Inverted U Curve Of Online Marketing Attribution

Inverted U Curve Of Attribution Analysis
I recently read Malcolm Gladwell’s David and Goliath: Underdogs, Misfits, and the Art of Battling Giants where he discusses the concept of the inverted U curve which explains how having more of something can be counterproductive. I think attribution analysis in online marketing applies to the same curve.

In my graph you can see that more information from attribution modeling does in fact produce better investment returns. But each additional piece of information yields less marginal utility – known as the law of diminishing returns – and, at some point, additional information begins to have the opposite effect.

Count of visits before purchase is increasing. Amount of sites visited before purchase is increasing. Time spent researching before purchase is increasing. Amount of devices used to access the internet is increasing. Amount of sales offline influenced by online research is increasing. Amount of time spent online generally is increasing. All these factors combined turn attribution analysis into a brutal rabbit hole.

Eventually, assigning specific value to any individual interaction is an exercise in futility. Gone too far and it will begin to take away value. I think the online marketing manager of the future will employ a kind of marketing mix strategy rather than a channel ROAS strategy.

Leave a Comment