Mobile Advertising Now Drives Over Half Of All Campaign Conversions

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

18 tháng 12, 2017

Mobile advertising now drives over half of all campaign conversions

Measure the true value of mobile advertising through people-based multi-touch attribution.

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NỘI DUNG

Are you getting the most out of your marketing dollars? It all comes down to whether you are investing in the most impactful channels. Our research found that marketers who only measure campaign success via cookies overlook, on average, 2 in 5 digital touchpoints in the consumer journey to conversion.

Facebook and Datalicious partnered on a multi-touch attribution study to explore the role of mobile touchpoints in the path to conversion. The aim was to compare the impact of using a people-based marketing attribution model with a more traditional cookie-only-based approach. We found that over half of all measured cross-device conversion journeys were influenced by a mobile touchpoint, and that people-based measurement more accurately associates touchpoints to people, reflecting the cross-device, cross-channel consumer journey.

The study was conducted on three Australian brands — Telstra, Foxtel and Medibank — across a three-month period from October to December 2016. The data was collected through tracking tags that measured real people across devices, browsers and apps, and featured people’s media consumption, including website behavior and conversions. The figures presented are based on more than 1.2 billion digital touchpoints across 87 million purchase paths and over 1.2 million conversions.

In a cross-device, cross-channel, cross-everything world, just how much longer will the cookie-based approach to measurement satisfy advertisers?

The Cookie Crumbles

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Facebook and Datalicious multi-touch attribution study

Cookies don’t cut it anymore

Cookies don’t cut it anymore

Marketers are losing their appetite for cookies which cannot accurately measure conversion journeys across browsers or devices, and which limit visibility and impact on mobile apps. As people increasingly switch from laptops and tablets to smartphones, the standard cookie measurement no longer accurately represents all the touchpoints in the path to conversion.

A 2017 report by Datalicious found that nearly 40% of all touchpoints are lost with cookie-only attribution. These may previously have been classified as non-converting and their impact disregarded in any attribution model. What’s more, because people typically use a home laptop, work laptop and a mobile phone, each person has on average three unique cookie identifiers. Simply put, this means they’re seen as three unique people through the lens of cookie-only measurement.1

Measurement based on cookies or on the last click has a few shortcomings. It exaggerates the importance of the last touchpoint before the conversion, while overlooking touchpoints that happen earlier in the consumer journey. This method disregards early and midstage funnel touchpoints and gives marketers an incomplete picture of their campaign performance. Cookies forces marketers to rely on guesswork to justify media investment and leads to wasted ad dollars.

Top up your mobile measurement

Top up your mobile measurement

So how do we tackle this complex reality? By understanding consumers as people rather than cookies.

In Australia & Southeast Asia, more than anywhere else in the world, people are living more of their lives on mobile devices, spending nearly four hours on average on their favorite small screen.1

The advent of the smartphone has changed the playing field for advertisers in many ways, and measurement efforts are merely catching up. In the study, over 72% of all the digital touchpoints missed by cookies involved a mobile device. Nearly one third (29%) were missing mobile-only touchpoints.

To help drive results and sustainable business growth, more accurate methods based on people insights can give marketers the ability to measure campaigns on and off Facebook, on both desktop and mobile devices. When looking at attribution and reach, this approach offers a more holistic look at the ad performance — something not possible before. People-based measurement more accurately associates touchpoints to people, identifying an average of 22 unique digital touchpoints per person, which is six more than that reported based on last-click.3

At stake for advertisers are more opportunities for conversion and efficiency. In fact, with the integration of people-based measurement, the increase impact attributable to cross-device was as much as 45%. Combining that with 7% of conversions attributed to taking a mobile-only path, it means that more than half of all conversions were influenced by mobile advertising, on average.

People-based measurement helps quantify the impact of cross-device journeys more accurately and shows that mobile advertising drives an average of 52% of all conversions4

As for efficiencies, traditional measurement tools have typically led to lower investments in mobile media channels — but the new study reveals the average return on advertising spent in mobile was as high as 1.9X.5

Give credit where it’s due

Give credit where it’s due

For years, measurement models have been inaccurately valuing touchpoints, leading marketers to inefficiently allocate budgets across channels and platforms.

Where the old model showed desktop as the dominant influence in each stage of the purchase funnel, the new multi-touch model suggests mobile advertising is key to coaxing consumers from a lack of awareness for the brand to an intent to purchase. None of this diminishes the role of desktop, which continues to be crucial in the final stages when consumers really do need a bigger screen to complete a purchase.

When it comes to channels, people-based attribution gives a dramatically different perspective than cookie-only models. With the inclusion of mobile touchpoints, display channels — especially Facebook, which has proved to be more influential than previously assumed — gains 14% in channel effectiveness.

People-based multi-touch attribution offers greater accuracy of channel effectiveness6

What it means for marketers

What it means for marketers

  • Include mobile in your campaign measurement.

    Mobile devices are increasingly important devices to access internet but their advertising impact is still undervalued. Start with implementing the Facebook Pixel to track conversions across mobile phones, tablets and desktop computers. Partner with Facebook Measurement Partners like Datalicious who can help implement a people-based measurement model to inform more effective media and marketing strategies.

  • Realign media investment for most impact.

    The study saw mobile gained on average 79% more credit than what was previously seen with cookie-only attribution. A simple test-and-learn program using Facebook Split Testing would enable you to allocate budget more effectively, offering a potential increase in return on ad spend at little or no additional media cost.

  • Learn more about people-based measurement.

    Access and learn more from Facebook Blueprint course on Multi-Touch Attribution. Facebook Blueprint also hosted a webinar with Rowena Ruan, Facebook Agency Measurement lead, where she discusses this topic in more details. Listen to the full conversation on people-based marketing to learn more.

Unless stated otherwise: Facebook IQ Source: Datalicious MTA study (commissioned by Facebook), results averaged across 3 ad campaigns on Facebook conducted in Australia, Oct to Dec 2016.

Topics

Media Planning & BuyingMeasurementAutomotiveBeauty & HealthB2BConsumer Packaged GoodsEducationEntertainment & MediaFinancial ServicesGamingLuxuryRetailTechnology & ConnectivityTravelAsia PacificChia sẻ lên FacebookChia sẻ qua emailChia sẻ lên TwitterChia sẻ lên LinkedIn

The Cookie Crumbles

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Related Articles:

People-Based Marketing: Thinking People-First Planning and MeasurementPeople-First Media Planning: How Thinking About People, Not Devices, Allows For Greater Reach The Last Days of Last Click Measurement

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