vtexads-api-docs

Attribution Window and Conversion Models

This document details the rules, models, and timelines that govern the attribution of conversions (sales) and the billing of advertising campaigns on our platform.

1. What is the Attribution Window?

The “attribution window” (or conversion window) is the time period after a user interacts with an ad (either by clicking or viewing) during which a conversion can be credited to that ad.

• Default Window: 14 days.
• Flexibility: This period is the default for all campaigns, but can be customized according to strategic needs.

Example: If a user clicks on an ad today, any purchase they make of the associated product in the next 14 days can be attributed to that ad.

2. Measurement (Attribution) vs. Billing (Invoicing)

It is essential to differentiate the event that measures attribution (what we use to count a conversion) from the event that generates billing (what we charge the advertiser).

2.1. Measurement Events (Attribution)

This defines how we know that an ad “worked” to generate a sale:

• Product Campaigns (Product Ads):
  • Event: Click.
  • Logic: The conversion is only counted if the user clicked on the ad before purchasing.
• Other Campaigns (Banner, Video, and Sponsored Brands):
  • Event: View (Impression).
  • Logic: The conversion can be counted even if the user only saw the ad (and did not necessarily click), following the hierarchy rules (see section 3).

2.2. Billing Models (Invoicing)

This defines what the advertiser pays for:

• CPC (Cost Per Click): The advertiser pays each time a user clicks on the ad.
  • Used in: Product Campaigns, Sponsored Brands.
• CPM (Cost Per Thousand Impressions): The advertiser pays a fixed amount for every 1,000 times the ad is displayed.
  • Used in: Banner, Video, Sponsored Brands.
• Hybrid Model (CPC + CPM):
  • Sponsored Brands campaigns are unique, as they charge for both clicks (CPC) and impressions (CPM) generated.

Billing Calculation Example (CPM)

CPM defines the value for 1,000 impressions, but the actual charge is proportional to each individual impression.

• Scenario: A video campaign has a CPM of $10.00.
• Result: The campaign generates 10 impressions.

Calculation:

1. Cost per individual impression: $10.00 (CPM) / 1,000 (impressions) = $0.01 per impression.
2. Total Cost: 10 (impressions generated) * $0.01 (cost per impression) = $0.10.

The total cost of this campaign would be ten cents.

3. Attribution Rules (The Decision Hierarchy)

When a user interacts with multiple ads before purchasing, an attribution model decides which campaign will receive credit for the sale.

Fundamental Principle: Attribution is exclusive. A sold order is never attributed to two different campaigns; credit is always given to a single campaign.

The decision follows this priority order:

1. Priority 1: Offsite Campaigns
   • If there is an active offsite campaign (bringing external traffic to the site) and it was the user’s last point of contact, it will have total preference in the sale attribution.
2. Priority 2: Last Click
   • In the absence of a recent offsite click, the system looks for the last ad (within the platform) that the user clicked within the 14-day window.
3. Priority 3: Last View
   • If the user did not click on any ad during the period, the system attributes the sale to the last ad they viewed (as long as it is a campaign type that measures by view, such as Banner or Video).

Time Rule: For a conversion to be valid, the interaction event (click or view) must have occurred before the order was finalized.

4. Product Mapping in Attribution

A campaign can only receive attribution for products that are explicitly linked to it.

4.1. Product Campaigns (1:1 Attribution)

• How it works: Each ad (AD) within the campaign represents a specific product.
• Logic: Attribution is direct and 1-to-1. A click on the “Product A” ad can only generate a conversion for “Product A”.

4.2. Other Campaigns (Banner, Video, etc.) (N:1 Attribution)

• How it works: These campaigns have a list of associated products (SKUs).
• Logic: Interaction (click or view) with a single creative (banner or video) can generate attribution for any of the products contained in that campaign list.

Note on Creatives: Within a campaign (e.g., Banner), each creative (e.g., “Banner A” and “Banner B”) tracks its information independently. This allows analysis of the individual performance of each ad piece.

5. Data Latency (Attribution Delay)

It is important to note that there is a natural delay between the moment the customer creates the order and the moment that sale is associated (attributed) to the correct campaign in the reports.

• API Integration: Delay of approximately 30 minutes.
• VTEX Platform: Delay of up to 2 hours.