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The origin: In the early 1950s, statistician Edward H. Simpson showed that a trend appearing in an aggregated dataset can vanish (or even reverse) once you split the data into meaningful sub-groups. Classic example: a medical treatment that seems worse overall but saves lives in every single age bracket. The aggregate masks the truth.
\nMarketers live on blended dashboards: “paid search ROAS is down” or “email is flat.” But purchase intent, device mix, and geography are rarely uniform. A slump in one sufficiently-large segment will drown out hidden pockets of over-performance. If you make a change based on the aggregate before understanding the underlying distribution, you risk torching the golden sub-cohort that’s producing outsized results.
\nA SaaS firm saw their conversion rate fall from 3.4% to 2.9% following a site-wide design update. Panic ensued. The CMO wanted to immediately pull back spend + revert website changes. A cohort cut told the real story: CVR on desktop was up 30%, but a site-speed bug on Android reduced mobile CVR to 1.% (yes, slow sites do kill conversion rate). Fixing the Android issue sent overall CVR to 3.7%.
\nThe origin: In 1975, economist Charles Goodhart warned the Bank of England that once a specific monetary indicator (“M3 money supply,” in that era) became an official target, banks would rearrange their books to hit it—rendering the metric useless as a signal. Anthropologist Marilyn Strathern later distilled the rule into its modern punchline: “When a measure becomes a target, it ceases to be a good measure.” The idea now sits at the center of everything from AI alignment to school-testing policy.
\nDigital platforms are giant incentive engines. Tell Meta to maximize “purchases” and the algorithm exploits low-value flash-sale buyers; ask your email team for “opens” and they crank click-bait subject lines that drive plenty of opens (and plenty of unsubscribes); bonus an agency on “cost per install” and it floods the funnel with junk traffic from lower-quality ad networks. At first the KPI graph looks heroic, but downstream revenue, brand equity, or customer experience quietly erode. By the time the spreadsheet exposes the gap, you’re months - and potentially millions - behind forecast.
\nWells Fargo + the Account Opening Fraud. Throughout the 2000s, Wells Fargo tied branch-staff bonuses to the number of new accounts opened per customer. The metric (“products per household”) became the target - exactly as Goodhart warned. To hit impossible quotas, thousands of employees began creating CC, savings & deposit accounts without customer consent. By 2016 the practice had ballooned to more than two million phony accounts, triggering $185 million in fines, mass firings, and a $3 billion federal settlement. The headline KPI looked stellar on quarterly slides, yet the underlying behaviour torched shareholder value and brand trust (which Wells Fargo still has not fully recovered).
\nApp-install inflation: A relatively well-known app celebrated a CPI drop from $11 to $4 after switching agencies and pivoting strategy. Several weeks later, day-30 retention crashed from 38% to 14%. Investigation revealed ads were running on low-quality reward apps. The “cheap” installs cost the company millions in wasted promo credits, not to mention entire cohorts of low-quality customers that failed to ever reach baseline LTV targets.
\nGoodhart’s Law isn’t an argument against measurement - it’s a warning to respect the difference between a dashboard and reality. Keep the metric honest, or it will lie to you with perfect precision.
\nThe origin: Way back in colonial Delhi, British officials sought to address a growing problem: deaths due to cobra bites. Their solution was relatively simple, if (ultimately) perverse: the officials would pay a bounty for each dead cobra. Well (unsurprisingly), enterprising locals began breeding cobras in backyard pits, neatly collecting payments until the government scrapped the program. With revenue gone, breeders freed their “inventory” into the streets, which ended up raising, not lowering, the snake population. Economists now brand any policy that backfires through perverse incentives the Cobra Effect.
