Last Ad and Last Click models undervalue Facebook advertising by 10% to 30% compared to multi-touch models, according to “Quantifying the Impact of Multi-touch Attribution” report by digital marketing technology firm Kenshoo.
Multi-touch attribution models include First Only, Prefer First, Divide Equally, Prefer Last and U-Shaped.
According to the findings of the report, marketers who use multi-touch models generate up to 30% more value from advertising on the social network. Marketing specialists that rely on Last Ad attribution only in a drive might spend millions making their decision on the basis of incorrect data, so they must be prepared to achieve inaccurate results, said the director of marketing research at Kenshoo, Josh Dreller.
Overall, multi-touch techniques could better mirror consumer behaviour and even allow marketers to improve the performance of a campaign, as well as allocate budgets. On the contrary, the use of the Last Ad model discounts Facebook from conversions it has driven, to the point of being undervalued by up to 30%, Dreller added, citing the study’s findings.
The company studied performance data from their clients’ campaigns across multiple channels from March to May this year. The brands that were involved in the analysis encompass a variety of industries – from home improvement and retail to financial services. Since conversion is not equally defined by all marketers, Kenshoo used a cost-per-acquisition metric in the study. The figures were estimated by aggregating all conversions and dividing the number in the total media cost by advertisements that drove them.