By changing the time window in the Facebook Attribution Model, IMP has helped a beauty industry client reduce their advertising budget by 15.55%.
An Overview of the Attribution Model
An Attribution Model is a powerful tool that allows businesses to track every touchpoint of a customer’s journey across different platforms.
By utilizing the appropriate Attribution Model, you can gain a better understanding of which channels are driving conversions, which allows you to allocate your budget more effectively and optimize your advertising campaigns for success.
In this case study, IMP discusses two primary setting options commonly found in attribution models:
It indicates that revenue from orders may come from customers who have either clicked on a link (within a 7-day timeframe) or viewed an advertisement (within a 1-day timeframe).
–> This is the default option when creating campaigns.
It indicates that revenue from orders may come from customers who have clicked on a link (within a 7-day timeframe).
–> The new option IMP implemented for client
The rapid growth of these metrics also reflects the increasing competition in achieving higher conversion rates. Therefore, businesses need to strive to develop investment strategies that continuously:
- Achieve marketing goals with the lowest budget.
- Improving advertising campaigns’ effectiveness over time.
With the desire to achieve better results in each campaign, IMP decided to switch to the 7-day click Attribution Model option to enhance the following:
- Accurate and specific tracking of touchpoints (where customers interacted during the campaign).
- Allocation of advertising budgets for optimal results.
- ROAS metrics (Return on Advertising Spend, which indicates an advertising campaign’s efficiency by measuring revenue against advertising expenditure ) with minimal deviation from actual results.
- Survey and Research
In the client’s case, IMP conducted research and analysis to optimize the cost of the Attribution Model settings for the Facebook channel. This provided expert insights into the feasibility and success rate of reducing advertising expenses with the 7-day click option.
- Adjusting the Attribution Model
Subsequently, we implemented a new approach: applying a 7-day click time window to ensure revenue growth with lower costs.
- Performance Tracking
Monitoring key metrics such as traffic volume, click-through rate (CTR), cost per click (CPC), and conversion rate is crucial to:
→ Clarify the advantages compared to the previous option (7-day click or 1-day view).
→ Help businesses gain a comprehensive overview of their campaigns, enabling them to make informed decisions regarding suitable budget allocations and propose potential improvements.
With an equivalent budget and the same content, Ads that are switched to using the 7-day click Attribution Model show higher traffic.
As a result, the Link Click and CTR (click-through rate) metrics outperformed Ads using the default Attribution Model of a 7-day click or 1-day view.
After comparing the performance of ads using the two different Attribution Models, we obtained the following results:
Here are some key points that IMP has summarized from the process of changing to the 7-day click Attribution Model option:
1. In addition to reducing advertising expenses, choosing the appropriate time window will also help you:
- Track performance, understand revenue sources, and develop an optimized strategy with rational budget allocation.
- Optimize cost per click (CPC).
- Increase traffic volume and click-through rate (CTR) compared to the previous option.
- Provide accurate evaluations and improvements regarding content, images, and videos.
2. When should you change the time window in the Attribution Model?
Changing Attribution Models is not mandatory. It depends on the specific industry and business context that your company focuses on. Therefore, businesses must conduct in-depth analysis and seek expert insights to determine the most appropriate approach.
3. Focus on increasing revenue and optimizing costs rather than solely relying on a ROAS report with “inflated” figures.
IMP also concluded the ROAS metric during the report analysis. Although the ROAS results may be low (only in the 1. x – 2. x range) compared to the usual benchmark (5. x), the data accurately reflects the revenue value, ensuring practical evaluation and precise budget allocation decisions.
In the current economic downturn, cost-cutting is a top business priority. By making the decision to change the Attribution Models, IMP has helped our client achieve their revenue growth expectations while significantly saving their budgets. Choosing a specialized team is crucial in determining the most accurate direction. Contact IMP for sustainable Digital Marketing solutions at: firstname.lastname@example.org.