\nMarketing runs on bounties: affiliate commissions, coupon codes, partner SPIFFs, influencer payouts, agency bonuses tied to a single metric. When the reward structure ignores true incrementality, partners quickly optimize for the bounty, not the business. Affiliates poach branded search traffic, coupon extensions pop offers at checkout, and agencies stuff cheap, low-quality impressions to hit CPM or CPI targets. Spend rises, margins thin, but topline growth stalls, leaving the brand owners/executives wondering why the “performance” budget behaves like a cost center.
\nCoupon cannibalization. A well-known wellness retailer opened a 15% affiliate commission on “first-time purchases.” Coupon plug-ins like Honey + Capital One Shopping surfaced a public “WELCOME15” code, cookie-stuffed at checkout, and claimed credit for users already in the CRM. Affiliate order share jumped 60%, but true new-customer revenue rose by less than 10% of that total (~5.5%). The brand was paying for customers who were going to purchase anyway, with the discount plugins simply sniping credit from other channels like Google, Meta + Organic.
Leads without lives. This can also happen inside any sales booking organization (i.e. a mortgage company or dental/implant company), where an end-user (i.e., the mortgage originator or the dental office) is paying per lead. While this setup sounds logical, what (almost inevitably) happens is the intermediary booking calls from low-quality, low-propensity leads in order to hit quota/secure a payout, despite the fact that many of the calls booked have no intention of ever buying. This costs the end company twice: the first payout to the intermediary for the call, and the second (and more nefarious) because they end up over-staffed in the call center.
The bottom line: reward the outcome you actually want, measure the delta it produces, and audit ruthlessly. Otherwise, you’ll find yourself surrounded by well-fed cobras, wondering why the antidote costs a fortune.
\nThe origin: Management thinker Jerry B. Harvey coined the Abilene Paradox after a blistering 1974 Texas afternoon when his family collectively decided to drive 53 miles to Abilene for dinner, despite the fact that none of them actually wanted to go. Each person assumed the others desired the trip, so everyone consented to avoid rocking the boat. On the ride home, they discovered their unanimous “agreement” had been a chain of silent misreads. Lesson: group discomfort with open dissent can push teams toward options that nobody, individually, believes are good.
\nCreative reviews, product decisions, channel selection, website re-designs, you name it - marketing is riddled with decisions that invite strong opinions but punish outliers who speak up. Agencies fear ruffling the CMO, junior analysts defer to “HiPPOs” (highest-paid person’s opinion), brand managers avoid friction with peers. The result is bland creative, half-measure media allocations, or watered-down positioning that satisfies no one and underperforms everyone. Because the failure is collective, no single stakeholder feels accountable, yet the business bears the cost.
\nWe’ve all been in meetings where the Abilene Paradox shows up - everyone silently nodding along as (whoever) presents whatever. We’ve all sat through brainstorms where someone suggests something relatively inane + safe, and everyone else just agrees along – despite knowing that the idea is - at best - mediocre. If you want further proof that the Abilene paradox is real, look no further than Jaguar.
\nA B2B SaaS company convened a relatively large group of stakeholders to choose a new homepage. The agency presented three versions: a bold, edgy message; a data-heavy proof block; and a “safe” cloud-blue stock imagery-plus-icons layout. Silence followed the reveal. Believing the silence signaled disapproval of the riskier options, the creative lead defaulted to the safe option. 6 weeks post-launch, CTR fell 28%, sales pipeline thinned, revenue started to fall – all while the sales team lead (who was in the meeting) complained the brand “looked like everyone else.”
\nApplied rigorously, these habits surface true preferences early, prevent “polite mediocrity,” and keep your marketing bus headed somewhere everybody genuinely wants to go, profit included.
\nThe origin: In a 1929 essay, G. K. Chesterton imagines two reformers stumbling on a random fence in a field. The first insists on tearing it down; the wiser second replies: “If you don’t see the use of it, I certainly won’t let you clear it away. Go away and think. Then, when you can tell me what purpose the fence served, I might allow you to destroy it.” The parable warns that inherited constraints often solve problems we no longer notice—remove them blindly and the original threat returns with interest.
