Time Decay Attribution Model
A model in digital marketing where more credit is given to interactions that happen closer to the conversion time.
Description
In digital marketing, the Time Decay Attribution Model is used to allocate credit for a conversion based on the recency of touchpoints. This model assumes that the closer an interaction is to the time of conversion, the more influential it is in driving the conversion. It's particularly useful for campaigns where the decision-making process is time-sensitive, or where the buyer's journey is shorter. By emphasizing the most recent interactions, marketers can better understand which touchpoints are most effective in sealing the deal, allowing them to optimize their strategies accordingly.
Examples
- A user clicks on a Facebook ad, then a week later clicks on a Google search ad, and finally, after a day, makes a purchase through an email link. With the Time Decay Attribution Model, the email link will receive the most credit, followed by the Google search ad, and lastly, the Facebook ad.
- A customer who views a YouTube video review of a product, then a few days later reads an article about it, and finally makes a purchase after receiving a discount code via SMS. Here, the SMS interaction will be attributed the most credit, since it was the closest interaction to the purchase time.
Additional Information
- Best suited for short sales cycles where recent interactions have a higher influence on the conversion decision.
- Often used in remarketing campaigns to understand the effectiveness of various touchpoints in driving conversions.