Contribution vs. Attribution: Why Shopbox Measures Differently

When it comes to eCommerce, personalization, and conversion rate optimization (CRO), one question often arises: How do we measure success? Most solutions lean on attribution, but at Shopbox, we’ve taken a different path. Let’s dive into why attribution isn’t the holy grail and why our focus is on true contribution.

The Problem with Attribution

Ever felt like the revenue claimed by your tech and ad suppliers adds up to 10 times more than what you’re actually making? Welcome to the attribution dilemma. Attribution has long been the go-to method for measuring the impact of online advertising. But does it truly reflect reality?

A Quick History Lesson: Where Attribution Came From

Before Attribution there was Market Mix Modelling (MMM) which was very robust but had some key issues. The goal of MMM was to map out every factor influencing a customer’s journey to a sale. It aimed to provide a clear picture of the marketing mix so businesses could optimize their strategies. While the idea was sound, MMM had some major flaws:

1. Massive Data Requirements: Gathering and analyzing vast amounts of data was a herculean task.
2. Slow Adjustments: Real-time tweaks were impossible; even the best teams managed weekly updates, while most settled for monthly.
3. Complexity: Most people couldn’t understand it, leading to low adoption rates.

Enter attribution, a simpler, faster solution. It provided near-real-time insights and was embraced eagerly—especially by companies like Google, which naturally benefited from claiming credit for nearly every sale.

Why Attribution Worked (Until It Didn’t)

Attribution’s simplicity made it a hit, especially during the early days when Google dominated advertising. Sure, double-counting happened—like when a customer saw a product via a Google ad, then clicked a Facebook ad later. But with most budgets heavily weighted toward Google, the issues were ignored.

However, the digital landscape has since evolved:

• Multiple social media platforms and advertising channels
• Advanced tech solutions enhancing the customer experience
• Rising competition and skyrocketing ad costs

Suddenly, attribution started looking… messy. Now, five or six suppliers might claim credit for the same sale: Google, Facebook, your search system, and so on. It’s time to call BS.

The Rise of Contribution

To untangle this mess, new tech solutions and CRO agencies have stepped in. They’re revisiting the principles of Market Mix Modelling with modern tools that can analyze real-time data. The goal? Clear, actionable insights.

At Shopbox, we’ve taken a stand for transparency and true performance measurement. Instead of clinging to outdated attribution models, we focus on distinguishing between Attribution and Contribution.

Attribution vs. Contribution

Here’s how we define these terms:

• Attribution: A customer’s first engagement with a product happens via Shopbox. This is the moment we can truly claim to inspire a sale.
• Contribution: The customer has already seen the product elsewhere but interacts with it again through Shopbox.

When it comes to reporting, we believe only attribution revenue should count. Either Shopbox inspired the customer, or it didn’t. No gray areas, no double-dipping.

Why This Matters for eCommerce

In today’s hyper-competitive eCommerce world, personalization and market mix modelling are crucial. But without accurate measurement, even the best conversion rate optimization strategies will fall flat. By focusing on actual uplift rather than inflated claims, Shopbox empowers retailers to:

• Make smarter decisions
• Allocate budgets more effectively
• Drive real, measurable sales

Final Thoughts

Attribution had its day in the sun, but it’s time for a more transparent approach. By focusing on contribution vs. attribution, Shopbox ensures that you’re not just optimizing your marketing—you’re actually growing your business. Ready to measure what truly matters? Let’s get started.