In the following blog, experts from IAB Europe’s Retail Media Committee dive into what a self-serve programmatic platform is, how it can be leveraged and evaluated, and key best practices to consider. 

A big thank you to the following contributors for sharing their thoughts:

Nik Dutt, Product Marketing Manager, The Trade Desk

Tanguy LE FALHER, Head of Retail Partnerships, Unlimitail

Jorn Zwetsloot, Lead Advertising & Business Operations, Ad Retail Media 

Gonzalo de la Mata , Global Commerce Lead , Zenith Global

Ekkehardt Schlottbohm, Regional VP, Northern Europe at PubMatic

Q. What is a self-serve programmatic retail media platform?

Gonzalo - “In the evolving world of retail media, we’re going to see a real push in 2024 from Retail Media Networks focusing on their off-site propositions and partnerships and one thing stands clear, the future is self-service. Some of the benefits of a self-serve programmatic platform for buyers are::

• More scalable compared to Managed Services.
• Ownership and control from retailers.
• 24/7 access to reporting and campaign management.
• The democratisation of the space opens to a more diverse range of brands.

Nik - Put simply, it’s a tool that gives buyers access to shopper data from major retailers, which can be used in campaigns.

A programmatic self-serve platform allows buyers to run off-site ads on TV (Connected TV), websites, audio platforms, and digital billboards (DOOH). Buyers can reach their audience more effectively by combining advertising technology with real shopping data. The platform can demonstrate how well the ads are performing, enabling brands to track how many people are buying their products, both online and in physical stores, all in near real-time.”

Jorn -  “In the world of advertising, self-service platforms, and programmatic buying are two powerful tools that can help advertisers take control over their retail media campaigns. While these tools share similarities, some key differences set them apart:

• Programmatic buying is a method of purchasing digital advertising that uses bid streams to automate the buying process. This allows advertisers to target specific audiences, contexts, or regions with precision and efficiency. Programmatic buying is particularly useful in retail media for Digital-out-of-Home (DOOH) screens in and around stores. The reason is that it allows advertisers to use their own technology (DSP) to buy retail media as part of campaigns that may also include media from other media vendors. Programmatic buying for other retail media formats such as on-site display,  is currently only useful in retail media for DOOH, as other formats such as display, or sponsored products are a work in progress as standards (e.g. size of display format and native protocol) currently don’t exist, making it difficult to purchase it across multiple vendors.
• Self-service platforms enable advertisers to create their own campaigns. They allow them to log in, set up, and run (primarily) display and sponsored product campaigns. With this level of control, advertisers can optimise their campaigns in real-time, making adjustments as needed to ensure maximum ROI.

While both programmatic buying and self-service platforms provide advertisers with more control over their campaigns, there are some differences as well. Programmatic buying is, for example, more scalable as the advertiser can use their own technology and run a campaign over multiple retailers or DOOH vendors, while self-service platforms give advertisers more options to use the native formats within a particular retailer environment.

Tanguy - This type of platform allows brands and agencies to create and optimise campaigns on a retail media network (sometimes on-site and off-site) and analyse campaign results in real-time. It can help to solve key challenges of retail media such as transparency, flexibility, in-flight optimisation, and real-time measurement. 

Ekke - A self-serve programmatic retail media platform can combine core monetisation and audience acquisition strategies in one platform. This way, it can give commerce media networks and their advertisers buying flexibility, transparency, and scalable automation that is important for programmatic trading.  It enables buyers to execute ad campaigns across sponsored product listings, omnichannel inventory on commerce properties, and across the open internet. 

Q. How can buyers leverage self-serve programmatic platforms to enhance their campaigns?

Tanguy - These platforms enable buyers to access real-time campaign insights. Enhancing campaigns could go through specific setups in terms of product selection, targeting, or bids. As an example, a buyer may analyse its campaign performance and decide to increase bids on a selection of keywords to get higher positions and product performance on the retailer website.

Ekke - With a self-serve programmatic platform, advertisers can tap into the commerce media opportunity by prioritising the integration of first-party,  privacy-compliant sales data to reach and engage audiences with personalised messaging, in harmony with other channels. The growth of the sell-side in the form of retail media offerings and retail media networks has created fragmentation and complexity challenges. Commerce media marketplaces, which provide a single point of access, can help to solve some of these challenges. 

By establishing secure data partnerships with retailers, advertisers can achieve the precision of cookie-based targeting and benefit from consistent processes and standardised reporting metrics, both of which are crucial to keeping up with a changing landscape.

Nik - Programmatic platforms help ensure a buyer's ads reach their most relevant audience – all through the power of data. For example, imagine a campaign for a new toothpaste for sensitive teeth. The self-serve platform can be used to target people who have bought similar products in the past. Or, if promoting a new car to parents, buyers can aim to reach people who have recently purchased school supplies. Demand-side platforms not only give buyer’s access to retailer data – they offer a simpler ad-buying process and are easy to set up and use, straight away.

Jorn -  Purchasing programmatic media in formats such as DOOH from retailers is similar to buying a DOOH campaign from any other (traditional) programmatic supplier. Advertisers can request access to the retailer's self-service platform and usually choose between an advanced or simple mode to set up their campaign. The simple mode is perfect for those with limited budget and time, as it makes it possible to easily set up and run campaigns. With self-serve programmatic platforms, buyers have full control over their campaigns, including the ability to choose the right audience, search terms, regions, CPCs, and CPMs. This allows them to optimise their campaigns for maximum effectiveness. The advanced mode provides many more options to specify the campaign to specific target audiences, contexts, or search terms.

Gonzalo - Buyers can enhance their campaigns with a self-serve programmatic platform via the following methods:

• Precise Audience Targeting - By using first-party data from retailers combined with third-party data, buyers can create detailed customer profiles and target ads more precisely.
• Real-Time Bidding and Optimisation: Self-service (SS) platforms provide real-time bidding capabilities, enabling bid adjustments based on performance metrics. Additionally, real-time allows for immediate campaign adjustments, optimising performance on the fly.
• Buyers can access performance insights, such as CTR, conversion rates, and ROAS.
• Cost efficiency: Programmatic self-service often leads to cost efficiencies by automating the ad-buying process and eliminating middlemen.
• Integrated with Omnichannel strategies: brands and agencies can integrate their programmatic retail media campaigns with broader omnichannel marketing strategies. Some SS platforms offer integrations with other marketing tools.

Q. Are there any best practices that should be considered? 

Tanguy - The first best practice consists of accessing the self-serve platform to analyse campaign performance regularly to identify the evolution of delivery, ad rank, competition, ROAS, and other business or media KPIs. This allows buyers to take action quickly based on these analyses and improve their results.

Nik - Retailer Data is not just for performance campaigns but drives brand awareness too. When planning marketing campaigns, buyers don't have to ignore traditional demographic targeting. Instead, they can enhance their campaigns by adding different audience segments. It is useful to then assess how each strategy performs and see which one works best.

Buyers can even combine this approach with AI and proprietary platform features to help find more relevant audiences. For instance, data about a brand's best customers from retailers can be used as a starting point – or, seed – to expand and grow an audience. This helps reach not only a brand's main customers but also new people who are likely to be interested in their product or service.

Jorn - Best practices for retail media include starting small and learning as you go. It is important to learn what fits the campaign best, including which platforms, audiences, search terms, regions, and bid prices work best. It is also helpful to keep an eye on the campaigns and make adjustments as needed, as this will enhance the learning experience.

Gonzalo - It is also useful to think about the following: 

• Creative optimisation. 
• Frequency capping: Implement frequency capping to avoid an over-exposing audience.
• Collaborate with retailers to leverage their retail insights. Retailers can provide valuable data and support to enhance campaigns.
• View optimisation as an ongoing process. Track performance metrics, adjust targeting, cycle creatives, and update bids and budgets. Leverage retail media experts for data interpretation and insights.

Ekke - Some best practices I would recommend are:

• When planning a campaign, start with the audience. Have a clear objective. Define a core objective and KPI, such as driving sales, reactivating lapsed buyers, growing market share, or launching a new product. The objective informs targeting, messaging, creative strategy, and measurement.
• Pick the right retail media formats and test. Select ad formats based on the objective, budget, and audience: product listing ads for discovery and conversions, site display for awareness and consideration, on-site recommendations for increasing basket size, and in-store digital for connecting online and offline data.

