Advertising measurement consultant Andrew Covato discusses the limitations of last-click attribution and the need for smarter measurement practices in the industry. Topics include incrementality in ad tech, challenges of trust in platform reporting, the failure of Apple's SKAD network, and the evolution of affiliate marketing with Awin.
Incrementality as a Core Metric for Marketing Assessment
Incrementality in marketing should be the core metric for assessing marketing performance, as it focuses on understanding the true impact of marketing efforts and separates them from the noise of non-incremental activities. By aligning executive teams with this approach and conducting regular incrementality tests, marketers can gain deeper insights into the effectiveness of their marketing strategies.
A significant example in testing was the revelation that conversion optimization strategies did not drive incrementality as assumed. Following a comprehensive testing approach and data analysis, it was found that conversion optimization, often considered crucial, lacked incremental value. This led to a strategic shift away from relying solely on conversion optimization for performance marketing strategies.
Skepticism Towards Performance Metrics Like ROAS
While ROAS itself is not inherently a bad metric, when calculated with flawed attribution models like last-click attribution, it may lead marketers to inaccurate performance assessments. The emphasis on incremental ROAS, rather than general ROAS, ensures a more accurate representation of marketing impact on revenue generation.
Revisiting the Notion of Performance-Driven Advertising
Misnomers like the distinction between performance and non-performance advertising blur the fact that all marketing efforts aim to drive revenue in the end. By recognizing that all marketing activities should align with revenue goals, marketers can adopt a holistic approach that incorporates various strategies to impact revenue generation positively.
Rethinking Attribution Models and Platform Tools
Challenges with attribution and measuring marketing effectiveness highlight the need for precise and accurate measurement methodologies. Leveraging Bayesian MMM frameworks and integrating multiple tools and insights can provide a more comprehensive view of marketing efficacy, ensuring that metrics like incrementality drive key strategic decisions.
Importance of Testing New Ad Platforms and Strategies
In a rapidly evolving digital advertising landscape, testing new AI-powered ad platforms, despite concerns about control, is essential to understanding their impact accurately. Incrementality testing remains a crucial tool in evaluating the effectiveness of these platforms and optimizing marketing strategies for maximum impact.
If there’s one thing that makes advertising measurement consultant Andrew Covato roll his eyes and shake his head, it’s the endurance of last-click attribution. Last click may seem “simple” and “tidy,” Covato says, but it doesn’t reflect the full funnel.
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