What is the main drawback of relying solely on last-touch attribution for channel optimization?

The main drawback of relying solely on last-touch attribution for channel optimization is that it provides an incomplete and potentially misleading view of the customer journey, leading to suboptimal investment decisions and misallocation of marketing resources. Last-touch attribution gives all the credit for a conversion to the final marketing touchpoint a customer interacted with before making a purchase. This ignores the influence of all the earlier touchpoints that played a role in creating awareness, building interest, and nurturing the lead. For example, if a customer discovers a brand through a blog post, then researches the product on social media, and finally converts after clicking a paid search ad, last-touch attribution would only credit the paid search ad. This can result in undervaluing the contributions of the blog and social media channels, potentially leading to reduced investment in these areas, even though they were crucial in the initial stages of the customer journey. Consequently, marketing efforts become narrowly focused on bottom-of-funnel activities, neglecting the importance of building brand awareness and nurturing leads through earlier stages.