Facebook undervalued in last-click attribution model: Report

New Kenshoo research finds social networking platform is undervalued by up to 30 per cent in a last ad attribution model against other types of custoemr attribution techniques

Marketers who use last ad attribution to measure Facebook’s brand impact as part of a multi-channel campaign are devaluing the social network’s impact and making flawed marketing decisions, a new report claims.

According to the Quantifying the Impact of Multi-touch Attribution research paper from digital marketing technology company, Kenshoo, the last ad model undervalues Facebook advertising by 12-30 per cent compared to five other industry standard alternative attribution models: First only, prefer first, divide equally, prefer last and U-Shaped.

While criticism of last ad attribution has grown in recent years, it remains widely used by marketers globally. There has also been insufficient data to backup the flaws in such an approach, the Kenshoo report stated.

Kenshoo analysed campaign performance data across its clients managing ads across multiple digital marketing channels between March and May. The company employed a cost-per-acquisition metric across all advertisers, which was calculated by aggregating all recorded conversions and dividing that number in the total media cost of the ads which drove them.

Kenshoo’s clients include Expedia, Hitwise, John Lewis, Starcom MediaVest Group, Tesco and Travelocity.

The research found Facebook was undervalued by 30 per cent using a last ad technique compared with a first only approach, where credit is only given to the first customer interaction. It was also undervalued by 20 per cent in a last ad model when contrasted with a prefer first approach, where the first customer touch gets the majority of the credit, and each following interaction is credited less in a rules-based, linear way.

Looking at Facebook’s worth using last-click attribution was also undervalued by 16 per cent against a divide equally technique, where the value of each touch is equal to the rest; and 15 per cent undervalued compared with a u-shaped approach, which uses an 80:20 rule to give the first and last click majority weighting and the middle clicks less credit.

A prefer last approach gives the last click most credit, followed in a linear fashion by the second-last touch. Against this example, Facebook was undervalued by 12 per cent in a last ad approach.

“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,” said Josh Dreller, director of marketing research at Kenshoo. “Multi-touch techniques better reflect the reality of consumer behaviour and enable marketers to improve budget allocation and campaign performance.”

Kenshoo’s findings echo those of a review of Google US Analytics ecommerce tracking accounts earlier this year, which claimed social media was the second most used channel after display ads in the earlier part of the purchasing process.

It is also backed up by the findings of a recent Aggregate Knowledge report, which found social continues to deliver the highest quality users.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Transform your marketing analytics to outperform your competition

As digital and offline brand experiences diversify, more customer data is becoming available to marketers. At the same time, the number of tools available to analyse this data is increasing rapidly. Leading marketers are taking advantages of these shifts and transforming their marketing analytics practices to outperform their competitors.

What CMOs get wrong with content marketing

Content marketing: It’s everywhere you look, and it’s a proven component of an effective marketing strategy. And yet more than half of all marketing professionals struggle with a lack of internal content creation resources.

Aaron Agius

Co-founder and managing director, Louder Online

Personalised marketing: Balancing what you can do with what you should do

With so many new data-driven and targeted marketing techniques now possible, businesses need to be careful they are not simply creating smarter and smarter spam. A recent study reveals some personalised techniques are doing more harm than good.

Mark Cameron

CEO, Working Three

Such a great new you've shared with us I really agree with the records you shared as this is true that this report may able to quantify t...

Lucy Eva

Report: Mobile app time dominates Australian smartphone usage

Read more

It is heartening to see that the South Pole Group use a Balanced Scorecard to monitor progress. In such a complex area where communicatio...

Clive Keyte

How South Pole Group is tapping media intelligence for customer conversion

Read more

Having had the pleasure of working with Kim, she has one of the strongest strategic minds I have ever come across. She has the ability to...

Anonymous

Helloworld scraps CMO role

Read more

This is what happens when dealing with 3rd party technology, get technology inhale and never weary about this anymore .

KyleThomas

Criteo and Steelhouse legal spat escalates

Read more

Medibank is still in denial. Drummond is either lying, or being lied to. Telephone waiting times are 30 to 60 minutes, not 3 to 6.

sjc

Medibank CEO admits customer experience failings

Read more

Latest Podcast

More podcasts

Sign in