Are you confused about what has happened to your Facebook ROAS and desperately looking for a way to fix the issue? Well, this article is for you. It is a common complaint that Facebook revenue is not accurate following the Apple iOS 14 update. In fact, you will notice that there is no revenue attached to statistically modeled Facebook conversions. Thus, the Return on Ad Spend (ROAS) displayed by Facebook will be under-reported.

While this might be a serious problem, here is some good news to end your disappointment. We have figured out other ways to calculate the ROAS more accurately. In fact, by using Google Analytics metrics like Average Order Value (AOV) and the preferred attribution window in Facebook, we have built up a valid model to measure performance.

Is Facebook Lying?

You may have noticed that even though you see some conversions on Facebook, there is no revenue attributed to it. This is certainly not a matter of Conversion API or those events not shared with Facebook from your server. In fact, the issue was soaring only after the Apple iOS update.

If you are not familiar with this new change, here is a brief overview of the Apple iOS 14.5 update. In April 2021, Apple released their iOS 14.5 update, and with that, they brought about several changes to targeting, conversion tracking, and reporting. Simply putting it, the new update allows Apple users to decide whether they allow third-party apps to track their activity. So, for those who chose not to be tracked, Facebook is using advanced statistical modeling methods based on past activity, other signals, and recent conversion rates.

Since this new rollout, Social Media Marketers have been claiming that they observe a significant variation in Facebook results. But the ROAS does not drop overnight for everyone because not all Apple users will be updating to iOS 14.5 at once. However, it became obvious that you no longer have the option to view conversions on the platform by the attribution window. So, Facebook is certainly not lying. But it is vital to know what is really happening.

How Does the Apple iOS 14.5 Update Impact Your Facebook Ads Reporting?

With many marketers worried over the problems with the Apple iOS 14.5 update, we decided to dig deep into the issue. Upon comparing the results displayed by the Facebook Ads Reporting platform (more precisely Facebook Ads UI) with API reporting, we made some interesting discoveries.

Facebook Ads Reporting platform shows data based on the attribution window that is being optimized. So, if two different windows have been optimized under a single campaign, conversion metrics would be unavailable to you at the campaign level. However, if you move down to the ad set level, you will find conversion data for each ad set separately but again, aggregated values will not be there. This happens because you are not comparing similar scenarios.

But, if you analyze a single ad set on the ad level, you will find the data related to conversions that have been attributed to each ad. Also, you will notice that aggregated metrics like revenue and the ROAS will also be available. This is because, in a single ad set, you will be optimizing a single attribution window.

So, the logic here is you have to follow a bottom-up approach where you first check the ad set level and then move up to the ad level and thereafter the campaign level to get the aggregate figures. But, drilling down every time on every campaign is not practical and feasible especially if you are handling a multitude of campaigns.

Is Facebook API More Accurate Than Facebook UI?

From what we have found above, it is clear that getting the aggregate data from the Facebook reporting platform is a hectic process. On top of that, we also noticed that there are conversions where revenue has not been recorded at all. We found this by double-checking with the AOV of the client.

For instance, assume the AOV of the client is USD 20. But your platform has 5 conversions with aggregate revenue of USD 60. So, if you manually calculate, the revenue attributed per conversion is only USD 12 whereas the client does not sell any products below USD 15. So, it is obvious that there is a notable under-reporting issue with the platform. As per our analysis, we have detected that around 50%-65% of revenue could go without being properly attributed.

Therefore, it is a must that you pull data with the Facebook API. But, as per our observations, Google Analytics AOV was about 15% consistently higher than that of Facebook AOV. Moreover, the discrepancy kept on increasing with Facebook AOV dropping drastically starting from May. Since this divergence is a notable amount, it definitely cannot be disregarded.

How To Get the Correct Facebook ROAS After the Apple iOS 14.5 Update?

The ROAS is a critical indicator for Digital Marketers when making decisions related to Facebook campaigns. The repercussions of decisions made using inaccurate data may be irreversible and mere wastage of resources. So, it is a must to find alternative ways to get the key figures right.

So, we came up with the following formula to calculate the ROAS much more accurately by eliminating all identified variances. While this may not give you a 100% accurate figure, you can at least optimize your Facebook ROAS.

Adjusted ROAS = (Google Analytics AOV * Facebook Purchases * AOV Discrepancy Adjustment) / Spend

As a starting point, you can take the AOV Discrepancy Adjustment as 15%. But make sure that you constantly compare the platforms and keep a track of the divergence along with the directions. It is also recommended that you keep updating and optimizing the formula based on your observations.

Also, whenever possible, compare the adjusted ROAS with actual conversion data that you get from the client. Alternatively, you can track a Cost Per Action (CPA) goal instead of the ROAS when reporting campaign performance based on the channels.

Since the Digital Marketing landscape continues to change and expand, it is highly advisable that you adopt a holistic approach to data tracking and reporting by using multiple metrics.

Wrapping Up

The Apple iOS 4.5 update has made Facebook Ads Reporting sophisticated. Decisions made on an under-reported ROAS could cause serious adverse impacts on a business. Therefore, Digital Marketers should adjust the Facebook ROAS by accounting for the discrepancies. Overall, this guide will undoubtedly help you optimize your Facebook performance despite the new challenge.

Key Takeaways

• Facebook Ads Reporting may not reflect the true performance in terms of conversion revenue and the ROAS especially if you are analyzing at the campaign level.
• So, marketers need to first look at the ad level and then the ad set level and campaign level.
• It is risky to depend solely on a single platform to track the performance metrics. So, in the contemporary digital marketing arena, it is crucial that Digital Marketers know multiple tools to track the campaign performance.
• You can optimize the ROAS reported in the Facebook platform by calculating the adjusted ROAS. It is also advisable that you constantly update the formula.
• As a Marketer, you should be thorough with the platforms you are using so that you know alternative methods to handle the key metrics.