The Impact of Facebook Advertising
Did you know half of the effect of Facebook advertising can go unnoticed when not using the proper measurement techniques?
Many marketers consider Facebook to be one of the most effective social media platforms and an essential part of an effective media mix. As a result, Facebook spend is growing yearly. But what does this spend on Facebook deliver?
Proving Facebook’s Business Value
Multi-touch attribution (MTA) is an essential tool for digital marketing analytics, but can only account for direct click-outs from Facebook ads. It completely misses impressions, while every marketer knows impressions matter. MTA can’t measure the true impact of Facebook advertising.
Measuring Impressions with Marketing Mix Modelling
We used our statistical marketing mix model in combination with MTA to analyse the impact of Facebook advertising on sales and revenue of Dutch telecom providers. We measure the direct effect of Facebook ads, but also measure their indirect effect on other channels. This indirect effect, though crucial, is often ignored. This is why marketers often undervalue the impact of Facebook ads.
In our case study of the Dutch telecom providers, we find the direct impact of Facebook advertising is more cost-effective than other channels’, such as TV and radio. This direct impact, however, only accounts for half of the conversions and revenue that is caused by Facebook. It also causes an uplift in the revenue and conversions created by other channels:
- 22% via paid search
- 16% via organic search
- 13% via direct website sessions
Here’s a breakdown of the total impact on revenue and conversions that we attribute to Facebook:
If we had only used MTA to measure Facebook, we would assume the impact of our Facebook ads on revenue was 2.4%. We would have credited the remaining 2.5% to paid search, organic search and direct, although this uplift wouldn’t have occurred without Facebook.
It all comes down to credit where credit is due.
Interested in the full case study results and an extensive guide to marketing mix and unified modelling?