\nCMOs rotate, agencies churn, tech stacks are updated. Each new leader is eager to purge “old clutter”, do something new + prove their value to the brand. Yet many marketing fences - an oddly timed promotional email, a legacy print drop, a clunky but gated signup flow - exist because they have some utility - whether that’s defending a fragile revenue stream or constraining a downstream cost (like sales resources). The problem is most of these fences are ugly, clunky or straight-up odd – so they seem like low-hanging fruit ripe for the picking. In reality, the opposite is true: removing the fence ends up costing far more, either in terms of lost sales, increased demands on sales resources, declining lead quality, you name it. Sometimes the old, ugly-looking thing actually serves a quite valuable purpose.
\nThere are many examples of this, but my favorite one is a law firm with a downright hideous site. Each of the service pages were excessively long (we’re talking 5,000+ words), poorly designed, and pretty much broke every single “rule” of good marketing + good design. Despite all this, the firm was (and still is) quite successful - recovering hundreds of millions for clients each year. The new marketing director came in, “modernized” the site, and the partners quickly identified that both conversion rate AND case value were plummeting. It was only after some of the staff attorneys showed the “new” site to current clients that they identified the problem: those clients all viewed the “old” site as authentic, and they interpreted the firm’s lack of fancy marketing (relative to competitors) as an indicator that the firm prioritized client success over bells-and-whistles. In this case, the fence (ugly as it was) was what drove high-value, complex and highly desirable plaintiffs to retain this firm over many others (and, in particular, the others with far nicer sites).
\nThe origin: On 11 January 2013, Italian software developer Alberto Brandolini fired off a now-famous tweet: “The amount of energy needed to refute bull**t is an order of magnitude bigger than to produce it.”* It formalized what journalists, scientists, and policymakers had long intuited: once a dubious claim slips into public discourse, debunking it demands exponentially more time, money, and attention than the seconds it took to create. Online virality and algorithmic echo chambers amplify the imbalance, giving bad data a head start your comms team may never fully close.
\nMarketing thrives on bold promises, zero-to-hero case studies, and pithy stat lines. In the haste to ship a deck, a landing page, or a founder’s LinkedIn thread, teams round numbers, drop context, or lean on “directionally correct” anecdotes. The claim sails through creative, yet if it lands wrong (with regulators, fact-checking reporters, or savvy consumers), the blowback diverts entire quarters of budget and focus to damage control. Worse, the corrections rarely travel as far as the original exaggeration, so perception lags reality long after the lawyers sign off.
\nIs it Really Tuna? A 2021 class-action lawsuit - along with an extensive writeup in The Washington Post - claimed lab tests found “no identifiable tuna DNA” in Subway’s sandwiches. Social and late-night media pounced, and within 48 hours the meme was global. Subway commissioned multiple accredited labs, rolled out a national TV rebuttal, and fought the suit for more than two years, running up hundreds of thousands in legal and PR costs. The case was ultimately dismissed with prejudice in 2023, but Google still auto-suggests “Is Subway tuna real?”.
\nNutella Does NOT Cause Cancer. In 2016, an EFSA toxicology note about potential carcinogens in improperly refined palm oil became an Italian tabloid headline: “Nutella could give you cancer.” The story quickly went viral across FB and IG (particularly in Europe). Ferrero (makers of Nutella) responded with a multi-market blitz - prime-time TV spots, full-page newspaper ads, and scientific explainers - detailing its lower-temperature process and certified supply chain. Sales eventually rebounded, yet every January searches for “Nutella cancer” spike anew, proving that debunking misinformation demands orders of magnitude more effort than the seconds it takes to publish it.
\nBrandolini’s Law reminds us that the cheapest word in a headline can balloon into the costliest line item in your budget. Precision and accuracy up front are not inherently bad or bureaucratic - in some cases, they’re the single-best ROAS investment you can make.
