Credit Distribution Logic: Detailed | Scribe

    Credit Distribution Logic: Detailed

    • Emily Shreero |
    • 0 step |
    • 29 seconds
    Step 1: each channel makes up a % of conversions against the total conversion volume. For example, Paid Search makes up 28% of all conversions. (300÷1075) = .28
    Step 2: when you change the amount of credit allocated to a channel, you're increasing or decreasing the % of conversions that this channel will make up. For example, if you type 1.1 in the Credit Redistribution tool for Paid Search, you will increase its share of conversions by 10%. \ \ Similarly if you want to decrease the conversion share of a given channel by 10%, type 0.9 in the tool custom credit box.
    Step 3: the result is an updated % of conversions allocated to the channel For example, Paid Search should now receive 10% more of the conversion share than it was previously. (0.28*1.1) = 0.31
    Step 4: the % of conversions are balanced against the total so that 100% of conversions are still accounted for. For example, Paid Search has a final % share of .34, as the new % share represents 34% of the total updated %s. (0.31÷0.89) = 0.34 or 34%.
    Step 5: the final conversion count equals the final balanced share of conversions as a % of total conversions. For example, Paid Search should make up 34% of the total 1,075 coversions. (1075\*0.34) = 370.
    The same process is applied for revenue reallocation. Spend is not modified, as it does not vary based on attribution type. The modified conversion and revenue credit distribution will impact your per channel CPA or ROAS in tandem (ex new ROAS = new revenue / spend)

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