Time Decay Attribution Model: What It Is, Pros & Cons [2025]

Time decay attribution is a marketing attribution model that assigns more credit to interactions that happen closer to the conversion event. Unlike models that distribute credit evenly or prioritize the first or last touchpoint, time decay attribution values recent interactions higher, as they are considered more influential in the final decision.

However, this model is not without its drawbacks. It may undervalue initial interactions and assume that recency alone determines effectiveness. In this guide, we’ll break down how time decay attribution works, provide examples, explore its benefits and limitations, and offer practical ways to implement it in your business.

What Is Time Decay Attribution?

Time decay attribution is a method of analyzing customer behavior that assigns progressively more credit to touchpoints as they get closer to the conversion. The rationale is that recent interactions have a greater impact on the final decision compared to earlier engagements.

The model prioritizes the touchpoints that have the most significant impact on the customer's decision-making process

How Does Time Decay Attribution Work?

This model follows a decay function, meaning the influence of a touchpoint diminishes as time passes. Marketing interactions occurring days or weeks before a conversion receive less credit than those occurring just before the purchase.

For instance, if a customer engages with multiple ads before buying a product, the last interaction before the purchase receives the most weight, while earlier interactions get progressively less credit.

Time Decay Attribution Model Example

Imagine a customer purchases from your online store after encountering your brand through various marketing channels:

Under the time decay attribution model:

This weighting reflects how recent interactions tend to have a stronger influence on conversions.h is the Facebook ad, gets the least credit. And the action that is in between, which is the Google ad, gets some credit.

Credit for each touchpoint based on the decay function (Source: dreamdata.io)

The decay function is a rule that tells us how much credit each touchpoint should get in the time decay model. The name “decay” comes from the fact that the credit decreases as we go back in time from the conversion.

The amount of credit that each touchpoint gets depends on the type of decay function that we use. There are different kinds of decay functions that give different amounts of credit to the touchpoints.

Some decay functions give a lot of credit to the touchpoints that are very close to the conversion, and very little credit to the ones that are far away. Other decay functions give more equal credit to all the touchpoints, regardless of how close or far they are from the conversion.

To understand this multi-channel attribution model, explore the complete and detailed benefits and drawbacks below!

Why Is the Time Decay Attribution Model Important?

This model helps marketers better understand the impact of each touchpoint in the conversion journey. Instead of overemphasizing the first or last touchpoint, time decay attribution provides a nuanced view, showing how different interactions contribute to the final decision over time.

By using this model, businesses can:

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Pros of Time Decay Attribution Model

1. All touchpoints receive equal credit

Every interaction in the customer journey plays a role in conversion. Unlike some models that only credit the first or last interaction, the time decay model assigns value to all touchpoints—giving more credit to those closer to the sale while still acknowledging earlier influences.

2. Accurate credit allocation

Properly attributing conversions to marketing efforts is essential for businesses. The time decay model provides a balanced approach by prioritizing touchpoints that have the greatest influence right before a purchase. This ensures a more realistic representation of marketing impact, helping businesses fine-tune their strategies.

3. Identifying effective marketing channels

Since this model highlights the most effective recent interactions, marketers can pinpoint which channels are truly driving conversions. With this insight, businesses can allocate budgets more efficiently, focusing on strategies that yield the most return of investment. Before adjusting budgets, tools like a Profit Margin Calculator can help confirm which channels provide the highest returns after costs.

4. Accurate customer journey

Traditional attribution models often oversimplify the customer journey by equally distributing credit or favoring a single touchpoint. The time decay model, however, takes timing into account, offering a more accurate reflection of how customers move through the funnel. This allows marketers to predict patterns and compare the effectiveness of different campaigns over time.

5. Adaptable for Different Business Needs

The time decay model is flexible and can be tailored to specific business goals. Here’s two time decay attribution examples:

6. Works Well with Other Attribution Models

Time decay attribution doesn't have to be used in isolation. Combining it with other models can give a more comprehensive view of marketing effectiveness. This hybrid approach allows businesses to optimize both short-term and long-term marketing strategies.

7. Easy to set up and use

Unlike machine learning-based attribution models, time decay attribution is easy to set up and apply. It doesn’t require extensive data analysis skills, making it accessible to marketers of all experience levels. Its simplicity helps teams focus more on strategy and execution rather than complex calculations.

Cons of Time Decay Attribution Model

1. Overemphasis on recent interactions

Time decay attribution gives more credit to touchpoints closer to the conversion event. While this helps identify effective strategies, it can lead to an overemphasis on recent interactions. As a result, earlier touchpoints such as those that raise awareness or spark initial interest may be undervalued. This could cause businesses to underinvest in tactics aimed at attracting new customers.

2. Not ideal for all business types

The time decay model isn’t always the best choice for businesses with short sales cycles or simple customer journeys. In such cases, simpler attribution models like Last Click or First Click may provide similar insights without the added complexity. For these businesses, the time decay model might not justify the additional effort and analysis required.

3. Potential for misinterpretation

For businesses with more complex sales processes where customers take time to research and compare options or later-stage interactions may be overvalued. This could lead to overinvestment in strategies focused on closing sales, while neglecting earlier-stage strategies that nurture leads and build awareness.

4. Ignores Interaction Value

The time decay model assumes all interactions hold equal weight, which may not reflect their true impact. For example, a customer’s first touchpoint (such as signing up for a newsletter) could be far more significant than later interactions. By not accounting for the varying value of different types of interactions, the model might misrepresent marketing effectiveness.

Despite these potential drawbacks, the time decay model remains essential for marketers to understand their customers' behavior and optimize their marketing efforts. As with any model, it's vital to consider your specific business needs and context when selecting an attribution model

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Tracy Ng

Senior Content Executive at TrueProfit & SEO/Content Specialist

Tracy is a senior content executive at TrueProfit – specializing in helping eCommerce businesses scale profitably through content. She has over 4 years of experience in eCommerce and digital marketing editorial writing. She develops high-impact content that helps thousands of Shopify merchants make data-driven, profit-focused decisions.