La Tribune – “E-retail media” : measuring performance beyond ROI
Over the past few years, e-retail media has experienced a boom that continues to attract a multitude of diverse players, and with them, a multitude of equally diverse solutions and campaigns. According to the Observatoire de la Pub (and included in the IAB’s cartography), brand investment in e-retail media has risen by 42% since 2020. The aim here is to make a brand stand out from the crowd through increasingly innovative communication and visibility tools, and above all, to ensure that the user experience on a given website is seamless. By Virginie Chollois, Marketing & Communication Manager Senior
With the explosion of digital solutions, the traditional marketing mix has had to evolve into an “e-marketing mix” in order to adapt to new ways of consuming, to fast-moving markets, and to respond to different and increasingly innovative shopper expectations. Whether in the experience, which needs to be fluid, or in the device or channel used by the shopper, or in the assortment on offer. The number of products and services launched and tested as a result of this adaptation of the offer to digital is numerous. Digital opens up unprecedented possibilities, enabling us to test, stop, start again and, above all, innovate. In short, it enables us to evolve our offer and the experiences available. The field of possibilities is vast, and above all, the speed with which it can be implemented makes it extremely flexible and responsive.
Performance measurement made more complex by the multiplication of solutions on offer
The richness and speed of development of these offers also imply different performance measurements. Knowing that it is now possible to access pure purchase data (first-party data) and not just shopping cart data, its operational use brings greater granularity and power to the systems put in place. On the other hand, its analysis adds complexity to the comparison of solutions.
The grail of measurement is ROI. It’s an essential indicator, but one that needs to be considered alongside the actual business impact generated.
Behind a KPI lies a complexity directly linked to the diversity of calculation methods that can be associated with it. Some will focus on visibility KPIs, while others will concentrate more on business conversion. Indeed, media agencies will rely more on a ROAS (Return On Ad Spend) method; while other service providers will use A/B test methodology and compare the results of those exposed and unexposed to digital activation.
The calculation methods are many and varied, as access to more and more data has been made possible. For example, it is now possible to access pure purchase data (first-party data), and not just shopping cart data, which is not always accurate and does not guarantee shopper conversion. Indeed, it’s difficult to consider shopping cart placement as a conversion KPI, given that 70% of Internet users abandon their shopping carts before actually making a purchase. This makes for much more granular and powerful operational use, as well as enabling more detailed and rapid analysis of what’s working and what needs to be improved.
The only common point between all these measurements lies in the quality of the Data associated with these calculations. If today we have access to a large amount of data, this does not mean that all data is equal, whether in terms of granularity, quality, reliability, history, etc. It is important to note that the processing of such a mass of data, its analysis and/or its operational use represents a challenge in itself, which not all stakeholders are able to meet.