The measurement gap

Everyone knows what ads cost. They rarely know what they do. Premjeet Sodhi, Global Analytics Lead at WPP Media, writes why advertising must move beyond media metrics to business outcomes

e4m by Premjeet Sodhi
Published: May 29, 2026 6:55 PM  | 7 min read
Premjeet Sodhi
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  • The advertising industry is facing a disconnect between media activity and business outcomes, with agencies traditionally focused on reach and cost rather than effectiveness and accountability.
  • Clients are increasingly demanding measurable outcomes from campaigns, but many do not provide agencies with the necessary data to assess performance accurately.
  • Effective measurement requires a foundational approach that integrates outcome tracking into strategy, utilizing methods like attribution modeling and incrementality testing.
  • The transformation of measurement practices is essential for agencies to demonstrate impact, necessitating collaboration with clients on data sharing and compensation models that prioritize outcomes over outputs.

In boardrooms across the industry, a question is being asked with increasing frustration: what did the campaign actually deliver? The answer, with depressing frequency, is a deck full of reach numbers, CPM comparisons and view-through rates, followed by the four words that have become the industry's most expensive comfort blanket: "The client is happy."

The client, it turns out, may not be happy for much longer.

A profession measuring the wrong things

Something has quietly broken in the relationship between media activity and business outcomes. Agencies were built over decades to deliver reach and frequency at the best possible price. They were evaluated on it, compensated for it and celebrated for it. Every dashboard, every post-campaign review, every optimization call was oriented around a single question: how much media did we buy and how cheaply did we buy it? In an era when being on television was almost synonymous with success, that was a reasonable proxy for impact. It no longer is.

That question has not disappeared. But a more important one has appeared beside it: not just did it work, but how well did it work? Agencies have the analytical capability to answer that question. What most lack is the data access, the structural mandate and the commercial model to do so consistently.

The distinction is sharper than it first appears. Recording what media was delivered is reporting. Connecting those deliveries to what actually happened in the market and to project it for the future is measurement. As a friend from the consulting world once put it, with more precision than most agency decks manage across fifty slides: reporting informs, measurement transforms.

The industry has been doing a great deal of the former and very little of the latter.

The contract has changed. The machinery has not.

Clients are no longer willing to accept delivery as a proxy for performance. Compensation models are shifting from outputs to outcomes. A senior client said something a few years ago that seemed bold at the time and now sounds obvious: "We are not in the business of delivering GRPs." Today every client says some version of this. They want to know what happened to sales, whether the campaign acquired new consumers or simply reached existing ones, whether brand equity moved at all.

These are not unreasonable demands. They are the only demands that make sense if media investment is to be treated as a serious business decision rather than an act of faith.

The problem is not agency ambition. It is that the systems, compensation structures and data relationships agencies operate within were designed for a different standard, and rebuilding them requires more than internal will.

Clients are not innocent bystanders

It would be convenient to frame this entirely as a failure of agency ambition. It is not that simple.

Clients are demanding outcome accountability from the same agencies they are declining to equip with outcome data. Business results live inside client organisations, behind walls that agencies rarely get through. Most clients can share transaction data and some digital behaviour. A minority have functioning brand tracking. Almost none have a connected view of the full consumer journey from exposure to purchase. And even where the data exists, the instinct to share it with external partners remains surprisingly weak. If outcomes are the genuine ambition, clients will need to provide agencies with structured access to that data. Accountability without data is not a standard. It is a contradiction.

Clients are investing in their own measurement capabilities, first-party data, brand tracking, in-house analytics. That investment is not in question. But it is largely being built in parallel to their agencies, not with them. The agency is left accountable for outcomes it cannot see.

It is also a process problem. A CMO pushing for business outcomes while the media lead rewards the cheapest CPM regardless of audience quality is an organisation at war with itself. Outcome thinking cannot live only at the top. It has to change the criteria by which decisions are made at every level, including the ones made in weekly planning calls about whether to optimise for reach or relevance.

 What a functioning measurement system actually looks like

The agencies making genuine progress share a common approach. They are building measurement not as a reporting layer bolted onto existing processes but as a foundational capability that shapes strategy from the start.

This begins with a measurement framework: an explicit map of the outcomes the brand is chasing, the KPIs that signal progress and the leading indicators connecting media activity to those outcomes. Sales growth does not arrive directly from a media plan. It arrives because new consumers were reached, consideration shifted, brand recall improved enough to change behaviour at the moment of decision. Without mapping that chain of causality clearly, success cannot be defined. And what cannot be defined cannot reliably be delivered.

From that framework flows a measurement plan, the operational specification of what will be measured, by whom, how and when. This is where the methodology choices live, and they matter. Attribution modelling measures the throughput of a touchpoint and tells you which touchpoints received credit for an outcome. Incrementality testing tells you whether those touchpoints actually caused it or whether the outcome would have happened regardless. Market mix modelling tells you, across the total investment portfolio, how spend is driving business results over time and where it is not. Used together, these three form the analytical spine of any serious measurement capability. Used in isolation, or not at all, the agency is operating on instinct dressed up as analysis.

Supporting the analytics is the infrastructure: a dedicated measurement data platform housing outcome data separately from media delivery systems, with the pipelines needed to make measurement continuous rather than a quarterly exercise. Above it sits a measurement analytics engine generating intelligence that feeds back into planning and strategy in real time, not just into a retrospective deck six weeks after the campaign ends.

This is not a small build. But it is not optional either.

 Three shifts that define the transformation

Realizing this requires three shifts: from boardroom rhetoric to shopfloor criteria, so that the media planner optimizing for cheap CPMs is working to the same outcome standard as the CMO; from post-campaign reporting to pre-campaign infrastructure, so measurement shapes planning rather than explaining it; and from optional to mandated, as a shared operating principle of the client-agency relationship.

 The transformation that has been postponed too long

The industry has navigated significant change before. The shift to digital reshaped agency operations. Ecommerce rewired the connection between media and purchase. AI is now changing the mechanics of targeting, content and optimization. Each wave arrived with urgency and eventually with infrastructure to match.

Measurement transformation has been different. It keeps arriving slowly, treated as important but never quite urgent enough, consistently displaced by the next immediate crisis in the media ecosystem. That habit has become costly. Agencies that cannot demonstrate outcome impact are increasingly exposed, not for want of capability, but because pitch economics reward speed and price, not measurement infrastructure. Consultancies and in-house teams are filling that gap. Losing ground there weakens the entire agency proposition, not just the analytics practice.

 The path forward

The path forward requires clients to share outcome data as a genuine operating commitment, not a selective concession. It requires compensation models that reward outcomes, not hours. And it requires the mindset shift to reach every planning call, not just every boardroom presentation.

Agencies are not waiting to be convinced. Many are already investing in measurement infrastructure, building the frameworks, platforms and analytics capabilities that outcome accountability demands, often ahead of any commercial incentive to do so. The intent is there. The direction is clear. What the market has not provided is a client community willing to match that commitment: with data, with outcome-linked remuneration, with genuine partnership rather than escalating demands from a distance.

The measurement gap is not an agency problem to solve in isolation. It is the most important thing clients and agencies could build together. Agencies are moving. Clients need to meet them there.

Premjeet Sodhi is Global Analytics Lead at WPP Media, based in New York, where he builds measurement systems connecting media to business outcomes. The article reflects his personal point of view on the subject. 

 

 

Published On: May 29, 2026 6:55 PM