Industry Reports

    Retail media measurement: quantifying impact in the third wave of digital advertising

    10 min read
    Retail media measurement: quantifying impact in the third wave of digital advertising

    Retail media is the fastest-growing advertising channel, but measurement remains challenging. This guide covers how to measure retail media effectiveness alongside other channels.

    retail media
    measurement
    Amazon
    advertising
    e-commerce

    Retail media is the fastest-growing advertising channel, but measurement remains challenging due to walled gardens and attribution complexity.

    The retail media measurement challenge

    Retail media networks operate as walled gardens with limited data sharing. Each retailer has different metrics, attribution windows, and reporting capabilities.

    Measurement approaches

  1. Platform-reported metrics - Baseline, but limited to in-platform conversions
  2. Marketing mix modeling - Include retail media spend in your MMM
  3. Incrementality tests - Geo-tests or holdout experiments where possible
  4. Halo effect analysis - Measure impact on non-retail channels

    5. Integrating retail media into MMM

    Challenges:

  5. Data availability varies by retailer
  6. Need to separate retail media from trade spend
  7. Account for in-store vs. online sales

    8. Best practices

  8. Standardize metrics across retail media networks
  9. Build retailer-specific MMM modules
  10. Test incrementality where platforms allow
  11. Track halo effects on brand search and DTC sales

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