The rise of digital ads was supposed to make it much easier to answer this question. Access to a wealth of data allows advertisers a clearer picture of who may be seeing their ads and how those ads may be influencing behaviors like website visits or purchases. While this data has enabled a variety of widely used approaches for measuring ad effectiveness in the industry, there has not really been a systematic examination of how well these approaches work.
Without a standard approach to measuring campaign effectiveness, it’s hard to establish an objective benchmark for how to measure different approaches. How do we know if our measurement is accurate? How can we tell if an approach is effective?
Measuring ad effectiveness used to be the domain of data specialists, but now a fundamental working knowledge of key data science concepts is critical whether you work in marketing, finance or the C-Suite. From size of investment to the most effective messaging and ad placement, knowing what your campaign measurement is telling you is essential to informing brand decisions. Defining a successful approach begins with understanding what constitutes good measurement.
* Gordon and Zettelmeyer have no financial interest in Facebook and were not compensated in any way by Facebook or its affiliated companies for engaging in this research.
Source: “A Comparison of Approaches to Advertising Measurement: Evidence from Big Field Experiments at Facebook” by Facebook’s Neha Bhargava and Dan Chapsky and Northwestern University’s Brett Gordon and Florian Zettelmeyer, Mar 2016.