Time-Decay Attribution is a multi-touch attribution model that assigns credit to all touchpoints in a customer's journey, but with a weighted approach that gives more credit to interactions that occurred closer to the conversion event. This model operates on the principle that marketing touchpoints…Time-Decay Attribution is a multi-touch attribution model that assigns credit to all touchpoints in a customer's journey, but with a weighted approach that gives more credit to interactions that occurred closer to the conversion event. This model operates on the principle that marketing touchpoints nearer to the purchase decision had a greater influence on the customer's final action.
In this attribution model, each touchpoint receives a portion of the credit, but the allocation follows a decay curve. Touchpoints that happened weeks or months before the conversion receive less credit, while those that occurred in the days or hours leading up to the conversion receive significantly more credit.
For example, if a customer first discovered your brand through a blog post, then engaged with a social media ad, received an email newsletter, and finally clicked on a paid search ad before making a purchase, the paid search ad would receive the largest share of credit. The email would receive the second-highest credit, followed by the social media ad, and the initial blog post would receive the smallest portion.
This model is particularly useful for businesses with longer sales cycles where multiple touchpoints are involved in nurturing leads toward conversion. It acknowledges the full customer journey while emphasizing the importance of closing interactions.
The time-decay model offers advantages over single-touch models like first-touch or last-touch attribution because it provides a more holistic view of your marketing efforts. It helps marketers understand which channels are most effective at driving conversions while still recognizing the role of awareness and consideration-stage touchpoints.
However, this model may undervalue top-of-funnel activities that are crucial for brand awareness and initial engagement. Marketers should consider using time-decay attribution alongside other models to gain comprehensive insights into their marketing performance and optimize budget allocation across all stages of the buyer's journey.
Time-Decay Attribution: A Complete Guide
What is Time-Decay Attribution?
Time-Decay Attribution is a multi-touch attribution model that gives credit to all touchpoints in a customer's journey, but assigns progressively more credit to interactions that occur closer to the conversion event. The logic behind this model is that touchpoints nearer to the conversion are considered more influential in the final decision-making process.
Why is Time-Decay Attribution Important?
Understanding time-decay attribution is crucial for several reasons:
• Balanced Credit Distribution: Unlike single-touch models, it acknowledges that multiple marketing efforts contribute to conversions • Recency Bias Recognition: It reflects the natural tendency for recent interactions to have stronger influence on purchase decisions • Budget Optimization: Helps marketers allocate resources toward channels that perform well in the later stages of the funnel • Sales Cycle Insights: Particularly valuable for businesses with longer sales cycles where nurturing touchpoints matter
How Does Time-Decay Attribution Work?
The model uses a mathematical decay function, typically based on a half-life principle. Here's how it operates:
1. Identify All Touchpoints: Map every interaction a customer has with your brand before converting 2. Apply Decay Formula: Touchpoints receive credit based on their proximity to conversion. A common approach uses a 7-day half-life, meaning touchpoints from 7 days prior receive half the credit of the final touchpoint 3. Calculate Weighted Credit: Earlier touchpoints receive exponentially less credit as they get further from the conversion
Example: If a customer journey includes an initial blog visit (Day 1), email click (Day 7), social ad click (Day 12), and purchase (Day 14), the social ad receives the most credit, followed by the email, with the blog receiving the least.
Exam Tips: Answering Questions on Time-Decay Attribution
• Remember the Core Principle: Credit increases as touchpoints get closer to conversion. This is the defining characteristic you must recall
• Compare with Other Models: Be prepared to differentiate time-decay from linear attribution (equal credit), first-touch (all credit to first interaction), and last-touch (all credit to final interaction)
• Identify Use Cases: Time-decay works best for shorter sales cycles and promotional campaigns where recent interactions are most relevant
• Watch for Scenario Questions: When presented with a customer journey, practice calculating which touchpoint receives the most or least credit
• Know the Limitations: This model may undervalue awareness-stage activities and initial brand discovery efforts
• Key Vocabulary: Terms like half-life, decay rate, and recency weighting often appear in exam questions
• Process of Elimination: If an answer suggests equal credit distribution or emphasizes the first touchpoint, it is likely describing a different attribution model
Common Exam Question Formats:
• Definition-based questions asking you to identify the time-decay model from a description • Scenario questions presenting a customer journey and asking which touchpoint receives the most credit • Comparison questions asking when time-decay is more appropriate than other models • Application questions about which business types benefit most from this approach