Understanding the true impact of your advertising efforts is crucial for effective marketing strategies. This concept, known as media incrementality, measures the additional effect that a marketing activity has on key performance indicators (KPIs) beyond what would have occurred without it. In essence, it isolates the causal impact of your campaigns, helping you determine which marketing efforts are genuinely driving growth.
To assist brands in accurately measuring and optimizing media incrementality, CommerceIQ has developed the Incremental Return on Ad Spend (iROAS) metric. This AI-driven tool evaluates numerous factors, including share of voice, search rankings, shopper behavior, and keyword relevance, to predict the incremental impact of retail media spend. By providing a standardized measure of media ROI across various retailers, iROAS enables brands to:
Enhance Total Sales with Consistent Investment: Identify opportunities where maintaining current ad spend can lead to increased sales.
Sustain Sales Trajectory with Reduced Spend: Determine areas where reducing ad spend won't negatively impact overall sales.
Uncover Growth Opportunities for Additional Media Investment: Pinpoint strategic areas where increased ad spend can result in significant sales growth.
By leveraging iROAS, brands can make informed decisions about their advertising strategies, ensuring that every dollar spent contributes to genuine, incremental growth.
Shown below is an actual example of one of our retail media clients. By turning on the incrementality based automations, this brand was able to increase the amount of incremental sales that they received on their business, without adding additional spend. Read the full case study here.
For a deeper understanding of media incrementality and how CommerceIQ's iROAS can benefit your brand, consider exploring our detailed resources or reaching out for a personalized demonstration.