A recent Facebook-funded study conducted by Datalicious, a full-service data agency, found that Facebook and display advertising should be credited for 830 percent more revenue than previously thought.
The survey involved collecting 700 million media touch points, 104 million purchase paths and 74,000 converting paths, across five months and seven brands across Australia (Suncorp, AAMI, APIA, BUPA, Aussie, St George and GE Money). The data sets were monstrous and it’s the largest attribution study of its kind to date. While Facebook did fund the study, it did not have a say over the results or how the data was collected or used.
Key Facebook insights to come from the study:
- Facebook advertising should be credited for 911 percent more revenue;
- The more ad impressions consumers are exposed to the more likely they are to convert – in fact, more than seven times more likely; and
- Display ads lead to nine times more search responses than clicks alone.
Christian Bartens, Datalicious CEO, said in a press release:
This is the largest study of its kind and shows that a better understanding of what prompts people to buy is vital in driving improved return on advertising spend (ROAS) and can even create a long-term advantage over competitors. For many brands, taking a better look at their ROAS by embracing a multi-touch attribution method will see a radical shift in the way they spend their money.
Datalicious found that 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.
Gai Le Roy, Director of Research at the IAB in Australia, said in a press release:
It is fabulous to see advertisers increasing their sophistication in reviewing the effectiveness of their media spend. 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.
For the full report, go to data.li/mastudy.