What is the purpose of the 'Time-Decay' attribution model?

The 'Time-Decay' attribution model is designed to assign credit for a conversion to various interactions based on their recency. This means that the model recognizes that interactions that occur closer in time to the conversion are likely to have had a more significant influence on the decision to convert. As a result, more credit is given to these recent interactions compared to those that happened further in the past.

This attribution style acknowledges the importance of a user's journey through multiple touchpoints, capturing the cumulative impact of each interaction while placing higher importance on the ones that occur nearer to the actual conversion event. By doing this, marketers can gain a clearer understanding of which channels and tactics are most effective in driving conversions, especially in e-commerce where timing can be crucial in finalizing purchases.

This contrasts with the other models mentioned, which have different approaches to assigning credit across various interactions. For example, emphasizing the last interaction assigns all credit to the last touchpoint before conversion without regard for earlier influences, while prioritizing the first interaction focuses solely on the initial point of contact. The equal credit model distributes the influence evenly, which might overlook the nuances of the customer journey that the time-decay model captures.