"For one, the whole point of ROAS is to track the ad spend itself. Duh, right? But bear with me because, the thing is, advertising isn't the point. Take the Amazon-native ACOS metric (“advertising as a cost of sale”). A metric like ACOS is getting warmer for sure in terms of the purpose of advertising."
"Retail media has catalyzed this change, because retailers are first-party data players with different incentives and their own data to back up their claims. The Home Depot's retail media business created a new metric last year that it dubbed ROMO (“return on marketing objectives”), which includes measuring everything from category share among Home Depot shoppers to brand awareness among recent homebuyers."
"Meanwhile, ecommerce advertisers have led a revitalization of the “Marketing Efficiency Ratio” (MER) metric, mostly in pushback to ROAS. Which leads us to the announcement on Thursday by the retail media business of the grocery chain Albertsons, which goes by “the Collective” ... which will now begin reporting lifetime value (LTV) in its ad platform analytics."
"“If we only are looking at ROAS, we're being fairly myopic about how we understand the actual relationship between the retailer and the brand,” Liz Roche, VP of media and measurement, told me. Rather than focus on campaign performance a"
ROAS is intended to track ad spend, but advertising is not the only goal of marketing. Metrics such as Amazon’s ACOS frame advertising as a cost of sale, aligning measurement more closely with business outcomes. Retail media has accelerated this shift because retailers control first-party data and can support different measurement claims. Home Depot introduced ROMO, measuring category share and brand awareness in addition to sales. Ecommerce advertisers have also revived the Marketing Efficiency Ratio as a pushback to ROAS. Albertsons’ retail media platform, “the Collective,” will begin reporting lifetime value in ad platform analytics, emphasizing the relationship between retailer and brand rather than only campaign performance.
Read at AdExchanger
Unable to calculate read time
Collection
[
|
...
]