What is the Attributed Revenue in Marketing & how is it calculated?
In marketing, it is crucial that we make the right decisions based on the right data. For these decisions, we of course need the right metrics.
A short definition
The attributed revenue is the amount of revenue that can be attributed to a traffic source or campaign. It is very useful in analyzing return on ad spend and determining the digital marketing budgets.
Why is the attributed revenue important?
The right revenue metric is important for marketeers and their decisions about marketing budgets. It answers questions about efficiency and use of certain traffic sources. In most marketing analytics tools, the default attribution model is last click.
The multi-touch model used in Odyssey answers these questions. It provides you with the performance of the other channels in those customer journeys. When multi-touch attribution is applied, it does not just attribute the revenue towards one source. In this model, each channel, campaign, or ad group is attributed a certain share of revenue.
With a metric like attributed revenue you get a better image of the performance of your marketing channels. Instead of basing it on single-touch, you can look at a figure based on a multi-touch attribution model.
How is it calculated?
To calculate the attributed revenue, you first will need to determine the attribution model. For example, in Google Analytics, the metric is calculated based on a last non-direct click attribution model.
The multi-touch models used in Odyssey are the answer. It provides you with insights about several touchpoints and attributes all of them value according to their participation in the customer journey.
In Odyssey, this is done by looking at two KPIs.
The participated revenue shows how much revenue a certain traffic source is a part of
The incrementality shows how much value can be credited to each traffic source. This is based on the chosen attribution model.
By multiplying the participated revenue and the incrementality, you receive the attributed revenue.
In other words, multiplying all the revenue the source is part of by the added value gives you the attributed revenue.
Attributed revenue in Google Analytics
In Google Attribution, there is also a metric called attribution revenue. This figure is based on the conversion type selected. In this report, you can compare different attribution models to each other. You also see the amount of revenue attributed to each channel.
All metrics from above are based on attribution models. Hence, it is crucial for that you take note of the fact that the default Google Analytics works with single-touch attribution. And not a multi touch model. So you would really have to resort to Odyssey Attribution or Google Attribution to solve these issues.
Besides this, the Google Analytics Model Comparison also has a metric called Attributed Conversions. This shows the number of conversions that can be credited to a channel based on the attribution model.
But Google still does not offer enough transparency about this metric. There is no information on how it is calculated or what methods are being used in these attribution models. So whilst it provides you with information, it is unclear how Google gets this revenue figure.
At Odyssey, we offer a solution for this problem. We give an insight in the metric and how it is found.
Learn more about us
In case you want to find out more about digital marketing or attribution, make sure to check out our blog or our other academy posts. You can also schedule a demo and start experiencing it for yourself!