What is the attribution problem?

The attribution problem in marketing refers to the challenge of accurately determining how much credit each marketing touchpoint or channel should receive for driving a desired outcome, such as a conversion or sale. Some key aspects of the attribution problem include:

1. Multiple touchpoints: Customers often interact with a brand through various channels before converting, making it difficult to isolate the impact of any single touchpoint.

   
   

2. Complex customer journeys: The path to purchase is rarely linear, with customers moving back and forth between channels.

   
   

3. Data fragmentation: Information about customer interactions is often spread across different platforms and systems.

   
   

4. Time delays: There can be significant time lags between initial touchpoints and final conversions.

   
   

5. Cross-device tracking: Customers may use multiple devices throughout their journey, complicating tracking.

   
   

6. Offline interactions: It's challenging to account for offline touchpoints in digital attribution models.

   
   

7. Model selection: There are various attribution models (e.g., first-click, linear, time decay), each with pros and cons.

   
   

8. Incrementality: Only models like WorkMagic's Incrementality-adjusted Attribution factor in incremental impact based on incrementality testing.

   
   

9. Privacy concerns: Increasing privacy regulations make it harder to collect comprehensive customer journey data.
   
     

Solving the attribution problem is crucial for marketers to optimize their marketing mix and budgets effectively. More sophisticated approaches like Incrementality-based Attribution and data-driven attribution aim to address some of these challenges.