Q. How can brands evaluate their spend with self-serve programmatic platforms?

Tanguy - Self-serve retail media platforms give visibility to brands over the evolution of spend in real-time. It means that a brand can have a quick look to identify the pacing of its budget and correct it if necessary. Moreover, some advanced platforms allow brands and buyers to set limits at multiple levels (e.g.: total campaign duration, daily, monthly). It helps brands control their spend and diversify their budget strategies.

Nik - By setting clear campaign goals (especially when using shopper data from major retailers), a buyer’s strategy can be adjusted in near real-time to focus on the most successful tactics. These goals could include increasing brand awareness or driving sales. But don’t rely on just one type of device or platform. Instead, use an omnichannel strategy to access all media channels in the most cohesive and connected way possible.

Top tip: An identity graph could help to create an effective campaign across multiple devices by providing detailed reports that show which ads, devices, or audience segments resonate best with the target market. 

Jorn - Brands can evaluate their spend with self-serve programmatic platforms by inputting their budget during the setup process and choosing the appropriate bid strategy and pacing. For example, setting a maximum budget per week or day will allow the platform to automatically notify them when the budget runs out. It is also important to track campaigns and analyse the data to see what is working and what does not work. This will help brands make informed decisions about where to allocate their budget to maximise the ROI. Finally, stay flexible and adjust campaigns as needed to ensure that brands are getting the most out of their ad spend.

Ekke - To evaluate their spend with self-serve programmatic platforms, brands should adopt a holistic approach that integrates commerce media within their overall media strategy. Collaborate with data analysts and programmatic advertising experts to interpret data and uncover actionable insights. Their expertise can help in making informed decisions and refining strategies.

Find out more

IAB Europe’s Retail Media Committee is at the forefront of the retail media industry. Members are driving retail media growth and shaping the landscape by:

• Creating definitions
• Defining pan-European standards
• Providing market education

All of the work of the Committee can be found in our Retail Media Hub here. 

Find out more about getting involved by contacting Marie-Clare Puffett - puffett [@] iabeurope.eu

A big thank you to the following contributors for sharing their thoughts:

Esme Robinson, Director Platform Solutions, EU Enterprise Products at Epsilon

Jason Westcott, Chair of IAB Europe’s Retail Media Committee and Global Head of Commerce Solutions at GroupM

James Allison, Director of Market Development (Europe) at Advertima

Q. Retail Media has been an integral part of trade marketing budgets for some time. What is compelling brands to invest further, i.e. beyond trade marketing, in retail media?

Jason - "First, it is important to understand the following dynamics. A brand’s trade marketing focuses on influencing trade intermediaries (retailers, wholesalers) to promote and sell their products more effectively. Brand spend or Advertising & Promotion (A&P) targets the end consumer to generate demand. Digital retail media evolved from e-commerce site tenancy rooted in trade marketing, to addressable advertising more akin to A&P. So, the evolution to the behavioural targeting of individual consumers has naturally attracted A&P spend. The ability to attribute sales to this media is an upside to marketers and budget controllers seeking proof of ROI for their budgets. This is endemic to more modern retail media and has helped fuel industry growth."  

James -"Jason's point about growth extending beyond trade marketing is key. The ability to measure media's impact on sales across the entire marketing funnel, thanks to the rich data now available, is driving this expansion. Retail media isn't just about influencing purchase decisions anymore. Brands can leverage connected online, offline, and in-store media channels to measure and optimise for upper funnel awareness as well. Standardising measurement and integrating retail media with broader digital advertising across all channels are crucial for continued growth."

Esme - "Brands are in a position they've never been in before: from the efficacy of targeting - being able to not just reach buyers of their brand, but accurately suppress those to reach net new prospects, to the way in which those campaigns can be attributed to real people, across a host of new and existing channels. Brands can meet shoppers where they are at more stages of their shopper journey than ever before. And the work that IAB Europe and others are doing to create standards gives brands confidence in the rigour and efficacy of retail media networks and their vendors." 

Q. What should retailers be doing to attract brand budgets to their media offering? 

Jason - "Brand marketers want addressability at scale, to be able to deliver the exact creative message they want within the brand-safe environments they have approved, plus delivery/impact measurement that aligns with their broader digital investment framework. A simple concept but challenging to deliver. With a one or two exceptions, on-site is less appealing to Brand, being mostly lower funnel. Off-site propositions that offer cross-channel flexibility for the buy side will be more attractive to brand marketers and agencies. Shiny new formats will always attract brand marketers’ attention, but if they do not align to the tenets above, they will lack longevity."  

James - "Traditionally, retailers focus on proving sales results (ROI/ROAS) to brands, pitching their ad space primarily as a conversion tool (with the exception of certain activations). This caters to shopper and trade marketers seeking direct sales impact from media buys. However, retail environments are also prime spots for building brand awareness. Consider frequency, crucial for brand recognition: European grocery shoppers spend an average of 41 minutes per visit, providing a lot of exposure to in-store media and therefore driving brand recognition. 

As mentioned earlier, consistent measurement and long-lasting, plannable formats (both digital and in-store) are vital. By showcasing the power of brand building alongside clear measurement standards, retailers can attract brand budgets."

Esme – "It is important that retailers understand how e brand budgets work, especially within agencies. Brands or Brand agencies expect consistent, transparent person-based performance reporting – in fact 75% of Brands rated ‘transparency on up-to-date campaign performance reports’ as the most important capability of a retail media network (Epsilon RMN Survey Report: The state of retail media in 2023) as well as wanting customer insights to complement measurement. To attract brand budgets, retailers need to demonstrate how these results and insights can inform media planning compared to just being the provider of an audience to buy." 

Q. Can you give an example of some evolving use cases for retail media and brand budgets?

Jason - "Brand marketers can leverage digital retail media's audience targeting to achieve specific brand objectives. For instance, they can boost customer lifetime value by using retailers' customer profile data to offer brand-exclusive subscriptions via their owned domains. To regenerate demand from lapsed buyers, targeted video content is effective to help consumers reengage with the brand - optimising for video completions rather than immediate sales here is the best approach. Video can also be used to drive awareness among relevant audiences, leveraging shopper profiles based on real shopping behaviours, such as tech enthusiasts or pet lovers, especially during new product launches, offering reasonable scale with less wastage." 

James - "Building on the concept of audience-based marketing, a powerful new use case is emerging: real-time, seller-defined in-store audience targeting. This reduces ad waste by allowing brands to deliver targeted messages directly to relevant shoppers at scale.

Imagine a drink brand with four flavours, each popular with distinct demographics. With audience AI, they could promote the entire range using mid-funnel tactics like mobile ads and digital out-of-home displays near stores to attract "all adults." Then, in-store, the technology personalises content for each SKU based on real-time shopper data. This hyper-relevance drives lower-funnel conversions by reaching the right person with the right message at the point of purchase. This strategic combination of mid-funnel awareness and targeted in-store promotion creates a powerful tool for brands."

Esme - "Beyond the channel and data points mentioned above, an evolution we’re seeing is that brand budgets aren’t just being spent with retailers they have an endemic relationship with. There’s a definite rise of non-endemic retail media, which is born from the expansion of the types of retailers and brands that are entering the retail media space. Non-endemic retail media gives brands from all verticals the opportunity to target hyper-relevant potential shoppers and opens up a new revenue stream for retailers, which they can then funnel back into their overall marketing budgets."

Q. Can you share two top best practices for brands? 

Jason - "Retail media client strategies I have designed consistently emphasise the advertiser's business objectives throughout. Successful approaches weight performance across a retailer's media offerings, aiming for genuine business impact rather than chasing superficial sales metrics. Key practices include valuing targets appropriately, such as being prepared to flip competitor’s customers even at a negative campaign ROAS, and maintaining clear campaign segmentation with a single KPI per objective to avoid conflating multiple goals across line items. This ensures campaigns remain focused and effective in driving growth and achieving genuine business outcomes."

