Industry Truths6 min read

Are Marketing Agency Performance Guarantees a Scam?

Author

Digitopia LB

December 05, 2024

Are Marketing Agency Performance Guarantees a Scam?

Executive Summary

  • Guarantees incentivize agencies to bid on your own Brand Name keywords (which have high ROAS but add no value).
  • They often use "View-Through Attribution" to claim credit for sales that would have happened anyway.
  • Action: Look for "Alignment," not Guarantees. Pay based on profit growth, not vanity ROAS.

It sounds perfect: "We guarantee 3x ROAS or we work for free." But in marketing, if it sounds too good to be true, it's because they are cooking the books. No one can guarantee the stock market, and no one can guarantee the ad auction.

The "Brand Search" Trap

The easiest way to hit a fake ROAS target is to run ads targeting people who are already searching for your name.

If someone Googles "Nike Shoes," they are already going to buy. If an agency runs an ad there, they get a 20x ROAS. They show you the report, claim their fee, and you effectively paid double for a customer you already had. This is called Cannibalization.

The "View-Through" Attribution Trick

Agencies will often enable "1-Day View" attribution. This means if someone sees your ad, scrolls past, but buys 5 hours later from an email you sent, the Agency claims credit. They are taking credit for your email team's work.

The Solution: Demand "Click-Only" attribution reporting or use a third-party tool like TripleWhale to verify the truth.

?Frequently Asked Questions

Many guaranteed ROAS offers rely on attribution manipulation, brand keyword bidding, or inflated reporting methods rather than genuine business growth.
Some agencies inflate ROAS by targeting branded searches, using view-through attribution, or taking credit for conversions that would have happened organically.
Brand cannibalization happens when ads target people already searching for your brand name, effectively paying for customers you likely would have acquired anyway.
Guarantees can incentivize short-term reporting tricks instead of long-term business growth and profitability.
Businesses should prioritize transparency, attribution accuracy, communication, and profit-focused strategies instead of vanity metrics.

Stop reading. Start scaling.

Information without execution is just entertainment. Let our team build this infrastructure in your ad account this week.

Book Your Strategy Call