Last click flaws ‘wasting 35 cents on marketing dollar’, search, display massively overvalued – while social and video an enormous opportunity: Analytic Partners and Meta on how to fix it.
Description
Most attribution analysis by digital marketing and analytics teams is too narrow to base marketing investment decisions on – and it’s leading to a chronic over-investment in paid search and under-investment in digital video according to Analytic Partners. The firm conducted a major study to unravel the gaps between digital attribution reporting for brands and market mix modelling – and there's a big difference between the two. Analytic Partners MD, Paul Sinkinson said on average, 59 per cent of the data is missing, and it can be “as high as 80 per cent”, yet attribution models mask this, because they pick up “the clicky stuff”, i.e. last click – but miss swathes of what’s happening in between, particularly within-app activity.
Privacy changes and iOS-driven signal loss mean the gaps are getting bigger, making it much harder to run even a half-decent attribution model, which “is driving you to allocate activity to the wrong channels, purely because of how much data is missing,” says Sinkinson. “And it's the unequalness of those losses that then made us really concerned.” Social, the study found, is massively under-represented in those attribution models, which try to cram everything into a seven or 30-day window, favouring short-term hits above all else.
Per Sinkinson: “Display – 364 per cent overvalued in an attribution model. Search – 336 per cent overvalued in an attribution model. Social – 44 per cent under measured in terms of the ROI and an attribution model. Video – 30 per cent underrepresented from an ROI perspective. So that means that we're starting to put our money into the wrong channels.” The upshot – which applies globally – is that “35 cents is wasted from every dollar invested, because you’re allocating on siloed metrics.”
Those findings landed with Meta, which commissioned Analytic Partners to produce a white paper on the key research findings – and the platform’s ANZ marketing science lead, Carl McLean, says there are “very real implications” for marketing spend, especially in a soft market. How big is the problem? “It’s widespread,” per McLean. “A lot of the time it’s because there is a sense that there isn’t a better alternative.” There is – it just requires a bit more work. But the rewards are massive.
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