Overview

Halo Effects play a pivotal role in Prescient’s ability to capture the indirect, long-term impact of your marketing efforts. While traditional attribution models may focus solely on direct, last-click conversions, Halo Effects quantify the hidden influence that one channel or campaign has on another—revealing the comprehensive value of upper-funnel and brand-awareness activities.

By integrating Halo Effects into its Marketing Mix Modeling (MMM), Prescient provides a more holistic understanding of how different marketing efforts interact and contribute to conversions over time.

In this article, we’ll explore:

• What Halo Effects Are and Why They Matter
• Where You’ll Find Halo Effects in Prescient
• How to Interpret and Use Halo Effects
• Example Scenarios and Best Practices

What Are Halo Effects?

Halo Effects measure how one marketing channel or campaign indirectly drives conversions that appear in another channel or timeframe. Instead of looking at a single advertising touchpoint, Halo Effects capture the bigger picture: the customer journeys and brand interactions that shape how your entire marketing mix influences conversions over time.

Key Characteristics of Halo Effects

1. Cross-Channel Influence: If a YouTube ad sparks initial interest but the user ultimately converts via paid search, Halo Effects attribute a portion of that revenue or acquisition back to YouTube.
2. Delayed Conversions: An email prospecting campaign may not immediately generate sales, but it can build brand awareness that leads to conversions days or weeks later through another channel (e.g., direct website visits).
3. Additive & Incremental: By separating Base Revenue (direct, immediate) and Halo Revenue (indirect, long-term), Prescient’s MMM lets you see how each channel contributes beyond its standalone numbers.

Example:
A Facebook prospecting campaign might directly generate only a handful of sales. However, these ads can increase branded search volume on Google, driving additional conversions that Google Ads alone would take credit for in a single-touch model. Halo Effects ensure Facebook gets credit for sparking that interest in the first place.

Why Halo Effects Matter

1. Reveal Hidden Value: Traditional attribution often undervalues top-funnel channels. Halo Effects show which channels spark interest that eventually converts elsewhere, giving you a clearer sense of true ROI.

2. Avoid Misguided Cuts: Without accounting for Halo Effects, you might cut spend on a channel that appears unprofitable but is actually fueling conversions in other channels.

3. Enhance Multi-Channel Strategy: By measuring how channels interact, you can align campaigns so that each effort strengthens another (e.g., brand awareness campaigns boosting retargeting on paid search).

4. Drive Sustainable Growth: Campaigns that generate strong Halo Effects often create lasting brand recall and lead to new customer acquisition and repeat sales over time..

Where You’ll See Halo Effects in Prescient

Halo Effects are woven into Prescient’s core features to ensure you never lose sight of indirect, long-term impacts.

1. Homepage: Base vs. Halo Effect Rollup
   1. Located at the top of your homepage, this visualization breaks down revenue into Base and Halo for each connected channel.
   2. You can hover over the bars in the graph to see how much total incremental revenue is driven by Halo Effects.
2. Performance Page: Channel, Tactic, & Campaign Views
   1. MMM Columns (e.g., MMM Revenue, MMM ROAS) include both Base and Halo revenue.
   2. When you compare channel-reported revenue against MMM Revenue, the difference often indicates the magnitude of Halo Effects.
3. Insight Drawers (Campaign-Level)
   1. Attribution Tab: Displays a breakdown of how much revenue is directly generated by your campaigns vs. how much is attributed via Halo Effects in other channels or storefronts.
   2. Performance & Forecast Tabs: Graphical views of campaign performance and projected outcomes factor in both direct and Halo contributions.
4. Spend Optimization
   1. Prescient’s Optimizer uses Halo Effects to recommend reallocations that might otherwise be missed if you were only focused on last-click results..

Interpreting & Using Halo Effects

Halo Effects should be evaluated alongside other Prescient-modeled metrics (e.g., MMM Revenue, MMM ROAS, MMM CAC) to paint a holistic picture of campaign performance.

Comparing Base vs. Halo Contributions

Spotting Undervalued Channels

If a campaign’s Channel-Reported Revenue is low but MMM Revenue (including halo) is higher, the channel likely has hidden value. Consider maintaining or increasing investment rather than cutting spend.

Balancing Efficiency & Growth

Even if MMM ROAS or MMM CAC for a channel isn’t stellar in isolation, Halo Effects may justify continued investment if that channel drives new customers or lifts other channels’ performance.

Budget Allocation

Channels or campaigns with significant halo contributions often amplify other efforts. You might shift additional budget into these channels to maximize ecosystem-wide return.

Example Scenario: Halo Effects in Action

Scenario: Your brand runs two main ad campaigns—one on Facebook (Campaign A) and one on Google Search (Campaign B).

1. Reported Data
   1. Facebook (Campaign A) shows a direct ROAS of 1.5 according to the platform.
   2. Google (Campaign B) shows a direct ROAS of 3.0.
2. Modeled Attribution & Halo Effects
   1. Prescient’s MMM finds that Facebook’s actual ROAS is closer to 2.2 when halo conversions on Google are included. In other words, the brand awareness Facebook generates is leading customers to search on Google and convert there.
   2. Google’s campaign also benefits slightly from brand recognition coming from Facebook, showing an MMM ROAS of 3.4 vs. the reported 3.0.
3. Decision
   1. Rather than cutting the “unprofitable” Facebook campaign, you increase Facebook spend for more brand reach, knowing it lifts your Google campaigns substantially.
   2. You optimize Google bids to capture the traffic that Facebook generates.
   3. The combined ecosystem now generates higher total revenue than if you had judged each campaign in isolation.

Best Practices & Key Takeaways

1. Identify and Prioritize Channels with High Halo Impact
   1. Review MMM Revenue vs. Channel-Reported Revenue to spot channels that contribute significantly through indirect conversions.
   2. Channels with high halo effects (e.g., brand awareness campaigns) may warrant continued or increased investment, even if their direct ROAS appears lower.
2. Avoid Over-Reliance on Direct Attribution Metrics
   1. Traditional last-click attribution often undervalues channels that generate awareness and demand.
   2. Instead of cutting spend on channels with low base revenue but high halo contributions, consider reallocating budget toward these channels to maximize ecosystem-wide performance.
3. Balance Upper- and Lower-Funnel Strategies
   1. Halo Effects often flow from upper-funnel (awareness) channels to lower-funnel (direct response) channels.
   2. Align campaigns strategically, ensuring brand-building efforts are sufficiently funded to support high-converting lower-funnel tactics.
4. Monitor Delayed Impact and Optimize Budget Timing
   1. Since Halo Effects often materialize over days or weeks, avoid making budget cuts based on short-term data.
   2. Use Prescient’s MMM Forecasting to predict how ongoing brand campaigns will impact future conversions.
5. Leverage Halo Effects for Smarter Spend Allocation
   1. Prescient’s Spend Optimizer incorporates Halo Effects to recommend the most efficient reallocations.
   2. Instead of shifting spend away from “low-performing” channels, analyze their incremental impact before making drastic budget changes.
6. Test and Iterate with Incrementality in Mind
   1. Run controlled experiments to measure the true incremental impact of Halo Effects across channels.
   2. Consider geo-based lift tests or staggered campaign rollouts to validate how one channel influences another.