It is the process of assigning credit for conversions to different marketing channels and touchpoints, such as paid advertising, email, SEO, third party websites, etc. It helps businesses understand which channels are most effective in driving sales and conversions, enabling more informed decisions on how to allocate their market spend, which channels to utilize more man-hours on optimizing, and even which sorts of visitors are more valuable to the business.
The best attribution model depends on your business goals and customer journey.
By identifying which channels and campaigns yield the highest ROI, you can allocate more budget to high-performing areas and reduce spend on less effective channels. Continuous monitoring and adjustment based on attribution data will help optimize overall marketing efficiency.