Your own data flags wasted ad spend first
Two numbers you already hold surface the problem before any tool does. Neither needs a vendor, and both are checkable by anyone in the business.
By Joris van Huët, Founder & CEOUpdated 3 min read
Run the numbers for your store: the free wasted ad spend calculator.
Two numbers you already hold surface the problem before any tool does, and neither requires anyone to accept a methodology.
The two
| Number | Where it comes from | What it reveals |
|---|---|---|
| Claim ratio | Platform-claimed revenue divided by store revenue | How much of your reporting is overlap |
| Coverage | Share of orders your analytics can assign a source to | How much of your business is unexplained |
The claim ratio
Sum what every ad platform says it caused for a single window. Divide by what your store actually took in the same window. Above one is expected, because each platform counts conversions it touched and touches overlap, but the size tells you how much of your reported performance is double counting.
Twenty minutes, no tooling, and nobody has to agree on anything methodological, because it is arithmetic on two totals. Method in the claim ratio.
Coverage
The share of your orders that arrive with a usable source. The remainder does not vanish; it typically gets credited to direct, which flatters direct and starves whatever actually caused the visit. A falling coverage figure means an increasing share of your budget is being allocated on inference. The mechanism is in the unassigned traffic problem.
Why these come first
Because they are yours. Your order table is transactional and cannot be revised by a third party, and your analytics account is an asset you keep regardless of which measurement tool you use. Any window you can still export is a window any method can read, now or in three years. The general argument is in you do not own your attribution data.
What they do not tell you
Which channel to cut. Both numbers describe the state of your reporting rather than the performance of any particular channel. They tell you the problem exists and how big it is; they do not locate it.
Locating it needs a per-channel causal read, which is a €99 one-time upload of a Google Analytics export returning an estimate, a confidence interval, a coverage share and a design label per channel, refundable within 30 days, no questions asked.
The order that works
Claim ratio and coverage first, because they are free and they establish the size. Then the read, to locate. Then a geo holdout on the one channel where the stakes justify it. Each step is more expensive and more conclusive than the last.
The habit worth keeping
Recompute both quarterly and note them with the date. The level is interesting once; the trend catches platform rule changes and collection breakages that nothing in your dashboards announces.
Related answers
Frequently asked questions
What can I check without buying any tool?
The claim ratio, which is total platform-claimed revenue divided by your actual store revenue for one window, and coverage, the share of orders your analytics can assign a source to. Both need twenty minutes and no methodology agreement.Do those two numbers tell me which channel to cut?
No. They describe the state of your reporting rather than any channel's performance. They establish that a problem exists and how large it is; locating it needs a per-channel causal read.Why recompute them quarterly?
Because the level is interesting once and the trend is useful forever. A widening claim ratio or falling coverage catches platform rule changes and collection breakages that nothing in your dashboards announces.
Go deeper: Causal attribution, explained.
Sixty-second versions of these ideas: Causality Engine on YouTube Shorts.
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Keep reading
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.
- AnalyticsAnalytics is the systematic computational analysis of data. It reveals customer behavior and measures campaign performance.
- AttributionAttribution identifies user actions that contribute to a desired outcome and assigns value to each. It reveals which marketing touchpoints drive conversions.
- Confidence IntervalConfidence Interval is a statistical range of values that likely contains the true value of a metric. In marketing analytics, it quantifies uncertainty around estimates, indicating the precision of an outcome or causal effect.
- ConversionConversion is a specific, desired action a user takes in response to a marketing message, such as a purchase or a sign-up.
- DashboardA dashboard is a visual display of key information required to achieve specific objectives. It consolidates data onto a single screen for quick review.
- DashboardsDashboards are graphical user interfaces that provide at-a-glance views of key performance indicators (KPIs). They monitor campaign performance and visualize attribution insights.
- Google AnalyticsGoogle Analytics is a web analytics service that tracks and reports website traffic.