What is attribution modeling and why does it matter?

Attribution modeling determines which marketing channels get credit for conversions. Different models (first-click, last-click, linear, time-decay, data-driven) assign credit differently. It matters because understanding which channels drive conversions helps allocate marketing budget effectively. Last-click attribution gives all credit to the final touchpoint, while first-click gives credit to the first. Most conversions involve multiple touchpoints, so choosing the right model affects how you value different channels. Example: Using last-click attribution, email looked like the best channel, but switching to data-driven attribution revealed that social media was crucial for awareness, changing marketing strategy.