Marketing Cloud

Adobe Study Shows Social Media Impact Undervalued by Nearly 100 Percent

Evaluation of 1.7 Billion Web Visits Suggests Marketers Need to Consider New Attribution Models

SALT LAKE CITY, Adobe Digital Marketing Summit — Adobe Systems Incorporated (Nasdaq:ADBE) today announced findings from its second Adobe® Digital Index report, which provides marketing, e-commerce and retail executives with critical digital marketing insights. The study evaluated how marketers measure the impact of website traffic from major social media sites, including Facebook, Twitter, Pinterest, Tumblr, Blogger, YouTube and Yelp. Adobe analyzed more than 1.7 billion visits to more than 225 U.S. companies’ websites in the retail, travel and media industries, concluding that marketers significantly underestimate the value of social traffic.

Key Report Findings

  • The use of last-click attribution, the most common attribution model used by marketers, may cause marketers to undervalue social media’s website impact by up to 94 percent
  • First-click attribution models more accurately capture the benefits of social media in engaging customers earlier in the buying process
  • Significant differences in the results of first-click vs. last-click attribution data for various social media sites may cause marketers to change how they allocate the budgets across social and other digital channels

Why First-Click Attribution is Better for Social

Last-click attribution assumes that the marketing channel most responsible for a consumer’s behavior is the channel the consumer last touched before a visit or purchase. First-click places responsibility on the channel the consumer first touched. Social media creates an environment in which brands can build awareness and engage with prospective and existing customers early in the purchase process. By ignoring the value of these earlier interactions, last-click attribution gives disproportionate credit to the marketing channels customers use late in the purchase process, potentially undervaluing the role of other channels in building awareness, engagement, and ongoing relationships between customers and brands. In contrast, first-click attribution gives social media more credit for these earlier interactions. The difference between last-click and first-click is significant and has the potential to change the way companies allocate social media budgets.

Supporting Quote

Aseem Chandra, vice president, product and industry marketing, Digital Marketing Business, Adobe

  • “As an industry, digital marketers have been quick to add social media to the marketing mix, but have perhaps not considered new and better ways to measure this complex channel. This study shows that marketers tend to default to traditional direct measurement models. Better measurement of social marketing will lead to better ROI.”

Adobe Digital Index Report

Full details of the Adobe Digital Index report on social media are available for download here or at CMO.com.

About the Adobe Digital Marketing Suite

The Adobe® Digital Marketing Suite offers an integrated and open platform for online business optimization, a strategy for using customer insight to drive innovation throughout the business and enhance marketing efficiency. The Suite consists of integrated applications to collect and unleash the power of customer insight to optimize customer acquisition, conversion and retention efforts as well as the creation and distribution of content. For example, using the Suite, marketers can identify the most effective marketing strategies and ad placements as well as create relevant, personalized and consistent customer experiences across digital marketing channels, such as onsite, display, e-mail, social, video and mobile. The Suite enables marketers to make quick adjustments, automate certain customer interactions and better maximize marketing ROI, which, ultimately, can positively impact the bottom line.