Esme – "Brands should embrace a strategic channel mix to maximise opportunities to connect with shoppers – but always maintain overarching strategy and goal to prevent disparate conversations or unnecessary duplication. Brands will need to know exactly what they want to achieve (trusting their convictions) and will ideally be able to tie back messaging from any channel to a real outcome from a real person. This relies on good identity resolution and people-based targeting and attribution – with this assessment of capabilities being a necessary best practice for brands when considering where to spend budgets." 

Q. How do agencies and advertisers view retail media now versus 5 years ago?

Jason - "Five years ago, digital retail media operated independently from core digital channels, often in isolation with limited alignment and accountability. Today, there is a shift towards integrating retail media into core media frameworks and processes across marketing organisations. More retailers have become media owners or expanded their offerings, often through technology provider integrations and new media partnerships (i.e. CTV via established broadcasters). It is overstated, but the growth acceleration of e-commerce through the pandemic was a boon for retail media. As Europe and Central Asia’s fastest growing channel (+15%) with 6.9% channel share (according to GroupM), it is firmly in the industry spotlight and will be exposed to growing pressure for greater digital channel conformity as it continues to scale."

Esme – "the most significant change has been the knowledge and experience within Retail Media Networks, Brands, Vendors and Agencies. The expectations from brands have (rightly so) grown significantly with more demands for meaningful performance, transparent reporting, more channels and greater expertise and support from Retail Media Networks. The industry is rapidly increasing its ability to meet those demands but with such a vast array of approaches, technologies, and partners to choose from, there are still key challenges that need to be addressed to ensure those brand demands are met and not obscured with the latest shiny development." 

Jessica Wegner, Vice President New Business & Retail Media at DOUGLAS Marketing Solutions commented on the importance of these standards: “In the advancing landscape of digital advertising, Retail Media emerges as a crucial media solution, yet its potential was hindered by challenges such as the lack of standardisation. According to IAB Europe research, only half of buyers currently recognise the efficiencies of Retail Media and seek consistent measurement and standards. To unleash the full power of Retail Media, addressing this critical gap through standardised measurement methods is paramount. Moving beyond traditional KPIs like ROAS or CPC, the focus on standardisation, particularly in media and attribution measurement, holds the key to unlocking its true efficiency.”

The Retail Media Measurement Standards were developed following consultations with retailers, media buyers (brands and agencies) and cover the following areas:

• Primary Media Metrics (including viewability, IVT) to ensure digital retail media ads adhere to the same standards as other digital ads
• Attribution Metrics to ensure that brands are able to compare their advertising investments using a standard lookback window and iROAS definition
• Additional Retail Media Insights to further elevate the unique insights that retail media networks can provide such as ‘New to Brand’

The full standards can be viewed here alongside the FAQ document here. 

Commenting on the need to equip retail media stakeholders with standards to help drive investment and market sophistication, Jason Wescott, Chair of IAB Europe’s Retail Media Committee, and Global Head of Commerce Solutions at GroupM said: “IAB Europe’s Q3 2023 Retail Media Standards Survey revealed a significant hurdle to investment: over two-thirds of respondents cited the absence of standards. In response, we convened fifteen top regional retail media firms in January 2024 to pioneer IAB Europe’s inaugural Digital Retail Media Standards. This initiative addresses the intricate landscape of onsite, offsite, and digital in-store media, alongside e-commerce and omnichannel commerce metrics. With diverse offerings from numerous retail media owners, achieving unity is paramount. The Retail Media Standards project is a cornerstone of our 2024 agenda, and this launching version marks a substantial stride toward harmonising and streamlining the region's industry for advertisers.”

Commenting on IAB Europe’s drive to support retail media across Europe, Townsend Feehan, CEO of IAB Europe said  “With the publication of the first set of European Retail Media Measurement Standards, we affirm our dedication and commitment to providing industry stakeholders with a robust framework that ensures consistency across the ecosystem and enables Retail Media to thrive.  These standards not only establish much-needed uniform metrics but also foster transparency, making room for greater innovation and investment in this space. I am excited to see how this pivotal step allows us to collectively drive Retail Media forward over the next 12 months and beyond.”

To access more information, industry education, and intelligence about Retail Media in Europe, please visit IAB Europe’s dedicated retail media hub on its website here. 

In the following blog, experts from IAB Europe’s Retail Media Committee dive into what good Sponsored Product Ads look like, how they can be bought and measured and how they can support the full-funnel marketing mix. 

A big thank you to the following contributors for sharing their thoughts:

Maria Kristalinskaya, Head of Retail Media at Kleinanzeigen at Adevinta

Nesma Abdel-Hamid, Team Lead Digital Activation at Douglas

Lena Schütze, Team Lead Client Services & Consulting at Douglas

Mark James, Senior Director EMEA at Flywheel

Kına Demirel, Chair of the IAB Turkey Retail Media Group and Managing Director at Mimeda

Nico Batista, Director, Expert Services at Skai

Q. What makes a great Sponsored Product Ad (SPA)?

Nico: 

"We can define a great sponsored product ad as the right amount and type of ingredients and flavours combined together in harmony. It must be granular, to allow for one-to-one optimisations, around keywords, targets, categories, audiences (where possible), and individual products. But a great sponsored product ad must also be scalable so it doesn’t become inefficient. When building the perfect sponsored product ad, it’s key to look at individual relevancy and performance between products and targets, as well as placement modifiers that are adjusted based on individual performance as opposed to a group of products that are broadly similar. Finally, the ad should be optimised against product, category, brand, and organisational objectives - not simply ROAS."

Kına:

"For best results, they should be designed in a way that best suits the consumer experience. When the right keywords related to the product are targeted, this can positively impact the user experience and makes the ad a part of the shopping journey. In addition, having a formula of 2 of the first 5 products on the product listing page as sponsored product ads could increase the effectiveness of the ad and help the user to be naturally involved in the shopping journey." 

Lena:

"The success of a Sponsored Product Ad depends on the relevance - ensuring that the ad aligns closely with the target audience’s interests and needs. Therefore specific tools can be leveraged to improve the relevance of a sponsored product, such as SKU set-up and targeting optimisation." 

Mark:

"Sponsored product ads are opportunities to put your product in front of the eyes of a consumer very close to the point of purchase with the help of a clear indicator of intent; the search term. If the ad, and product in the ad, is highly relevant to that search term, the consumer benefits from seeing a product that is likely to be what they are looking for, and the retailer benefits from satisfying the consumer’s demand efficiently. 

The other piece that is critical is the product listing itself. The listing needs to give an accurate account of what is being sold in a way that a consumer can clearly tell them if it is what they are looking for." 

Maria:

"Great sponsored products ads are the ones that offer the right balance between user need and advertiser’s pain (irrelevant traffic, high bids, etc.). Making the ads personal and relevant with the targeting and optimisation options offered by the retail media network as well as providing relevant product description and further information (pictures, titles, etc.) increase the engagement and leads to the better results for the campaign."

Q. What type of campaigns are sponsored product ads suitable for and how can they support the full-funnel approach?

Lena:

"First and foremost, Sponsored Product Ads are considered as lower-funnel campaigns as they are placed at the digital shelf and reach customers when they are already browsing on the retailers category pages. However, although SPAs directly impact the sales and conversions of a brand, SPAs also help to keep the brand top of mind and influence a purchase decision (moving up the funnel)." 

Nico:

"Most campaigns should be supported by sponsored products to some degree. With today’s digital shelf as competitive as it is, spending brand-marketing budgets on upper-funnel activities without maximising share of voice at the purchase level would be extremely inefficient, not to mention a considerable waste of money. Sponsored product ads are naturally suited to drive highly profitable, bottom-of-the-funnel sales, but can also provide support to omnichannel full-funnel strategies."

Kına:

"Sponsored product ads are usually considered for sales-focused campaigns. However,  it supports the full-funnel from Consideration to Purchase therefore they are a great choice when it comes to gaining high visibility." 

Mark:

"We observe the highest conversion rates when sponsored product ads are run alongside mid/upper funnel tactics such as sponsored display or programmatic. The mid/upper funnel campaigns are there to create demand, the bottom of funnel campaigns (eg. sponsored products) are there to assist the conversion."

