The Multi-Touch Attribution (MTA) Model is a strategy in marketing that assigns credit to all digital touchpoints that contributed to a sale.
The Multi-Touch Attribution Model is a sophisticated approach to measure and value the effectiveness of various marketing tactics and channels. It takes into account every interaction a potential customer has with a brand on their path to purchase. The idea behind it is simple: instead of attributing the success of a conversion to a single touchpoint, it acknowledges the contribution of multiple touchpoints to the final conversion.
The Multi-Touch Attribution Model doesn't use a specific formula. It works on a distribution strategy, where the value of a sale is divided between touchpoints based on the rule or the weights defined by the business. There are different methods like linear, time decay, U-shaped, etc., each distributing the credit unevenly across all touchpoints.
Consider a customer who found your eCommerce site after clicking on a Facebook ad (1st touch), then they visited your site directly a week later (2nd touch), later came through a Google search (3rd touch), and finally made a purchase after receiving an email newsletter (4th touch). In this case, each of these touches would receive credit for the sale in the MTA model.
MTA is closely related to numerous eCommerce metrics like Conversion Rate, Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), etc. Understanding how MTA impacts these can provide insights into revenue growth, marketing strategies, and customer retention. For instance, optimizing your MTA model could reduce your CAC by focusing on effective marketing channels, or increase your CLV by improving customer engagement.