Advertising has long been described as a blend of art and science. However, where the art ends and the science takes over, it’s easy for the math and methodology behind it to become a little blurry. In the majority of client-agency relationships, success is often measured by a variety of key performance indicators (KPIs). But here’s where things get tricky: relying too heavily on KPIs can sometimes distort how we measure real accomplishments.
The KPI Trap: When Metrics Distract from Campaign Goals
In many cases, client reporting tends to emphasize specific KPIs—metrics that may not align with the actual objectives of a campaign. This can create a disconnect between what media buyers are tasked with achieving and what clients expect to see reported.
For example, a media buyer may be focused on driving a return on ad spend (ROAS) of 5:1 (500%)—the ultimate desired result. However, clients may also want to monitor metrics like click-through rates (CTR), cost per click (CPC), or cost per thousand impressions (CPM). While these are useful KPIs, they do not reflect the primary success metric for the campaign. In fact, it’s entirely possible for a media buyer to achieve the desired ROAS even if the CTR drops or CPC rises.
This is where confusion often arises: media and creative KPIs are tools to inform strategy, not the ultimate measure of success. When media buyers optimize towards a primary goal like ROAS, certain KPIs may naturally take a back seat. Higher CPMs, for example, could signal more targeted impressions, ultimately driving better ROAS. The key lesson? Achieving the campaign’s objective may mean sacrificing some KPIs along the way.
OKRs: Aligning Efforts Around What Really Matters
Our COO, Charlotte Mercer, introduced me to John Doerr’s book Measure What Matters earlier this year. Doerr’s concept of objectives and key results (OKRs) offers a powerful framework for aligning efforts and measuring success. After implementing OKRs within our organization, I’ve come to believe this methodology fits perfectly within the realm of media buying and campaign management.
What Are OKRs?
In simple terms, an objective is a specific goal you aim to achieve, while a key result is a measurable outcome that determines whether you’ve achieved that goal. Importantly, OKRs require alignment—ensuring that everyone, from client teams to media buyers, works towards the same objectives.
OKRs differ from KPIs in a crucial way: KPIs are informative and directional, offering insight into performance but not defining success. OKRs, on the other hand, clearly state what success looks like. This approach ensures that both agencies and clients keep their eyes on the bigger picture and prioritize effectively.
How to Use OKRs and KPIs Together
The beauty of the OKR framework is that it doesn’t dismiss KPIs—it reframes them. KPIs remain valuable, but they serve a supporting role, providing data and guidance rather than becoming the end goal. Here’s a simple way to structure this:
- Define your OKRs – Identify the main objectives of your campaign and the measurable key results tied to those objectives. These OKRs will serve as the ultimate success criteria.
- Select supporting KPIs – Choose KPIs that provide directional insights, but communicate that they are not the primary measure of success. This helps both the client and the agency stay aligned.
For example:
- Objective: Accelerate revenue growth YoY while maintaining profitability.
- Key Result: Achieve a 5:1 ROAS.
- KPIs: CTR, CPC, and CPM provide insight into campaign performance but won’t determine success.
The Power of Alignment: Keeping Everyone on Track
OKRs help eliminate ambiguity and ensure that everyone—from the client to the agency—understands the ultimate goal. When both sides are aligned on what really matters, it becomes easier to prioritize resources, optimize strategies, and report results meaningfully.
In contrast, focusing too heavily on KPIs can cause misalignment. If a client expects high CTRs and low CPCs but the media buyer is optimizing for ROAS, both parties might feel frustrated—even if the campaign achieves the desired outcome. OKRs provide clarity and alignment, helping to avoid these disconnects.
Conclusion: Focus on Outcomes, Not Just Metrics
To successfully manage campaigns, it’s essential to differentiate between KPIs and OKRs. KPIs offer valuable insights, but they shouldn’t define success. Only by identifying and aligning on OKRs can agencies and clients ensure that they’re working toward the same goals—and measuring the right results.
Remember: define your OKRs, align your teams, and use KPIs as your guide—not your goal. This approach will keep both clients and media buyers focused on what truly matters: delivering results.
