Home » Expert Insights » Why Retail Media iROAS Might Be Misleading You

Why Retail Media iROAS Might Be Misleading You

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

Incremental ROAS (iROAS) is one of the most talked-about retail media metrics. And one of the least understood. 

Traditional ROAS measures the revenue attributed to advertising, but not whether that revenue would have happened anyway. iROAS goes further, isolating the incremental impact, estimating the revenue driven specifically by media exposure. That added rigor makes iROAS more powerful, but also more sensitive to how it's measured. While it promises a clearer view of performance than traditional ROAS, without consistency and transparency, iROAS can mislead rather than inform. 

In partnership with Albertsons Media Collective and professors from Northwestern University Kellogg School of Management, Ovative's retail media experts are bringing much-needed clarity to iROAS. This research uncovers how measurement approaches materially impact results, showing that iROAS outputs can vary on average by 6.5x based on methodology. That level of variance underscores why standardization is critical for the future of retail media. 

Read the report to become equipped with insights and confidence to evaluate iROAS more rigorously, ask sharper questions, and make smarter investment decisions. 

In this report, you'll find: 

  • A clear breakdown of approaches to measuring retail media incrementality and where they diverge
  • An analysis of 42 campaigns within Albertsons Media Collective, demonstrating how methodology alone can significantly shift iROAS outcomes
  • Standards for improving consistency and transparency 

Join Ovative on 4/29 at 1pm ET for a webinar with experts from Northwestern University Kellogg School of Management and Albertsons Media Collective. Dive deeper into the report and learn tips for making confident retail media decisions. RSVP below. 

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ARTICLE AUTHORS

  • Derek T. 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.

  • 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.

  • 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.