Applying a single attribution model, like last-touch, to all channels is a mistake. It undervalues top-of-funnel activities and can lead to budget cuts that starve the pipeline. Instead, measure each channel based on its intended outcome and funnel stage.

By measuring success on 'last lead source,' the company was incentivized to pour money into paid search for product trials—a clear final touchpoint. This model blinded them to the higher value of other lead types and actively discouraged investment in demand creation activities that build brand and generate higher-quality leads.

Effective demand generation is a barbell, requiring strong top-of-funnel brand investment to create awareness and great bottom-of-funnel product marketing to convert interest. Viewing performance marketing as a standalone function and funding it in isolation is like "throwing money at a problem but not solving it."

A marketer lost $25,000 driving paid traffic to a new, untested funnel. The key lesson is to first validate any marketing or sales funnel with organic traffic to ensure it converts before investing significant ad spend, thus avoiding wasted budget.

When ad performance breaks at scale, the problem isn't your bidding strategy; it's that you've saturated the 3% of the market ready to buy now. To grow, you must target the other 97% with broader, less direct hooks and lead magnets that educate them first.

Spending on brand awareness outside your ideal customer profile does more than waste budget; it creates demand you cannot supply. This educates and warms up potential buyers, effectively teeing them up for your competitors to acquire, turning your marketing spend into their lead generation.

The company heavily invested in product trials via paid search, but analysis revealed these leads had a mere 5% win rate and the lowest average contract value. This demonstrated that their primary lead source was also their least efficient for generating actual revenue.

When ad spend can't increase without performance dropping, the issue isn't your bidding strategy. It's that your direct offers have exhausted the small pool of problem/solution-aware customers. Scaling requires broader hooks and funnels to engage the much larger, less-aware audience.

Paid search should not be categorized as a marketing or brand-building activity. It is a sales function that captures existing intent, acting as a "toll booth" for demand created elsewhere. This reframing clarifies its role in the marketing mix and prevents over-crediting it for business growth via last-touch attribution.