From the course: Marketing Attribution and Mix Modeling

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Time decay and conversion lags

Time decay and conversion lags

- [Male Instructor] An ad clicked the same day of a purchase is potentially worth more than an ad clicked a month ago. Time-decay models account for that by giving less credit for touches that happened longer ago. Compared to last click, it shares the credit much more evenly. Take this simple example. If the user is reading a blog post 30 days ago, and then signed up for the email, they got an email seven days ago and then clicked through to the email to the website, and then today they saw an ad and then finally decided to purchase. Under the last click model, the ad would get a hundred percent of the credit for that purchase, even though the user had been through the email and the blog, and that potentially weighed in on their decision to purchase. With a time decay model, that credit would be shared much more evenly. So even though the ad drove the last purchase, it doesn't get a hundred percent of the credit. It…

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