2024's Game-Changing Trends in Ad Measurement: What You Need to Know

A Year of Transformation in Ad Measurement

2024 was a year of hectic change for ad measurement. While third-party cookies may have received a reprieve from Chrome, user-level data continues to dwindle. As a result, traditional methods like last-click and multitouch attribution have lost their significance. In their place, advertisers are returning to reliable methods such as media mix modeling (MMM) and exploring innovative techniques like incrementality testing.

Incrementality Measurement

This year marked the rise of incrementality in ad measurement, a concept that focuses on establishing causation rather than mere correlation. According to Olivia Kory, head of strategy at the incrementality measurement startup Haus, this model employs sophisticated techniques like holdout groups and geo-testing. For instance, shoe retailer ASICS utilized this method to assess incremental ROI by testing campaigns in select cities while excluding them from others.

Despite its advantages, incrementality testing is not without challenges. Large platforms often do not provide adequate support for such testing, and the costs involved can be significant. As noted by ASICS' global marketing manager, testing in major cities can be risky for core business operations.

The Resurgence of Media Mix Modeling

Media Mix Modeling (MMM) is making a comeback as marketers face challenges with user-level data. Once deemed outdated, MMM is now seen as a practical approach to measure campaign effectiveness across various platforms. Google has launched Meridian, an open-source MMM service, while Meta offers its own solution called Robyn. The goal is to enhance MMM's accessibility and reduce the time required for analysis.

E-commerce Metrics on the Rise

The growth of digital-native brands has led to the emergence of new ad measurement metrics. One notable metric is ACOS (Advertising Cost of Sale), which attributes ad spend directly to sales. Unlike ROAS (Return on Advertising Spend), ACOS emphasizes the role of ads as a component of total sales rather than the sole focus. Additionally, new metrics like return on marketing objectives (ROMO) and web-influenced store sales (WISS) are being explored.

The challenge remains for marketers to adapt to these evolving metrics and models, especially when traditional measures are still prevalent in many platforms.