Albertsons Media Collective Calls for Change in iROAS Measurement
Albertsons Media Collective has unveiled new research showing how incremental return on ad spend (iROAS) results can vary widely, depending on how they are measured.
The iROAS outcomes can vary by as much as 6.5x, and 83% of campaigns could shift from positive to negative depending solely on methodology choices, according to the Albertsons Cos. retailer media network.
Along with the Ovative Group and Northwestern University-partnered research, the network introduced a new framework for iROAS to move forward with transparency into its own methodology.
In a blog post, Liz Roche, VP of media and measurement at Albertsons Media Collective, noted that iROAS has become the shorthand for growth impact in retail media.
"At its core, it answers a critical question: What revenue occurred because of advertising that would not have happened otherwise?" she wrote. "It's a powerful metric. But it's also a sensitive one."
Albertsons Media Collective's approach is focused on transparency, consistent methodology and understanding of results.
The network applies advanced matching methodologies grounded in predictive purchase behavior to construct credible test and control groups, Roche said in the post.
The methodological rigor allows for understanding at all levels and enables mid-flight optimizations for best-in-class performance.
"Before reporting lift, we evaluate match quality and, where business context is required, we incorporate time-series modeling to account for trend and seasonality," Roche said.
Roche called on RMNs to join Albertsons in the "fight for complete, actionable and scalable performance accuracy." She also asked brand advertisers to accept nothing less than clear, consistent measurement driven by outcomes.
"Retail media has scaled rapidly," Roche wrote. "Now, measurement standards must scale with it.
"If incremental impact is going to guide how brands allocate billions of dollars, the industry must ensure that those metrics are interpretable, governed, and trusted at the executive level."
