Revamping Marketing Attribution for the Blockchain Age

Yoav Tchelet
5 min readJun 14, 2023
Photo by Diego PH on Unsplash

Picture this: you notice a tremendous upswing in the level of interaction on your blockchain-based network, yet you’re unsure what drove this sudden flurry of activity or what marketing techniques sparked it. It’s not just fortune playing its part. Something clicked, and you must know how to capitalize on it again. This is where the concept of blockchain marketing attribution comes into play.

In this piece, we’ll delve into blockchain attribution, how it operates, and how you can employ marketing attribution for your blockchain offerings.

But first, to comprehend why we necessitate a novel marketing attribution for blockchain, let’s track the development of attribution over the ages.

A Journey through Time: from print media to the Internet
Marketing attribution is a mechanism marketers employ to ascertain which marketing strategies and touchpoints led to sales and conversions. It aids in assessing the return on investment (ROI) of marketing channels and pinpointing ways to reach more consumers.

The attribution process varies between offline (print, television advertising) and digital spaces, especially when dealing with the blockchain environment. Appreciating this transformation in the attribution system is critical to recognizing the need for newer attribution systems tailored to the medium of interaction between businesses and users.

Print Media
Conventional promotional approaches relied heavily on newspaper ads to foster brand awareness and introduce new products. Door-to-door surveys were the primary method for gauging the impact of print ads, but these needed to be more accurate and sometimes misconstrued consumer behaviour.

TV Advertisements
TV networks employ third-party agencies to estimate the impact of an advertisement on consumer behaviour. These agencies rely on surveys, often failing to accurately deduce the actions leading to product sales.

To improve the accuracy of attribution for TV ads, software that can correlate TV ad broadcasting with real-time online traffic is utilized to gauge an ad’s effectiveness. Such software can detect any surge in online activity and purchasing behaviour to assist in creating more effective ads.

Digital Era
Digital platforms like social media and e-commerce sites track user data and store them in centralized servers, making it easier for marketers to use this data for marketing attribution.

Moreover, cookies and device activity tracking simplifies marketing attribution in the digital sphere.

Marketing analysts use various marketing attribution models to determine successful conversions in the digital realm.

Unravelling marketing attribution models
The credit for successful sales or conversions can be attributed in two primary ways.

Single source attribution
As the name suggests, the single-source attribution model gives credit to just one touchpoint for a successful sale. This model is further split into two categories:

- First-touch attribution: This model attributes the initial interaction channel with the lead. For example, if a consumer encounters a paid ad on a social media platform, the first-touch model would credit the social media ad for any subsequent purchases.
- Last-touch attribution: This model attributes the credit to the final marketing channel, disregarding prior customer engagements. While it’s easier to identify the last touchpoint, this method risks missing potentially valuable interaction points.

Multi-source attribution
The multi-source or multi-touch attribution model attributes credit to all contributing marketing channels for a successful conversion. This model can be broken down into four categories:

- Linear attribution: This model distributes equal credit to all consumer touchpoints, possibly diminishing the value of potentially more significant points.
- Time-decay attribution: This model gives more credit to recent touchpoints than older ones for their impact on sales.
- Position-based attribution: This model, or the U-shaped model, attributes 40% credit each to the first touch and lead creation and 20% to intermediate touchpoints. Another version, the W-shaped model, gives 30% credit to the first, lead, and opportunity creation touchpoints, with the remaining 10% allocated to middle points

Let’s continue…

The Power of Harmonizing Online Interactions and Cryptographic Transactions
To fully leverage the potency of online interactions within the context of blockchain-driven transactions, you need a tool that can marry these two worlds seamlessly. This tool would provide a panoramic view of customer behaviours and the specific marketing efforts that draw them towards your blockchain platform.

For instance, consider running various digital campaigns that include social media engagement, content generation, and crypto airdrops to stimulate user interest in your blockchain marketplace. The real challenge is discerning the exact campaign that captivates a particular user and their actions before arriving on your platform and signing up.

Currently, the industry employs UTM links (Uniform Resource Locator Tracking Module) for tracking online activity, much like Google’s ad tracking system. The moment a potential user clicks on a link, the tracking system activates, trailing their journey, even when they connect their digital wallet. In essence, it initiates the process of monitoring conversions on the blockchain.

The breadth of what you can monitor essentially depends on your marketing strategy. However, some salient examples of harmonized online and blockchain attribution include:

- Tracking the originating link clicked by users on Twitter and the subsequent web pages they perused before linking their digital wallets.
- Identifying users who visit your platform via your newsletter but refrain from connecting their wallets. This information can be pivotal in discerning these users’ unique challenges, enabling you to target them with personalized solutions and compelling action prompts.
- Analyzing the overall performance of all your marketing channels, assessing your website’s user retention, identifying pages with the highest drop-off rate, and more. This data type allows you to concentrate on channels that deliver while refining those with sub-optimal performance.
- Understanding the entire journey of online users from their first exposure to one of your marketing campaigns to the point where they connect their wallets to your platform.

Deciphering the Essence of Blockchain Marketing Attribution
So, what is blockchain marketing attribution? Simply put, the assignment of credit to the appropriate marketing channel or touchpoint directly results in successful customer conversions. It’s precious for marketers in the blockchain sphere as it measures each marketing campaign’s efficacy and pinpoints channels that yield the maximum return on investment.

And how does blockchain marketing attribution function? It tracks wallet or token interactions with smart contracts whenever a user initiates an action, such as making a purchase, trading a cryptocurrency, or selling a digital collectable.

Enriching Your Marketing Approach with Blockchain Attribution
Blockchain attribution has become an indispensable element in the contemporary marketing toolkit.

Rather than viewing it as a magic bullet, marketers should see it as a dynamic feature providing invaluable insights into user journeys and acquisition. The ability to understand where people originate from and whether they convert is fundamental, but it’s merely the starting point.

Marketers should treat blockchain attribution as part of a broader ecosystem for superior conversions and optimal results. This means assembling a comprehensive suite of tools and strategies to inform decisions, enhance engagement, and foster continuous refinement of the overall customer journey.

Blockchain attribution tools represent the first steps in integrating online and cryptographic data, and they are just the beginning. By helping you acquire user data and set up campaigns and dashboards, they provide you with a comprehensive understanding of your marketing campaign’s effectiveness. Armed with this information, you can better tailor your efforts and ultimately thrive in the exciting world of blockchain marketing.

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Yoav Tchelet

Yoav Tchelet has over 25 years experience working with some of the world's largest brands, helping them scale and grow their businesses.