The function of a compressor is to compress(reduces the highs, bring up the lows) the signals level, and even out the overall volume and dynamics. A signal from, say, a violin, would have alot of dynamic data. If you were to overcompress it, it would squash the dynamic range and sound flat. So you’d want to use very little comp to maintain the dynamics. Volume swells and such.
You may elect to squash a drum signal though, because you want an even and consistent signal.
The same applies with guitars. You can use comp in a variety of ways.
1st would be utility. You might use a comp to even out a clean guitar tone.
2nd would be as an effect. You can use a compressors attack, decay, sustain, and release to shape the timbre of your signal.
An example of this would be country and chicken pickin. A common trick to enhance the pluck on the strings is to set your compressors attack very tight. The comp will grab the signal quick and boost the front end giving you more bite on the attack.
You can also increase the sustain on a comp to allow your notes to ring out longer. Or raise the level of a delay in your chain, squeeze the reverb, or sidechain.
Fun fact: Distortion is naturally compressed. So you wouldn’t add a comp to a super distorted signal.
You can also use a comp as a limiter, a booster, and more…
Source: have degree in music production and engineering from Berklee.
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