How does Bing Ads attribute conversions to different ad clicks?

In Bing Ads (Microsoft Advertising), conversion attribution plays a crucial role in determining how much credit is given to each ad click in the user journey that leads to a conversion (e.g., purchase, sign-up, download). This helps advertisers understand which touchpoints in the conversion path are most influential and optimize their campaigns accordingly.

Here's how Bing Ads attributes conversions to different ad clicks:

1. Understanding the Conversion Attribution Process
When a user interacts with an ad (e.g., clicking it) and then completes a conversion (such as purchasing an item, signing up for a service, etc.), Bing Ads attributes that conversion to the ad click. The attribution models you choose (e.g., last-click, first-click, etc.) determine how credit is distributed across multiple ad interactions leading up to the conversion.

2. Key Attribution Models in Bing Ads
The attribution models available in Bing Ads determine how conversions are attributed to different ad clicks in the customer journey. Here are the key attribution models and how they handle ad click attribution:

Last Click Attribution
How It Works: The last ad click before the conversion is given 100% of the credit for that conversion.

Ad Click Attribution: In this model, if a user clicked multiple ads before converting, only the last ad clicked is attributed with the conversion.

Example: If a user clicks on three ads (Ad 1, Ad 2, and Ad 3) and then converts, Ad 3 (the last ad clicked) will be credited for the conversion.

First Click Attribution
How It Works: The first ad click before the conversion gets 100% of the credit for that conversion.

Ad Click Attribution: In this model, only the first ad clicked is attributed with the conversion, regardless of any subsequent ad clicks.

Example: If a user clicks on three ads (Ad 1, Ad 2, and Ad 3) and then converts, Ad 1 (the first ad clicked) will be credited for the conversion.

Linear Attribution
How It Works: Equal credit is distributed among all the ad clicks in the user's journey leading to the conversion.

Ad Click Attribution: Every click that the user made on ads leading up to the conversion receives an equal share of credit for the conversion.

Example: If a user clicks on three ads (Ad 1, Ad 2, and Ad 3) and then converts, each ad would receive an equal portion of the credit for the conversion (e.g., 33.3% per ad if there are three clicks).

Time Decay Attribution
How It Works: More credit is given to the ad clicks that happened closer to the conversion, and less credit is given to earlier interactions.

Ad Click Attribution: The last ad click gets the most credit, and as the user interacts with previous ads, the credit decays based on the time difference between the click and the conversion.

Example: If a user clicks on three ads over the course of a week and then converts, the last ad click will receive the most credit, and the earlier ad clicks will receive progressively less credit as time goes back.

Position-Based (U-Shaped) Attribution
How It Works: The first and last ad clicks are each given 40% of the credit, with the remaining 20% split equally among any intermediate clicks.

Ad Click Attribution: In this model, the first and last touchpoints are considered the most significant, so they are attributed with the largest share of credit, with any clicks in between receiving a smaller portion of the credit.

Example: If a user clicks on three ads (Ad 1, Ad 2, and Ad 3) and then converts, Ad 1 and Ad 3 each receive 40% of the credit, and Ad 2 receives the remaining 20%.

Custom Attribution
How It Works: While Microsoft Advertising does not provide native tools for fully customizable attribution models, advertisers can use third-party attribution platforms or UTM parameters to define custom models for conversion tracking.

Ad Click Attribution: Custom models allow advertisers to assign different amounts of credit to each ad click based on their specific business needs.

Example: An advertiser could set up their own custom attribution logic to give more credit to certain types of ad interactions based on how much they influence the user's decision-making process.

3. How Ad Clicks Are Tracked for Attribution
Bing Ads tracks ad clicks through the use of Universal Event Tracking (UET) tags and cookies that are placed on the user's browser when they click on an ad. The UET tag enables the platform to track the journey of users from their initial ad interaction to their final conversion.

UET Tag: This is the primary tool for tracking conversions. It records data about user interactions with ads (clicks) and when a conversion occurs (e.g., a purchase or form submission).

Cookies: When users click on an ad, a cookie is set in their browser that tracks their activity on your website. The cookie links the click to subsequent activities, including conversions.

If a user clicks on multiple ads in a session or across different sessions, the UET tag records each click and associates it with the conversion path, depending on the chosen attribution model.

4. View-Through Conversions
In addition to ad clicks, Bing Ads also tracks view-through conversions, which occur when a user sees an ad but does not click on it, and later converts (e.g., they visit your website or make a purchase). In this case, the ad impression is attributed to the conversion, rather than an ad click.

How It Works: If a user views an ad (but doesn't click it) and then completes a conversion within a set time frame, the impression is counted as a view-through conversion.

Example: A user sees your ad for a product but does not click on it. A few days later, they return to your website through a search or direct visit and purchase the product. This conversion would be counted as a view-through conversion and attributed to the ad impression (not the click).

5. Why Ad Click Attribution Is Important
Attributing conversions to specific ad clicks helps marketers:

Optimize Ad Spend: Understand which ads, keywords, or campaigns are the most effective at driving conversions.

Measure Ad Effectiveness: Track the role of each ad interaction (click or impression) in influencing the customer's decision to convert.

Adjust Campaign Strategies: Make data-driven decisions to adjust bids, keywords, and targeting based on how each touchpoint contributes to conversions.

6. How to Set Attribution Models in Bing Ads
To choose an attribution model for your campaigns in Bing Ads, follow these steps:

Go to your Campaign Settings: Navigate to the campaign you want to adjust.

Select Attribution Model: Under the "Settings" tab, find the "Attribution Model" section.

Choose Your Model: You'll have options such as Last Click, First Click, Linear, Time Decay, and Position-Based.

Apply and Save: Once you've selected your preferred attribution model, apply and save the changes.

Conclusion
Bing Ads offers several attribution models to help advertisers understand how different ad clicks contribute to conversions. Whether you're interested in attributing credit to the first or last click, or prefer a more balanced view with linear or time decay models, you can adjust the attribution model based on your campaign goals. This helps optimize your bidding and budgeting strategies and provides deeper insights into the customer journey.