Facebook ads “as much as 30 per cent” more valuable with Multi-Touch Attribution, research argues

By Chris Lee

Digital marketing firm Kenshoo has released a new study which argues that marketers using Multi-Touch Attribution models generate between 10-30 per cent more value from Facebook advertising compared to those using Last Ad or Last Click measurement techniques.

According to Kenshoo’s paper, Quantifying the Impact of Multi-touch Attribution, the Last Ad model undervalues Facebook advertising by up to 30 per cent, compared to five other industry-standard alternative attribution models: First Only, Prefer First, Divide Equally, Prefer Last and U-Shaped.

Kenshoo says that each model studied found the Last Ad technique under-valued Facebook ads to a different extent:

First Only (where only the first click is measured): Facebook was undervalued 30 per cent using the Last Ad model

Prefer First (where the first click receives the majority of credit with subsequent clicks gaining less credit): Facebook undervalued 20 per cent using the Last Ad model

Divide Equally (where all clicks are treated the same): Facebook undervalued 16 per cent using the Last Ad model

Prefer Last (where the last click is favoured): Facebook undervalued 12 per cent using the Last Ad model

U-Shaped (where the first and last clicks are attributed equal credit – 40 per cent – and the rest 20 per cent combined): Facebook undervalued 15 per cent using the Last Ad model

Multiple choice

Aaron Goldman, chief marketing officer at Kenshoo, told < i>NMK that companies using Last Ad measurement as their primary signal needed to reassess their marketing in light of these findings and instead look at Multi-Touch Attributions.

“Brands and agencies understand that giving all the credit to the last ad clicked before a conversion is not the best way to manage marketing campaigns but some still struggle with quantifying the difference between various attribution models,” he said. “That’s what we set out to do with this research. We wanted to give marketeers definitive numbers as to just how much the last ad model undervalues key channels – in this case, Facebook.”

Goldman added: “By recognising the role that Facebook plays in the winding path-to-purchase and giving it proper budget allocation, brands will generate better results from their multi-channel campaigns.”

In order to determine the variance in value allocation, Kenshoo analyzed the campaign performance data for their clients managing ads across multiple digital marketing channels during March, April and May of this year. The brands included in the study spanned a wide range of industries including retail, home improvement and financial services, with the total data set covering millions of clicks and direct online sales conversions. As not all marketers define conversions the same way, Kenshoo used a Cost-Per-Acquisition (CPA) metric across all advertisers in the sample. CPA was calculated by aggregating all recorded conversions and dividing that number in the total media cost of the ads which drove them.

Those interested in reading the full research can visit Kenshoo.com/QuantifyingMTA < /b>to download and view the complete results of the study. < /b>

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