Category: Measurement

First, revisit the KPI framework and/or media brief to remind yourself what the marketing objective was and how you planned on measuring the results.

Before diving in, confirm what SKUS were used in the measurement set and that the hero cuts are accurate. If they aren’t correct don’t be afraid to ask the RMN to rerun the report.

Next, review the KPI metrics to determine if they met or exceeded expectations. You can benchmark against past campaigns. I usually look at total year and year over year (YoY) to determine if the results are positive. You can also request benchmarks from the RMN, but few offer them right now.

Then take a look at other  campaign metrics to determine what impacted the results. I recommended reviewing reach, frequency, add to cart, new to brand, conversion rate, creative versioning results and audience results. If you missed the KPI, usually one of these metrics will provide clarity.

Ex: The average industry frequency is under 6x/campaign. If your frequency is 15x, you probably overexposed the audience and/or didn’t reach enough new buyers.  Without new buyers, delivering iROAS is challenging.

Attributed returns are a measure of cost efficiency while incremental returns indicate the actual effectiveness of the campaign.

Attributed Return on Ad Spends (aROAS)

What is it?  Attributed ROAS is a media metric that measures the efficiency or cost effectiveness of a digital advertising campaign.

What does it indicate? This metrics indicates how efficient individual media tactics are at gaining sales and reaching the right audiences. However, this metric is not designed to indicate or drive sales growth.

Why it’s important? Brands closely monitor optimization and tactical performance to ensure positive trends that will inform efficiencies for future investment decisions dependent on the campaign objective.

Formula: Attributed Sales Return on Ad Spend = (Media Revenue/ Total Ad Spend)

Incremental Return on Ad Spend (iROAS)

What is it?  Incremental ROAS is a marketing metric that measures the incremental sales lift between audiences that were exposed and not exposed to a digital advertising campaign.

What does it indicate? The impact and necessity of the total media investment in driving sales to the exposed audience vs the non-exposed audience.

Why it’s important?  This tells you the true value of a media investment and helps brands understand if they contributed to total sales growth goals.

Formula: Incremental Sales Return on Ad Spend = (Test Group- Control Group) / Total Ad spend