Beyond the last click: Using attribution models to understand your Google Ads performance

What are attribution models for Google Ads?

In today’s multi-channel world, customers rarely make a purchase after just one interaction with a brand. They might see your ad on social media, click through to your website, sign up for your email list, and finally convert after a search engine query. But how do you know which touchpoint was the key driver of that conversion?

Attribution models use Google AI to help you unravel this complex web of interactions within the Google ecosystem by assigning “credit” — or value — to the touchpoints that drive the most action. This process uses sophisticated algorithms to analyse which interactions have the most impact in leading to a conversion.

For example, imagine you’re running ads on Search, Display, and YouTube. A customer might first click on a Display ad, later search for your brand and click on a Search ad, then make a purchase after seeing your product or service featured on YouTube. Attribution models analyse this sequence of interactions and assign a percentage of credit to each ad to pinpoint which touchpoints had the biggest influence.

By understanding which ads are more valuable to your business, you can make data-driven decisions to fine-tune your marketing strategy, improving your messaging, targeting, and budget allocation for greater success.

What different attribution models are available?

Google Ads offers two main attribution models to help you understand how your ads contribute to conversions: data-driven attribution (DDA) and last click. The model you choose ultimately depends on which aspect of the customer journey you want to focus on:

• Data-driven attribution (DDA)

  This is Google Ads’ default and most recommended model. It uses advanced AI to analyse your specific account data, evaluating the entire customer journey from the first click to the final conversion. DDA then assigns credit to each touchpoint based on its observed impact on conversions, providing a more nuanced understanding of how your ads work together to drive results. This model is particularly beneficial for businesses with complex customer journeys involving multiple touchpoints across various campaigns and channels.

• Last click

  This model gives all credit for the conversion to the last ad a customer clicked before completing a conversion action. While it doesn’t account for the influence of earlier touchpoints in the customer journey, its simplicity can be useful for quick analysis or when you primarily focus on the final touchpoint. Last-click attribution is often preferred by businesses with short sales cycles, campaigns focused on direct response, or those primarily interested in understanding the immediate impact of their ads. It can also be a good starting point for businesses new to attribution or those with limited data.
  

How to use attribution models to improve your marketing

Choosing the right attribution model empowers you to make informed, data-driven decisions that optimise your Google Ads performance. By understanding how different touchpoints contribute to conversions, you can:

• Identify high-performing campaigns, ad groups, keywords, and ads. Focus your efforts and budget on the strategies that deliver the best results.
  
• Compare attribution models using the model comparison report. This helps you assess the impact of different models on your campaign evaluation and budget allocation.
  
• Allocate your budget more effectively. Shift spending towards campaigns and channels proven to drive conversions.
  
• Refine your targeting and messaging. Tailor your ads to reach potential customers at the right time with the most relevant message, ultimately driving more qualified leads or sales.

Attribution models are an invaluable tool for gaining useful insights into your customers’ journeys. By understanding how users interact with your ads, you can optimise your campaigns, attract more customers, and be best placed to achieve your marketing goals.