In-platform reporting doesn't show business results — or at least, that was our hypothesis going into episode two of our video series, The Hypothesis. In this episode, we get into why the data from in-platform analytics is easy to manipulate, how too many data points can hurt your reporting (or data puke as Eric so eloquently calls it), and where to use in-platform reporting. Watch the full video below or listen to the episode here to get this conversation in its entirety. More of a skimmer? Keep reading for our top takeaways.
Top takeaways from this episode
How is the industry currently using in-platform data for reporting?
- In-platform reporting is commonly used for day-to-day decision-making and week-over-week changes in campaign performance.
- Too often today in-platform data is being used to extrapolate business results.
Where do we think it goes wrong? Why is in-platform reporting unreliable or frequently misinterpreted?
- Platform metrics can be easily manipulated and don't always directly correlate to business results.
- In-platform metrics are often misinterpreted and can lead to overreactivity and a focus on granular data instead of the big picture.
- Platform reporting does not accurately estimate the business impact and should not be used for strategic decision-making.
- Measuring incrementality is complex and requires additional validation beyond in-platform results. Relying solely on in-platform data and reporting can lead to data overload and conflicting goals.
What should we be doing instead?
- A clear measurement plan is essential, focusing on key metrics that align with business goals.
- Incrementality, the value driven from your advertising program that wouldn’t have been driven without the advertising, is a much better route to measuring actual business results. Eric Sloan, Thrive's VP of Data & Strategy, wrote a whole blog on it if you want to learn more.
- In-platform reporting should be used for day-to-day decision-making and diagnostics.
- Lift studies, which measure the impact of ads on conversion behavior, are available on Meta and Google and can provide more useful platform data.
- Effective communication of data to the executives requires aligning assumptions and telling a story with the data.
- The future of in-platform data and reporting may involve consolidation of platforms and more integrated lift testing.