Attribution plays a crucial role in advertising by helping marketers understand the effectiveness of their campaigns and allocate resources effectively. It refers to the process of identifying and assigning credit to the various touchpoints or channels that contribute to a customer's decision to make a purchase or take a desired action.

There are several attribution models used in advertising:

1. Last-click attribution: This model attributes all credit to the final touchpoint that led to the conversion. For example, if a customer clicks on a Facebook ad and makes a purchase, all credit goes to Facebook.
2. First-click attribution: In contrast to last-click attribution, this model assigns all credit to the initial touchpoint that introduced the customer to the product or brand. For instance, if a customer discovers a product through a Google search and later makes a purchase after seeing a display ad, all credit goes to the initial Google search.
3. Linear attribution: This model distributes credit equally across all touchpoints in the customer journey. For example, if a customer interacts with a display ad, clicks on a social media post, and then makes a purchase, each touchpoint receives an equal share of the credit.
4. Time decay attribution: This model assigns more credit to touchpoints that occur closer to the conversion. It recognizes that the touchpoints closer to the point of purchase often have a greater impact on the customer's decision. For instance, if a customer sees an ad on a website, clicks on a retargeting ad, and then makes a purchase, the retargeting ad receives more credit than the initial ad.
5. Custom attribution: This model allows marketers to create their own rules and assign credit based on their specific goals and strategies. It takes into account unique factors that may influence the customer's decision-making process.

By using these attribution models, marketers can gain insights into the effectiveness of different advertising channels and optimize their campaigns accordingly. For example, if a last-click attribution model reveals that Facebook ads consistently drive conversions, the marketer may choose to allocate more budget to Facebook advertising.

References:

• Google: Attribution Modeling in Google Ads
• Neustar: What Is Attribution Modeling in Marketing?
• Adobe: Attribution in Marketing Analytics