How Incrementality Impacts Ad Spend

This podcast explores the transition in retail media measurement from Return on Ad Spend (ROAS) to Incremental Return on Ad Spend (iROAS). The hosts explain that while ROAS is straightforward to access, it often misrepresents advertising's true impact by not considering sales that would have happened without the ads. In contrast, iROAS aims to measure the actual *new* sales generated by advertising, addressing the shortcomings of ROAS, particularly in mature markets with well-established brands. The discussion also delves into the difficulties of accurately measuring incrementality, which are compounded by data silos and the fast-evolving e-commerce landscape. Guest Alex Juday introduces his company, Incremental, which seeks to tackle these challenges by consolidating data from multiple sources and using a daily-updating model to reflect changing market conditions.