Ad Measurement and Attribution Flashcards

What is last-touch attribution in digital advertising?

Answer: Giving 100% of conversion credit to the final ad a user interacted with before converting

Last-touch attribution assigns all conversion credit to the most recent ad touchpoint, which is simple to implement but ignores the role of earlier interactions in the customer journey.

What is multi-touch attribution (MTA)?

Answer: A method that distributes conversion credit across multiple ad touchpoints in the customer journey

Multi-touch attribution distributes conversion credit across all ad interactions a consumer had before converting, providing a more complete view of which touchpoints drove the sale.

What is a click-through rate (CTR) and how is it calculated?

Answer: The percentage of ad impressions that resulted in a click, calculated as clicks divided by impressions times 100

CTR measures ad engagement as a percentage: (Clicks ÷ Impressions) × 100, with industry display averages typically below 0.5%.

What is view-through attribution (VTA)?

Answer: Giving conversion credit to display ads that were seen but not clicked, if the user later converted

View-through attribution credits display or video ad impressions that were not clicked but may have influenced a conversion that occurred later, typically within a set window.

What does ROAS stand for and how is it used?

Answer: Return on Ad Spend, calculated as revenue generated divided by ad spend

ROAS (Return on Ad Spend) measures how much revenue is earned for every dollar spent on advertising, calculated as Revenue ÷ Ad Spend, and is a key campaign efficiency metric.

What is incrementality testing in advertising measurement?

Answer: A method to determine the true causal lift in conversions that advertising generated beyond what would have occurred organically

Incrementality testing uses control and exposed groups to measure the true causal impact of advertising by comparing conversion rates between those who saw ads versus those who did not.