Performance Measurement Framework for Demand-Led Growth
What is a Performance Measurement Framework for Demand-Led Growth
A performance measurement framework for demand-led growth is a structured way to monitor, test, and optimise marketing activity so that paid media spend flexes profitably with real-world demand. It keeps campaigns responsive, measurable, and aligned with commercial priorities.
Why measurement matters
Without a clear measurement framework, demand-led growth will not last. If you cannot prove its incremental, profitable value, finance or leadership will eventually stop funding it. A framework proves that flexibility in spend drives genuine incremental revenue, not just re-attributed results.
The four focus areas
The framework runs on a clear cadence:
Daily: Remove blockers to automation and AI performance.
Weekly: Match budgets and ROI to current demand signals.
Monthly: Prove incrementality through controlled testing.
Quarterly: Align spend flexibility with profit and growth goals.
Daily: Keep performance unconstrained
Each day, check that nothing blocks PMax or other AI-driven systems. Review budgets, conversion tracking, data feeds, and assets to ensure everything is active and accurate. Verify that your CRM and analytics connections are error-free and compliant.
Goal: keep automation unconstrained so it can capture all profitable demand.
Useful tools: Google Ads change history, GA4, Merchant Center, CRM feed logs, and API monitors.
Weekly: Align spend to demand
Every week, confirm that your budgets are flexing profitably in line with demand. Measure ROI and budget elasticity to identify diminishing returns and scaling efficiency. Track category trends, search signals, and attribution alignment.
Metrics to track:
ROI = change in revenue ÷ change in spend
Elasticity = % change in conversions ÷ % change in spend
Ratios above 1 show efficient scaling, while below 1 means diminishing returns.
Useful tools: Looker Studio, SA360, Google Trends, BI dashboards, and MTA tools.
Monthly: Prove incrementality
Each month, test whether additional spend genuinely drives incremental conversions or simply shifts attribution. Use Geo lift tests to compare uplift in test versus control regions, Geo holdouts to establish baseline demand, and Causal impact models when geographic tests are not possible.
Refresh MMM (Marketing Mix Modelling) data, audit attribution models, and plan the next quarter’s experiments to maintain data accuracy.
Quarterly: Tie marketing back to profit
Every quarter, calibrate MMM data, run new validation tests, and align with Finance and the C-Suite. Gather key metrics that demonstrate commercial impact such as incremental profit contribution, lifetime value versus cost per acquisition trends, SKU-level impact on customer acquisition and retention, and MMM outputs showing optimal channel allocation.
This proves paid media’s direct contribution to profit and helps secure strategic alignment across departments.
How this framework supports leadership
By connecting marketing flexibility with financial outcomes, the framework links paid media spend directly to contribution margin, LTV, and profit. It positions marketing as a controllable driver of growth, not just a cost line.
The role of AI
AI systems like PMax work best when unconstrained. When tracking, feeds, and budgets are clean, AI can automatically identify and respond to profitable demand shifts in real time, maximising incremental conversions and revenue.
Review cadence summary
Daily – Hygiene and data – Keep automation unconstrained
Weekly – ROI and demand alignment – Ensure spend follows profitable demand
Monthly – Incrementality testing – Prove new value from extra budget
Quarterly – Strategic alignment – Link marketing flexibility to profit
Key takeaway
To sustain demand-led growth, marketers need an ongoing rhythm of hygiene, optimisation, testing, and executive alignment so flexibility remains both measurable and profitable.
Looking for more detail
You can download the full PDF version of the Performance Measurement Framework for Demand-Led Growth.