Time Decay Attribution
Time Decay Attribution is a marketing analytics model that assigns credit for a conversion to multiple touchpoints in a customer journey, with more recent interactions receiving greater weight than earlier ones. It is based on the principle that touchpoints closer in time to the conversion have a stronger influence on the final decision. This model helps businesses understand the diminishing impact of marketing channels over time in driving sales or conversions.
Developers should learn Time Decay Attribution when building or analyzing marketing analytics platforms, customer journey tracking systems, or attribution modeling tools, as it provides insights into how marketing efforts contribute to conversions over time. It is particularly useful in industries with longer sales cycles, such as B2B or high-value consumer goods, where multiple interactions occur before a purchase, and recent engagements are critical. This model helps optimize marketing spend by highlighting the effectiveness of channels as the conversion event approaches.