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It's well known that the self reported performance numbers from Google Ads and Facebook Ads are inflated, however those ad channels still do drive real value. I
by fourseventy 5y ago
It's well known that the self reported performance numbers from Google Ads and Facebook Ads are inflated, however those ad channels still do drive real value. I run an ecommerce marketing attribution company (ThoughtMetric) so I have first hand knowledge and data about this subject.
The most common source of inflation in Google/FB self reported performance numbers is multiple ad channels taking credit for the same order. If a customer clicks a Google ad then clicks a Facebook Ad then makes a purchase, each ad channel will claim credit for that purchase. In reality each ad platform only has claim to ~50% of the purchase (depending on what attribution algorithm you want to use).
In terms of knowing that real value is produced from these ad channels, I see it every day in many of our customers data. Clients will increase or decrease ad spend and there will be a correlated increase/decrease in sales.
tldr; Google/Facebook ads over report their numbers but do ultimately drive sales according to the data I have first hand access to.
- ssharp 5y agoI always used to just capture the old UTMZ cookie data (or rebuilt it when the actual UTMZ cookie went away) and stored that with the order data. It's not the most sophisticated attribution method but it at least gets around these sorts of double counting issues with orders.
- prox 5y agoOne of the most vexing problems for me is how to calculate how much to spend. We had a year of double ad budget, but we didn’t see a corresponding rise in sells. Only 10%. We assumed we reached market saturation, but it still a lot of guesswork, even when meticulously diving into GA data.
- fourseventy 5y agoWhat industry are you in?
- prox 5y agoMedical supplies mostly (think beds, chairs etc.)
- franczesko 5y agoAs much as possible, as long you're earning money, I guess.