GenAI transforms advertising's core pillars. It enables hyper-personalized creatives at scale, democratizes ad production for smaller businesses, and fundamentally enhances the two most critical functions of any ad platform: predicting user behavior and measuring campaign outcomes.

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.

Tushy actively measures the cross-channel impact of its advertising, discovering that top-of-funnel channels like Linear TV drive a greater sales lift on Amazon than digital channels like Meta. This is attributed to the demographic overlap between Linear TV viewers and typical Amazon Prime shoppers.

Cookie deprecation blinds ad platforms like Google and Meta to on-site conversion quality. Marketers can gain a significant performance edge by creating a feedback loop, pushing their attributed first-party data (like lifetime value and margins) back into the platforms' AI systems in near real-time.

To prove marketing's ROI, run geo-fenced ad campaigns targeted at a specific set of retail locations. By comparing sales in these "test" stores against a control group of similar stores, you can measure the direct, incremental sales lift caused by your creative, providing black-and-white accountability.

New measurement tools are moving beyond probabilistic models (guessing based on IP/device) to deterministic view-through attribution. By using first-party data like platform logins, marketers can now directly match an ad impression to a purchase, solving a major measurement challenge.

During tentpole holidays, Resident activates CTV to retarget users who recently visited but didn't buy. They view this not as a performance channel with measurable ROI, but as "marketing hygiene"—a necessary, common-sense tactic to capture high-intent buyers on a big screen, even if direct attribution is impossible.

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.

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.