Study: Facebook ads undervalued by as much as 30 percent

Facebook advertising can be a great value for brands — provided they’re utilized correctly. A recent study by Kenshoo, a Facebook Preferred Marketing Developer in ads, shows that Facebook ads can be undervalued by as much as 30 percent when an advertiser prefers the First Only model in comparison to the Last Ad model.

Last Ad credits the entire value of a conversion against the last ad that was exposed to the consumer. Kenshoo found that using the First Only attribution model (which credits just the first ad click a consumer makes), Facebook ads were undervalued by 30 percent, compared to Last Ad.

Josh Dreller, director of marketing research at Kenshoo, commented on the study’s findings:

As Facebook continues to become even more of an essential component of the marketing mix, it’s critical that all advertisers be aware of the costly oversight inherent in the Last Ad model.