The Mars Agency’s Ethan Goodman and Kandi Arrington tackle some of the most common questions that brands are asking about retail media strategy and activation
QUESTION: What metrics should brands be using to measure retail media performance?
Ethan: We always start with the campaign objectives. We use the data we get back from the retail media networks (attributed sales, ROAS, etc.) as a starting point, but we’ll typically supplement that with other sources.
For one, we’ll work with IRI, Nielsen or other data provider to get a read on household penetration or share of category sales (either in e-commerce or brick-and-mortar).
We also pay really close attention to what the retail media investment is yielding from an added value or retail leverage perspective. Retailers at the merchant level or even higher will often reward your retail media investment with pricing, increased distribution, incremental merchandising, or other value add in either the physical or digital environment. And we don’t just track these elements, we find ways to quantify and work them into the ROI equation.
Kandi: One of the most important metrics is identifying the actual source of the program’s sales volume. Do you reach new brand households or lapsed users, or did you just attract shoppers who would have bought your products anyway? Your retail media partners should be able to track the actual purchasers to measure against what you were trying to accomplish.
Get more insights from previous Fast FAQs:
Are there any best practices for measuring iROAS?
In terms of collaborative joint value planning, what retailer is best in class?
What percentage of your overall marketing spend should be allocated to retail media?
How do you compare results across retailer media networks when attribution windows vary so much?