Why Google Ads is Shifting to Data-Driven Attribution (Instead of Last-Click)
Imagine a traveller sees your hotel's ad, watches a video tour of your resort, and eventually clicks a search ad to make a booking. Which marketing interaction should get the credit for this booking? This question lies at the core of attribution models in Google Ads. In this article, we'll explain attribution models, compare Last-Click and Data-Driven Attribution (DDA), and discuss why Google is increasingly favouring DDA.
What are Attribution Models in Google Ads?
Attribution models determine how credit for conversions (such as bookings) is distributed across your different advertising touchpoints. Google Ads offers two attribution models, each assigning credit differently. Last-Click gives all credit to the final click, whereas Data-Driven splits credit across multiple interactions based on their influence.
Choosing an attribution model significantly impacts which ads appear most successful in your performance reports. Let's explore the two models: Last-Click and Data-Driven Attribution.
Last-Click Attribution: How It Works, Pros and Cons
How it works: Last-Click Attribution assigns 100% of the conversion credit to the final ad click before the booking. It's straightforward and clearly identifies the final step that converted the visitor.
Pros of Last-Click:
Simple and Clear: Easy to understand and interpret, making it simple to identify the exact ad or campaign responsible for closing the booking.
Cons of Last-Click:
Limited View: It ignores earlier touchpoints that contributed to the booking. Ads that raised awareness or influenced the traveller's decision-making don't receive credit, potentially leading to poor investment decisions by undervaluing upper-funnel marketing efforts.
In summary, while Last-Click Attribution is easy to understand, it often provides an incomplete picture. It's like crediting only the receptionist who checks the guest in, ignoring the marketing that originally attracted the guest to your hotel.
Data-Driven Attribution: How It Works, Pros and Cons
How it works: Data-Driven Attribution (DDA) uses machine learning to assess the entire customer journey. Rather than a fixed rule, it analyses interactions across multiple channels (search, display, video ads, etc.) to determine each one's contribution to the final booking. All meaningful touchpoints receive a portion of the conversion credit, not just the last interaction.
Pros of Data-Driven:
Full-Funnel Visibility: DDA credits every ad interaction that played a role, providing a comprehensive understanding of your customer's path to booking.
Improved Accuracy: By leveraging real conversion data, DDA offers a clearer insight into the true value of each marketing channel. Google reports that advertisers using DDA typically achieve more conversions without increasing budgets, as spend is optimised across the entire customer journey.
Cons of Data-Driven:
Less Transparent: The algorithmic nature of DDA can seem opaque, as there's no simple, consistent rule governing attribution. Trust in Google's modelling is required.
Adjustment Period: When switching to DDA, metrics may shift noticeably, as conversions previously attributed to last-click interactions become redistributed among other touchpoints.
Comparing Last-Click vs. Data-Driven Attribution
Single vs. Multi-Touch: Last-Click assigns credit to just one interaction (the final click), whereas DDA recognises multiple interactions.
Rule-Based vs. Algorithmic: Last-Click follows a rigid rule (final interaction wins), whereas DDA dynamically allocates credit based on real customer data.
Ease vs. Accuracy: Last-Click is simple but incomplete. DDA is more complex but offers a fuller and more accurate picture of marketing effectiveness.
Why Google Favours Data-Driven Attribution and What Hotels Should Consider
Google is promoting Data-Driven Attribution because it aligns better with modern customer behaviour. Travellers typically engage with multiple marketing messages before making a booking. Last-Click Attribution doesn't capture this complex journey, while DDA does—giving you a more accurate representation of how your ads collectively drive conversions.
When selecting an attribution model, consider:
Your Customer's Journey: If guests frequently engage with several ads before booking, DDA will clearly show the impact of each touchpoint, enabling smarter budget allocation.
Your Team and Reporting: Changing to DDA will affect your metrics. Prepare your team by explaining that any changes reflect a redistribution of credit, not a real drop in performance.
Testing: Initially compare Last-Click and DDA side-by-side within Google Ads or Analytics. Assess how the insights differ and decide which model best informs your marketing decisions.
Bottom Line: While Last-Click is simpler, Data-Driven Attribution provides the comprehensive insight necessary to truly optimise your hotel's advertising strategy, ensuring you invest where it matters most.