\nThe origin: In 2003, Barbra Streisand sued an aerial-photography archive for posting a single frame of her Malibu estate. The image had logged only six downloads (and 2 of them from her own lawyers) before the lawsuit. News of the takedown attempt rocketed across the web, driving more than a million views in about a month, being reprinted countless times across a variety of publications. The incident crystallised a counter-intuitive truth first hinted at by political theorists like John Stuart Mill: attempts to silence information can amplify it instead. Behavioral economists later mapped the mechanism to reactance theory: people’s hard-wired pushback when they feel a freedom (to know, share, decide) is being curtailed.
\nBrands run on perception. A single negative TikTok, an unflattering Glassdoor post, or a leaked price hike can feel existential - especially to owners/founders, legal or investor relations. The knee-jerk reaction: enforce a takedown, issue a cease-and-desist, bury the term with paid search.
\nThe result is often textbook Streisand Effect: the controversy trends, online personalities and/or media outlets sniff a censorship angle, a few articles/posts are written, and Google’s “Top Stories” connects the critique to your brand keyword, and social sentiment charts resemble a cardiac event.
\nOne of the better examples of the Streisand Effect concerns the LAPD and the Cola Corporation, way back in 2024 (yes, it’s been an eternity). The LAPD Foundation attempted to claim copyright of the letters “LAPD” after the Cola Corporation launched a shirt with “F*** the LAPD.” The claim wasn’t successful, and the shirts benefited from a truly insane amount of free publicity – all at the expense of the LAPD.
\nStreisand reminds us that in the attention economy, force multiplies friction. Smart operators measure volume, velocity, and veracity before swinging the legal hammer. Sometimes the loudest silence is strategic transparency served at Internet speed.
\nThe origin: In 1865, British economist William Stanley Jevons observed that the steam engine’s soaring fuel efficiency didn’t lessen coal demand; it multiplied it. Cheaper input per horsepower made steam viable for more factories, mines, and railways, so overall coal consumption exploded. The lesson: lower unit cost can unlock entirely new demand curves, swamping the savings that sparked the surge.
\nEvery year, martech stacks promise to “do more with less”: AI varianting, one-click syndication, automated bidding. Production and distribution costs tumble, so marketers respond by unleashing volume - daily instead of weekly creatives, 20 A/B tests instead of a handful, 15 emails a month instead of 6. Audiences drown, auctions tighten, suppression lists crank up. The efficiency win flips into a reach-cost spiral that raises blended CPMs and erodes brand goodwill.
\nMeta Audience Expansion. A health snack brand with a well-defined, wildly niche product (super healthy, 5-ingredient treats) wanted to scale Meta. Their existing setup was fairly standard: a tight lookalike, a well-designed interest stack, and a remarketing ad set. The problem was reach - they were selling at/below targets, but were struggling to scale. Their agency’s solution was to turn on audience expansion. The immediate win was clear, as the broader audience unlocked more low-hanging fruit; the rebound was brutal, as the much larger audiences simply didn’t have the same buyer density as the well-honed initial audiences. The end result was higher spend, but lower conversion rates + a much higher CAC.
\nGenerative creative A well-known ugly footwear retailer used AI copy and templates to mass-produce 1,500 Meta ads for a fraction of the cost of human-produced ads. When those ads were put in the account, CTR dropped while CPMs climbed. The underlying driver of those increases was simple: Meta was struggling to test that many creatives across that large of an audience, resulting in massive inefficiency. While quantity drives quality, there’s a happy medium (and 1,500+ new ads in a week isn’t it). The brand ended up restricting the number of assets added to the account to the best ~200, and found performance reverted to normal.
\nJevons reminds us that cheaper isn’t free. The smartest teams treat every efficiency gain as capital to be rationed, not an excuse to carpet-bomb audiences until the economics invert.
\nThe origin: Psychologist Barry Schwartz’s 2004 book The Paradox of Choice, back-stopped by Sheena Iyengar and Mark Lepper’s jam-table experiment (30 flavors vs. 6), showed that while people love variety in theory, too many options spike decision costs in practice.