Maria: 

"Sponsored product ads catch the user at the stage when they already decided they need a product X and help them make the final decision. Therefore, it’s definitely the way to go to boost conversions and increase sales. With extensive targeting options and variety of placements offered by different networks, we also see that sponsored ads help to increase brand awareness and raise the brand recognition metrics. The extra effect is achieved especially if they’re running alongside other top-funnel formats."    

Q. What metrics should brands consider when evaluating sponsored product ads?

Lena: 

"As SPAs are lower funnel campaigns focused on driving sales, the key metrics for this campaign type are ROAS, conversions and CVR. Depending on the brand maturity and equity, it also makes sense to consider CPC and CTR as key metrics to evaluate how an audience engages with the products and how efficient the campaign is. Additionally, the share of voice and share of clicks can provide insights into the brand’s visibility, effectiveness and competitiveness within a specific category." 

Nico: 

"This will depend on the capabilities of the publisher. In most platforms, you will be able to measure against ROAS, CVR, CPCs, and total revenue. However, in the more sophisticated platforms, you can evaluate performance against keyword impression share or ad placement data. For budgeting and forecasting, missed revenue and recommended budget are great metrics to support internal investment discussions. Other valuable metrics are assisted and same SKU campaign sales where buyers can see which SKUs are actually being purchased regardless of standard PPC sale attribution." 

Kına:

"Brands should primarily pay attention to conversion rates and ROAS when evaluating sponsored product ads. In addition, click-through rates of ads and their associated cost per click are also important for cost analysis. It is also becoming a common practice where platforms are providing a set of relevant keywords for brands to target for . Another metric that relatively becomes popular is also the new customer generated through sponsored product ads." 

Mark:

"Alongside the typical performance metrics such as ROAS, CTR, CVR, brands should pay attention to total sales performance for their products, by also taking into account organic sales to ensure they are not cannibalising sales that would have happened without assistance. Brands should also look at their margins after taking into account advertising costs and COGS. They should also not consider a single purchase in isolation, but the life-time value of customers they acquire through sponsored product ads - for example, is your ROAS low on the first purchase, but they go on to buy your products repeatedly and convert on cheaper search terms (such as branded terms) when they purchase for a second time? If so, the low initial ROAS might make sense. And finally, brands should pay attention to their market share so that they consider their performance trends in relation to the wider market in which they are competing."

Maria:

"My colleagues mentioned a lot of performance metrics that are absolutely must-to check when you’re running sponsored product ads campaigns. If your tracking system allows, I would also recommend checking more long-term metrics like CAC and LTV to check the long-term effect of the campaigns (mostly applicable for non-endemic customers and click-out model). Some of our customers also check the % of new users we drive to their pages to see the difference you get with each new channel."  

Q. How can buyers access sponsored product ads?

Nico:

"Most key players in 2024 either already have or are developing their own proprietary retail media network, or they have a technology partner that allows them to serve ads on their online store. To begin advertising in your retailers of choice, the first step is bringing it up in conversations with your commercial point of contact at that retailer." 

Kına:

"The initial contact should be between brands and retailers' sales teams or retail media companies for sponsored product ads. More and more retailers are either using or creating their own retail media technologies where brands can access inventory for sponsored product ads, set up campaigns, and manage budgets using self-service interfaces developed by retail media networks with their own digital teams."

Maria:

"Working directly with retailers gives you a lot of advantages like early access to the new product features, dedicated account management team with optimisation expertise,etc. All together you get an opportunity to extensively target the target audience of this platform especially if you look for specific very niche segments. But also you need to plan dedicated resources within your team to manage these campaigns and minimal budgets are usually quite strict.  Working with technology providers or dedicated agencies, you get access to more players and more thorough allocation of your budget.  My recommendation will be to check what you’re looking for and combine both dependending on the retailers you’re looking for to work with." 

Q. How can brands evaluate sponsored product ads across retail media networks?

Mark:

"This is generally difficult for brands to evaluate since each retail media network lives in isolation from one another and they have their own ways of measuring and sharing data with brands. The first task at hand is therefore to bring all their retail media data into a single source of truth such as an omni-channel retail media platform. This will allow them to view product level performance across all retail media networks and make it easier to evaluate success. However, the very best way to evaluate sponsored ad performance across retail media networks is to bring media, retail sales and market share data across retailers into a single place. This enables brands to track multiple metrics across multiple retails in one place and allow them to make decisions on where to invest in a retailer-agnostic way."

Nico: 

"Different attribution models, windows, metrics, optimization capabilities, and more makes it difficult to compare apples to apples within the retail media space. My suggestion would be to try and set up attribution windows to match your business goals equally across retailers and choose basic performance metrics that are widely available in the channel (i.e. ROAS, CVR, CPA). But while the industry awaits standardisation, brands can leverage tech partners and solutions that integrate all retailers in one place and that allow buyers to make quick cross-retailer budgeting and optimisation decisions with all the relevant information easily accessible in front of them." 

Kına:

"Brands generally use the analytical tools provided by retail media networks to evaluate the performance of sponsored product ads. These tools are used to measure the interactions, conversions, and return on investment of ads. By analysing this data, brands can optimise their advertising strategies and run more effective campaigns. When comparing platforms, it is important to consider factors such as inventory size, audience reach, ad formats, analytics and reporting, cost and return on ad spend (ROAS), targeting options, user experience, technical support, and communication. These factors may vary according to the needs and goals of brands, and the preferred platform will depend on specific campaign objectives and strategies."

Find out more

IAB Europe’s Retail Media Committee is at the forefront of the retail media industry. Members are driving retail media growth and shaping the landscape by:

• Creating definitions
• Defining pan-European standards
• Providing market education

Find out more and get involved by contacting Marie-Clare Puffett - puffett [@] iabeurope.eu

We are looking to gather insights from buyers (advertisers and agencies) and retailers on current investment in, use, and experience of retail media, as well as their plans for its future utilisation in this new industry survey developed by IAB Europe’s Retail Media Committee. 

The insights shared in this survey will contribute to showcasing the opportunities presented by partnering with retailers and how retail media can enhance digital advertising. Additionally,the results will help us to identify and address key industry challenges, paving the way for a more efficient and effective retail media ecosystem.

The survey will only take 10 minutes to complete, and we encourage participants to add any additional comments they have. All responses will be treated as confidential. The deadline to participate is Friday 3rd May. 

Share your thoughts today! Simply click on the survey link below to get started.

Take part here

As Retail Media continues to grow as an advertising channel, media buyers must have consistent metrics with which to compare their investments. In 2023, IAB Europe found that 70% of buyers cited the lack of standards for Retail Media as a barrier to investment, with media and attribution measurement being cited as the most important areas to address first.

The recommended standards were developed following IAB Europe’s Retail Media Measurement Workshop which brought together 15 retailers from across Europe. This feedback was combined with the ongoing discussions from IAB Europe’s Retailer Council and Retail Media Committee. 

IAB Europe also recognises that progress has been made on the development of Retail Media metrics definitions in other markets (e.g. IAB US, BVDW in Germany, and ISBA in the UK) and this work was used to form the basis for discussions within the Workshop. For example, IAB Europe’s recommendations incorporate most of the elements from the Now and Next sections of the ISBA “Responsible Retail Media Framework”. 

The recommendations address the following areas:

• Primary Media Metrics (including viewability, IVT) to ensure digital retail media ads adhere to the same standards as other digital ads
• Attribution Metrics to ensure that brands are able to compare their advertising investments using a standard lookback window and iROAS definition
• Additional Retail Media Insights to further elevate the unique insights that retail media networks can provide such as ‘New to Brand’

The standards document can be viewed here alongside the FAQs document. The recommendations are open for public comment until the 29th of March 2024. Please send your comments to retailmediastandards@iabeurope.eu 

Jason Wescott – Chair of IAB Europe’s Retail Media Committee, and Global Head of Commerce Solutions at GroupM commented on the development of the standards: “There is no clearer example of the importance of IAB Europe and our Retail Media Committee than this work on Retail Media Measurement Standards. Whilst a rapid increase in the number of retailer advertising offers is a wonderful thing for our industry, it has made planning and buying more complicated, with accurate comparisons across providers burdensome, if not impossible. 

