LAV with use of additional search

Posted August 27th, 2008 under AMF 1: Lifetime Ad Value (LAV) and Attribution with No Comments

In this purchase path, the consumer does a search and on the same day makes a purchase. Then over a week later, they do another search and re-discover your site. They make a second purchase a few days later, and a third purchase a few days after that.

a) In this attribution rule, you are choosing to allocate the credit for all 3 sales to the original search ad. The argument for this is that the original ad deserves all credit for the sales. For instance if you’re a marketer focused on customer acquisition, you may want to give the ad that acquired the customer credit for all future sales and ignore the impact that future advertising may have on their repeat purchases.

b) In this attribution rule, you are giving conversion credit to the ad that occurred prior to the sale, regardless of the type of ad it is. The argument for doing this is that you believe you should allocate sales back to the most recent ad that was engaged in by the consumer.

c) In this attribution rule, you believe the initial ad that got the customer in the first place deserves some credit for future sales. You also believe that the additional search is worthy of some credit for future sales. The argument for this rule is that the ad that introduced the consumer to your business and produced their first conversion is special and therefore deserves some % of the future sales that occur. You also believe that the additional search deserves some form of credit for future sales.

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