5 Practical Ways to Improve Retail Media Measurement
The world of retail media is evolving rapidly, and staying ahead requires innovative approaches to measurement. Whether you're a retailer refining your network or a brand looking to optimize your investment, making sense of these complex ecosystems can be daunting. Based on years of expertise navigating retail media networks, here are five actionable tips to help you fine-tune your measurement strategies and unlock better results.
1. Double down on first-party data integration. Your first-party data is one of the most valuable assets in retail media. It's the key to creating transparency and understanding your customers' behaviors at both an online and offline level. With proper integration, you can link digital media actions to in-store outcomes, such as connecting loyalty programs to purchase activity.
For example, integrating loyalty card data with digital ad campaigns provides a 360-degree view of the consumer. You'll be able to see what channels are driving the most sales and how customers are engaging with your brand across multiple touchpoints. Start by collaborating with partners to create seamless data-sharing pipelines, ensuring valuable insights for smarter strategy adjustments.
2. Move beyond ROAS. Focus on incrementality. While return on ad spend (ROAS) is a common metric, it doesn't always tell the whole story. Want to know if your campaign actually produced a lift in sales above and beyond baseline? Focus on incremental return on ad spend (iROAS).
Measuring incrementality allows you to determine how much additional value your campaign generated, rather than just capturing baseline consumer activity. This shift ensures you're investing in campaigns that truly drive growth rather than wasting budget on efforts that would have delivered the same results regardless of advertising.
3. Model scenarios to optimize your media mix. Not all retail media networks are created equal. The key to success lies in refining where to allocate your dollars. Use historical data and first-party insights to create models that identify the opportunities unique to each network.
For instance, when collaborating with a CPG brand, we tracked two years of performance data across seven retail media networks. Spotting where the brand had hit saturation versus places to drive growth, we restructured the media mix. This enabled better budget efficiency and led to tangible revenue increases. Monitor trends and adjust media spending toward channels that deliver incremental returns, avoiding diminishing impact on overused networks.
4. Build collaboration into campaign planning. Effective retail media measurement doesn't exist in a vacuum. Brands, retailers and agencies must work together to align goals, KPIs and measurement frameworks from the outset. By engaging every stakeholder early on, marketplaces are better positioned to achieve success through shared expertise.
Retailers bring an intimate understanding of their shoppers, brands know their products and agencies offer a strategic, big-picture viewpoint. When synced, these perspectives create sustainable frameworks that measure campaign success more effectively, drive stronger results and mitigate misaligned priorities.
5. Stay agile with privacy-compliant strategies. Privacy regulations are quickly evolving and staying compliant while maintaining measurement quality is crucial. Flexibility in your approach is non-negotiable. For example, exploring geo-based measurement frameworks can help fill in the gaps when shopper-based data becomes restricted.
Leverage AI and machine learning tools to improve data classification and minimize manual tasks. AI holds potential for more than operational efficiency. It can help predict behaviors, discover audience trends and optimize campaigns without sacrificing privacy standards. Staying agile ensures your measurement strategies will remain both compliant and effective in an increasingly regulated space.
Retail media measurement is at a crossroads. To turn challenges into opportunities, brands must innovate, align with partners and adopt advanced metrics like iROAS. Meanwhile, retailers should focus on transparency and empowering partners with actionable insights.
When you combine first-party data power, collaborative strategy and privacy-first solutions, you'll have a winning formula for navigating retail media's dynamic landscape. These tips aren’t just recommendations. They're your toolkit for long-term measurement success.
About the Author
Daniel Cinquegrano is director of analytics and data insights at Goodway Group. He has 15 years of experience in digital media analytics, with over seven years laser-focused on retail media. In key roles at Triad Retail Media and Walmart Connect, he led teams delivering advanced analytics and actionable insights from complex data to major global brands, helping them maximize ROI and drive business growth. Cinquegrano's expertise spans developing data-driven strategies, custom audience solutions and measurement frameworks for retail media clients. He collaborates across teams to create meaningful, innovative solutions for clients that enhance media performance and foster long-term success.
