Facebook display advertising isn’t being given enough credit in consumer transactions, says full-service analytics agency Datalicious. All the love goes to search.
There’s an imbalance in how brands allocate their media spend because of inaccurate measurement, says CEO Christian Bartens. Too many companies adhere to the ‘last click attribution’ model, a model where the last media channel a consumer visits to purchase something is the one that gets all the credit for the campaign.
Generally that’s not display advertising. It’s all search.
“People simply just see display ads. They don’t click on them but they leave an impression similar to other offline ads such as TV ads or outdoor posters,” says Bartens. “In the last click model all the other touch points that came before that, that helped you make a decision, that made you aware of the product in the first place… see no credit whatsoever. They’re completely neglected.”
The latest research from Datalicious ‘Media Attribution: Optimising digital marketing spend in Financial Services’ analysed the results of seven major brands such as BUPA, AAMI and St George, across five months to measure their return on advertising spend (ROAS). It analysed 702 million media touch points across 104 million purchase paths and 75 thousand conversions.
The study found that in order for brands to fully understand where their ROAS was coming from they need to look at all the touch points of a campaign, a ‘multi-click attribution’ model.
By comparing both the last click and the multi-click attribution model the study found display advertising was being severely undervalued.
Facebook and display advertising actually deliver 830% more revenue for the brands than previously thought when looked at via a multi-click attribution model.
The study also found that Facebook and display advertising indirectly convert and help build awareness of a product or campaign that is then captured by other touch points later on. While admitting it’s impossible to statistically prove whether display ads lead to consumers searching for the product, Bartens says the research found strong evidence that display ads have influence on the consumer.
“There is an imbalance in the way people spend their budget,” says Bartens.
“They say ‘display doesn’t generate any clicks. I’ll take all of my money out of display and put it all into search’. So marketers end up really neglecting certain channels.”
It may sound like common sense, however Bartens says it’s because there’s a lack of knowledge in the industry.
“The last click model was created in a time where online advertising was largely limited to paid search and there was no display advertising, there was no social, that was all you could do. The last click model was created to track that. It persisted for an entire decade without significantly being challenged.
“It’s a historic leftover. People simply don’t know any better.
“Paid search can no longer claim credit for most of the generated revenue and has to start sharing with other channels such as display that previously were not able to claim revenue due to an inaccurate measurement approach.”
Given there is hardly ever a single solution to a problem simply increasing Facebook or display advertising spend is not going to be enough. Like any other channel a successful campaign strategy doesn’t depend purely on overall budget but also requires a good offer, effective creative and ongoing test and optimisation program.
Download a full copy of the report here.
A second whitepaper including offline data in the attribution modelling will be released in April 2015.
Acast, the independent power source of podcasting has teamed up with Comscore to provide brand suitability controls for brands advertising through the Acast Marketplace. This new innovation is part of a global partnership with Comscore, and will be available to all advertisers working with Acast Australia and New Zealand. The brand suitability solutions offered by […]
Media agency Wavemaker has appointed Susie Si as group business director – to lead the Vodafone account. Si joins from sister agency MediaCom, where she has spent the last 8 years. Most recently she was group client lead on News Corp. Si will report to Wavemaker Sydney managing director Ian Edwards, and replaces Emily Cook […]
Headquartered in Melbourne, Trade Indy is expanding off the back of strong client retention and consistent growth through existing and new business. Founded in Melbourne in 2014, the team have since expanded the business through team members in Singapore, Indonesia, Tasmania and Queensland, and are pleased to announce the full-time employment of NSW commercial director […]
Outbrain Inc. has announced the pricing of its initial public offering of 8,000,000 shares of common stock at a price to the public of US$20.00 per share. The gross proceeds to Outbrain from the offering, before deducting the underwriting discounts and commissions and offering expenses, are expected to be approximately $160 million. The shares began […]
HubSpot, the customer relationship management (CRM) platform for scaling companies, has announced that as part of its World Certification Week, it is supporting the GO Foundation with its mission to empower young Aboriginal and Torres Strait Islander people through education. As part of the support, HubSpot will donate $5 for every HubSpot Academy certification awarded […]
IntelligenceBank has today announced a strategic growth investment from Five Elms Capital. The $US37 million ($50 million) investment comes as brands and enterprises have realised that outdated technologies, disjointed data sources, and manual processes make it challenging to efficiently manage essential marketing workflows and ensure compliance across the organization. IntelligenceBank digitally transforms manual processes and […]
Southern Cross Austero (SCA) announced today 10 all-new DAB+ music stations on LiSTNr. The introduction of the 10 new Dab stations takes the number of music stations to 25 and reinforces its commitment to growing exclusive music programs and content. The 10 new stations have been created to cater to a variety of moods and […]
SBS has launched live interpreting of the daily NSW Government COVID-19 press conference in languages other than English, to provide communities with access to the latest information and critical health messages. The national-first initiative provides real-time interpreting of the press conferences in Arabic and Vietnamese, streamed live every day on the SBS Arabic24 and SBS Vietnamese Facebook pages, SBS […]
Snowflake, the Data Cloud company, today announced it has been chosen by market-leading linking platform, Linktree, to support the company’s business intelligence and analytics activities. Linktree enables creators, brands, artists, publishers, agencies, and businesses of all sizes to curate an online ecosystem and monetise their passion, instantly guiding their audience to the destinations they care […]
Australian Pay On Demand fintech Beforepay has launched its first-ever brand campaign: ‘Your pay at your command’. “Beforepay exists to meet a gap in the market where Australians are seeking flexibility and control to access the pay they’ve earned on their terms. As pioneers of the Pay On Demand category, it’s important that we set […]
Taboola (Nasdaq: TBLA), a global leader in powering recommendations for the open web, helping people discover things they may like, announced today that it has entered into a definitive purchase agreement to acquire Connexity from Symphony Technology Group for approximately $US800 million. Connexity is one of the largest independent e-commerce media platforms in the open web, serving over 1,600 direct merchants, and 6,000 publishers.
Twitter has just experienced its fastest growth in revenue since 2014, with the social media platform benefiting from increased interest from advertisers. Revenue was up 74 per cent YoY, according to the company’s Q2 results, reaching $US1.19 billion ($1.6 billion) from $US683.4 million ($925 million) 12 months ago. The strong results came in the same […]