The IAB’s Connected Commerce Webinar brought together thought leaders from across the retail media landscape to discuss the transformative role of data clean rooms and the evolving importance of incrementality as critical metrics for brands today. Let’s break down the top insights from the two panels that brands, retailers, and agencies need to know to stay ahead.
1. Data Collaboration: Solving Fragmentation in Retail Media
Panelist Lori Johnshoy (LiveRamp) highlights a challenge within retail media: fragmentation. Brands and retailers often struggle to measure campaigns across disconnected systems, so they turn to data clean rooms to enable privacy-compliant, secure collaboration. These platforms allow parties to pool data for analysis on broad consumer behaviors, such as regional demographics and SKU preferences.
Nicolas Pirog (Roundel) noted that the expansion of retail media networks (RMNs), and their movement further up the marketing funnel, are furthering the need for these solutions. With the measurement landscape growing increasingly complex, clean rooms are crucial for understanding how campaigns influence performance across the entire customer journey.
2. Incrementality: The Metric That’s Redefining Retail Media Success
Incrementality is everywhere, but don’t let it’s “buzz wordiness” distract you—it’s a critical metric for brands looking to optimize their investments within retail media.
Amber Roberts (SMG x Threefold) explained that brands are using incrementality to determine which RMNs to prioritize and to guide budget allocation across different media channels.
Michael Becker of Instacart emphasized that incrementality reveals how advertising drives incremental value within a holistic, omnichannel ecosystem, assessing both online and in-store sales impact
Alfred Wang (Pacvue) described incrementality fundamentally: the measurement of net sales driven by ads beyond organic sales. This measurement helps brands evaluate the effectiveness of ad spend while navigating the rapidly expanding and interconnected RMN environment.
3. Measuring Onsite vs. Offsite Incrementality
Measuring incrementality isn’t one-size-fits-all, and the strategies for onsite and offsite campaigns differ significantly.
- Onsite incrementality focuses on driving conversions within the retailer’s ecosystem.
- Offsite incrementality, as Roberts described, aims to acquire new customers and requires a tailored approach due to data fragmentation and varying campaign goals.
To succeed, brands must align their measurement methods with their objectives, as Becker reminded attendees: “Incrementality is a toolkit, not a single solution.”
4. The Power of Lift Tests and Ghost Ads
The panel covered real-world examples to highlight the usefulness, and process, of incrementality measurement:
- In-store Lift Tests: Roberts shared an example of an energy drink brand that tested digital signage in high-traffic aisles. The test group saw a 15% increase in sales compared to control stores, offering not just insights into direct impact but also signals about the brand’s broader improved influence.
- Ghost Ads: Wang explained this cutting-edge approach to testing, which minimizes selection bias by running shadow auctions for control groups. Currently in the alpha phase on Pacvue for Amazon DSP, ghost ads deliver more accurate incrementality measurements by successfully controlling ad exposure as the sole variable.
5. Incrementality Tools Are Becoming Scalable
The future of incrementality lies in scalable solutions such as Pacvue’s new Incrementality Console. This platform offers both customized testing setups and production-ready incrementality models, helping advertisers make data-driven decisions with confidence.
These tools are becoming more flexible, delivering metrics like iROAS and iCAC, as well as more holistic, integrating into the overall marketing strategies and suites.
Final Thoughts
The IAB webinar made it clear that data collaboration and incrementality are reshaping the retail media landscape. Clean rooms address universal challenges by creating secure environments for advanced data sharing, while incrementality solutions provide brands with a clear understanding of what their ad spend accomplishes. Through deliberate adoption of these tools, advertisers can better understand their customer journey, maximize ad spend, and stay competitive in an ever-evolving market.
Looking to dive deeper into retail media incrementality? IAB, with contributions from Pacvue, developed a comprehensive white paper you can find here.
