Credit Allocation Examples
Our Accounting Modes, Attribution Models, and Attribution Windows are the three levers that determine how much credit is given to a certain channel.
Below are a few examples to help you fully understand our credit allocation:
Example #1
Time Period: Jan 1, 2024 - Jan 31, 2024
Attribution Model: Clicks-Only
Attribution Window: 1 Day
Accounting Mode: Accrual performance
| Platform | Spend | Attributed Rev (1d) | LTV Attributed Rev | ROAS (1d) | LTV ROAS |
|---|---|---|---|---|---|
| Facebook Ads | $50 | $75 | $150 | 1.5 | 3.0 |
| Google Ads | $50 | $125 | $175 | 2.5 | 3.5 |
| $0 | $50 | $75 | - | - |
Spend
This one is pretty straightforward. In this time period, $50 was spent on Facebook Ads and $50 was spent on Google Ads. These data points are pulled directly from in-platform data via API, referencing Ad Accounts connected to your dashboard.
Attributed Revenue (1d) / LTV Attributed Revenue
This is revenue reported in two different attribution windows.
To understand, let's break it down into parts:
Attributed Revenue is revenue tied to a specific marketing touchpoint. The key word is Attributed, the terminology we use in the Accrual accounting mode, where credit is given to when the touchpoint occurred.
(1d) refers to the attribution window, which in this case is a 1-Day window. This means credit is only given from purchases that were completed within 1 day after the touchpoint.
LTV refers to the attribution window, which in this case is an infinite day window. This means credit is given from purchases that were completed any time after the touchpoint.
For more information on our attribution windows, reference our Attribution Window guide.
Lastly, let's not forget about the Clicks-Only model. Credit is divided between all upper funnel touchpoints. In this case, revenue credit. Reference our Attribution Model guide for more information.
Now let's put it all together. Below find the breakdown for each platform using both revenue metrics.
Platform Breakdown for Attributed Revenue (1d)
- Facebook Ads - Revenue from all clicks that resulted in a purchase within 1 day
- Google Ads - Revenue from all clicks that resulted in a purchase within 1 day
- Email - Revenue from all clicks that resulted in a purchase within 1 day
- Note: We try to pull credit away from Email in the Clicks-Only model. Therefore, any retained revenue is from customer journeys that didn't have an Upper Funnel touchpoint.
Platform Breakdown for LTV Attributed Revenue
- Facebook Ads - Revenue from all clicks that resulted in a purchase on an indefinite window
- Google Ads - Revenue from all clicks that resulted in a purchase on an indefinite window
- Email - Revenue from all clicks that resulted in a purchase on an indefinite window
- Note: We try to pull credit away from Email in the Clicks-Only model. Therefore, any retained revenue is from customer journeys that didn't have an Upper Funnel touchpoint.
ROAS (1d) / LTV ROAS
This is the Return on Ad Spend using revenue from the same two attribution windows as above:
- ROAS (1d): Attributed Rev (1d) ÷ Spend
- LTV ROAS: LTV Attributed Rev ÷ Spend
These metrics can be used to evaluate ROAS from the two windows.
Example #2
Time Period: Jan 1, 2024 - Jan 31, 2024
Attribution Model: Clicks-Only
Attribution Window: 3 Day
Accounting Mode: Accrual performance
| Platform | Spend | Transactions (3d) | LTV Transactions | CAC (3d) | LTV CAC |
|---|---|---|---|---|---|
| Facebook Ads | $50 | 2.20 | 5.67 | $22.73 | $8.82 |
| Google Ads | $50 | 6.25 | 10.81 | $8.00 | $4.63 |
| $0 | 2.02 | 3.59 | - | - |
Spend
In this time period, $50 was spent on Facebook Ads and $50 was spent on Google Ads. These data points are pulled directly from in-platform data via API, referencing Ad Accounts connected to your dashboard.
Transactions (3d) / LTV Transactions
You may be asking yourself: "Why are there fractional transactions?"
Fractional transactions come from our attribution windows. As you know, we credit is divided between touchpoints in Accrual accounting. (For a refresher on our accounting modes, click here).
Let's break down the entire metric:
- Transactions are purchases attributed to a specific marketing touchpoint.
- (3d) refers to a 3-Day window which means that credit is only given from purchases that were completed within 3 days of the touchpoint.
- LTV refers to an infinite day window which means that credit is given from purchases that were completed on an indefinite window.
- Let's say there was a click on Jan 1 and the conversion was on Jan 31. That is a 30-day window, which falls under our indefinite window. Even if it were a 365-day window, this would still fall under our indefinite window.
- Reference our Attribution Window guide for more information.
Lastly, let's not forget about the Clicks-Only attribution model. In this model, credit is divided between all upper funnel touchpoints. Reference our Attribution Model guide for more information.
Now let's put it all together. Below find the breakdown for each platform using both revenue metrics.
Platform Breakdown for Transactions (3d)
- Facebook Ads - Transactions from all clicks that resulted in a purchase within 3 day
- Google Ads - Transactions from all clicks that resulted in a purchase within 3 day
- Email - Transactions from all clicks that resulted in a purchase within 3 day
- Note: We try to pull credit away from Email in the Clicks-Only model. Therefore, any retained revenue is from customer journeys that didn't have an Upper Funnel touchpoint.
Platform Breakdown for LTV Transactions
- Facebook Ads - Revenue from all clicks that resulted in a purchase on an indefinite window
- Google Ads - Revenue from all clicks that resulted in a purchase on an indefinite window
- Email - Revenue from all clicks that resulted in a purchase on an indefinite window
- Note: We try to pull credit away from Email in the Clicks-Only model. Therefore, any retained revenue is from customer journeys that didn't have an Upper Funnel touchpoint.
Updated 4 days ago