In this article we will look at the basics of attribution modelling and why it can play a crucial role for your e-commerce. We will discuss what, why and how to deal with attribution.
What is Attribution Modelling?
Attribution modelling is a system which can help you get the most from your marketing mix. Today many shoppers are used to searching for information and best prices so they will not necessarily purchase the first offer they see online. However, each time they return to your page they might do so through a different channel. Attribution modelling means that you look at these different channels and encounters or interactions and give them a value so let's have a look at the different types of interactions that can take place:
While having an E-commerce store 10 years ago gave you a competitive edge compared to the stores/outlets selling similar products, today's customer's buying pattern has changed a lot. Today having an E-commerce store is not sufficient to gain the audience and target the customers just as easy as we thought.
In today’s competitive world, Google ads can be a great way for businesses to stand out from other search results. But running ads is getting more and more expensive, and many eCommerce companies aren’t optimising their search strategies as much as they could in order to increase their ads’ ROI.
A primary query that most clients pose is – “How much traffic will Google Ads thieve away from organic channels in general.”
This happens to be a major concern for most business owners. Why pay for
something you can get done for free?!
We aimed to figure out that very same puzzle. (You’re welcome!)
Is Google Ads, the Robin Hood to other organic channels or does it take away from them and keep to itself?
That is the question!
To complete a successful attempt at understanding this enigma, several ecommerce accounts were put through Google’s Analytics grinder.
We will be expanding on the results in this document.
Bear in mind though, we are talking about accounts that have had more than one touchpoint.
So, if a client were to hypothetically, to punch in the URL to your portal and purchase some of your ‘merch’, (nice bubble) you aren’t going to find them in the reports we’re touching upon in this article.
The most common path taken by clients who utilize Google Analytics is that of paid search x2.
In layman speak, if John/Jane Doe were to click on a paid ad twice before making a purchase, it would account for 2.5% of the total sales, during that respective period.
The second most common path to conversion is that of a client approaching your business directly.
As in, if Mr. or Ms. Doe stumbled upon your website by way of a google shopping ad, and upon learning of your company’s existence, were to come back to said portal and make a purchase – this would result in a ‘direct sale.’
Although paid search x2 amounts to more conversions, paid search (direct) accounts for higher revenues.
By how much you ask?
3.4% of the total sales.
And, through Google Analytics, this is flagged as a direct conversion, irrespective of the fact that the client first found your business through a paid source.
Google Has Introduced 4 New Search Ad Position Metrics To Get The Most Out Of Average Position.
Here is our top 5 sources for continuous learning within Digital Marketing and Google Ads, Youtube, Blog, Online, Apps or pod.
At Keywordio we work really hard to learn fast and share our insights. Digital marketing and Google Ads is a fast pace environment and you can always learn something new that’s why we combine webinars, events and written content to share insights the way that suits your taste. For myself, I have set a morning routine to start every day reading one article, and on Fridays I have blocked 2 hours in my schedule for deep learning. This is one of my favorite moments in the week where I can deep dive into a subject, run an interesting tutorial and reflect on how to apply that into our current projects.