ROAS Too Good to Be True? Identifying Over-Attribution

Return on ad spend (ROAS) is a measure of how much revenue you generate from each dollar you spend on advertising. A high ROAS is generally considered to be good, but what if your ROAS is too good to be true?

There is a possibility that you may be experiencing over-attribution. Over-attribution occurs when you credit more conversions to a particular marketing channel than is actually responsible. This can happen for a number of reasons, such as:

● Using the wrong attribution model: There are a number of different attribution models available, and each one has its own strengths and weaknesses. If you’re using the wrong attribution model, you may be over-attributing conversions to one or more of your marketing channels.

● Not accounting for multi-touch attribution: Multi-touch attribution takes into account the fact that most conversions are the result of multiple marketing touchpoints. If you’re not accounting for multi-touch attribution, you may be over-attributing conversions to the first marketing channel that a customer interacted with.

● Attributing conversions to non-existent channels: If you’re using a third-party attribution platform, there is a possibility that they are attributing conversions to channels that don’t actually exist. This can happen if the platform has inaccurate data or if they’re not properly tracking your marketing campaigns.

If you think you may be experiencing over-attribution, there are a few things you can do to investigate:

● Review your attribution model: Make sure you’re using the right attribution model for your business and that you’re properly accounting for multi-touch attribution.

● Compare your results to industry benchmarks: There are a number of resources available that can help you compare your ROAS to industry benchmarks. If your ROAS is significantly higher than the industry average, it’s a good indication that you may be experiencing over-attribution.

● Talk to your attribution platform: If you’re using a third-party attribution platform, talk to them about your concerns. They should be able to help you investigate and resolve any issues with over-attribution.

By following these tips, you can identify and address over-attribution, ensuring that your ROAS is an accurate reflection of the effectiveness of your marketing campaigns.

*This article was produced with the assistance of artificial intelligence. Please always check and confirm with your own sources, and always consult with your healthcare professional when seeking medical treatment.