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Imagine you’re scrolling through Instagram on your phone at a café and click on an ad that piques your interest. Later, while at work, you search for the same product on your desktop. Then, at home, connected to a different wi-fi network, you finally decide to make a purchase.
This is probably a common scenario for many of us, but it begs the question: how can you accurately attribute credit to each touchpoint? Which action drove the sale – the Instagram post, the desktop search, or something else entirely?
We live in an age where consumers constantly shift between devices and environments throughout their day. A consumer might spot something of interest in a shop but will only make the purchase after their friend’s recommendation. How can in-app attribution ever be reliable then, since it overlooks these non-digital, real-world influences that significantly impact purchase decisions?
Throwing fuel on the fire, stricter privacy regulations are challenging ad platforms’ visibility of consumer behaviour even further. Platforms like Meta and Google have attempted to provide measurement solutions, but these cannot always give brands a complete picture of how campaigns drive meaningful business outcomes.
Relying solely on these channels for measurement is akin to hearing one note and claiming to know the symphony.
The need for a holistic measurement framework
The digital advertising industry urgently needs a change in mindset. Marketers must move away from depending on ad platforms and instead take a holistic approach to measurement that focuses on real business data to gain a complete view of performance. No longer can we afford to base our strategies on narrow, channel-centric metrics.
So, what does a holistic measurement framework look like? For a start, it needs to be accessible to all advertisers – not simply those who can afford econometric modelling or multi-touch attribution tools.
Luckily, the solution lies in looking inward and analysing the brand’s own business numbers. This requires expertise from the paid media agency but a willingness to engage on the part of the client.
Looking at key performance indicators like new customer acquisition cost, media efficiency ratio, lifetime value and profit margins allows us to set clear benchmarks from the outset and understand what advertising can realistically achieve.
Using these business metrics as a guide will give a far more accurate representation of marketing success than relying on in-app return on ad spend (ROAS) and cost-per-acquisition (CPA).
The role of agencies in this new measurement landscape
Agencies can – and should – play a major role in shifting the paradigm around paid media measurement. It is critical for us to step up as true partners rather than transactional vendors, and this means being willing to have tough conversations with clients, particularly small businesses and fostering open communication and collaboration.
The importance of doing so is illustrated by a recent report from the Australian Small Business and Family Enterprise Ombudsman which revealed nearly 70 percent of small businesses drop their digital marketing provider within 12 months. The reasons? A lack of transparency, misaligned expectations, the selling of unnecessary services and a failure to communicate the full picture.
Strong agency-client relationships are built on trust, openness and education. From the outset, agencies need to guide clients through the shifting digital landscape, help them understand why traditional attribution models are no longer effective and demonstrate the value of adopting a new measurement approach. It’s about offering clarity and ensuring clients feel confident in the decisions being made.
This means setting realistic expectations from the outset and moving past the sugar hit of ROAS and clicks toward broader, more meaningful metrics. By promoting transparency and collaboration, agencies can help businesses create a measurement framework that aligns with their long-term business goals – ensuring marketing efforts contribute directly to growth.
As agencies, we have a responsibility to help these businesses not just survive, but thrive – delivering marketing results that are measurable and accurate.
This is particularly important now as marketers are at a pivotal juncture. As privacy regulations tighten and consumer behaviour evolves, relying on outdated methods of in-app attribution to measure campaigns is no longer good enough. In this new era, brands need to take control of their data, set their own benchmarks and work with agencies that are willing to have honest – sometimes uncomfortable – conversations.
As an industry, we owe it to our clients to do better. By adopting a holistic measurement framework, focusing on business-level metrics, and forging trusted partnerships, we can ensure that every marketing dollar goes further.
Ash Dharan is the head of paid media at NP Digital where she is responsible for crafting strategies to deliver ROI through integrated marketing campaigns. Dharan has more than 14 years of experience in marketing across various countries, and her background spans multiple industries, including wine, FMCG, consumer durables and travel.
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