however, as more sophisticated marketers began using multiple channels like email marketing with retargeting strategies built into them or direct mail campaigns that included follow-up emails tailored specifically towards past visitors who hadn’t converted yet…
Google has altered its current attribution models to reflect the way consumers are interacting with ads better. The search engine giant is inclined more towards the data-driven attribution model that considers touchpoints along the customer journey rather than relying on traditional last-click models.
So, what’s changing?
Starting May 2023, Google will be updating its measurement models, and it’s important that you’re in the know. On April 6th, 2023, Google made an announcement that will have a significant impact on how advertisers attribute value to their marketing touchpoints.
Google will be retiring four attribution models across both Google Ads and Google Analytics: first click, linear, time decay, and position-based models.
Google explained that rules-based attribution models don’t provide the flexibility needed to adapt to evolving consumer journeys. This is why Google has made data-driven attribution the default attribution model in Google Ads and Google Analytics 4. Using Google AI, data-driven attribution can better understand the impact that each touchpoint has on a conversion. When combined with auto bidding, data-driven attribution can help improve performance.
In fact, data-driven attribution is now the most commonly used attribution model for conversions used for automated bidding in Google Ads. Google has seen a decline in the overall use of rules-based models, with less than 3% of Google Ads web conversions attributed using first click, linear, time decay, or position-based models.
From June 2023, you will not be able to select these models for conversion actions in Google Ads that do not already use them.
From July 2023, first click, linear, time decay, and position-based attribution models across Google Ads and Google Analytics 4 will no longer be available.
And finally, starting in September 2023, Google will switch any conversion actions still using these models to data-driven attribution. If you don’t want your conversions to use data-driven attribution, you will be able to use the last click model.
At this point, rules-based models will also be removed from reporting throughout the rest of Google Ads, including the Overview page and the Model comparison report within the Attribution tab.
So, stay ahead of the curve and prepare your marketing strategies accordingly. These changes will have a significant impact on how you measure the success of your campaigns, and it’s crucial that you adapt to them to stay competitive in the marketplace.
How should I adapt my strategy to address this change?
Google announced its first shift to data-driven attribution back in September 2021. For advertisers who didn’t want to use data-driven attribution, Google continued to support open attribution models: first click, linear, time decay, and position-based.
With the first-click model, 100% of the conversions went to the first click, while the linear model split all conversions across all clicks. The time decay model, on the other hand, was based on a half-life formula, and the position-based model gave 40% to the first and last click and 20% to others.
However, things are different now. The only way for advertisers to credit all clicks will be with data-driven attribution. This model is custom-built based on account history and leverages conversion data from the account to determine which touches have the most impact. The best part? Advertisers can track conversions across multiple channels without having to do too much additional work!
With this new shift, advertisers can have a more profound understanding of how their ads are performing across different channels. The data-driven attribution model will enable advertisers to see which touchpoints had the most impact on a conversion. This means that advertisers can make better decisions on how to allocate their ad spend to maximize their return on investment.
So, if you want to stay ahead of the curve and make the most of your ad campaigns, it’s time to embrace data-driven attribution!
Conclusion
Having the right attribution model is crucial for any business to achieve success. The traditional models can be limiting, and transitioning to a new one may seem challenging.
At Upthrust, we recognize this concern and offer our expert guidance to make the process efficient and smooth. We understand that every business has its unique needs, and we leverage our software’s power to tailor custom attribution models for specific requirements.
Our team of experts is well-versed in the latest Google Analytics features, which makes shifting to the data-driven attribution model more seamless. We take a consultative approach to our services, which means we listen closely to our clients’ concerns, goals, KPIs, and design a strategy that fits them best.
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