First Touch vs Last Touch Attribution. Models Explained

Is the customer journey an individual unpredictable story or a mathematical model with clear and unbreakable rules? Marketers would prefer the second because it is easy to navigate; all they need to do is change the variables in the formula. However, everything is more complicated because there can be a lot of formulas and variables, and consumers can behave unpredictably and contrary to what is written in the guides. Before making a data-driven decision, advertisers should choose which attributional model they are going to use. Today, let's compare two of them - first-touch attribution and last-touch attribution.

What is First Touch Attribution?

The first-touch attribution model is a marketing measurement model that assigns 100% of the credit for a conversion to the first interaction a customer has with a brand's advertising. For example, a viewer sees a QR code during an episode of a TV show, scans it with a smartphone, and visits a connected landing page. Due to the UTM tag connected to the QR code, in the analytic tool (Google Analytics, for example), an advertiser can see that the visit was from TV, and this visit could be marked as the first touch.

How It Works:

• Tracking Initial Interaction. The model tracks the customer's journey from the moment they first encounter a brand's TV ad.
• Assigning Credit. All credit for a conversion is given to this initial interaction, regardless of subsequent interactions with the brand.
• Example. If a viewer sees a TV ad for a product or service and buys it after multiple interactions with the brand, the TV ad would receive 100% of the credit for the conversion.

Usually, advertisers prefer the first-touch attribution model for brand awareness campaigns because it is easy to implement and track. There is no need to wait until the end of the customer journey. It is possible to test a few campaigns on a few sources simultaneously to understand what works best for the brand. For example, run a campaign with two variants of messages on streaming and see which message works best to attract customers to subscribe on social media. That is how this model helps businesses allocate resources more effectively by identifying which channels, CTA, or type of content are most effective at capturing initial engagement.

Of course, this model has disadvantages. One is oversimplification. Focusing on the first interaction overlooks the impact of subsequent touch points in the customer journey. The other is applicability. It doesn't work for all and is best suited for businesses with shorter sales cycles or those focusing on brand awareness rather than complex, multi-step conversions.

How to measure the effectiveness of first-touch attribution in a campaign

There are a few steps that can help to create and measure the first-touch attribution approach's effectiveness and impact.

1. To Define Campaign Goals

The campaign's goal must be clear and measurable. For example, it could be - "to increase brand awareness," "to drive website traffic," "to attract subscribers to the brand's socials," etc. Certain metrics, such as conversion rates, revenue generated, and the number of subscribers, should have KPIs.

2. To Track Initial Interactions

Platforms like Google Analytics, HubSpot, or Facebook Analytics help to track the first touchpoint for each customer interaction. Data should be collected from all marketing channels where the campaign runs.

3. To Assign Credit

At this step, the first-touch attribution model can be applied to assign 100% of the credit for conversions to the initial interaction.

4. To Evaluate Performance

Advertisers assess which channels are most effective at driving initial engagement and conversions and calculate each channel's ROI.

5. Optimize Strategies

Based on the data received, marketers identify the high-performing channels and allocate more budgets to them. Advertisers can also refine messages and change content to improve customers' interactions at the initial touchpoint.

In the context of TV advertising, first-touch attribution can be particularly useful for understanding how initial brand exposure through TV influences customer behavior.

What is Last Touch Attribution?

Last-touch attribution is a marketing attribution model that assigns 100% of the credit for a conversion to the last interaction a customer has with a brand's advertising before making a purchase or taking a desired action. This model focuses on the final touchpoint in the customer journey. For example, the viewers saw a TV ad during the movie that ran on streaming with CTA "Buy with discount by promo code 'Movie name'" and made a purchase using this promo code. This ad would receive 100% of the credit for the conversion under last-touch attribution.

How It Works

The model identifies the last point of engagement with the brand's ad before a conversion occurs. This final interaction receives all credit for the conversion, regardless of previous interactions with the brand.

Last-touch attribution is straightforward to implement and understand, making it accessible for marketers. It helps improve the conversion rate in the last stages of the customer journey by refining ad content, messaging, and CTAs.

However, like the first-touch attribution model, it has some challenges. For example, it may overlook the impact of earlier interactions in the customer journey. This model stimulates marketers to focus solely on being the last touchpoint, which can lead to strategies that prioritize short-term gains over long-term customer engagement. Last-touch attribution does not provide a clear picture of the incremental impact of each channel on conversions, making it difficult to assess true ROI.

This approach is good for campaigns with shorter sales cycles or if immediate conversions are needed.

In the context of TV advertising, last-touch attribution can be particularly useful for understanding which final interactions drive conversions. This is especially true with the rise of streaming, which allows for more precise tracking and attribution than traditional linear TV.

Best Practices for Last-Touch Attribution in TV Ads

1. Clear Campaign Objectives

Identifying goals is most important here, whether it's driving sales, website traffic, or brand engagement.

2. Cross-Device Tracking

Customers can watch from different devices - whether a small old kitchen TV or the latest model of Smart TV in the living room - and advertisers should track all of them while staying compliant.

3. Monitoring and Optimizing in Real-Time

Real-time reports and insights enable tracking campaigns' performance and adjusting strategies on the fly.

5. Investing in Scalable Technology

Platforms like TV+ offer real-time reports, AI-driven insights, and real-time optimization to help improve campaigns on the fly.

First-Touch vs Last-Touch Attribution

Last-touch attribution and first-touch attribution are two distinct marketing attribution models that differ primarily in how they assign credit for conversions.

First-touch focuses on the initial interaction a customer has with a brand. It assigns 100% of the credit for a conversion to this first touchpoint. It works perfectly for brand awareness campaigns and is used by marketers to identify which channels are best for attracting new customers.

The last-touch model concentrates on the final interaction before a conversion occurs. It gives 100% of the credit to this last touchpoint, highlighting its impact on driving the conversion. This approach is useful for analyzing the previous stages of the customer journey and pinpointing which interactions are most influential in leading to deals.

Both models can be useful, but marketers should continuously test different attribution models, creatives, and targeting strategies to identify what works best for the campaigns on the various stages of sales funnels and customer journeys.

It is also very important which industry marketers represent because what works for pharma may not work for real estate.