Custom vs. Standard Attribution Models: Key Differences

Custom and standard attribution models help businesses understand how marketing efforts lead to conversions. Here's a quick breakdown:

• Standard Models: Pre-built, rule-based, and easy to set up. They are great for simpler customer journeys.
  • Examples: First-touch, last-touch, linear, time-decay.
  • Pros: Quick setup, budget-friendly, straightforward rules.
  • Cons: Limited flexibility, can miss complex customer interactions.
• Custom Models: Tailored to specific business needs, offering precise control and deeper insights.
  • Pros: Flexible, integrates online/offline data, aligns with unique goals.
  • Cons: Requires more time, resources, and expertise to implement.

Building a Custom Attribution Model

Quick Comparison

Choose standard models for simplicity and speed. Opt for custom models if your business needs detailed insights and can allocate the necessary resources.

Standard Attribution Models Explained

Let’s dive deeper into standard attribution models. These are ready-made frameworks designed to help track and analyze marketing touchpoints.

Types of Standard Models

Standard attribution models are generally divided into two categories: single-touch and multi-touch. Single-touch models focus on one interaction, while multi-touch models distribute credit across multiple points in the customer journey.

Customer journeys are rarely simple. For instance, B2B buyers typically engage with 8 touchpoints, B2C buyers with 6, and retail customers may interact with as many as 56 touchpoints . These variations highlight the need for choosing the right model based on the journey's complexity.

Benefits of Standard Models

Standard attribution models come with a few standout advantages:

• Quick and Easy Setup: They’re ready to use with minimal configuration.
• Straightforward Rules: Easy-to-understand credit distribution, making it simpler to explain to stakeholders.
• Budget-Friendly: Often included in analytics platforms at no extra cost.

"There is no wrong answer. It depends on your business needs and one model isn't better than another. As we've discussed, finding data-driven insights that help you drive revenue is the most important part of building a marketing attribution model." - Craig Jordan, Founder and CEO at SaaScend

Standard Model Restrictions

Despite their convenience, these models have some limitations:

• Too Simplistic: Single-touch models, in particular, fail to capture the complexity of modern customer journeys, which can involve anywhere from 20 to 500 touchpoints .
• Channel Gaps: Many models don’t effectively track interactions across multiple channels.
• Inflexibility: Fixed rules make it hard to account for unique business scenarios.
• Offline Blind Spots: They often can’t incorporate offline interactions.

These limitations mean standard models work well for straightforward cases, like retail purchases with 4-6 touchpoints. However, for more complex journeys - such as B2B scenarios with 12-20 interactions - a custom model may be more effective .

sbb-itb-f249d2a

Custom Attribution Models in Detail

Custom attribution models give marketers the ability to fine-tune how credit is distributed across marketing touchpoints, aligning the approach with specific business goals.

Custom Model Basics

These models often begin with a standard framework, like linear or position-based attribution, and are then adjusted to meet unique business needs. Marketers can tweak credit distribution, apply channel-specific rules, and even include offline data for a more complete picture.

For instance, Campaign Manager 360’s linear model might assign 25% credit to each touchpoint. However, custom rules could redistribute this, giving search interactions 40% and other channels 20% each . These adjustments make the model more relevant to specific strategies.

Why Custom Models Matter

Custom models provide a range of advantages that go beyond standard approaches:

What’s Needed to Build a Custom Model

Creating a custom attribution model requires a solid foundation. Here’s what you’ll need:

1. Data Collection Framework
   Ensure comprehensive tracking across all channels, including UTM parameters and CRM integrations, to capture online and offline interactions accurately .
2. Attribution Window Definition
   Define the timeframe for credit assignment. For example, a B2B company might need a 90-day window due to longer sales cycles, while e-commerce could stick to shorter periods .
3. Custom Rules Development
   Set specific rules based on factors like channel value, customer engagement, or interaction timing .
4. Testing Infrastructure
   Build a system to test your custom model against existing methods. Compare results across different attribution windows and channel combinations to ensure accuracy .

