Despite platform fragmentation, Digitas's CEO argues the job of advertising is fundamentally the same. For a data-driven "quant," the North Star has always been whether an action drove sales. The challenge isn't new complexity, but rather marketers clinging to outdated, unmeasurable goals like "setting culture."
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The debate over ad "quality" is often based on subjective opinions of brand fit. A more effective definition of quality is its ability to achieve the primary business objective: selling the product. Unconventional creative that drives sales, like Olay's "cat with lasers" ad, is by definition high-quality.
With AI enabling precise control over media spend, key performance indicators are changing. Brands now move beyond simple Return on Ad Spend (ROAS) to more sophisticated metrics like incremental ROAS and contribution margin, reflecting a new emphasis on profitable growth rather than just volume.
ROAS (Return on Ad Spend) is a vanity metric that can mask unprofitable customer acquisition. By focusing on POAS (Profit on Ad Spend), brands are forced to measure the actual profit generated from advertising, linking marketing directly to bottom-line health and avoiding the trap of 'growing broke'.
The radical shifts in marketing shouldn't be seen as a burden. HubSpot's CEO frames this as an opportunity to reinvent the playbook after years of chasing small, incremental improvements. Fast-moving teams now have a chance to gain massive, non-linear advantages.
While AI tools dramatically increase content production speed, true ROI is not measured in output. Leaders should track incremental engagement, conversion lift, and revenue per message. An often overlooked KPI is brand consistency—how often content passes governance checks on the first try.
Direct attribution models are flawed because platforms like Google and Facebook use tracking pixels to claim credit for sales that would have occurred anyway. Smart marketers are returning to older methods of measuring lift from campaigns rather than relying on misleading platform data.
Shift the mindset from a brand vs. performance dichotomy. All marketing should be measured for performance. For brand initiatives, use metrics like branded search volume per dollar spent to quantify impact and tie "fluffy" activities to tangible growth outcomes.
The next major shift in ad tech is performance-based CTV. This merges the attention of linear TV with the accountability of digital media, allowing advertisers to tie ad spend directly to outcomes like sales—a revolutionary change from traditional television's limitations.
Marketers often equate effectiveness with ad ROI, but communications typically drive only 10% of sales. The other 90% is influenced by levers like pricing, distribution, and product performance. True marketing effectiveness requires a holistic view across all these business areas, not just advertising.
Traditional ad testing relies on surveys, which are unreliable as respondents may not be truthful or self-aware. A more predictive method is to measure actual consumer behaviors like attention and emotional response using neuroscience and AI. These are more direct indicators of an ad's potential sales impact.