Chapter 5

Question 1

Why is the Shapely Values Method considered better than the click-based attribution method?

Answer 1

Because it overcomes one important limitation of the click-based attribution method: you do look at what happens if the channel is not there.

Question 2

Shapely Values Method

Answer 2

Looking at comparable ‘paths to purchase’, with the difference being in that one channel is missing.

Question 3

Converted customers

Answer 3

People who have completed a transaction.

They have visited the website, signed up and created an account, and purchased from the website.

Question 4

Authenticated users

Answer 4

People who have signed up for an account, but no money has changed hands (no purchase yet)

Question 5

Visitors

Answer 5

People who have been to the website but have not provided personally identifiable information necessary to sign up for an account.

Question 6

Non-visitors

Answer 6

People who have never interacted with the firm’s website.

Question 7

Four types of (potential) customers

Answer 7

1. Non-visitors
2. Visitors
3. Authenticated users
4. Converted users

Question 8

What is the best way to measure if a channel is responsible for the sale?

Answer 8

By seeing what would have happened if we would have left the channel out.

Time travel and alternative universes are not an option.

BUT, experiments are an option. Through experiments, alternative universes are created.

Question 9

How are attribution in marketing and attribution in sport comparable?

Answer 9

In both cases, the whole game changes when one channel or player is taken out. The whole dynamic changes.

Question 10

Attribution

Answer 10

The practice of evaluating the marketing channels a consumer encountered on their path to purchase.

What would have happened if that specific channel was not there?

Question 11

Multi-Channel Funnel

Answer 11

Shows how previous referrals and searches contributed to the sale.

However, it still not shows what would have happened if the channel was not used, or if a channel was different.

Question 12

What is the core of a good attribution method?

Answer 12

Being able to answer the question:

“Would the customer had a conversion without this channel?”

Question 13

Average attribution

Answer 13

Attribution method that assigns credits equally to all channels the customer came into contact with.

Question 14

Time decay attribution

Answer 14

Attribution method that assigns credit across multiple events, assigning most credit to those closer to the time of conversion.

It is based on the hypothesis that those events have a greater impact on the decision to purchase.

Question 15

First-click attribution

Answer 15

Attribution method that assigns 100% of the credit of a sale or conversion to the first channel that a user clicked through.

Question 16

What is (also) not taken into account with last-click attribution?

Answer 16

• Banner impressions (without click, but view has influence as well)
• Non-observable channels (offline; tv ads, flyers, store visits).

Question 17

What would the ideal attribution channel look like?

Answer 17

A channel that takes into account

• dynamics
• heterogeneity
• interactions/synergy
• alternative channels.

Question 18

Limitations (disadvantages) last-click attribution

Answer 18

1. No dynamics (between multiple sources of contact)
2. No interactions or synergy (between channels)
3. No heterogeneity (between customers)
4. No alternative (no channel could have replaced the last one).

Question 19

Last-click attribution

Answer 19

The channel the customer came into contact with right before the conversion is given full credit for this conversion.

It is the last advertisement a customer engaged with before purchasing.
It is used to see to which type of brand exposure a consumer responds.

Question 20

Ways to make an estimation of what would have happened if the attribution method (advertising channel) was not there:

Answer 20

• First-click attribution
• Average attribution
• Last-click attribution
• Time decay attribution

Question 21

Advantages individual level ads

Answer 21

• Many more observations.
• Ability to investigate how impact differs between customers (heterogeneity).
• Ability to fine-tune online advertising expenditures.

Question 22

Individual level data

Answer 22

Disaggregated individual results. They are used to conduct analyses for estimation of subgroup differences.

Question 23

Aggregate level data

Answer 23

High-level data acquired by combining individual-level data.
This data is about populations, groups, countries, or regions.