Podcast Summary: "There's No Such Thing As An Attribution Easy Button"

Podcast Information:

• Title: AdExchanger
• Host: AdExchanger Talks (Managing Editor Alison Schiff)
• Episode: "There's No Such Thing As An Attribution Easy Button"
• Release Date: July 15, 2025

1. Introduction: The Complexity of Attribution

Alison Schiff kicks off the episode by introducing Madan Bharawaj, founder of M Squared, a measurement startup specializing in advanced marketing attribution solutions. The episode centers on the intricate nature of attribution in advertising, debunking the myth of a simple solution.

2. Madan's Journey into Ad Measurement

Madan Bharawaj shares his unconventional path to ad tech. Starting with a failed publishing startup in India, he transitioned into data science and eventually into advertising technology.

• Quote:
  "My very, very first job was in publishing... I failed gloriously, shut down shop and came over here to the US."
  (03:06)

Alison humorously reflects on Madan's "glorious failure," highlighting how his setback led him to a successful career in analytics and media measurement.

3. Foundational Truths of Ad Measurement

Madan emphasizes that ad measurement fundamentally grapples with human behavior, making it an ever-evolving challenge.

• Quote:
  "Measurement at its very core is measuring human behavior... that's never going to be a solved problem because it's always moving on you."
  (07:42)

He references the timeless adage from Wanamaker: "Half my advertising works, half my advertising doesn't," underscoring the persistent uncertainty in attributing ad effectiveness.

4. Base Attribution vs. Advanced Attribution

A significant portion of the discussion revolves around distinguishing base attribution from advanced attribution.

• Base Attribution:
  Consists of correlational and tracking methods like last-click attribution, Google Analytics, and UTM parameters. These provide real-time or daily insights but lack depth in causality.

• Advanced Attribution:
  Involves causal methods such as incrementality testing, marketing mix modeling (MMM), and randomized control tests. These techniques aim to establish cause-and-effect relationships but are often episodic and require more substantial data.

• Quote:
  "Base attribution is all the tracking things... Advanced attribution is all the causal techniques."
  (11:47)

Madan introduces the concept of multipliers to bridge the gap between base and advanced attribution, allowing for a more comprehensive measurement framework.

5. Misconceptions in the Industry

Madan addresses common misunderstandings in marketing measurement:

• No One-Size-Fits-All:
  There's no single methodology that suits every business. Effective measurement often requires a combination of techniques tailored to specific business needs.

• Triangulation is Essential:
  Relying on multiple sources of data ensures a more accurate understanding of ad performance.

• Quote:
  "There is no one technique that rules all... It's almost always an 'and' instead of 'either or'."
  (15:35)

6. Trust in Platform-Provided Measurement

The episode explores the challenges posed by walled gardens like Google and Facebook, which often provide biased or self-serving metrics.

• Quote:
  "If you can get causal measurement in place, that gets true measurement... you can have a multiplier adjusted number that translates it to your currency."
  (20:42)

Madan advises marketers to use multipliers to adjust for platform biases, ensuring that investment decisions are based on more accurate data.

7. Practical Steps for Marketers to Improve Attribution

Madan outlines a phased approach for businesses to enhance their attribution models:

1. Startup Phase:
   Utilize last-click attribution methods like platform attribution and UTM parameters.

   • Triangulation can be used to optimize initial strategies.

2. Growth Phase:
   As sales grow, incorporate post-purchase surveys to gain better insights into customer acquisition sources.

3. Scaling Phase:
   Implement platform lift studies and geo tests to refine measurement accuracy.

4. Advanced Phase:
   Adopt marketing mix modeling and develop a Marketing Accounting Framework (MAF) to align marketing metrics with financial outcomes.

• Quote:
  "That's a big cocktail. It is a cocktail. That's absolutely right."
  (29:43)

Madan humorously acknowledges the complexity, likening the measurement process to a cocktail of various techniques.

8. The Role of AI and Machine Learning in Attribution

The conversation shifts to the transformative potential of AI and machine learning in ad measurement.

• Challenges:

  • Correlational vs. Causal AI:
    Most AI models rely on correlational data, lacking the causal insights necessary for accurate attribution.

  • Data Quality:
    High-quality, causal data is essential for AI to provide actionable insights.

• Quote:
  "Once you jump over it, the insights, mining it for insights is going to become super, super efficient."
  (32:51)

Madan envisions a future where AI can optimize budget allocations and unlock demand efficiently, pending the development of robust causal data infrastructures.

9. Impact of Privacy Regulations on Measurement

With increasing privacy regulations and the decline of third-party cookies, marketing measurement faces significant hurdles.

• Signal Loss:
  Adjustments in measurement frameworks are necessary to account for reduced data signals.

• Quote:
  "Having a measurement framework that allows you to handle signal loss is the big sort of like, you know, the leap you can make today."
  (35:56)

Madan emphasizes the importance of adaptable measurement practices to navigate the evolving privacy landscape.

10. Overrated and Underrated Technologies in Measurement

Madan critiques certain prevalent measurement technologies:

• Overrated:
  Purchased Data Sets:
  Often noisy and unreliable, making them unsuitable for accurate measurement.

  • "Data sets are super noisy. They are very, very sort of unlikely to be accurate."
    (38:11)

• Underrated:
  Triangulation and Custom Frameworks:
  Tailoring measurement approaches to specific business needs yields more reliable insights.

• Quote:
  "There's no one mousetrap that does a good job for everybody."
  (43:29)

11. Lightning Round Highlights

In a rapid-fire session, Madan shares quick insights:

• Common Mistake:
  "Believe in last click... that's the gravity that they're always drawn towards the black hole."
  (43:54)

• Magic Wand Wish:
  "People's minds to be more open to different answers than what they are used to seeing."
  (44:16)

• Team Preference:
  Chooses incrementality testing over marketing mix modeling when forced to pick.

• Most Overused Buzzword:
  MTA (Multi-Touch Attribution)

  • "Most overused is MTA. Absolutely."
    (47:03)

Alison and Madan even brainstorm creative names for attribution "cocktails," adding a lighthearted end to the session.

12. Conclusion: Embracing a Multifaceted Approach

The episode concludes with a consensus that effective ad measurement requires a blend of traditional and advanced techniques. Madan reiterates the importance of adapting measurement frameworks to align with evolving business needs and technological advancements.

Notable Quotes:

• "Failed gloriously." — Madan Bharawaj (03:06)
• "Measurement at its very core is measuring human behavior." — Madan Bharawaj (07:42)
• "There is no one technique that rules all." — Madan Bharawaj (15:35)
• "Most overused is MTA." — Madan Bharawaj (47:03)

This episode offers a deep dive into the multifaceted challenges of marketing attribution, emphasizing the necessity for a diversified and adaptable measurement strategy. Madan Bharawaj provides valuable insights into both the theoretical and practical aspects of ad measurement, making it a must-listen for brand marketers, ad agencies, and anyone invested in understanding the true impact of advertising investments.