We brought the region’s leading digital retail media businesses together to collaborate on a common set of standards that will not only ensure retailers can be consistent with existing digital media standards, but also encompass consistent, retail-centric, metrics spanning sales attribution and sales/consumer insights. This consistency will be a big step towards making the region’s industry more unified and accessible for advertisers. I’m excited to see the first version of these standards and for future iterations, as this channel will continue to evolve.”

Jessica Wegner, Vice President New Business & Retail Media at Douglas Marketing Solutions commented on the importance of these standards: “In the dynamic landscape of digital advertising, Retail Media emerges as a crucial media solution, yet its potential was hindered by challenges such as the lack of standardisation. Only half of buyers currently recognise its efficiency, seeking standards and regulations. To unleash the full power of Retail Media, addressing this critical gap through standardised measurement methods is paramount. Moving beyond traditional KPIs like ROAS or CPC, the focus on standardisation, particularly in media and attribution measurement, holds the key to unlocking its true efficiency.

As Retail Media continues to deliver remarkable results, the recent milestone of IAB Europe releasing the first European Retail Media Measurement Standards is a transformative step. This marks a future-changing development, emphasising the increasing acknowledgment of Retail Media's significance.”

Following the feedback process, IAB Europe will issue a first version of Retail Media Metrics and Measurement Standards for Europe. IAB Europe also intends to continue to work on developing standards for Digital Retail Media advertising with addressable areas including creative ad formats, brand metrics, and in-store measurement. 

IAB Europe will host a webinar on the 19th of March to provide a deep dive into the recommended standards and provide the opportunity for audience questions. Register to join the webinar here. 

To access any more information, industry education, and intelligence about Retail Media in Europe, please visit IAB Europe’s dedicated retail media hub on its website here. 

The Workshop convened to address a specific investment barrier - a lack of standards. 

The need to prioritise this challenge stemmed from a survey that IAB Europe conducted in 2023, which found that 70% of buyers cited the lack of standards for Retail Media as a barrier to investment, and media and attribution measurement were noted as the most important areas to address. 

The retailers represented at the Workshop were:

• Ahold Delhaize
• Allegro 
• Amazon
• Bol 
• Douglas 
• Dunnhumby
• ICA
• Just Eat
• Kleinanzeigen 
• Ocado 
• REWE
• Schwarz Media
• Tesco 
• Unlimitail 
• Zalando

Thanks to the support of McKinsey & Co. for hosting the Workshop at their offices, we enjoyed two days of rich discussion, debate, and alignment on retail media standards in the areas of primary media metrics, audience measurement, attribution windows and techniques, ad formats and specific retail metrics, such as new to brand. Discover what was discussed below.  

Day One 

The event kicked off with the IAB Europe and McKinsey teams explaining that the purpose of the workshop was to address one key retail media pain point -  standardisation of metrics and measurement methods. The aims of the workshop were  to:

• Gather insights and synthesise findings to inform recommendations on standards for retail media measurement
• Dedicate time to review and build a common perspective on retail media standards that will be put in place for RMN stakeholders
• Identify future items to discuss that will require further review due to their complexity or futuristic outlook 

The Workshop kicked off with a discussion around primary media metrics that have been standardised in other areas of digital media including viewability and IVT.  These are metrics that brands and buyers have come to expect as table stakes in other areas of digital media measurement. The key takeaways from this session were:

• It is important that retail media ads can be compared with other digital media using established metrics such as viewability and IVT
• Viewability is an important metric as the basis for reporting on all other metrics
• Established media metrics such as viewability and IVT filtration will help drive brand budgets towards retail media channels

The group then turned its attention to a discussion on audience measurement and whether there is a need to harmonise the definitions of audiences in retail media networks (RMN). A couple of insights on audience measurement were:

• The need for brands to be able to build custom audiences
• The need for transparency into what makes up an audience 

A well-debated topic was then addressed - the Attribution Lookback Window. A Lookback Window is the period of time after an ad is clicked or viewed within which a conversion can be attributed, or matched, to the ad (definitions source: IAB Europe’s Retail Media Glossary). From our initial conversations with various brands, it is clear that they are looking for a stake in the ground to compare apples to apples but also the desire for flexibility to allow brands to normalise the Return on Ad Spend (ROAS) number they are being provided with. The group debated the different approaches to lookback windows and the importance of providing flexibility to brands. The consensus on this will be shared with the industry for feedback soon.

The end of day one concluded with a session on Halo Attribution, which is an additional measurement technique to direct attribution / ROAS and provides a more holistic view of the consumer journey, allowing advertisers to better understand which types of ad interactions are contributing to driving sales. Key considerations on Halo Attribution were:

• Brands need to be able to tell retailers what they are looking for in terms of Halo Attribution
• Halo Attribution can be enabled on and off-site using different product and category-level SKUs

Day Two

Day two kicked off with a working breakfast during which IAB Europe’s Chief Economist, Daniel Knapp, explored what the changing investment logic of advertisers means for retail media. Key takeaways included:

• Advertising will continue to grow but it will not defy gravity
• Revenue pressures are accelerating the move to digital advertising
• There is a need to offer outcomes and not just audiences - retail media has made some progress in this but advertisers seek more. 
• Retail media is a central evolution in the business model between retailers & manufacturers 

After this insightful presentation, the Workshop turned its attention to more advanced metrics that are specific to retail media. 

We kicked this off by looking at incrementality measurement methods. Incrementality represents the causal impact of marketing and is linked to outcomes, like sales or attributed to advertising campaigns or exposures. The key takeaways were:

• There are various models and data available that can be used to calculate incrementality 
• The metrics which are used to determine the method need to be addressed in the first instance

The group continued the conversation by discussing retail media specific metrics including New to Brand, Category Market Share, and Category Change. Key takeaways included:

• New to Brand timeframe can vary depending on the product type and the frequency with which it is bought
• Category Benchmarks need to be based on an agreed metric or set of metrics

In the last session of the day, the group turned their attention towards Creative Ad Formats, as it has become clear that ads on retail sites do not follow any specific standard. The key takeaways here were:

• The current standard IAB ad format specifications aren’t always fit for purpose for ads on retailer sites, due to them being either too small or too big (i.e. rising stars take up a lot of real estate)
• Standards for retail media ads need to be explored and discussed with the buy-side 

Summary

Overall, the Workshop acted as a pivotal moment and a key starting point for the industry to come together kick-off the development of pan-European Retail Media standards.

Justin Sandee, Director Commercial Development at Bol.com attended the Workshop and said: "In the convergence of retail, ecommerce and media, industry leaders engaged in constructive and pivotal discussions on standardising retail media measurements during the two day Workshop. In my opinion, this marks a significant stride towards the maturation and professionalisation of this influential and crucial media channel, epitomising a collective commitment to elevating industry standards and driving impactful strategies forward."

Maurits Priem, VP Monetisation Europe & Indonesia at Ahold Delhaize also attended and said: “We enjoyed sharing experiences with peers during the workshop; conversations were stimulating, educational and relevant. We covered many topics and had fruitful, at times extensive discussions, since participants came from various retail organizations, in different retail media phases. We sensed a shared responsibility to make steps to further professionalize the Retail Media industry, in the interest of our clients, the advertisers and agencies.”

The outcome of the workshop was an initial set of recommended standards for retail media metrics and measurement. A document outlining the recommendations will be published as an initial draft for industry feedback within the next month. 

The development of Standards for Retail Media Advertising in Europe is a key focus of the IAB Europe Retail Media Committee work plan. This multi-stakeholder Committee brings together retailers alongside leading Retail Media businesses in Europe to advance and shape the future of this exciting digital advertising space and has already produced valuable resources including pan-European definitions, the first-ever industry association-led Retailer Digital Advertising Capability Map a Retail Media Glossary. You can find all of these resources and more on IAB Europe’s Retail Media Hub here. 

Another attendee, Henri Gentis, Global Head of Retail Media, JustEat Takeaway commented: "It was great to see experts brainstorm ways to measure success in retail media. We're making the whole system better and more professional, which is great for everyone involved. Plus, we learned about the latest trends and how to tackle upcoming challenges. Standardisation will make it so much better for brands to assign budgets to retail media and could be a game-changer for participants."

To find out more about the committee’s work and how you can get involved please contact IAB Europe’s Industry Development & Insights Director, Marie-Clare Puffett.

