Facebook IQ: Digital Research and InsightsFacebook IQ: Digital Research and Insights

How to Solve 4 Common Digital Advertising Challenges With Better Measurement

Learn how four brands gained a clearer picture of advertising performance with rigorous measurement practices grounded in data and science.

CONTENTS

    In today’s increasingly complex digital world, it is difficult for marketers to get a clear picture of how their online advertising efforts truly impact business outcomes. In fact, only 9% of marketers can accurately forecast the impact of a 10% shift in marketing spend, according to a survey conducted by the Boston Consulting Group (BCG).

    To bring advertising effectiveness into focus, marketers across a variety of industries and verticals—from mobile gaming to direct-to-consumer apparel—are embracing rigorous measurement practices that more accurately capture the degree to which particular channels and strategies drive success.

    Facebook IQ explored how four Facebook advertisers honed their measurement approaches to mitigate some of the most common—and costly—digital advertising challenges across campaign management, mobile optimization, experimentation and attribution.

    You don’t have a holistic view of campaign performance

    1. You don’t have a holistic view of campaign performance

    Marketers who think about campaigns holistically from start to finish, objective to outcome and across platforms, channels and publishers have a more complete picture of what is driving success. But all that information can be difficult to analyze, especially if it is spread across multiple campaigns, as was the case for social game developer Zynga.

    Zynga was running 40 individual campaigns—each based on a distinct strategy. Through a partnership with Facebook’s Marketing Science team, the company deployed a strategy called “account simplification,” in which it reduced the number of distinct campaigns to fewer than 15. By streamlining its account structure, Zynga gave Facebook’s machine learning mechanisms the ability to more quickly optimize ads and allocate budget based on bid strategy. The result? Campaigns were 1.9 times as efficient.

    “

    “Account simplification has been a very successful strategy for us. …With a simplified approach, we increased return on investment while doubling spend, and this contributed greatly to our marketing strategy by increasing Day One yields by 33% at 8% lower cost per purchase.”

    —John Choi, head of user acquisition at Zynga

    You aren’t optimizing for today’s mobile world

    2. You aren’t optimizing for today’s mobile world

    Today’s consumers spend more time on their mobile devices than they do watching television1, and advertisers are taking note. But to truly get the most from mobile, marketers must be aware of rapidly changing viewing habits and their implications on mobile ad performance. For appliance maker SharkNinja, it was clear that investing in mobile was key to staying ahead of competitors and consumer behavior, but it also required a significant shift in strategy.

    SharkNinja opted to create a campaign on Facebook that complemented its existing television ads. But mobile presented unfamiliar challenges, as the company had traditionally allocated its marketing budget to a combination of in-store display ads, short-form TV, advertorials and direct mail. With the help of a Facebook Brand Lift test, the company was able to compare ads that utilized mobile best practices to ones that were simply edited television ads. It discovered that when ads were optimized for mobile—for example, when they were designed in the vertical format native to mobile—they drove a 12-point lift in ad recall and an 8-point lift in awareness.

    Your organization hasn’t embraced a “test and learn” mindset

    3. Your organization hasn’t embraced a “test and learn” mindset

    By definition, experimentation involves failure. For that reason, many marketers who would take risks are met with resistance from their organizations, especially when there is no top-down mandate to embrace change. Among marketers who use marketing mix or multi-touch attribution models, only 60% also use experiments, according to BCG. Yet experiments often lead to unexpected opportunities, as was the case when Ribbow Media Group used learnings from Facebook Attribution to help a client rethink a long-running promotional strategy.

    Ribbow Media Group develops campaigns for feature films. Using learnings from Facebook Attribution, which showed unique reach across certain channels, the agency tested new campaign strategies to demonstrate to a client that its typical marketing approach could be improved. The client usually held onto 2-5% of digital spend to promote films during their second week of release; Ribbow suggested it expand its second-week spending in several channels to promote the film I Can Only Imagine. The recommendation, which was based on experiments Ribbow ran in the film’s first week at the box office, resulted in precedent-setting sales—overall, the film took in $83 million on a $7 million production budget.

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    “The digital measurement strategy of I Can Only Imagine, conceived of and executed by Ribbow Media, was one of the biggest factors in the movie’s unbelievable success.”

    —Jon Erwin, executive producer/co-director, I Can Only Imagine

    You aren’t attributing your success to the right channels

    4. You aren’t attributing your success to the right channels

    Due to evolving consumer behavior and a changing digital landscape, it is harder than ever for marketers to accurately assess the value of an ad. By relying on models that attribute a conversion to only one touchpoint, such as a cookie, marketers risk missing the larger picture.

    Without accurate attribution information, marketers can end up over or under estimating the effectiveness of certain channels and consequently misallocating marketing dollars. ThirdLove, a popular direct-to-consumer underwear brand, encountered this problem: The company was using clicks as the only input for its attribution models, which showed Facebook channels as having a high cost per action (CPA). However, when ThirdLove adjusted its attribution models to include views as well as clicks, it found that Facebook and Messenger actually had a CPA that was two times and four times lower, respectively, than previously thought. As a result of understanding how many consumers went on to buy a product after viewing—but not clicking—a Facebook or Messenger ad, ThirdLove was able to make more informed decisions about marketing investments in those channels.

    What it means for marketers

    What it means for marketers

    • Simplify and unify.

      Marketers who think about campaigns holistically have a better understanding of success. Consolidating ad accounts is one way to get a clear picture of performance, as was the case for Zynga.

    • Make the most of mobile.

      Mobile is a significant driver of traffic and marketers who don’t optimize campaigns accordingly will miss out. Here are five ways you can optimize your next campaign for mobile.

    • Accurately attribute success.

      Attribution helps marketers understand the value ads are producing for their business, allowing them to make more strategic advertising decisions. Facebook’s data-driven attribution model can help you assign conversion credit across our apps and services more accurately.

    Next in Advertising Insights

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