← Back to Blog

Understanding Attribution Models in Google Ads

Topic: Attribution Models
Understanding Attribution Models in Google Ads

Introduction

In the world of online advertising, understanding how different ads contribute to conversions is crucial for optimizing performance. Attribution models play a key role in determining how much credit each ad interaction receives for conversions. In this article, we'll explore various attribution models available in Google Ads and how to effectively use them. We'll also discuss the benefits of using attribution models and provide practical examples.

Table of Contents

  • What are Attribution Models?
  • Benefits of Attribution Models
  • Types of Attribution Models in Google Ads
  • Example of Attribution Models in Action
  • Setting Attribution Models for Conversions and Bidding
  • Using the Model Comparison Report
  • Analyzing CPA and ROAS for Different Attribution Models
  • How to Find and Set an Attribution Model

What are Attribution Models?

Attribution models allow advertisers to assign credit to different ad interactions that contribute to conversions. Instead of relying solely on a 'last click' basis, where all credit goes to the last-clicked ad, attribution models provide a more comprehensive understanding of the conversion journey. By using different attribution models, advertisers can determine how various ads perform and optimize their campaigns accordingly.

Benefits of Attribution Models

Using attribution models offers several advantages for advertisers:

  • Reach customers earlier in the purchase cycle
  • Match your business with a model that aligns with how people search
  • Improve bidding strategies based on a deeper understanding of ad performance

Types of Attribution Models in Google Ads

Google Ads currently provides several attribution models:

  • Last click: Gives all credit to the last-clicked ad
  • First click: Gives all credit to the first-clicked ad
  • Linear: Distributes credit equally across all ad interactions
  • Time decay: Gives more credit to recent ad interactions
  • Position-based: Gives credit to both the first and last ad interactions
  • Data-driven: Uses historical data to determine credit allocation

Example of Attribution Models in Action

Let's say you own a restaurant and a customer finds your site through a series of ad clicks. In the 'Last click' model, the last-clicked ad receives full credit. However, in the 'Linear' model, credit is split equally among all ad interactions. This example demonstrates how different attribution models can impact credit allocation.

Setting Attribution Models for Conversions and Bidding

The attribution model setting in Google Ads allows you to choose how to attribute conversions for each conversion action. This setting affects how conversions are counted in your reports and can impact bidding strategies. It's important to understand how different attribution models impact your campaigns and adjust your settings accordingly.

Using the Model Comparison Report

The Model Comparison report in Google Ads enables you to compare two attribution models side-by-side. This allows you to identify undervalued keywords and make informed decisions about your advertising strategy. Analyzing your CPA and ROAS for different attribution models can help reveal the true value of your campaigns and keywords.

How to Find and Set an Attribution Model

You can find and set the attribution model for your conversions within Google Ads. The process involves navigating to the Attribution section and selecting the desired attribution model. You can also compare different models and change the attribution model for existing conversion actions.

Conclusion

Understanding and utilizing attribution models in Google Ads is essential for maximizing the effectiveness of your advertising campaigns. By choosing the right attribution model, you can gain valuable insights into ad performance, optimize bidding strategies, and reach customers at different stages of the conversion journey. If you need assistance with implementing attribution models or optimizing your Google Ads campaigns, reach out to Anthony Herrera at anthony@fullstackmarketing.digital.

In conclusion, attribution models play a vital role in understanding the impact of different ad interactions on conversions. By using attribution models, advertisers can gain a deeper understanding of their campaigns and make data-driven decisions. To get started with attribution models in Google Ads, navigate to the Attribution section and explore the available options. Remember to analyze your CPA and ROAS for different models and use the Model Comparison report to identify undervalued keywords. If you need any assistance or guidance, feel free to contact Anthony Herrera at anthony@fullstackmarketing.digital.