While setting up a custom model takes effort, the payoff is a clearer understanding of marketing performance and return on investment. A structured setup ensures more reliable insights for future strategies.

Comparing Custom and Standard Models

Custom and standard attribution models differ in their capabilities and the resources they require. These differences play a critical role in guiding analytics decisions. The comparison below breaks down their core features, focusing on setup, flexibility, and resource needs.

Feature Comparison Table

This table outlines the main distinctions. Let’s dive deeper into these aspects to help you decide which model fits your needs.

Standard attribution models are ideal for those seeking simplicity and speed, offering eight pre-built options. These include popular approaches like last interaction and linear models. As Himanshu Sharma of OptimizeSmart.com explains:

"No attribution model is good, bad, the best, or flawed. We select an attribution model on the basis of our business model, advertising objectives, and the hypothesis we want to test"

On the other hand, custom models are tailored for businesses with complex customer journeys. However, they require significant effort. Melissa Yap from MNTN emphasizes:

"Setting up a custom attribution model requires significant time and research. You must understand how your audience values each touchpoint so you can assign credit accordingly. Overemphasizing the wrong touchpoints could lead to budget mishaps and underperforming ad campaigns"

For straightforward setups and faster implementation, standard models are a reliable choice. However, if your business needs deeper insights and a tailored approach, custom models are worth the investment .

Selecting Your Attribution Model

Choosing the right attribution model depends on aligning it with your business goals and advertising strategy.

Selection Criteria

Your decision should be guided by your business structure and advertising needs . A few key factors to consider include:

• Marketing channels: The more channels you use, the more complex your model might need to be.
• Purchase cycle length: Longer sales cycles often require tailored models for accuracy.
• Resources: Think about your team's technical skills and budget limitations.
• Data integration: If you're combining online and offline touchpoints, this will influence your choice.

Once you've assessed these factors, it's time to look at where each model performs best.

Best Uses for Standard Models

If your business has a simpler sales journey, a standard attribution model might be all you need. These models are ideal for businesses with straightforward customer paths.

"Ultimately, the best attribution model is the one that's in line with your business goals, customer journey, and resources"

Standard models are particularly effective for:

• E-commerce businesses with short sales cycles and impulse-buying customers .
• Companies working with limited budgets for marketing analytics.
• Businesses with simple customer journeys.
• Organizations focused mainly on digital marketing channels.

Research indicates that even basic attribution models can improve marketing efficiency by 20-30% .

Best Uses for Custom Models

"Advanced attribution and marketing mix modeling promise greater fidelity of spend analysis and optimization, but bring their own cost and additional complexity"

Custom models are a better fit for businesses with more intricate needs, such as:

• B2B companies dealing with longer sales cycles .
• Businesses that integrate online and offline channels in their marketing.
• Organizations with complex customer journey mapping.

These models shine when you need to track multiple touchpoints across different channels and gain deep insights into customer behavior. While they require more effort and resources, the detailed analysis they provide can be worth the investment.

Summary

This section highlights the main differences and practical uses of each approach discussed earlier.

Standard models rely on fixed rules, making them easy to set up and implement. On the other hand, custom models use advanced analytics to provide more accurate credit allocation .

Custom models allow for flexible lookback windows and tailored credit rules based on metrics like session duration and page views. These features are particularly helpful when dealing with complex, multi-channel customer journeys .

Regardless of the model you choose, success depends on maintaining high-quality data, clearly defining conversions, and regularly updating your approach to align with your business goals. The key takeaway: choose an attribution model that fits your marketing strategy and the resources you have available.

Related Blog Posts

• 8 Best Tools for Digital Marketing Analytics
• A/B Testing in Meta Ads: Step-by-Step Guide
• Meta Ads Tracking: Events Manager Guide
• How Behavioral Data Improves Funnel Decisions