Introduction
In a digital ecosystem where consumers interact with a brand across multiple channels, marketing attribution becomes a major challenge. Advertising platforms often attribute conversion to the last touchpoint, but this simplified approach fails to account for the entire user journey. Three key concepts help better understand these dynamics: the carryover effect, the spillover effect, and the interaction effect.
Carryover effect: The repetition of the same channel
The carryover effect occurs when a user returns to a website using the same channel as the first time they visited. This can give the illusion that the channel is performing particularly well, when in fact it is simply capturing a user who has already been exposed to the brand.
This effect can influence the perception of acquisition cost. When a user discovers a brand through a paid ad and later returns through another ad on the same channel, the platform will attribute the conversion to the latter click. This phenomenon can lead to an overestimation of a channel's effectiveness and distort the allocation of advertising budgets.
Spillover effect: The passage from one channel to another
The spillover effect occurs when a user returns to a site through a different channel than the one they used during their first visit. This demonstrates the interconnectedness between different touchpoints and makes it difficult to attribute conversions to a single channel.
This effect highlights the difficulty of accurately assessing a channel's impact on conversion. If a user discovers a brand through a paid ad but later converts through organic search or a direct visit, the original advertising platform will not always receive due credit. This can lead to undervalued awareness efforts and inappropriate budget reallocation.
Interaction effect: The combined influence of channels
The interaction effect reflects how multiple channels work together to influence a conversion. A user might be exposed to a social media ad campaign, receive a marketing email, and then conduct research before finalizing their purchase. In such a scenario, no channel should be considered in isolation.
Conversion attribution then becomes more complex, as platforms typically analyze each interaction in a siloed manner. This can lead to data fragmentation and a poor understanding of the true role of each channel in the customer journey.
The Limits of Traditional Attribution Models
First- or last-click attribution models fail to capture the entire user journey, especially when it involves multiple interactions. When a consumer might see a social media ad, interact with an organic post, receive a recommendation, and then convert via paid search, it's difficult to accurately attribute the value of each channel.
Advertising platforms typically attribute credit based on their own internal logic, which can skew results and provide an incomplete view of campaign effectiveness. Adopting a more holistic and nuanced approach allows for a better understanding of the dynamics of cross-channel journeys and the optimization of marketing strategies accordingly.
Conclusion
Marketing attribution is a complex exercise that cannot be limited to analyzing a single touchpoint. Carryover, spillover, and interaction effects show that conversion is often the result of a chain of actions across multiple channels. A better understanding of these dynamics helps avoid attribution bias and optimize digital marketing investments.
