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- Are You Paying Your Media Buyer to Underperform?
Are You Paying Your Media Buyer to Underperform?
You don’t have an ad problem. You have a structure problem.
Because if the person running your ad account is being judged on anything other than profit, they’re incentivized to waste your money — even if they’re “doing their job.”
Let’s break this down.
🚩 The 3 Most Common Misaligned Incentives We See
1) Media buyers optimizing for ROAS instead of actual net profit.
ROAS is easy to manipulate.
Just cut spend, retarget loyal customers, and boom — your media buyer looks like a hero.
But you’re not growing. You’re just eating your own tail.
2. Agencies compensated on ad spend.
This is like paying a chef based on how much salt they use.
More spend = more fees… so of course they’ll push for “scale” even when efficiency dies.
3. Internal teams judged on channel metrics (CTR, CPC, CPM).
None of those pay your mortgage.
If your team is celebrating a lower CPC but your LTV is tanking, you’ve got a dashboard problem — not a data problem.
🛠️ How to Fix This (Without Burning It All Down)
Here’s how we help owners realign teams and get control back — fast:
✅ Shift comp from spend-based to outcome-based.
Tie bonuses to blended CAC or marginal profit over a rolling 30-day window, for example.
If they can’t influence it directly, they shouldn’t be paid on it.
✅ Define “acceptable loss” zones.
Instead of chasing pure efficiency, give your team a sandbox:
“Maintain CAC under $X while increasing volume.”
This keeps people thinking like owners, not operators.
✅ Create a single source of truth.
If your media buyer and your CFO are looking at different dashboards, you’re flying blind.
Build a blended P&L view of paid channels that both can agree on.
Bottom Line
When you pay a team to optimize a metric…
…they’ll do exactly that.
If that metric isn’t directly tied to profit, it’s only a matter of time before your ad budget becomes overhead — not leverage.
Best,
Peter Delle
P.S. Not sure if your incentives are helping or hurting growth? I’ll show you — with a free incentive + media performance audit.