In 2024, digital advertising spending in the United States is set to reach a collective $298.4B as advertisers spend more money than ever in hopes of generating brand awareness, acquiring leads, and driving conversions.
That being said, marketers need a way of knowing which of the channels they use are making the biggest impact on the customer journey and thus yielding the strongest return on investment (ROI). Numerous models are available to help marketers discover those answers, and the position-based attribution model is one of them.
What Is Position-Based Attribution?
Position-based attribution, also known as U-shaped attribution, evaluates the effects of multiple marketing touchpoints by acknowledging that a customer’s purchasing decision is influenced by more than one interaction. That is to say, customers rarely make a purchase after interacting with your brand just once; instead, they need to be nurtured via multiple interactions.
Therefore, instead of assigning full credit to a single touchpoint, position-based attribution awards the most credit to the first and last interactions, then divvies out a small amount of credit to all of the touchpoints in between the awareness and conversion stages of the customer journey.
Benefits of Position-Based Attribution
While it is a bit more complex compared to other single-touchpoint attribution models (like first-touch or last-touch frameworks), position-based attribution offers more detailed insights into consumer preferences, a distinction that has helped it gain a lot of traction with marketers as of late.
In addition, the position-based attribution model offers the following benefits:
A Balanced Perspective of the Customer Journey
By valuing multiple touchpoints, you’ll be able to gain a more holistic understanding of which channels and content types are most effective at different stages of the sales funnel. You can account for the initial interaction with your brand as well as the final touchpoint that prompted the customer to make a purchase.
Optimized Marketing Spend
When you only consider one touchpoint, your marketing spending can become skewed, but the position-based attribution model offsets that imbalance by providing a clearer view of which channels work and which don’t; from there, you’ll be able to allocate your marketing spending to maximize your brand’s reach and impact.
Improved Campaign Strategies
Insights from position-based attribution can guide you in tailoring your strategies to focus on the most influential touchpoints. In turn, that will increase the overall customer experience and potentially boost your conversion rates.
Enhanced ROI Measurement
The U-shaped nature of position-based attribution allows for more accurate measurement of ROIs by accounting for the value of both direct and indirect marketing efforts; once you have a strong gauge of your ROI, you can take steps to optimize it.
Implementing Position-Based Attribution
Adopting a point-based attribution model requires comprehensive marketing campaign data and powerful analytical tools; with that in mind, here’s how to get started:
Conduct Proper Data Collection
Ensure that you’re collecting data across all marketing channels and touchpoints, including web analytics, customer relationship management (CRM) data, social media interactions, and data from any other platforms where customers might engage with your brand, such as connected TV (CTV) platforms.
Choose the Right Tools
Make use of attribution modeling tools or platforms that support position-based attribution. Many of today’s marketing analytics and automation platforms offer customizable attribution models you can tailor to suit your needs.
Define Important Touchpoints
Identify and define the critical touchpoints of your customers’ journeys, from their initial awareness through to conversion. In addition, consider which touchpoints are most effective at each task; for instance, you may find that CTV is your key driver of brand awareness, while Facebook is a powerful conversion channel.
Apply the Position-Based Model
Next, apply the position-based model to assign credit for conversions, brand awareness, and lead nurturing. The model will provide valuable insights into your important touchpoints and the role they play in the customer journey.
Analyze and Improve
Review the insights generated by the position-based attribution model to understand the impact of different marketing channels and campaigns, then use that information to refine your marketing plan, reallocating budget and resources to the most effective touchpoints.
Is Position-Based Attribution the Ideal Approach for Your Business?
If you want to better understand the customer journey and pinpoint its most important touchpoints, the position-based model can be a great addition to your attribution strategy. While it may require a bit more effort to implement and manage, the insights gained from a U-shaped model offer a more nuanced view of the customer journey than single-touch models, which can be invaluable as you navigate today’s digital marketing environment.
