[Late Attribution Fixed]
WHAT ON EARTH??
You turn off a failing campaign.
A few days later, it has 4x ROAS
If you’ve seen my video about how we scaled a back pain device brand to $10mln dollars by leveraging TV ads and omnichannel synergies, you know we struggled a lot with late attribution.
Here’s the most interesting part about this massive scale:
I wish I could tell you that to get there we did a ton of complicated things to get there, launched 10 times more creatives, or added some new channels, but here’s the truth:
– We didn’t do any more creatives than we used to.
– We didn’t do any significant promotions (in fact the only Black Friday discount was 40% off if you buy 2 products).
– We didn’t launch any new channels and TV spending stayed the same.
– We didn’t even test any major new ad-buying techniques.
For a mid-7 figure brand, these low-hanging fruits have already been picked.
But there’s one significant thing we did.
We transformed the way the owners and our marketing team worked with data.
Let me explain.
The fundamental problem with scaling was late attribution.
The owners made ad spend decisions based on a 1-3 day window AND they made those decisions by looking at Facebook ads manager data.
At the same time, the ROAS for the same period visible on the ads manager could change dramatically over the course of a few days.
It’s a 150 EUR AOV product, so customers naturally take some time before they make a purchase decision.
So why does late attribution even exist?
Facebook ads manager uses so called impression-date reporting, which means that conversions are attributed to ads on the date when the ad was seen by a user, NOT when the user made a purchase.
This means that if your ads are doing well on a given day, you’ll only know a few days later that you did well.
But if you’re a media buyer, you need to know if you can spend more or not RIGHT NOW.
Otherwise, you’ll leave a lot of money on the table (especially in Q4).
To combat this issue, we decided to DITCH Facebook ads manager.
We found that using Supermetrics we could export Facebook ads data using Conversion-Date reporting instead.
This meant we could see how many conversions ads generate today, even if a prospect saw our ad a few days ago.
This effectively meant that our ROAS for a given day was way higher and we could confidently scale way higher.
We validated that this way of looking at data and scaling based on conversion-date reporting let us scale significantly faster while retaining the same net margin.
This change alone resulted in 200% revenue growth in 2020 for this brand.
If your business is at a mid 7 figures level, data attribution solutions could be your next “growth hack” to get you to $10mln.
If you’re struggling to set up the late-attribution-proof reporting, hit me up and we can brainstorm on screen share.
P.S. In 2021 Apple introduced a new iOS update. This update effectively caused Facebook ads conversions from apple mobile devices to report with a 3 days delay as well.
This is another factor contributing to late attribution.
As of now, I haven’t found a useful solution to it. If you know any, let me know!
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