Cost of Acquisition Rises Across Paid Media — Indian Marketers Move Toward Mixed-Model Attribution & Budget Efficiency
Performance Marketing Is Getting More Expensive — And Less Predictable
Across India’s digital ecosystem, one metric is quietly pressuring marketing leaders: cost of acquisition.
Search, social, marketplaces, and app installs are all becoming more competitive. As more brands chase the same audiences with similar formats, marginal gains are harder to unlock. Rising CPMs and CPCs aren’t always the problem on their own — the bigger challenge is attribution that no longer tells the full story.
In 2025, Indian marketers are realising that optimising only the “last click” is no longer sustainable. This is driving a strategic shift toward mixed-model attribution and budget efficiency.
Why Cost of Acquisition Keeps Rising
Several forces are working together.
Platform saturation is one. Nearly every category — from FMCG and D2C to education and fintech — is now performance-driven. Auctions are denser, creative fatigue sets in faster, and incremental reach costs more.
At the same time, privacy changes and signal loss have weakened deterministic tracking. As platforms see fewer signals, optimisation windows shrink, pushing costs upward even when demand stays flat.
The result? More spend, less clarity.
Why Last-Click Attribution Is Failing Indian Marketers
Last-click models worked when journeys were linear.
Today, discovery might begin with a Reel, continue via YouTube, resurface through search, and convert through WhatsApp. Assigning all credit to the final touchpoint masks what actually influenced the decision.
Indian marketers are noticing a pattern: channels that build intent early appear “inefficient” on paper but are critical in reality. When budgets are cut based on incomplete attribution, overall acquisition often worsens instead of improving.
This gap is pushing teams to rethink measurement — not just media.
What Mixed-Model Attribution Looks Like in Practice
Mixed-model attribution doesn’t chase perfection. It accepts complexity.
Brands are blending:
- Platform-level data with analytics tools
- Assisted conversion views alongside direct attribution
- Time-based influence instead of single-touch credit
Rather than asking which channel closed, marketers are asking which combination created confidence.
This shift allows budgets to be optimised for efficiency across the journey, not just the endpoint.
Why Budget Efficiency Now Matters More Than Cost Reduction
The smartest brands aren’t trying to make ads cheaper.
They’re trying to make spend work harder.
This means reallocating budgets toward channels that lower friction, shorten decision cycles, and support conversion — even if they don’t always “win” attribution. Efficiency comes from alignment, not optimisation in isolation.
In India’s multi-touch, high-frequency digital environment, efficiency beats obsession with single metrics.
Where Digilogy Fits In
At Digilogy, we help brands move from platform-first optimisation to journey-led performance strategy.
Our approach includes:
- Mixed-model attribution frameworks
- Budget efficiency audits across channels
- Intent-mapping across paid, owned, and conversational media
- Performance storytelling that reflects real influence
When acquisition costs rise, clarity becomes the true competitive edge.
Optimise the journey, not just the click.
Take the next step with Digilogy now.
