Turning Complex Retail Media Measurement Into Competitive Advantage
In the rapidly evolving world of retail media, one thing stands out: Measurement is anything but straightforward. Brands and retailers are locked in a complex dance of data, expectations and strategic objectives, each viewing performance through their unique lens.
Consider the diversity of brand goals. Some chase market share expansion, others pursue volume growth and many target new customer acquisition. Even the definition of a "new customer" varies markedly — some look at six months since a customer bought; some look at two years. This nuanced landscape demands a sophisticated approach to measurement.
Embracing Complexity: Retailer Strategies
Retailers face an equally intricate puzzle. Measurement strategies differ dramatically across retail environments. A grocery chain's approach doesn’t mirror big-box electronics store methodology. Critical factors like purchase size, category buying cycles, customer self-identification rates, trip frequency, e-commerce penetration and mobile app maturity all shape how retailers help brands analyze their media performance.
The result? A measurement ecosystem that's more of a kaleidoscope than a uniform landscape. And while many call for standardization, the reality is far more dynamic and interesting.
Retailers can take proactive steps to create meaningful measurement frameworks:
- Prioritize brand partnership. Listen intently to brand partners. Their investment hinges on your understanding of their unique measurement needs. Create flexible, responsive measurement approaches that serve collective interests. This two-way dialogue ensures objectives are aligned, which can simplify processes and optimize outcomes.
- Develop collaborative measurement frameworks. Instead of creating dozens of custom solutions, identify common themes that can satisfy most brand requirements. This unified strategy reduces complexity while maintaining adaptability.
- Be transparent. Be upfront about measurement limitations. If results require extrapolation due to match rate challenges, communicate this clearly. Brands appreciate honesty over perfect numbers.
- Create an advisory council. Invite three to five leading brands to form a measurement advisory panel. This collaborative approach — having multiple brands in a room — generates consensus and reduces individual customization efforts.
Taking Control: Brand Strategies
Brands aren't passive recipients of retailer measurement approaches. They also can drive meaningful change:
- Start small and manually. When testing measurement innovations, don't do extensive work. Begin with small, manually managed experiments to allow for rapid iterations without excessive resource allocation. This encourages adaptability and responsiveness to new data and prevents overinvesting in potentially unproductive measurement techniques.
- Establish clear requirements. At the planning season's start, set uniform measurement expectations equally across your retail media networks. This cohesive approach allows retailers to decide whether or not they can meet your standards and deliver consistent high-quality results while potentially reducing prolonged negotiations.
- Foster competitive transparency. Share anonymized performance data across your retail media networks. Creating a comparative environment, you can show retailers how they stack up and spark a bit of healthy competition to continuously improve.
- Build collaborative standards. Experiment, innovate and be flexible to stay ahead. Engage with partners to develop common measurement frameworks and form advisory councils for more consensus.
Seizing Opportunity
The current retail media measurement landscape isn't a problem to solve — it's an opportunity to innovate. The lack of rigid standards creates space for creative approaches, rapid iteration and competitive differentiation.
Early-stage industries like retail media thrive on quick, adaptive innovations. Each measurement breakthrough creates temporary competitive advantages that push the entire ecosystem forward. The goal isn't perfect measurement but continuous improvement and value creation. For brands and retailers willing to collaborate, experiment and stay curious, the retail media measurement journey offers tremendous potential. Viewing complexity as an opportunity rather than an obstacle, forward-thinking organizations can transform data challenges into strategic advantages.
About the Author
Joe Frick is a distinguished sales and business development expert at G-Comm, a division of Goodway Group, specializing in data-driven marketing strategies. As vice president of business development, he helps clients exceed customer acquisition and retention goals through the smart, creative and ethical use of marketing data. An active industry speaker, mentor and advisor, Joe is known for his high-energy approach and continual pursuit of knowledge, currently enhanced by his EMBA studies at NYU Stern. His expertise spans strategic planning, data analysis and innovative marketing solutions.
