Albertsons Media Collective, the grocery-store operator’s retail media network, said it has launched what it calls “onsite incrementality measurement.”
The retailer described the new offering as a way to provide “clear insight” into how onsite display media drives new sales. The retailer said the methodology for Albertsons Media Collective’s onsite incrementality measurement “uses test and control frameworks to isolate the effect of media exposure.” That helps it to offer a clear view of incremental lift and enable more standardized comparisons across campaigns, according to Albertsons.
Albertsons said it designed the offering “to help advertisers better understand the true impact of their retail media investments. As brands increasingly prioritize incrementality as a key performance indicator, this solution provides clear insight into how onsite display media is driving new sales.”
In Albertsons’ most recent earnings call with investors in mid-April, CEO Susan Morris called the retailer’s loyalty program “a flywheel for growth.”
“It enriches our data, strengthens our media collective and helps us personalize promotions with increasing precision,” Morris said. “Across the board, loyalty is driving higher lifetime value, deeper omnichannel engagement and a more predictable, resilient revenue base — all essential components of our long-term growth algorithm.”
Albertsons’ loyalty program and retail media network play key roles in how the retailer grows its digital sales.
Albertsons is currently 18th in the Top 2000 Database. The database ranks North America’s top online retailers by their annual ecommerce sales and more. Albertsons owns and operates its namesake store, Albertsons, as well as brands including Carrs, Haggen, Jewel-Osco, Lucky, Safeway and more.
How Albertsons Media Collective is tracking a new measurement
The Albertsons Media Collective conducted research with Ovative and the Northwestern University Kellogg School of Management. They found that incremental return on ad spend (which they shortened to iROAS) “can vary by 6.5x and flip results in 83% of campaigns based on methodology alone.”
Another way to describe iROAS, according to an Albertsons Media Collective blog post: The revenue that occurred because of advertising that would not otherwise have happened. That post also referred to the metric as “powerful” but “sensitive.”
Albertsons said that underscores a need for more transparent, consistent measurement. It said onsite environments — referring to physical stores — offer a “strong foundation for observing these effects” because “shopper behavior is closely tied to purchase.”
“This new capability isolates the causal impact of media from purchases that may have occurred regardless, enabling advertisers to evaluate how campaigns influence business outcomes with greater precision,” according to the Albertsons announcement.
It said that more transparent and actionable management can help brands optimize media spend. It also can help them refine creative strategy and improve audience targeting as a result of a clearer understanding of performance, according to Albertsons.
“As retail media continues to grow, advertisers are looking more closely at what’s actually driving performance,” said Liz Roche, vice president of media and measurement at Albertsons Media Collective, in a statement. “Incrementality is a critical metric because it helps brands understand whether their media investment is creating new demand or simply capturing existing sales. With onsite incrementality, we’re giving advertisers clearer insight into how their campaigns influence sales so they can make more informed decisions about where and how to invest.”
Who is using the Albertsons Media Collective for advertising?
In announcing the new advertising measurement, Albertsons Media Collective cited benefits from S. Martinelli & Co. The brand has made apple juice products for more than 150 years.
S. Martinelli used a multi-placement onsite strategy through Albertsons Media Collective. And according to Albertsons, the brand engaged consumers “from discovery through conversion within a single environment.”
In doing so, S. Martinelli’s campaign had a $7.45 iROAS, according to Albertsons. It also drove 65% new-to-brand buyers and increased sales 33%, according to Albertsons.
In the announcement, Ashley Bair-Caruso, director of marketing at S. Martinelli, praised the results from the brand’s campaign with Albertsons Media Collective.
“Strong conversion rates, impressive iROAS and a meaningful uptick in new‑to‑brand buyers,” Bair-Caruso said. “This campaign set a new standard for how we approach seasonal shopper marketing and how we use data to deepen our connection with both loyal and new consumers.”
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