Armin Gögele, last updated on May 15, 2023
Online marketing uses attribution models to assign conversions or sales to specific touchpoints within each advertising channel in an online campaign. Marketing attribution is all about identifying which touchpoints, and in what order, influence a user to convert. In this way, the profitability of individual touchpoints can be checked, and effective evaluation can be carried out. Attribution models play a crucial role in online marketing, especially in hotel marketing, to measure the success of online campaigns and to allocate bookings or sales generated by a marketing campaign to the different touchpoints.
The Role of Attribution Models in Hotel Marketing
In hotel marketing, attribution models are used to evaluate the value and effectiveness of each touchpoint within an online campaign. They enable accurate attribution of conversions or sales to the appropriate advertising channels. By using attribution models, hoteliers can understand which interactions and touchpoints influence a user and lead to a conversion. This allows for in-depth analysis of the profitability of each advertising channel and effective evaluation of marketing activities.
Different hotel marketing attribution models
Hotel marketing uses a variety of attribution models to evaluate the value of touchpoints. Here are some common models:
- Last-click model:
The last-click model attributes the entire value of a conversion to the last ad clicked. This model places the highest value on the last touchpoint before conversion.
- First-Click Model:
The first-click model attributes the greatest value of a conversion to the first ad clicked. This model focuses on the first touchpoint that led the user to conversion.
- Linear Model:
The Linear Model distributes the value of a conversion equally across all touchpoints along the conversion path. Each touchpoint contributes equally to success.
- Chronological model:
The Chronological model weights touchpoints chronologically, with later interactions given more weight. This model takes into account the sequence of touchpoints.
- Positional or U-shaped model:
The positional model assigns more value to the first and last touchpoints of a conversion path than to those in between. It recognizes the importance of the first touchpoint (initial contact) and the last touchpoint (final contact).
- Data-driven model:
Data-driven models use complex algorithms and statistical analysis to determine the value of each touchpoint based on historical data. They provide a more accurate and customized assessment of touchpoints.
The importance of attribution models for measurability and transparency in hotel marketing
Attribution models play a critical role in the measurability and transparency of hotel marketing. They enable hoteliers to accurately track the success of their marketing activities and understand the impact of each touchpoint on conversions such as inquiries, reservations, and reservation revenue generated. By using appropriate attribution models, hotels can evaluate the effectiveness of their advertising channels and make informed decisions to optimize their marketing budgets. This helps hoteliers identify the most relevant touchpoints and target their marketing strategy for maximum results.
By using attribution models, hotels can better understand the value chain of their marketing activities and the impact of different touchpoints on their marketing success. As a result, they can effectively allocate resources, make budget decisions and continuously improve their marketing strategies to increase targeted conversions in the form of direct bookings and inquiries. The use of meaningful attribution models in hotel marketing thus contributes significantly to increased measurability and transparency and helps hoteliers to optimally align their marketing investments.
A hotel marketing agency such as ADDITIVE supports hoteliers with appropriate software solutions to enable this traceability in hotel marketing and to achieve the best possible ROI in online marketing.