How Impression-Based Ads Are Reshaping Search and CTV
▼ Summary
– Microsoft has launched impression-based remarketing, shifting away from click-based advertising models.
– Impression-based measurement provides a more holistic view of ad performance by considering upper-funnel influences and incrementality.
– This shift will likely reduce the perceived value of bottom-funnel channels like brand search and retargeting, while benefiting upper-funnel channels such as CTV.
– Advertisers should adopt multiple measurement methods like MMM and lift tests to better understand true campaign impact.
– Success requires starting the transition, securing executive buy-in, and continuously testing and evolving reporting approaches.
While Microsoft’s search ad updates often go unnoticed in Google’s shadow, their recent launch of impression-based remarketing signals a meaningful evolution in digital advertising. This move highlights a broader industry pivot away from simplistic click-based models toward more sophisticated measurement frameworks that better reflect how consumers actually engage with ads across channels.
The appeal of click-based marketing has always been its straightforwardness. A user sees an ad, clicks, and converts, clean, reportable, and easy to justify during budget discussions. But this simplicity comes at a cost. Click-based measurement ignores critical influences from upper-funnel channels like connected TV (CTV) and out-of-home advertising, and it fails to account for whether a conversion would have happened even without that final click.
To truly understand what drives results, marketers must adopt more holistic approaches. Methods like media mix modeling (MMM) and lift tests provide a fuller picture by measuring incrementality and breaking down the silos created by platform-native analytics. These techniques are more complex, but they offer a clearer, more objective view of how each channel contributes to overall performance. The goal isn’t to find one perfect model but to continuously test and refine multiple approaches.
As attribution shifts toward impressions, certain channels are being reevaluated. Bottom-funnel tactics like retargeting and brand search often appear less influential under this new lens, while upper-funnel efforts gain recognition. This is especially evident in search, where AI-driven results and zero-click behaviors are reducing traditional click volumes. Meta and other walled gardens may see their dominance challenged as advertisers seek more transparent measurement.
In this new landscape, CTV emerges as a clear winner. With non-skippable ads viewed on large screens, CTV impressions carry inherent weight that desktop or mobile ads often lack. As impression-based measurement becomes standard, CTV’s ability to influence downstream activity is finally being accurately valued.
Adopting an impression-based approach begins with a simple but crucial step: getting started. Staying with outdated click models poses greater risks than evolving your strategy. Secure executive buy-in by clearly communicating that reporting will change, not to complicate things, but to uncover which investments truly impact revenue.
It’s essential to acknowledge that measurement isn’t an exact science. Success comes from testing, learning, and adapting. Budget allocations will shift over time, but the focus should remain on clear communication and using data to demonstrate each channel’s real contribution.
(Source: MarTech)
