Attribution models in digital marketing are essential to understanding how different channels and touchpoints contribute to conversions. Among these models, the “last interaction” model is one of the simplest and most used, although also one of the most controversial.
The “last interaction” attribution model gives 100% of the conversion credit to the last channel or touchpoint a user had before converting. This model is based on the premise that the last step before conversion is the most important. For this reason, he deserves all the recognition.
At first glance, this model is attractive for its simplicity and ease of implementation. It allows you to easily identify which direct channel generated the conversion, being useful for optimizing campaigns on specific platforms. For example, if a sale ends after a click on a Google Ads ad, the last interaction model will give you full credit. Therefore, this platform would be identified as the most effective for generating sales.
However, this simplicity is also its biggest weakness. The last interaction model ignores all previous touch points that could have been equally or more influential in the customer’s purchasing decision. In the digital world, consumers often interact with a brand across multiple channels before converting. They may have seen an ad on social media, read an article on the brand’s blog, received a follow-up email, and clicked on a search ad before making a purchase. The last interaction model does not consider any of these previous interactions, which can lead to erroneous conclusions about which channels are actually the most effective.
Last interaction approach can bias marketing investments
You can divert investment towards channels that are traditionally more effective in direct conversion. For example, to paid search ads at the expense of those that are more effective earlier in the funnel. There we can find content marketing or social media campaigns. This can result in an unbalanced marketing strategy that does not fully optimize the customer journey.
Another important criticism is that this model does not take into account the incremental value that each channel brings along the conversion funnel. For example, a social media branding campaign may not generate immediate conversions, but it can significantly increase brand awareness and consideration. This would facilitate conversions through other channels later. By attributing all credit to the last point of contact, the last interaction model can underestimate the value of these branding campaigns.
Despite its limitations, the last interaction model remains useful in certain contexts. It is especially valuable in situations where the customer journey is short and purchasing decisions are impulsive or immediate. For example, in flash promotions or sales of low-cost products. It can also be useful for specific campaigns where the main objective is direct conversion and a quick and simple analysis of channel performance is required.
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