Original LinkedIn post here
❓ "Why is MMM saying that ROI for my Facebook Ads campaign is 20-30% of what Facebook is reporting, but 1.5-2x compared to what Google Analytics 4 is telling me?"
We often get these type of questions when our ecom customers see MMM results for the first time.
It's because
👉 Only part of Facebook-reported conversions are incremental.
👉 Google Analytics 4 is not able to capture all social media conversions.
👉 MMM provides an estimate for the true incrementality of your Facebook campaign.
Let's take an example:
Campaign spend: 100k€
What you see from Facebook (7d click, 1d view):
- Facebook-reported conversion value / revenue: 900k€
- Facebook-reported ROAS: 9
What you see from Google Analytics 4 (data driven attribution or last click):
- GA-reported revenue: 125k€
- GA-reported ROAS: 1.25
What you see from MMM:
- Incremental revenue due to the campaign: 250k€
- MMM-reported ROI: 2.5
👉 MMM provides you the ROI based on incremental revenue.