News for hackers. Stuff that matters.

A comment on The new dot com bubble is online advertising (2019). Parent comment

Re:The new dot com bubble is online advertising (2019) by auggierose on Saturday October 02, 2021 @03:09AM (#28726638)
You are not understanding the point. You cannot actually measure incremental ROAS with basic statistics and easy Google/FB tools, because you would need to know how much they would have spent WITHOUT being exposed to the ads.
[ Parent | on HN ]
Re:The new dot com bubble is online advertising (2019) by disgruntledphd2 on Saturday October 02, 2021 @04:34AM (#28727045)
You can run lift tests on Facebook which measure exactly that.

You can't measure it across multiple advertising platforms very effectively though.

[ Parent | on HN ]
Re:The new dot com bubble is online advertising (2019) by auggierose on Saturday October 02, 2021 @04:43AM (#28727089)
I don't know what lift tests are. It should be easy enough to devise a tool for measuring incremental ROAS under the following assumptions: a) all purchases happen online; b) I have a complete history of ad impressions and ad clicks for each user who made a purchase

As you said yourself, b) breaks down for multiple platforms. It also breaks down if users have disabled tracking.

[ Parent | on HN ]
Re:The new dot com bubble is online advertising (2019) by disgruntledphd2 on Saturday October 02, 2021 @12:00PM (#28729633)
Lift tests are these things: https://www.facebook.com/business/m/one-sheeters/conversion-...

They are essentially what one needs to measure incremental ROAS of one's advertising.

Now, there are obvious caveats (online, tracking etc) but they're much much better than what's available for other platforms.

[ Parent | on HN ]
Re:The new dot com bubble is online advertising (2019) by jefftk on Saturday October 02, 2021 @09:45AM (#28728531)
> It also breaks down if users have disabled tracking.

Almost all users who disable tracking also block ads, so you are still correctly measuring the effect of your ad spend.

[ Parent | on HN ]
Re:The new dot com bubble is online advertising (2019) by namanyayg on Saturday October 02, 2021 @05:09AM (#28727195)
Well, if we are talking about a recently formed company who (1) doesn't do any offline advertisment and (2) only does fully tracked online ads, you can calculate ROAS fully right? (The only exception would be word of mouth sales)
[ Parent | on HN ]
Re:The new dot com bubble is online advertising (2019) by auggierose on Saturday October 02, 2021 @05:15AM (#28727220)
It's a big exception; otherwise you are just assuming that the only way people can get to your product is through ads. But this is equivalent to assuming "incremental ROAS = ROAS". So you propose to solve the problem by ignoring it. ;-)

PS: Of course that works if the difference is indeed small enough in your case so that it CAN be ignored.

[ Parent | on HN ]