Definition of Time Decay Attribution
A model that gives more credit to marketing interactions that occur closer to the time of conversion.
Explanation of Time Decay Attribution
Time decay attribution is a marketing measurement model that assigns more credit to touchpoints closer to the final conversion event. It acknowledges that recent interactions are typically more influential in driving the conversion decision than earlier ones. For example, if a customer interacts with multiple marketing channels over time before making a purchase, the touchpoints closer to the purchase date will receive more weight in the time decay attribution model. This approach helps businesses understand the relative importance of different marketing activities and optimize their strategies accordingly. Time decay attribution provides a nuanced view of the customer journey, recognizing the cumulative effect of marketing efforts while emphasizing the most impactful touchpoints. By analyzing time decay attribution, companies can allocate their marketing budgets more effectively, improve campaign performance, and enhance overall marketing ROI. This model is particularly useful in complex, multi-channel marketing environments where understanding the timing of interactions is crucial for driving conversions.