Have We Reached a Consensus on Marketing Measurement?
The question of whether we have reached a consensus on marketing measurement can be approached from various angles. However, for the sake of clarity, let’s focus on two critical areas:
- What methods should brands use to measure marketing?
- What metrics should we be focusing on?
What Methods Should Brands Use to Measure Marketing?
Over the years, marketing measurement approaches have evolved significantly. The 2010s saw a heavy emphasis on attribution models, designed to track customers from their first interaction through to purchase. However, these digital attribution models have inherent limitations—primarily, they often fail to account for offline channels, such as in-store purchases, television ads, or print media. This gap can lead to skewed results, as these channels are excluded from the measurement or underrepresented. Additionally, digital attribution models are often vulnerable to bias, especially when they rely on first-click or last-click models, which oversimplify the customer journey and attribute too much weight to the final touchpoint before conversion.
In the early 2020s, significant changes in digital tracking—such as iOS updates and the deprecation of third-party cookies—have made traditional attribution models even less reliable. These shifts have made it increasingly difficult to rely solely on digital attribution models, highlighting the growing need for more comprehensive and incrementality-focused measurement.
At Linea, we advocate for a flexible, tailored approach to measurement. The methodology we employ depends on the specific business question at hand, allowing us to create custom strategies that best address our clients’ needs. We also emphasize the importance of integrating various methods to create a comprehensive view of marketing performance. For example, A/B testing serves as a powerful tool to validate and continuously refine insights gained from Marketing Mix Modelling (MMM). By combining these approaches, we ensure that our models remain adaptable and accurate, even as market dynamics change.
What Metrics Should We Focus Our Marketing Measurement On?
There is no one-size-fits-all answer to this question. The key is to select a balanced mix of metrics that accurately reflects how different media and creative strategies influence your specific KPIs.
We generally recommend tracking multiple KPIs across the business. For instance, a sales revenue KPI could be paired with a brand KPI to capture both short-term transactional performance and long-term brand-building efforts. The KPIs you choose should directly align with the objectives of your marketing campaign. If, for example, the campaign is geared toward driving customer consideration, then measuring the impact on consideration itself is essential.
However, within each KPI, we must consider customer segmentation. Different customer groups may respond to various marketing drivers based on their unique behaviors. For example:
Retailer purchase habits may differ significantly between in-store and e-commerce customers.
A financial institution might observe different drivers for a current account compared to a credit card.
These examples underscore the importance of segmentation in KPI selection—ensuring that measurement efforts are tailored to the different ways your audience interacts with your brand.
That said, it’s essential to strike the right balance when selecting KPIs. Focusing on too many metrics can complicate data requirements and dilute the effectiveness of the analysis. The goal should be to select the most relevant KPIs while maintaining a clear focus on the business’s overall goals.
KPIs That Ladder Toward Business Goals
One of the most important aspects of KPI selection is ensuring that the chosen metrics “ladder” up to your business’s broader objectives. If a company is focused on growth and aims to minimize Customer Acquisition Cost (CAC), then the KPIs we track should be aligned with that goal. Similarly, for companies focused on profitability, measuring metrics like profit return on investment (ROI) is crucial.
Ultimately, the selection of KPIs should emerge from in-depth conversations with clients, allowing us to understand their strategic priorities. By doing so, we ensure that our measurement approach is aligned with their unique goals—whether those are immediate, short-term objectives or more strategic, long-term aspirations.
The Truth About Marketing Measurement
One thing is clear: anyone who claims to have the "single answer" to measuring marketing performance is not being entirely truthful. The landscape of marketing measurement is complex and continually evolving, with multiple factors influencing the success of any given campaign. As a result, it’s important to use a flexible, multi-faceted approach that combines different methodologies and metrics to get a holistic view of performance.