The Proxy Metric Trap: Your Customers Don't Click

The digital advertising landscape has become an intricate web, where everything truly competes with everything. From traditional billboards and TV to the latest connected devices and mobile feeds, brands are vying for consumer attention across an ever-increasing array of channels1. But in this complex environment, many advertisers are still grappling with a fundamental problem: relying on outdated and incomplete "proxy metrics".

This fragmented approach is not just inefficient; it's actively costing brands growth. At Element Human, we understand that unlocking true value requires moving beyond these flawed indicators.

‍

‍

The Costly Illusion of Proxy Metrics

For too long, the advertising industry has been content with siloed measurement, applying different metrics to different channels: Nielsen Rating Points for TV, Click-Through Rate (CTR) for desktop, CPM/CTR for mobile, and CTR/CPC/CPA for connected devices1. This fragmentation means there's "no common denominator or connections between channels for measurement," leading to "missed results".

Worse still, many of these metrics are merely "proxy metrics" or based on unreliable indicators like cookies or clicks. Consider the ubiquitous Click-Through Rate (CTR):

• There is "no significant correlation between click through rate (CTR) and any Nielsen brand effect metrics" such as ad recall, brand awareness, or purchase intent4. In fact, the correlation is "less than 1%".
• "Clicks aren’t a good proxy for brand results"4 and "there is no correlation between CTR and ROI".
• Perhaps most strikingly, "90%+ of people who viewed ads and then bought, did not click"6. This highlights that clicks are "not a proxy for sales"6 and "not a good proxy for Business Performance"6.
• Beyond being ineffective, relying on clicks is expensive: "Clicky users are 5.5x more expensive than the 50% of users that are least clicky"6.

Ultimately, "Measuring the wrong metrics costs advertisers more". This issue is further compounded in emerging channels like Connected TV (CTV), where "Measurement Fragmentation" due to a "Lack of standardized definitions and approaches" remains a key challenge7. The "Platform Proliferation" in CTV, with "43% of marketers cit[ing] complexity in planning and buying," further exacerbates this problem, making unified measurement difficult.

‍

Shifting to Metrics That Matter

The clear path forward is to discard these unreliable proxy metrics and embrace "Metrics That Matter". These are metrics that provide "true value" and directly correlate with business growth: People, Lift, True Return on Ad Spend (ROAS), and True Return on Investment (ROI). This shift allows advertisers to understand their "value" by "Measuring Across Everything".

For instance, studies show that Facebook campaigns have a greater impact per unit of currency spent than TV, with Facebook ROI being "1.4 times higher than TV ROI" based on net spending2. This kind of insight comes from measuring actual impact on people and sales, not just clicks or impressions2.

‍

How Element Human and Advanced Measurement Partners Close the Gap

This is where expert measurement partners, like Element Human, become indispensable. As the digital ecosystem grows, particularly with the rapid expansion of CTV (with 86.9% U.S. household penetration by 2025 and 90%+ of ad spending transacted programmatically), the need for sophisticated, cross-platform measurement capabilities is paramount.To overcome the challenges of fragmentation and provide insights into true value, Element Human and other leading measurement vendors offer solutions that bridge the gap created by incomplete proxy metrics:

‍Unified and Cross-Platform Measurement: Partners like Comscore specialize in "Cross-platform measurement with focus on deduplicated reach and frequency", while VideoAmp focuses on "Unified TV and digital measurement with focus on outcome-based planning". This directly addresses the "no common denominator" issue.‍

Advanced Attribution: Companies like iSpot.tv provide "Real-time ad measurement across linear and streaming TV with advanced attribution". For example, InMarket offers "Foot traffic attribution connecting CTV exposure to in-store visits," directly linking digital ad exposure to offline conversions, a crucial measurement gap.‍

Incrementality Testing: INCRMNTAL provides an "Always-on incrementality measurement platform for CTV and other media". This allows brands to measure the true lift generated by their campaigns, moving beyond mere correlation to causation, a key component of "Lift" in "Metrics That Matter".‍

Outcome-Based Insights: Moving beyond basic metrics, these partners focus on "business outcome measurement". This means understanding the real impact on sales, brand awareness, consideration, and customer actions, not just superficial engagement.‍

First-Party Data Integration: These advanced approaches often involve the "Integration of first-party data with CTV platforms," leveraging CRM data for personalized ad delivery and proprietary audience insights from walled garden platforms.

‍

The Effect of influencer Marketing on the Buying Behavior of Young Consumers

This study explores how social media influencers influence affects the consumer behavior and purchase intentions of young people within the fashion and beauty industries. The researchers examined the relationship dynamics, trust, perceived credibility, and ethical concerns surrounding influencer marketing.

• Follower Engagement: Followers spend a significant amount of time watching influencer content but interact passively (liking, occasionally responding to polls) rather than active interaction (commenting or messaging).
• Relationship Dynamics: Followers often develop para-social relationships with influencers, perceiving them as friends or role models. This relationship can be a driver for purchase intention.
• Influence on Behavior: Influencers impact young consumers' behavior by shaping their aspirations, lifestyle choices, and purchasing decisions. Followers often seek to emulate influencers' styles and product choices.
• Partnerships and Trust: While brand partnerships are common, followers are often skeptical of paid promotions, perceiving them as less authentic. Gifted products are seen as more trustworthy.
• Credibility and Authenticity: Influencer credibility is crucial. Followers value honesty, transparency, and perceived expertise. Authenticity plays a significant role in trust-building.
• Monetary Benefit: Influencers' main income is through brand partnerships. Followers are aware of this and often question the genuine endorsement of products.
• Purchase Intention: Followers are more likely to consider products endorsed by influencers they like, even if they are initially skeptical of partnerships. This influence may affect long-term buying decisions.
• Brand Perspective: Brands find influencer marketing cost-effective for raising awareness but struggle to directly measure sales impact. They prioritize influencer image, engagement, and credibility.

‍

‍

‍

For brands, especially those with experienced CTV advertisers, the strategic recommendation is to "Implement Advanced Measurement" and "Move beyond basic completion metrics to incrementality testing, cross-device attribution, and business outcome measurement".

Prioritizing People, Lift, True ROAS, and ROI and using the tools for unified, cross-platform attribution and incrementality testing, brands can finally move beyond the limitations of proxy metrics.

This shift isn't just about better reporting; it's about making smarter decisions that drive real business growth in a landscape where every interaction counts.