How a Marketing Accounting Framework Drives Smarter Decision Making

How a Marketing Accounting Framework Drives Smarter Decision Making

MEET Keary Phillips
Keary Phillips

Measurement Strategist

TAG - The Aspen Group, Allstate, Fidelity, Discover, Angie’s list

If marketing is the art of storytelling, then measurement is the science that makes sure the story has a happy ending. For too long, marketers have been trapped between messy data, conflicting metrics, and finance teams asking, “So... what did we actually get for that $5 million?” Enter the Marketing Accounting Framework - a structured, scalable way to reconcile attribution chaos and align your media decisions with actual business impact.

Whether you’re running a scrappy DTC brand or steering a well-oiled enterprise marketing machine, having a marketing accounting framework is the modern CMO’s secret weapon. Here's why.

 

 

From Gut Feel to Growth Engine: Why Marketing Needs Accounting Principles

Traditional marketing reporting often leaves leadership flying blind. ROAS looks great in-platform, but finance isn’t convinced. UTMs show one thing, incrementality testing another. So which numbers do you trust?

The marketing accounting framework brings discipline to this chaos by aligning measurement with decision-making. It helps marketers triangulate data from three critical layers:

  1. Base Attribution – Think UTM-based, last-click data.

  2. Platform Attribution – What Meta, Google, Roku, etc., report.

  3. Advanced Attribution – Methods like Marketing Mix Modeling (MMM) or incrementality testing.

Each offers different visibility into performance. But when structured under a unified framework, these layers allow you to make better, more confident investment decisions.

 

 

P&L Frameworks Explained

One of the biggest unlocks in this methodology is the P&L view of marketing. Rather than thinking of marketing as a singular cost center, businesses benefit from structuring marketing into multiple "mini" P&Ls based on customer lifecycle stages and/or other critical business aspects..

There are many ways to structure the P&L view, depending on the type of business ranging from retail to CPG to professional services. There are some important questions to ask that can help you determine the right structure:

  • Are you making investment decisions by customer segment?

  • Are you making media investment decisions by geography?

  • Are you making media investment decisions by product or service type?

  • Is some media meant to drive upper-funnel outcomes only?

  • Are you driving conversions, revenue, or margin?

 

Some examples of different types of P&L’s range from customer segment to revenue and many outcomes in between. Below are some examples:

  • Customer Segment:

    • New, Existing, Churned

  • Geography:

    • Country

    • Retail location

  • Product types: 

    • Hardware vs Subscription

    • Main SKU vs Add-ons SKUs

    • Product Categories

  • Customer funnel: 

    • Visits, AddToCart, Lead, Orders, Initial Sign-up, Monthly Subscription

    • Sales channel 

  • Metrics: 

    • Conversions, Revenue, Margin, Profit, LTV

Ultimately, you want to pick P&L’s that are meaningful to the business which marketing has the ability to influence.

 

Common Examples of One, Two and Three P&L Frameworks

 

One P&L Framework

Best suited for companies focused almost exclusively on new customer acquisition (think wedding rings, insurance lead gen, or aesthetic services like LaserAway). The marketer's mission is clear: drive new leads, efficiently and at scale.

Decisions are anchored around:

  • Media-driven revenue share

  • ROAS by UTM vs platform

  • Adjusted ROAS via incrementality benchmarks

  • High/low sensitivity decisions for budget optimization

 

Two P&L Framework

More common in growing DTC brands, this adds retention marketing into the mix. Now you’re not just acquiring, but also nurturing existing customers.

Your accounting view now includes:

  • P&L for new acquisition

  • P&L for retention programs

  • Separate performance targets for each

  • Smarter testing on how to scale profitably across both

 

Dental Chain Example: Four P&L Framework

This advanced model specific to dental services: contemplates Scheduled and Completed appointments by new vs. existing patient types. This structure helps the business understand how marketing is contributing to “leads” - in this case scheduled appointments in addition to revenue generating completed appointments for a broader view of the patient funnel.

Each of the four efforts—new patient booked, new patient completed,, existing patient booked and,  existing patient completed—gets its own attribution lens, ROAS targets, and risk-adjusted testing strategy. This model requires more sophisticated infrastructure but delivers more views of performance and different optimization opportunities..

 

 

Decision-Making Powered by Sensitivity and Scenario Planning

The real power of the framework kicks in with sensitivity analysis. Every marketing decision—cut, hold, scale—is evaluated based on:

  • How much agreement exists across attribution models

  • The spend size and potential upside/downside

  • The risk of over or under-allocating due to data blind spots

For instance, if UTM, platform, and MMM all agree a channel underperforms, it's a low-sensitivity, high-confidence budget cut. But if UTM says "cut," platform says "scale," and MMM is neutral? That’s a high-sensitivity decision—flag it for testing.

The framework enables "mock decisions" before dollars hit the market. You model out potential outcomes, identify where incrementality testing is most valuable, and prioritize tests that de-risk big swings in spend.

 

Translating Attribution Into Action With Multipliers

The framework doesn't stop at diagnosis - it provides a prescription. Once you’ve aligned advanced attribution with base data, you generate a multiplier:

That multiplier becomes your Rosetta Stone. It translates your ideal CPA or ROAS into tangible platform bids. Suddenly, you’re not just trusting a spreadsheet—you’re using causal measurement to drive in-platform optimizations.

Example:

  • Target CPA (based on tested incrementality) = $100

  • Platform underreports value (multiplier = 0.5)

  • You can now confidently bid up to $50 in platform to hit your real goal

This closes the gap between finance’s demand for provable impact and marketing’s need for tactical flexibility.

 

One Dashboard to Rule Them All

Finally, the framework enables a unified reporting view—a channel dashboard that incorporates:

  • Spend

  • Base attribution (UTM, platform, or both)

  • Advanced attribution (MMM, testing, etc.)

  • Multiplier and adjusted CPA/ROAS

You don’t have to pick one truth. You choose attribution anchors per channel based on where signal is strongest. UTM for Search? Great. Roku’s own attribution for CTV? Makes sense. You build the dashboard around truth, not convenience.

This lets marketers and finance finally speak the same language. No more hand-waving. Just data, decisions, and dollars moving in harmony.

 

TL;DR – Why It Matters

  • Structured thinking wins: Marketing is finally getting its GAAP moment.

  • Lifecycle view unlocks efficiency: One, two, or three P&L structures provide clarity by growth stage.

  • Smart testing reduces risk: Sensitivity analysis shows where to validate with MMM or experiments.

  • Multipliers bridge gaps: Translate marketing truth into platform action.

  • Finance alignment improves trust: One dashboard, two teams, shared goals.

In a world where every dollar is scrutinized, having a marketing accounting framework isn’t a luxury - it’s a necessity. It turns chaos into clarity, guesswork into growth, and marketing into a truly measurable business engine.

Time to ditch the “it feels right” era. Let’s market like CFOs approve.