Marketing

Maximizing ad dollars: Why retailers must align marketing, finance and analytics

As digital ad spending continues to climb, the brands that embrace data-driven collaboration between marketing, finance and analytics will be best positioned to win.

Photo: Adobe Stock

May 20, 2025 by Ben Dutter — Chief Strategy Officer, Power Digital

Retailers are under growing pressure to justify their ad spend while maintaining growth in an increasingly competitive market.

In fact, Gartner reported that marketing budgets have dropped to just 7.7% of company revenue in 2024 — a 15% decline from the previous year. With U.S. advertising spend expected to reach $450 billion by 2025 and digital ad spending surpassing $325 billion, companies can't afford inefficiencies. That means every dollar must drive measurable impact, but many brands struggle to prove return on investment due to misaligned priorities between marketing, finance and analytics.

This disconnect is more pronounced than ever as 75% of CMOs report they are being asked to "do more with less," forcing them to reconsider commitments to marketing channels, resources and technologies. Where budgets are scrutinized and performance is critical, brands that fail to align their internal teams risk overspending on ineffective channels, missing revenue opportunities and losing market share.

The pitfalls of outdated success metrics

Despite advances in data-driven marketing, many brands still rely on traditional attribution models that fail to accurately measure impact. These outdated models often inflate performance metrics, leading to misallocated budgets and misguided strategic decisions.

This is where incrementality testing changes the game. Instead of assuming an ad campaign drove conversions, incrementality testing uses controlled experiments to measure the true lift generated by marketing efforts. The result? Clear, data-backed insights that help finance teams justify spending and enable marketing teams to optimize performance.

For example, a sustainable shoe brand hit a plateau in market demand, and they knew they needed a major shift in their marketing strategy to return to a strong growth trajectory. They began with a thorough analysis of their financial performance, allowing them to implement incrementality testing to identify opportunities to optimize customer acquisition through paid channels.

The brand focused on both creative modernization and customer acquisition efficiency and redefined how they approached performance measurement and customer engagement. This data-first approach, maximizing both revenue and efficiency, reshaped the brand's market trajectory and propelled 75% year-over-year revenue growth. The shift in their marketing strategy also aligned the brand with future market demands, creating a path for long-term, scalable success.

Bridging the gap between marketing, finance and analytics

So how can retailers ensure that their teams are aligned and making data-driven, high-impact decisions?

1. Unify Metrics Across Teams — Marketing teams focus on customer acquisition, while finance prioritizes profitability. A shared dashboard tracking key metrics ensures both teams are working toward the same business objectives.
2. Move Beyond ROAS to Lifetime Value — Many brands make the mistake of optimizing only for ROAS, but this can be short-sighted. A campaign that looks successful on the surface may not drive high-value, repeat customers. Finance and marketing must collaborate to measure long-term profitability and retention instead of just immediate returns.
3. Validate Before Scaling – Incrementality testing should be a standard part of campaign evaluation. Before increasing ad spend, brands must run controlled tests to confirm whether a campaign is actually driving new business or simply capturing demand that already exists.
4. Make Collaboration Routine — Alignment between marketing, finance and analytics can't just happen at budget planning meetings. Regular check-ins ensure teams are continuously optimizing campaigns, reallocating budgets efficiently, and avoiding wasteful spending.

The future of data-driven marketing

The retail industry is at a turning point. As digital ad spending continues to climb, the brands that embrace data-driven collaboration between marketing, finance and analytics will be best positioned to win.

Those who fail to align teams, rethink performance measurement, and test before scaling will continue to struggle with wasted ad dollars and missed revenue opportunities. Measure what matters, get teams aligned and ensure every dollar drives efficient and profitable growth. The question isn't whether brands can afford to optimize their ad spend - it's whether they can afford not to.

About Ben Dutter

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