\nBehavioral economics research since has captured the mechanism: choice overload elevates cognitive load, fuels decision fatigue (Baumeister), amplifies anticipated regret (Kahneman & Tversky), and nudges shoppers toward the status-quo (or abandonment) when mental transaction costs outweigh perceived utility.
\nGrowth teams equate assortment or feature depth with value creation: more SKUs, more ad versions, more pricing plans, more widget toggles, more options = better. Each addition looks harmless in isolation; collectively they crush both purchase intent and user satisfaction. The end result: slower decision times, higher abandonment rates and lower ROAS, as potential clients/customers weigh “what if” scenarios, revisit competitors, or browse other sites (i.e., forums, reviews, third-party write-ups). All the while, in-market campaigns keep spending - resulting in CAC creeping up because the bottleneck isn’t awareness - it’s too many options.
\nChoice feels like freedom; unmanaged, it becomes friction. It’s our role as marketers to curate, so every additional option/variant/package must support that goal, not invite more paralysis.
\nThe origin: In high-stakes poker, “tilt” describes the moment a player, rattled by a bad beat, starts playing like a rookie - chasing long shots, ignoring odds, burning bankroll. Neuroscience calls it amygdala hijack: stress hormones flood the prefrontal cortex, shrinking working memory and amplifying risk-seeking. Behavioral economists spot the cocktail of loss aversion (Kahneman & Tversky), sunk-cost fallacy, and overconfidence bias that follows. Whatever the label, the pattern is identical: the player is all emotion and no logic. Risk-reward goes out the window, and budgets usually get busted.
\nMarketing is poker with bigger antes and more spectators. A CAC spike, a social-media roast, a CFO email at 1 a.m. - any hit to ego or targets can trigger tilt. We’ve all observed PPC managers removing cost/bid caps “to get some wins,” or the CMO green-lighting a set of unvetted TikTok creators, or the CEO authorizing a last-minute major discount in response to a competitor’s latest sale (or latest reported numbers). Dashboards turn crimson, agencies scramble, and the next meeting call feels like an interrogation, with everyone trying to figure out why everything went the wrong way. Ultimately, the P&L doesn’t care about the “why” - it only records the losses.
\nTilt doesn’t just nuke campaigns - it erodes the trust capital that lets teams take smart risks in the first place. The fix isn’t superhuman stoicism; it’s engineered friction that slows the emotional grenade before it detonates budget, brand, and morale. Great marketers don’t avoid tilt; they build systems that catch it, cage it, and convert the chaos into disciplined, data-backed iteration.
\nThese ideas become leverage only when they leave the page and enter your day-to-day workflows. As you review briefs, data or client challenges, force yourself to think about what paradoxes can explain the result. Challenge your team to do the same - there’s a lot of comfort in complacency, but ultimately moving beyond it is what leads to outsized rewards.
\nBefore any material change, run the checklist: Are we adding a channel without headroom; are we trusting a metric ready to betray us; are we tearing down a fence we do not understand; are we gambling on tilt? The habit takes minutes, but can save client relationships, budgets and your mental health.
\nAt the end of the day, marketing is not a guessing game. It’s systems thinking that wears creative clothes. Paradoxes, razors, and mental models are the tools that can help you navigate through the ambiguity, craziness and noise to find the right signal for your (or your client’s) brand. Follow it with rigor and curiosity, and most surprises turn into calculated risks. Ignore it, and even the best-designed tactics sink under the weight of unseen forces.
\nChoose pattern recognition. It compounds faster than any tool in your stack.
\nUntil next week,
\nCheers,
\nSam
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Weekly insights about what's going on and what matters - in digital marketing, paid media and analytics. I share my thoughts on the trends & technologies shaping the digital space - along with tactical recommendations to capitalize on them.
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