Many marketers believe Facebook ads are important for extending brand awareness and reaching new customers, but most marketers do not find Facebook to be an important generator of revenues. While this may be true, many marketers are underestimating the power of Facebook Ads and are not attributing revenues to the social network.
To better give credit where credit is due, marketers should use multi-touch attribution models. In a recent report, Datalicious found that Facebook advertisements are credited with 911% more revenue when using multi-touch attribution models than when using the more common last-touch attribution models.
Last-touch attribution models, or Last Interaction models in Google Analytics, give the last channel the user clicked through 100% of the credit for the conversion. Conversely, a First-touch (First Interaction) model would give the first channel a user clicked through 100% of the credit for the conversion. For example, say a potential guest first clicks on a PPC ad, later clicks on your Facebook ad, and then the next day directly goes to your site and books a room. Using last-touch attribution, the direct channel is given credit for the booking; using first-touch attribution, only the PPC campaign is credited with the conversion. In both models, the Facebook ad is ignored completely, even though it played a part in the booking.
Using a multi-touch attribution model spreads credit over different channels depending on controls customized to your hotel. A multi-touch attribution model would give the PPC campaign, the Facebook Ad, and the Direct visit credit for the conversion. By creating a customized multi-touch attribution model to track conversions, marketers are better able to allocate their budgets and understand the paths guests take when booking.
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