When we start working with the different capture channel such as Google Ads + Facebook Ads + Email Marketing, we also have SEO and Direct traffic. There is one question that always appears in all marketing departments of any size of company:
1. How much does Facebook Ads influence total sales generation?
This question is typical. Facebook Ads is a channel that can generate a lot of traffic. Most of this traffic does NOT end up on sale. Therefore, how much does Facebook Ads influence the rest of the channels at sales level?
The first thing we must see is: How much does Facebook Ads influence the rest of the channels?
As we see in the following image Facebook Ads has closed 8 conversions, they are “Last Click Conversions”. And when we analyze their attribution we see how it has only helped to generate 2 more conversions that have ended up in another channel.
The most striking thing is that Facebook Ads has needed help in 11 of 8 conversions. That is, in more than 1 conversion it has needed help from more than 1 channel.
Analyzing who has helped Facebook to convert we find that they have been channels that already know us, such as SEO + Direct, or that we have already paid for their traffic, such as Criteo or Google Ads:
Because of this, along with many other variables, an attribution model software like Adinton tells us exactly the value of the conversions that Facebook has achieved, both as last click, as with “influencing clicks”:
We’re talking about Facebook Ads underperforming by -33.5%! This is a very important deviation.
2. An Attribution Modeling tool should help us knowing the attributed ROAS by channel:
To do this we “only” need to have the following values:
- Attributed Conversions: Smart Conversions in Adinton
- Investment in that channel.
- Attributed Income.
Taking into account that the ROAS formula is:
ROAS = Revenue / Investment
Attributed ROAS = Attributed Income / Investment made
When you see that the attributed ROAS is higher than the Last Click ROAS, is time to continue accelerating, in this case, in your Google Ads campaign.
3. Differences between Attributed Conversions and Attributed Revenue
A good attribution tool has to give you data in such a way that you can differentiate:
- Attributed Conversions.
- Attributed ROAS
- Attributed Revenue
Basically because we can find channels that tend to be suitable for closing many low ticket sales and other channels more conducive to closing high ticket sales.
As we see in the following image:
Logically, all the information separated by Sources vs. Campaigns vs. Terms
4. Knowing how each acquisition channel works:
Just like with traditional advertisement, there are different types of acquisition channels:
Prospecting channels: Those that generate New Cookie.
Closing Channels: Those that close the journey towards sale.
Influencers: Those channels through which users enter, both new and regular.
5. Lifetime Value, CAC, Recurrence,…
The objective of attribution marketing is NOT to know how channels influence each other, it is to know how users behave when they make a purchase, so that it can be replicated.
Based on the fact that attribution marketing is a Customer Analytics tool, there is data that is key to growth:
Lifetime Value (LTV): How much we earn while a customer is a customer.
Customer Acquisition Cost (CAC): How much it costs us to acquire a customer.
Recurrence: How often they buy from us
How many new and recurring customers we have each month
How many days and clicks go by from the first click to the purchase
6. Next step of attribution: Predictive Marketing
Once you have perfectly organized the data base of the customer journey, which is fed in real time, we can be able to “predict if a user has purchase intention”.
This means that thanks to predictive marketing, we will be able to identify that: 26% of my traffic generates 76% of sales.
And from this, we can create campaigns of Audience – Remarketing Cross Channel based on the probability of success. Or activate email marketing campaigns or sms.
If you want to know the profit opportunities you are wasting by not following up on users who are ready to buy, click on this link.