EXPERT SPOTLIGHT: Emily Smith  |  Associate Director, Programmatic

Retail media success is defined not merely by tracking sales, but by evaluating true business impact. Incrementality stands as a critical metric in retail media campaigns, quantifying the sales lift directly attributable to advertising—specifically, purchases that would not have occurred without the campaign. This methodology enables brands to identify opportunities to acquire new customers and drive substantial growth that directly affects the bottom line. 

Incrementality: Measuring Real Growth 

Across all retail media initiatives, regardless of attribution method, incrementality is recognized as a best practice that surpasses the limitations of Return on Ad Spend (ROAS). Incrementality enables brands to:

  • Accurately measure the true increase in sales generated by media campaigns—that is, sales resulting exclusively from paid advertising.
  • Go beyond superficial metrics to evaluate genuine business impact.
  • Prevent over-attribution to campaigns that primarily reach existing loyal customers.
  • Drive overall business expansion by identifying and converting new customers. 

While closed-loop attribution connects ad exposure to purchases, it does not typically distinguish which sales are genuinely incremental. Sole reliance on ROAS can be misleading, as high returns may simply indicate engagement with habitual buyers. Combining closed-loop data with incrementality analysis delivers a comprehensive understanding of campaign impact and performance. 

Strategic Planning and Optimization of Retail Media Campaigns

Effective planning and optimization of retail media campaigns require:

  • Prioritizing closed-loop attribution to ensure accountability and transparency.
  • Leveraging third-party measurement tools when retailer data is unavailable, with full awareness of their limitations compared to direct data sources.
  • Maintaining a focus on incrementality for every campaign by balancing attributed ROAS, incremental ROAS, and new customer acquisition data to maximize efficiency and drive authentic growth.
  • Targeting audiences with intent, including loyal, lapsed, and prospective shoppers, to enhance incremental sales and expand market reach.
  • Implementing custom measurement solutions for ongoing, large-scale programs, while utilizing established tools for single campaigns.