Datalicious: Display, Facebook undervalued and search overrated in current ad spending models

Data analytics consultancy's new research using multi-touch attribution finds display, Facebook undervalued in last-click attribution, while search is overrated

SEO Implications Are Unclear
The near unanimous opinion and perception among industry watchers is that Google gives prominence to content on Google+ in its search results. Whether that's true or not matters less than what most people believe to be true already. Google has done a poor job of allying these fears and, as a result, Google's social network is viewed as more of an SEO necessity than a valuable tool. Marketers will tell you that Google+ delivers on both counts, of course, but the network would undoubtedly benefit from a more positive explanation of its role and value for SEO rankings. Meanwhile, Google has made a major shift on this issue and now unequivocally denies that Google+ is being used to boost search results.
SEO Implications Are Unclear The near unanimous opinion and perception among industry watchers is that Google gives prominence to content on Google+ in its search results. Whether that's true or not matters less than what most people believe to be true already. Google has done a poor job of allying these fears and, as a result, Google's social network is viewed as more of an SEO necessity than a valuable tool. Marketers will tell you that Google+ delivers on both counts, of course, but the network would undoubtedly benefit from a more positive explanation of its role and value for SEO rankings. Meanwhile, Google has made a major shift on this issue and now unequivocally denies that Google+ is being used to boost search results.

Display advertising and Facebook are significantly undervalued in most current advertising models while search is overrated, according to new research from Datalicious.

The data analytics consultancy’s report, Media attribution: Optimising digital marketing spend in Financial Services, sought to look at how key marketing channels performed when a multi-touch attribution model is applied. The results challenge the validity of last-click methods and the industry’s reliance on click-through results as a key metric for advertising success.

The research was developed by Datalicious over a five-month period and based on a sample size of 702 million media touchpoints across 104 million purchase paths and 75,000 conversions. Seven financial services brands were involved: Suncorp, AAMI, APIA, Bupa, Aussie, St George and GE Money. Facebook commissioned the research but was not involved in the data collection or development of the methodology.

The report claimed display advertising and Facebook were both significantly undervalued in a last-click attribution model, and showed the revenue credited to both increased by 830 per cent on average using a multi-touch attribution model.

According to the study, the more ad impressions consumers are exposed to without leading to clicks through both display and Facebook, the more likely they are to convert. Datalicious found an uplift in conversion rate of over seven times for both channels.

In addition, display retargeting chalked up an even better performance of 2371 per cent, although the report authors warned this was in part because these channels had not received any credit in a last-click based attribution model.

In contrast, the revenue credited to paid and organic search (SEM and SEO) remained constant or decreased slightly in a multi-channel attribution approach.

Datalicious said the multi-touch attribution model employed in the report used logistic regression to assign custom conversion credits to every campaign touchpoint along the purchase path depending on its relative importance in driving conversions. At a very high level, logistic regression is a statistical approach that estimates the probability of an event occurring and assigns different odds ratios to interdependent but distinct variables making up that event.

Search is the most common customer touchpoint just prior to purchasing a financial product online, meaning the majority of conversion is usually credited to search in a last-click model.

“However, in reality there are more channels than just search involved in driving a conversion,” the report stated. These have an impact further up the purchase path by influencing and building awareness, but aren’t always reflected directly in a direct response.

“Specifically, channels such as display advertising that help consumers realise a need by building awareness and stimulating research, which ultimately result in a search,” the report stated.

“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.”

Foxtel turns on personalised content and advanced data analytics with datalicious

Datalicious CEO, Christian Bartens, claimed the study was the largest of its kind and should trigger a rethink around how brands allocate online advertising budgets. In particular, it should help the industry rethink its reliance of pure click-through rate metrics to judge creative performance.

“This shows that a better understanding of what prompts people to buy is vital in driving improved return on advertising spend and can even create a long-term advantage over competitors,” he said. “For many brands, taking a better look at their return on advertising spend by embracing a multi-touch attribution method will see a radical shift in the way they spend their money.”

Multi-touch attribution helps identify the roles different channels play in the path to purchase, which is invaluable in developing an efficient, scalable and profitable digital media strategy, Bartens added.

Interactive Advertising Bureau (IAB) Australia director of research, Gai Le Roy, welcomed increased sophisticated in reviewing media spend effectiveness.

She pointed to a recent study conducted by the association, which showed only one-quarter of buyers are using multi-touch attribution analysis and still put too much weight on last click or clicks overall.

“This study shows a positive impact across the variety of digital ad channels that were used and will help marketers to start optimising campaigns based on creative exposure as well as any direct interaction,” she said.

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

Signup to CMO’s 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

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in