How Signal Analytics Solved a $1M Ad Platform Mischarge—and How You Can Avoid It

December 17, 2024
How Signal Analytics Solved a $1M Ad Platform Mischarge—and How You Can Avoid It

Have you ever felt that your marketing efforts weren't translating into the revenue you expected?

Have you ever felt that your marketing efforts weren't translating into the revenue you expected? For businesses spending heavily on paid channels, small errors in tracking or attribution can lead to massive financial consequences. This is the story of how our team at MergerData used signal analytics to identify and recover $1 million in overcharges from an ad platform—and how you can apply similar strategies to safeguard your business.

Whether you're a marketing leader or a RevOps professional focused on ROI, this case study will shed light on the value of signal analytics in optimizing your ad spend and uncovering costly errors.

What Is Signal Analytics, and Why Should You Care?

At MergerData, we specialize in signal analytics—an approach that identifies critical data points to predict customer behavior. By feeding this data back into CRMs, we help businesses automate their processes, boost conversion rates, and drive sustainable growth.

With over a decade of experience in data analytics and consulting, we’ve seen firsthand how leveraging these signals leads to transformative results. One such result involved a SaaS client, their ad spend exceeding $500K per month, and a $1M error that signal analytics helped resolve.

The Problem: Misattributed Ad Spend

Our client, a SaaS company with substantial recurring revenue and over $1M in monthly ad spend across channels, noticed something unusual. One of their alternative ad platforms (not Google or Meta) reported impressive results—but these numbers didn’t align with reality.

Red flags included:

  1. High Direct Channel Attribution: Over 40% of conversions were being classified as “direct,” raising concerns about attribution accuracy.
  2. Self-Reported Data Mismatches: The ad platform claimed more conversions than their CRM data indicated.
  3. Low ROAS: Despite significant spend, the return on ad spend (ROAS) was underwhelming.

How Signal Analytics Uncovered the Error

We followed a structured signal analytics process to investigate the discrepancy. Here’s how it unfolded:

  1. Audit Tracking Setup:
    We examined the client’s tracking infrastructure, including CRM integrations, pixel configurations, and Google Tag Manager setups. This revealed atypical tags for the alternative ad platform.
  2. Analyze Signals:
    Diving deeper into the platform’s data, we noticed conversion events were being reported multiple times—sometimes up to seven times per single event. This over-reporting artificially inflated performance metrics.
  3. Collaborate with the Ad Platform:
    We engaged the ad platform’s technical team to pinpoint the issue: a bug in their tracking code caused duplicate firing of conversion events.

The Results: $1M Recovered

Using the client’s CRM data and corroborating it with platform reports, we demonstrated the scale of the overcharge. The client successfully negotiated a $1M credit with the ad platform.

Beyond the financial recovery, correcting the tracking error revealed that the platform was actually performing better than initially thought. The data, now accurate, informed smarter budget allocation and led to more efficient growth.

Why This Matters to You

If your business spends heavily on paid advertising—especially on lesser-known platforms—here’s what you can do to avoid similar pitfalls:

  1. Regularly Audit Your Tracking Setup:
    Ensure that your pixels, tags, and tracking infrastructure are configured correctly. Misfires or duplication can lead to costly errors.
  2. Verify Self-Reported Data:
    Don’t blindly trust metrics from ad platforms. Cross-reference with CRM and internal analytics for a holistic view of performance.
  3. Leverage Signal Analytics:
    By focusing on key data points, you can uncover inefficiencies, identify opportunities, and make data-driven decisions to optimize ROI.

Other Success Stories Using Signal Analytics

Signal analytics isn’t just about catching bugs. Here are a few other wins we’ve delivered for clients:

  • Closed Pipeline Leakage: Increased close rates by 53% in one quarter by identifying and addressing revenue leakage.
  • Reversed Falling Conversion Rates: Turned around negative trends in one month with automated lifecycle marketing.
  • Sustainable Growth: Helped a client scale from $2M to $12M in revenue over two years without increasing sales headcount.

Key Takeaways

  • Signal analytics is a foundational approach to uncover hidden issues and unlock growth.
  • Regular audits of tracking setups and close collaboration with platform teams are crucial for accuracy.
  • Small errors can snowball into massive financial consequences—fixing them can lead to significant gains.

If you’re spending over $500K per month on ads or suspect inefficiencies in your marketing setup, book a call with our team at MergerData. Let’s explore how signal analytics can help you recover lost revenue, optimize your ad spend, and drive sustainable growth.

Subscribe to the Profitable Pathways Newsletter

Quarterly Insights into marketing data, attribution, and scaling what works.