Kenshoo

Partner: Kenshoo

Category: Knowledge sharing

Date: March 2019

One of the biggest challenges that online retailers face is the difference in attribution between online channels that are used to promote their products. Where to spend the media budget when it is not clear what the value of the channel is?

When using Facebook to advertise your ecom activities, the platforms algorithm is used to optimize towards the best performing audience or ad, based on the amount of purchases that Facebook attributes to their system. Because digital eco systems don’t cooperate smoothly due to the ‘walled’ nature, often the amount of purchases in Facebook does not correspond to, for instance, the amount of purchases that Google Analytics (GA) attributes to social. Although the total amount of purchases is clear, the difference in attribution can create a conflict between data used for optimizing campaigns and data used to report on the progress towards business goals.

Kenshoo

Partner: Kenshoo

Category: Knowledge sharing

Date: March 2019

One of the biggest challenges that online retailers face is the difference in attribution between online channels that are used to promote their products. Where to spend the media budget when it is not clear what the value of the channel is?

CHALLENGE

For a Global fashion retailer Pervorm was confronted with this challenge. On business level all ecom activities were analyzed and evaluated on a ROI from a last click GA perspective. All social campaigns however were optimized based on purchase signals from Facebook. This produced the situation that markets, audiences or ads with good performance in Facebook were given a higher focus, while they did not perform according to the set target in GA. This creates the discrepancy, that we knew that certain audiences and strategies that performed well were not recognized as such by GA. Which makes a challenging discussion in finding arguments to shift more budgets towards these strategies. As according to stakeholders who looks at GA data those strategies are not successful.

APPROACH

In order to align successful results from our social campaigns with business goals set in GA and be able to optimize towards these objectives, we sat together with our tooling partner Kenshoo to come up with a solution for this challenge.
With Kenshoo you are able to implement custom metrics pulled from Google Analytics. The social optimizing algorithm of Kenshoo can optimize towards these metrics and maintain successful Facebook algorithms to do their work at the same time. In order to optimize towards the NET ROI goal, a calculated metric was implemented in the tooling. This calculated ROI took into account the return rate per market and VAT per market.

ALGORITHM CUSTOMIZATION

Next to the ‘standard’ algorithmic optimizations, the system was given the room to optimize between different recency divides and Facebook’s broad audience dynamic ads. On top of the GA optimization, Kenshoo applied their KPO (Kenshoo Portfolio Optimizer) that shifts budget and adjusts bids 24/7 in order to gain the highest results.
Using this method of optimization, we were able to optimize our successful Facebook strategies, and at the same time have an integrated approach towards a common secondary KPI. This also enabled us to keep using Facebook algorithms like placement optimization, instead of splitting our placements over ad sets to ensure the best GA ROI per channel.

RESULTS

Our approach, optimizing successful Facebook strategies towards common agreed business goals in GA, proved successful. Not only did the overall NET ROI in Google Analytics increased with 62% over a period of nine months, but the monthly results ended up outperforming the set goal by 42%.

The setup did not negatively affect any other metrics important to ecommerce campaigns. Traffic, number of sessions and CTR maintained on a similar level as before.

TAKEAWAYS

Make sure you pay close attention to setting your business objectives with conflicting attribution modelling of digital ecosystems. The challenge is to find an integrated approach that works towards your business objectives and does not cut off strategies that deliver added value because of systems that don’t cooperate. Kenshoo is a tool that provides the option to optimize campaigns based on business objectives in GA and at the same time optimize your social campaigns based on the powerful algorithms within Facebook.

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Pervormers who worked on this case:

Nathan Struik

Sr. Marketing Consultant

Cesar Swart

Social Consultant

Friso Annema

Sr. Social Consultant