🧭 Journey from attribution-based ROAS metrics to ROI metrics based on true incrementality can be challenging for performance marketing teams.
For years, you've been building reporting, dashboards and decision-making routines around last-click attribution or ad platform attribution, and suddenly the conclusions suggested by those technologies are challenged. Here's examples of insights you might get when transitioning to Marketing Mix Modeling that measures ROI based on true incremental conversions:
😬 Retargeting campaigns are not 4x as effective as prospecting campaigns, as your ad platform is reporting
😬 Real ROI of Paid social is 2x compared to what Google Analytics 4 last-click is reporting
😬 Branded Search is less effective than what Google Analytics4 last-click is reporting
Adopting a new measurement framework is not only a learning journey - it's also a psychological journey. There are certain things we have noticed making the transition smoother for our customers. The starting point is of course an in-depth discussion around the results and differences in methodologies. In addition, here's two things we decided to implement into our solution:
✅ Easy comparison between the old and new
You can compare MMM-reported ROI to ad platform -reported ROAS and GA4-reported ROAS. This makes it easier to spot the areas with largest differences compared to previous reporting. This also enables calculating incrementality factors, e.g., what % of Facebook-reported conversions for prospecting campaigns have been truly incremental.
✅ Media metrics in the MMM dashboard
When an ROI suddenly increases or decreases, you can analyse the "why" by looking into impressions, clicks, conversions, conversion value, click-through-rate, conversion rate, average order value and so on. For example, a recent ROI increase of PMax might by explained by +15% increase in average order value.