The Incremental Wave: Riding the Retail Media Tide Mini Series: Part 1 Shining a Light on Measurement (Skye Frontier, SVP, Growth at Incremental)
Sep 14, 2023
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Skye Frontier, SVP, Growth at Incremental, discusses the challenges in measuring incrementality in retail media and the importance of media neutrality. They also explore the hurdles brands face in retail media, integration with existing platforms, and the evolving analytics in the digital landscape.
The lack of standardization in measurement practices and fragmentation within retail media networks create challenges in comparing performance and understanding the true effectiveness of retail media compared to other advertising channels.
Measurement neutrality is crucial in the retail media industry to establish credibility, trust, and transparency, allowing measurement partners to work with all stakeholders and empowering brands to make informed decisions.
Deep dives
Challenges in the Retail Media Industry
The rapid growth of retail media has led to challenges in the industry, particularly in the areas of fragmentation and measurement standardization. With the proliferation of retail media networks and ad types, there is a lack of standardization in measurement practices, making it difficult to compare performance across networks. Additionally, the industry is still far from achieving widespread adoption of measurement standards. This lack of standardization hampers the ability to make apples-to-apples comparisons and understand the true effectiveness of retail media compared to other advertising channels.
The Importance of Neutrality in Retail Media Measurement
Measurement neutrality is crucial in the retail media industry for two reasons. First, it eliminates conflicts of interest that may arise if measurement is tied to a company's own performance. By having neutral measurement partners, credibility and trust can be established within the industry. Second, neutrality allows measurement partners to work with all stakeholders, including brands, agencies, and technology partners, without competing for control over media budgets. Neutral measurement brings transparency and independence to the industry, empowering brands to make informed decisions.
Understanding and Measuring Incrementality in Retail Media
Incrementality refers to the revenue that is generated solely because of advertising. This concept focuses on identifying the additional sales that occur as a result of advertising investments. Retail media measurement needs to consider factors beyond the channel itself, such as the halo effect on sales in other channels or the impact of factors like promotions, subscriptions, and non-retail media. By adopting a holistic approach to measurement, brands can gain a more comprehensive understanding of how their investments in retail media are driving incremental growth and make data-driven decisions.