How does multi-touch attribution fundamentally differ from last-touch attribution in assessing the value of Instagram ad campaigns?

Last-touch attribution credits 100% of the conversion value to the very last touchpoint a customer interacted with before converting, completely ignoring all prior interactions. Multi-touch attribution, on the other hand, distributes the conversion credit across multiple touchpoints based on their contribution to the conversion. This is a fundamental difference in how campaigns are valued. For instance, a customer might see an Instagram ad (first touch), then visit the website organically a few days later (second touch), and finally convert after clicking a retargeting ad (last touch). Last-touch attribution would give all the credit to the retargeting ad, potentially undervaluing the initial Instagram ad that introduced the customer to the brand. Multi-touch attribution, however, would assign a portion of the credit to each touchpoint, recognizing that the initial ad played a role in the customer's journey. This provides a more holistic and accurate view of campaign performance, allowing for better optimization and budget allocation across all marketing channels, not just the final interaction.