Facebook ads can deliver up to 30% more value than marketers think

Marketers using multi-touch attribution models generate 10 to 30 per cent more value from Facebook advertising compared to those using Last Ad or Last Click measurement techniques, research from Kenshoo has found.

This comes as Facebook works on a new service to allow companies to post video ads, which will be targeted based on age and gender.

The “Quantifying the Impact of Multi-touch Attribution” study compared various attribution models to the Last Ad single-point measurement which is widely used by marketers.

It was discovered that the Last Ad model undervalues Facebook advertising by 12-30 per cent, compared to five industry-standard alternative attribution models: First Only, Prefer First, Divide Equally, Prefer Last and U-Shaped.

Josh Dreller, director of marketing research at Kenshoo, said: “Marketers relying on Last Ad attribution to optimise their campaigns could be making million-dollar decisions based on flawed data; so they can expect to achieve flawed results.

“Multi-touch techniques better reflect the reality of consumer behavior and enable marketers to improve budget allocation and campaign performance. Our study found the Last Ad model often discounted Facebook from conversions it helped drive, to the tune of being undervalued by as much as 30 per cent.

“As Facebook continues to become even more of an essential component of the marketing mix, it’s critical that all advertisers be aware of the costly oversight inherent in the Last Ad model. The use of multi-touch attribution helps to accurately quantify the value of Facebook ads within a cross-channel campaign and helps marketers optimise spend to boost ROI.”

This research reflects an analysis of live campaign performance data for Kenshoo clients managing ads across multiple digital marketing channels during March, April and May 2013.

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