Jason Wescott, Global Head of Commerce Solutions at GroupM Nexus was elected as Chair of IAB Europe’s Retail Media Committee, alongside Patricia Grundmann, Chairwoman of Retail Media Circle, Bundesverband Digitale Wirtschaft (BVDW) e.V. and Vice President Media & Retail Media, Managing Director OBI First Media Group, who was elected as the Vice-Chair, on the 18th January during the first Committee meeting of 2024. 

Standing as the first Chairs of the Committee, Jason and Patricia were elected to lead the committee’s work to help increase understanding of the Digital Retail Media advertising ecosystem, enable cross-stakeholder initiatives, and develop standards to enable Retail Media to scale and thrive across Europe. 

Jason has been an active member of IAB Europe’s Retail Media work track since the multi-stakeholder working group was first launched in October 2022. Commenting on his newly appointed role, and sharing his expertise and vision for the committee, Jason said, “Retail Media has had a stellar year, claiming the accolade of fastest growing major ad revenue channel within digital for Europe and Central Asia in 2023. The digital ad landscape will continue to evolve at an exhilarating pace, driven by developments in data capabilities, technology, commercial opportunity, and digital consumer trends. 

With great change comes great responsibility. Recognising the growing impact, influence, and sheer scale of Digital Retail Media, it’s no surprise that IAB Europe has made it a larger focus; with one resource being a Retail Media Committee. This multi-stakeholder group helps increase understanding of the region’s Digital Retail Media ecosystem through industry definitions, guidelines, standards, market intelligence, and thought leadership. I’m tremendously proud to be a member of this collective, which brought together many of the region’s most influential (Retail Media) leaders - who’ve collaborated to produce valuable insights that provide enormous benefits. It’s an incredible honour to receive the vote of confidence from this group, and I look forward to supporting more in my role as IAB Europe Retail Media Committee Chair, for the next two years.”

Commenting on her role as Vice-Chair of the committee and her vision for supporting and leading the work alongside Jason, Patricia said “Only a shared understanding of the market enables an efficient, cross-party planning and implementation of retail media campaigns. I am looking forward to significantly increasing the market importance of retail media on a European level and establishing uniform European market standards and metrics to create more transparency for all parties.“

The Committee brings together retailers, including Ahold Delhaize, Bol, Douglas, MediaMarkt Saturn, Schwarz Media and Ocado alongside leading Retail Media businesses in Europe to advance and shape the future of this exciting digital advertising space and has already produced valuable resources including pan-European definitions, the first-ever industry association-led Retailer Digital Advertising Capability Map a Retail Media Glossary. You can find all of these resources and more on IAB Europe’s Retail Media Hub here. To find out more about the committee’s work and how you can get involved please contact IAB Europe’s Marketing & Insights Director, Marie-Clare Puffett here. 

18th January 2024 - Brussels, Belgium, IAB Europe, the leading European-level industry association for the digital advertising and marketing ecosystem, has published the first version of its Pan-European Retailer Digital Advertising Capability Map. This is the first Map of its kind produced by an industry association which demonstrates the digital advertising capabilities of retailers across Europe spanning grocery, beauty, fashion, marketplace and home & DIY. 

Retail Media digital advertising investment in Europe is expected to reach 25 billion EUR by 2027. It is no secret that Retail Media is transforming the digital advertising ecosystem providing a new opportunity for brands to reach consumers and access first party data capabilities. As the proliferation of Retail Media Networks (RMNs) continues to gain momentum, it becomes increasingly crucial for brands to be empowered in effectively gauging their investment opportunities. Consequently, IAB Europe has proactively addressed this need by formulating the Retailer Capability Map.

This comprehensive Map serves as a valuable resource for media buyers by providing insights about the on-site, off-site and in-store opportunities offered by retailers operating in Europe. Additionally, it provides pivotal information on the available targeting and measurement options. The intent is to equip media buyers with information they need to undertake comparative assessments of retailer offerings across Europe.

Maurits Priem, VP Monetization Europe & Indonesia, Ahold Delhaize: “At Ahold Delhaize we are surfing The Third Wave together with our advertisers, aiming to raise the bar in advertising. As a front runner in omnichannel retail media we support the role of IAB Europe when it comes to professionalising our industry step by step. We welcome this first version of the Retailer Capability Map as a valuable next step and relevant tool for media buyers.”

Laura Badea, Global Digital Commerce Partner, Wavemaker: “The Pan-European Retailer Capability Map is a foundational piece of work, developed by IAB Europe as part of their commitment to drive a unified vision and standards to underpin the fast growth of retail media space. It comes at a critical moment in the shaping of retail media as a key element in the strategic channel mix in Europe.”

Europe is by far the most fragmented region in the world, with tens of local and regional retailers, working with different adtech solution providers. The map is an invaluable instrument, helping all entities involved in retail media navigate this complex ecosystem, using a common set of criteria to evaluate on-site, off-site and in-store offering, measurement capabilities and partnerships, across different verticals.

Retail Media Resources from IAB Europe

The Map is a significant milestone in IAB Europe’s roadmap to provide more education and standardisation  for the Retail Media landscape in Europe. Other resources to encourage awareness and investment in Retail Media include A Retail Media Advertising Product Matrix, A 101 Guide to Retail Media, Retail Media Definitions and A Retail Media Glossary. 

The Map will be updated on a quarterly basis with the next update scheduled for the beginning of Q2 2024. 

Access V1 of the Capability Map here. 

Contact details:

Marie-Clare Puffett - puffett [at] iabeurope.eu

Helen Mussard - mussard [at] iabeurope.eu 

A big thank you to the following contributors for sharing their thoughts:

• Diana Abebrese, Global Retail Media Lead, EPAM Systems
• Martin Svarc, IAB Slovakia Representative and CCO, Crxuo
• Larisa Dumitru Head of eCommerce EMEA, GroupM Nexus
• Babs Kehinde, Senior Director, Commerce Media EMEA, PubMatic 

Q1. What are the top two considerations for retailers thinking about building a Retail Media proposition?

Diana:

Start by understanding your customer journey and building a unique proposition to deliver relevant touch points across the journey. Often this will differ by product category, channels, audience segment, store formats, and seasonality. The proposition should improve not detract from the overall customer journey with customer experience always front of mind. Pricing strategy should reflect the role in the customer journey but also consider market rates; demand v supply; category and product profitability and cost of sale.

Secondly, make it easy for your internal teams and advertisers to plan, buy, and measure an end-to-end Retail Media campaign across each touchpoint - this is likely to be a different solution for each retailer, and their target markets (brand advertiser v agency v long-tail supplier v a JBP (Joint Business Plan) supplier with a media commitment aligned to their trading activity). The key is to create a streamlined user journey and enable a single view of the campaign activity through APIs and custom integrations where necessary.

Martin: 

When retailers build a Retail Media proposition, they should prioritise two key considerations. First, they need to assess their audience and data assets, leveraging valuable first-party data and understanding the size, demographics, and interests of their audience. Second, retailers must develop a solid monetisation strategy, exploring different pricing models and ensuring a seamless integration that enhances the customer experience. Additionally, they should consider factors like technology infrastructure, partnerships with brands and agencies, competition analysis, and compliance with privacy regulations. A comprehensive approach to these considerations will help retailers build a successful and profitable Retail Media proposition.

Larisa:

First, have clarity on the go-to-market model: are you building your own Retail Media proposition in-house? Are you working with a third-party? Are you selling through a retailer media network such as Criteo? Will it all be self-service? Will you also offer managed service? We see many retailers working with a plethora of partners, which creates a lot of confusion for brands and agencies. I’m all for testing and learning, but I do believe retailers need to be very clear on the partner ecosystem.

Secondly, make it easy for advertisers to buy into your Retail Media offering – be clear on the unique selling points, on the pricing, on the ways of working.

Babs:

When retailers consider building their own Retail Media proposition, they should firstly initiate internal alignment to clearly define the value they offer to advertisers. This involves fostering collaboration across teams and business units to efficiently develop a viable solution. Additionally, retailers should prioritise effective use of customer data by investing in data technology solutions for storage, management, analysis, and activation of audience segments. Without a robust data infrastructure, competing in the realm of data-driven advertising becomes challenging. 

