Telling the team a channel is wasting spend
The person running it will hear a verdict on their work, because that is what it sounds like. Four framings that keep it about the budget instead.
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By Joris van Huët, Founder & CEOUpdated 2 min read
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Say a channel is wasting spend and the person running it hears a verdict on their work.
The four
| Instead of | Say |
|---|---|
| "This channel is wasting money" | "The evidence for this channel is weaker than for the others" |
| "The numbers say cut it" | "The interval sits below break-even, which is our agreed cut condition" |
| "Reported ROAS is wrong here" | "Reported ROAS answers a different question; here is the gap" |
| "We are cutting it" | "We want to test it before deciding" |
Each right-hand version is more accurate, not just softer.
Explain the mechanism before showing the channel
If the channel in question is branded search or retargeting, the finding is entirely predictable from how proximity-based credit works, and saying so first turns it into a structural observation rather than a performance review. The mechanism is in platform attribution overcounting.
Predictability is the point. A finding that could have been forecast before the analysis is obviously not about the person.
Use a pre-agreed threshold
If the team agreed in advance that an interval sitting entirely below break-even is a cut condition, the conversation is about whether the condition was met rather than about whether the channel deserves to exist.
Give them the next move
Ask what they would test, and then test it. The person closest to the channel knows things the model cannot see: creative fatigue, auction dynamics, what changed in the window. They are often right, and inviting the objection produces better analysis as well as a better conversation.
Do not attach the budget decision
Presenting the finding and the cut together guarantees the finding gets contested, because the finding is the part that can be argued with. Separate them by at least a week, as argued in showing the gap to your team.
The material
Show the widest interval yourself.
Related answers
Frequently asked questions
How do I tell someone their channel is underperforming?
Say the evidence is weak rather than the channel is wasting money, name the pre-agreed threshold that was crossed, and explain the mechanism first. If it is branded search or retargeting, the finding was predictable before the analysis.Why agree cut thresholds in advance?
Because it turns the conversation into whether a condition was met rather than whether a channel deserves to exist. That is entirely a matter of sequencing and it makes a difficult discussion considerably easier.Should the channel owner get a say?
Yes, and ask first. They know creative fatigue, auction dynamics and what changed in the window, none of which an aggregate model can see. Inviting the objection improves the analysis as well as the conversation.
Go deeper: Incrementality testing, explained.
Sixty-second versions of these ideas: Causality Engine on YouTube Shorts.
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Terms in this article
- Ad SpendAd Spend is the total amount invested in advertising campaigns. It is measured against Return on Ad Spend (ROAS) to evaluate campaign effectiveness.
- AttributionAttribution identifies user actions that contribute to a desired outcome and assigns value to each. It reveals which marketing touchpoints drive conversions.
- Attribution ReportAttribution Report shows which touchpoints or channels receive credit for a conversion. It identifies which campaigns drive desired actions.
- RetargetingRetargeting is online advertising that targets users who have previously interacted with your website or content. Attribution analysis shows the causal role of retargeting in driving conversions and improving ad spend.