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Retail Media ROAS Demystified: Understanding Your Brand’s ROAS

Article authors: Brett R. Gordon | Derek Nelson | Kate Bante | Eric T. Anderson | Levi Dantzinger | Sophie Armor

Despite rapid growth of Retail Media Networks (RMNs), measurement standards and transparency have lagged. Many advertisers and RMNs rely on Return on Ad Spend (ROAS) as a performance metric to drive investment decisions. Yet the ROAS methodologies used across RMNs are complex and can meaningfully vary.

Ovative experts, in partnership with Albertsons Media Collective and professors from Northwestern University Kellogg School of Management, set out to create greater transparency and understanding around the differences in ROAS methodologies across RMNs and arm advertisers with tools to support conversations with their RMN partners and within the industry.

In this report, we share:

  • An overview of the key ROAS methodology differences across RMNs
  • An analysis from 573 campaigns from Albertsons Media Collective showing how changes in ROAS methodology change results
  • Important questions for advertisers to use to drive more transparent measurement conversations with their partner RMNs


 

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ARTICLE AUTHORS

  • Brett R. Gordon

    Charles H. Kellstadt Professor of Marketing, Northwestern University’s Kellogg School of Management

    Brett is the Charles H. Kellstadt Professor of Marketing at Northwestern University’s Kellogg School of Management. His research focuses on helping firms optimize their pricing, promotion, and advertising strategies through analytical modeling and field experiments. His current work addresses the challenge of measuring incremental advertising effectiveness while accounting for realworld marketing constraints.

  • Derek Nelson

    Senior Director, Retail Media, Ovative Group

    Derek has an innate curiosity and desire to teach others. As a Senior Director of Retail Media, he uses this curiosity to drive meaningful change in marketing measurement and help brands build retail media networks.

  • Kate Bante

    VP, Measurement Strategic Initiatives, Ovative Group

    Kate's superpower is her knack for solving complex problems. As a VP of Measurement Strategic Initiatives, she uses this skill to tackle emerging questions in retail media, brand, CPG, and incrementality measurement.

  • Eric T. Anderson

    Polk Bros. Chair and Professor of Marketing, Northwestern University’s Kellogg School of Management

    Eric is the Polk Bros. Chair and Professor of Marketing at Northwestern University’s Kellogg School of Management. He has served on the board of directors at Canadian Tire since 2016. His research and advising focus on applied analytics and ML/AI in retail, eCommerce, and financial services.

  • Levi Dantzinger

    Leader of Marketing Science Research, Albertsons Media Collective

    Levi is the leader of Marketing Science Research at Albertsons Media Collective. He brings analytics and data science experience across industry verticals including CPG, Defense, Healthcare, InsureTech, and Retail Media. At The Collective, he focuses on innovating measurement methodologies and metrics to help advance causal understanding of Retail Media’s impact on buyer behavior to help drive meaningful incremental value for brands.

  • Sophie Armor

    Data Scientist, Albertsons Media Collective

    Sophie is a Data Scientist at Albertsons Media Collective. She brings both financial services and retail media expertise to her work and specializes in causal inference and insight generation, leveraging her expertise to drive impactful data-driven decisions.