Furthermore, Retail Media thrives on collaboration. Retailers should engage in strong partnerships with brands and agencies, ensuring their proposition is attractive and accessible. Retailers need to understand their new partners' needs and goals and provide the best tools and solutions to align with strategic objectives. Lastly, retailers should be open to working with third-party technology providers to aid them in their Retail Media endeavours. The development of these retailer-technology partnerships is vital to the growth as well, as it makes it easier for smaller, vertical-specific retailers to enter the market and compete on a level playing field with the larger players.

Q2. What challenges should they be aware of?

Diana:

There are many! 

• It’s very easy to jump on the next shiny product bandwagon, but how do you ensure it is future-proofed?  Can it adapt to the potential needs of tomorrow - standardisation, growing market demands,  new buy types/ KPIs, new DSPs? Due diligence around this is something that often gets overlooked, rendering a part of the proposition redundant very quickly.
• More inventory/new products does not always mean more revenue. It can sometimes mean better (more profitable/ higher performing) revenue, replacing existing investment into other products. Manage expectations internally when building business cases and invest time in training and GTM around media planning and optimisation automation.
• When building a proposition, retailers will generally have to integrate with some 3rd party platforms. Be aware of buying into solutions, where you are told that it's a simple integration - “we just need to add a simple tag on the site.” It is rarely that simple - and you will have to jump through multiple hoops internally - business case, testing, securing dev time - before this can even be considered.

Martin: 

Retailers can build the case internally for a Retail Media proposition by highlighting the benefits of collaborating with trusted partners who have experience in this domain. They can emphasise that partnering with established experts avoids reinventing the wheel and accelerates the process of launching a successful media proposition. By showcasing the potential revenue streams, enhanced customer experiences, and the opportunity to strengthen brand partnerships, retailers can make a compelling case for internal stakeholders, demonstrating that leveraging trusted partners is a strategic and efficient approach to building a thriving Retail Media proposition.

Larisa:

In Europe, the Retail Media market is expected to be valued at 25 billion EUR by 2027 – that number in itself is a good starting point when trying to convince internal stakeholders to launch a Retail Media proposition. For retailers, I believe it’s less a case of why and more a matter of how and when. Bringing everyone to the table and ensuring that all interests are equally represented (trade & shopper, marketing, content, sales, etc) will be key in ensuring a holistic Retail Media proposition and it’ll make it easier for agencies and brands to buy into it.

Babs:

When persuading their internal teams, Retailers must remember they’re not just selling an idea but are telling a compelling story that aligns with the team’s goals and values and the significant growth opportunity for their organisations. A few things to bear in mind are: 

• Speak the language of value: Link the proposition to the company goals, focusing on incremental revenue and customer engagement outcomes. 
• Show don’t just tell: Use real data to illustrate the benefits of Retail Media for the business. 
• Address scepticism head-on: Answer any doubts and concerns with clear evidence. Be transparent and honest. 
• Map out the road ahead: Explain the steps, resources, and timeline needed to make the proposition a reality. 
• Get champions on board: Get support from key stakeholders who can influence and overcome resistance. 

Q3. Can you share two top best practices for retailers?

Diana:

1. Conduct a proposition audit every six months to assess how it is delivering against your business strategy. Build a framework that highlights gaps in the current portfolio, reviews competitor propositions, reviews the performance of each placement - STR, pricing, ease of implementation, ROAS, impact on site yield, and considers qualitative feedback - internal and customer. 
2. Stay connected with the industry as it is so fast-moving. Keep talking to vendors and partners. Score and group innovation ideas into buckets such as - Do Now; Never; Yes but Not Yet; and Needs more Consideration. Continue to review quarterly.

Martin: 

1. Adopt a step-by-step approach: Rather than spending extensive time on forming a comprehensive strategy, retailers should take an iterative approach. Consider utilising an existing technology or platform to build a first proof of concept. Deliver tangible results, evaluate performance, and learn from the outcomes. This incremental approach allows for adjustments and optimisations along the way, leading to a more effective and efficient Retail Media proposition.
2. Simplify and expand the offering: Leverage existing platforms that simplify the complex process of vendor marketing. Streamline the management of vendors and extend the offering to both endemic and non-endemic vendors. By combining trade marketing and branding budgets, retailers can create an attractive proposition for brands and their agencies. Retail Media uniquely captures the complex customer journey from first impression to repeated conversion, providing a comprehensive channel for brands to engage with their customers.

Larisa:

1. There is so much noise at the moment in the industry and so much fragmentation, so make it easy for your external stakeholders to understand your Retail Media proposition – everything from the pricing model to the placements and creative opportunities. 
2. Showcase the incremental value that your Retail Media offering is bringing to the table – offering a ROAS metric based on last-click attribution doesn’t cut through the noise anymore. Brands need to know that the money invested in Retail Media will bring in incremental sales and new to brand audiences and they want to be able to properly track and measure those results.

Babs:

1. Prioritise the customer journey - Use Retail Media to enhance the customer experience at every stage, from raising awareness to establishing loyalty. By leveraging customer data, retailers can deliver relevant and personalised ads that match the customer’s needs. Measuring the impact of your Retail Media campaigns on customer metrics, such as satisfaction and lifetime value can help gauge their effectiveness 
2. Innovate and differentiate - Use your unique assets, such as your own products, services, content, and channels, to create distinctive and compelling Retail Media solutions. Experiment with new formats, on-site and off-site technologies, and partnerships, to offer more value and variety to your advertisers. Create a Retail Media proposition that reflects your brand identity and values, and that resonates with your customers and advertisers.

To dive into this a little further, experts from our Retail Media Committee share their insight into the type of measurement and metrics that buyers expect from a Retail Media Network. 

A big thank you to the following contributors for sharing their thoughts:

• Diana Abebrese, Global Retail Media Lead, EPAM Systems
• Rutmer Faber, Retail Media Lead & Marketplaces, Publicis Groupe Netherlands
• Dirk Hahn, Executive Professional Retail Media, Schwarz Media
• Mark Bausinger, Senior Director, Business Development, DoubleVerify
• Christian Bahrendt, Head of Product, Advertima 
• Laura Badea, Global eCommerce Partner, GroupM

Q. What measurement data do you expect from any Retail Media Network?

Diana: I expect basic media measurement including reach metrics (impressions/footfall); viewability, and engagement metrics (clicks, reactions/shares); video views; and sales attribution metrics (still likely to be last-touch attribution). However, retailers need to move past this  very quickly, to providing fully de-duped multi-touch attribution measurement at a campaign level. 

Rutmer: Since retail media has the advantage of closed-loop measurement, reporting on sales including transparent attribution is essential, both for offline, online and across different advertising tools within the consumer journey that retailers are offering. Campaign delivery data should also include costs (CPM/CPC), reach and engagement insights where feasible. For the offline channel we often see retailers offering sales uplift based on store comparisons (considering store profiles that are comparable) and for example D-OTS (digital opportunity to see) for in-store screens. The online channel; has a lot more data such as unique reach, impressions (based on viewability standards), clicks, add-to-carts, conversions, sales and ROAS. Metrics such as new-to-brand and share of voice are also starting to become more standard,  so I would expect these insights as well.

Mark: Agencies and advertisers should expect the same media quality assurances they would see from any other digital campaign.  It’s important to have standardisation across media types for accurate channel comparison and effective media planning.  Comprehensive media quality coverage includes measurement of the following; brand safety, viewability, IVT/fraud, and geo verification. These types of media quality measurements are crucial to ensure effective and efficient media spend.

Christian: We are focused on in-store Retail Media. Our key objective is to make in-store shoppers addressable in real-time, like online media channels. So, similar to online, the fundamental metrics aim to measure engagement opportunities for the upper funnel and attributable direct sales for the lower. The basic metric for engagement is audience reach, measured through unique shoppers, impressions, and their respective ratios. For sales, its transaction data that is sliced and diced into the most relevant sub-totals such as SKU sales, item sales, etc. 

Laura: Standard reporting should be real time and include media campaign performance across the purchase funnel, eg: Reach, Viewable Impressions,  Video completion rates, Clicks, CTR, Page views, Units sold, paid sales (value), conversion rate CR, Repeat Purchase rate RPR, New to Brand NTB, ROAS, Add to cart.

