We’ve known for a while that display ad impressions and social media ad impressions have value. But without solid data, how do you explain that to direct response and lead generation marketers that demand high Return On Ad Spend (ROAS) and exact Cost Per Lead data?
The truth is, until recently, we couldn’t. Not without huge data sets and proprietary attribution modeling software…things that most (okay, all) of our clients don’t have.
Increasingly, we come across studies like that conducted by Datalicious that suggest display ads and social media ads (Facebook, in this case) have demonstrable value for financial services marketers.
Here are the key findings from the study, but I would encourage you to download and read the entire report to get the full story.
- Facebook and display advertising are significantly undervalued and on
average deliver 830% more revenue than anticipated once measured
accurately with multi-touch attribution.
- Given most advertisers have very mature search marketing programs
that offer little opportunities for additional incremental growth, display
advertising in general represents one of the most attractive growth
- Facebook advertising in particular still holds significant growth potential
compared to other more established channels as it provides a high
average ROAS yet comparatively does not receive a lot of media spend.
- While Facebook and display advertising do generate clicks, they are
not typical direct response channels, but instead indirectly influence
conversions and build awareness that is then captured further down the
purchase path by other channels such as search.
- Search, whilst important in capturing awareness generated by display
advertising or other channels, is overvalued in the amount of impact it
has on the consumer purchase decision.
- Accurate multi-touch measurement and the ability to exploit the resulting
media optimisation opportunities at scale holds tremendous potential for
advertisers to develop a strategic competitive edge, build market share
and deliver incremental growth.
Our experience with trying to explain attribution modeling and assisted conversions is that clients really only understand last click metrics. Even those that believe in the value of display impressions are more likely to max out spending in last-click channels first (primarily search), before spending on display or social ads.
As the industry begins to accept and integrate display & social contributions to ROAS, it becomes incumbent on agencies like ours to understand how and when to shift media dollars from direct response to branding and awareness channels to boost the overall performance of a campaign. Looks like we have a lot of work ahead of us in 2015!