Additionally, retailer specific benchmarks for high level categories updated on regular basis, for main KPIs such as CTR, CR, ROAS, etc 

Q. What additional metrics (beyond the basics) have you received from Retail Media Networks that you thought were valuable? 

Diana: I have found the following insights valuable for evaluating media effectiveness and to build a more holistic story around campaign performance:reach v frequency; new v loyal buyers; incremental sales; customer journey insights; basket affinity; shopper mission; shopper lifestage/segment. 

Rutmer: In the current state of the industry, metrics beyond the basics play an important role in offering a more holistic perspective on retail media, a crucial aspect on the path to maturity. We see here that retailers are starting to provide more insights on the ‘true’ value of multiple retail media touchpoints and interaction effects next to last touch attribution. These insights are needed to determine the right mix of tools to reach a certain brand goal for our clients. This can be for instance incremental sales, increasing reach or penetration within a target group or increasing brand awareness related KPIs. This is often done with the help of retailers in combination with an independent research company and the agency, ideally it contains multiple retailers and channels to be able to compare retail media against other media channels also taking into account costs. Besides media insights, brand and category are sometimes shared as well and can be used to identify opportunities for brands to grow. Examples are traffic and conversion insights versus competition, path to purchase insights, market basket insights etc.      

Dirk: Additional metrics that we might provide include; customer lifetime revenue (new to brand customer: forecast for 12 months), category share/growth, retail baseline. 

Mark: We’re seeing more demand for Attention metrics.  This expands on the concept of viewability by incorporating Engagement and Exposure.  Engagement is the measurement of user interaction including variables such as user presence and ad interaction.  Exposure is the measurement of ad presentation including metrics such as viewable time and share of screen.  Together, these advanced measurements combine to form a more sophisticated understanding of use and ad interaction.  This is important for on-site media where viewability rates may be lower, but Attention can be higher; showing a different type of user interaction with retail media advertising. 

Christian: At first, it's essential to stress the physical peculiarities of the in-store environment compared to online. Many more products vie for the attention of every single shopper at the same time. Also, it has to be considered that physical store media operates in a one-to-many environment. This makes it more complex than most online environments. Therefore, smart metrics for in-store Retail Media should help brands understand this "noise" in an actionable way. 

Assessing the impression frequency per unique shopper helps understand the density of ad exposure within the stores. For more tailored analyses, the measurements should extend to segment-specific figures for views and view times to equip brands with crucial insights into their creative process. This can help answer questions like whether a simple packshot plus price is the best or if there is some need for creative execution with animation, etc.

Laura: Media agencies and advertisers have always been looking to understand the sales contribution of each channel in the marketing mix, to be able to optimise investment allocation to improve performance. Retail media is now competing for budgets with the rest of the media plan, and therefore there is a need to understand the incremental lift driven by activating retail powered audiences on and off retail platforms, versus direct investment in core media channels. Sales uplift studies should become the norm for large retailers looking to unlock advertising $.

With retailers evolving their measurement capabilities it is expected that customer insights (browsing and purchase behaviour, basket composition, repeat purchase rate, lifetime value), category insights SOV, SOM and benchmarks to become standard requirements to inform and drive rigour and accountability in the strategic planning process.

Q. How do you put these metrics to use as part of your future buying decisions?

Diana: Across the board from annual strategy development, budgeting, testing and prioritisation through to individual campaign planning. 

Typical use cases include: 

• Designing and testing customer journeys with different creatives and calls to action;
• Testing incremental contribution of individual media by adding/removing from core plan;
• Defining the role of each media and use within relevant campaign types. 
• Creating customer journeys by audience/persona type - although we should also be thinking about how we can achieve this at individual customer level for the future, using AI/ML technology.

Rutmer: These insights hold significant importance for us as they play a crucial role in assessing alignment with specific brand objectives for our clients. Our primary aim is to gain a comprehensive understanding of how various retail media networks can help achieve these goals and how effective different tools are within a network. This is often combined with broader information from clients on retailer relationships and challenges. We are continuously testing different tools, creatives and prioritising the right networks, tools and creatives that work well for our clients in achieving their goals.

Dirk: Media buyers and brands can use the metrics to evaluate the spend as follows:

• Category share - see the category share and the potential within a product category
• Retail baseline - see the campaign effect during and after the campaign
• Customer lifetime revenue - see the long term effect of a retail media campaign

Mark: Having a deeper understanding of media quality and performance in retail media will help inform better campaign optimisations, as well as larger media investment decisions.  We see increased measurement opportunities as a maturing of the retail media vertical and early adopters will benefit the most from this increased sophistication.

Christian: The major challenge for physical stores is that they need to be equipped with sensors to have real-time data to work with. Only then can you run effectively through a multi-stage optimisation process. As described earlier, first, you optimise the creative effectiveness to leverage media budgets better. Do the creatives get enough view time? Do call-to-actions lead to acceptable conversion rates? Are there meaningful differences across the segments in-store that we can act upon?

Phase two is to look into planning. There is no "search field" in in-store journeys, so trips are not cut short after an item grab, and the whole trip is overall more linear. This means planning engagement across different categories and cross-selling has more tactical depth than online. Repeated engagement across different categories will yield better sales conversion for some segments, justifying extra ad spend. Finding this sweet spot for every segment, product, and category is where real-time addressability plays to its strength.

Laura: We use sales uplift studies, MMMs and customer and category insights to inform planning process and determine budget allocation across channels, based on client goals, portfolio, growth drivers, allocation between search vs display/video, on and off platform. We look at retailers’ media capability, maturity, and off platform reach to feed into the annual planning process. Budgeting is an ongoing process throughout the year, based on performance signals.  

Q. How can brands measure across on-site and off-site campaigns effectively?

Diana: With difficulty if you are buying off-site across multiple networks. Every platform will claim the sale, and many do not currently provide measurement data at the right level of granularity. Retailers need to own their own measurement through ad tagging and tracking customer touchpoints (ad views) as they lead to a sale either online or in-store. For this they need ad platforms to provide ad view data at user level (anonymised) which they can then attribute to the purchase by that user of the promoted product. Retailers should adopt industry standard methodology, and make the reporting available within the buyer platform of choice through APIs.
Rutmer: This is a challenge for retailers and having a good loyalty system that is able to track user behaviour across different channels is essential when in-store is added in the channel mix as well. For providing on-site and off-site integrated measurement, unified data collection (taking into account privacy compliance) and modelling would be needed to look beyond last touch attribution based data from different touch points. 

Dirk: I completely agree with Diana’s comment, it is very difficult to measure across on and off-site channels currently. 

Christian: On online channels, Retail Media has the USP that measurements are based on personal shopper data. In physical stores, sensors only generate anonymous data to keep privacy front and centre. This creates the classic challenge to work with deterministic and probabilistic data at the same time. But of course, you still want to bridge the gap between online and in-store. The way we address this for the upper funnel is to align in-store segments as best as possible with online. You don't need to know who somebody is as long as you have the relevant attributes used to target in every category. Probabilistic IDs will work very well.

For the lower funnel, you need conclusive shopper data, which is why here we work backwards. Retail Media Networks (RMN) know their customers through loyalty and what they have bought. We, on the other hand, can provide anonymous full-funnel in-store journeys that start with the screen engagement and end at the till. The RMN now matches both data sets for its permissioned customer data. In this way, the network unlocks insights for the customers who want to be known while making it technically impossible for everybody else. This process can be managed over a data clean room, adding an extra privacy layer with access controls and audit trails.

Laura: Right now the last click attribution model favours point of sale on platform retail media tactics. The ability to change the attribution model should help make the upper and middle funnel tactics accountable for driving sales alongside lower funnel tactics. I am hopeful that in the future the adoption of clean rooms at scale will facilitate linear attribution models and a more comprehensive path to purchase analysis to become standard reporting.

Find out more

IAB Europe’s Retail Media Committee is at the forefront of the retail media industry. Members are driving retail media growth and shaping the landscape by:

• Creating definitions
• Defining pan-European standards
• Providing market education

Find out more about getting involved by contacting Marie-Clare Puffett - puffett [@] iabeurope.eu