How advertisers and media partners can close the loop on ROAS, together.
Many advertisers are doing the best they can to build a “workable” solution for closed-loop measurement of their digital media campaigns. But what concessions are they having to make, given the shortcomings across media channel data that’s available and ad tech that can integrate into a singular funnel view?
For many, today’s solutions still fall short. While media budgets face heightened scrutiny due to an expectation that marketers in 2020 should be able to prove business impact, closed-loop measurement is no longer a “nice-to-have.” It’s a necessity.
To see if your campaigns are being held to the highest standards available in the marketplace, start by asking yourself:
- Are the measurements I’m using today holding all tactics accountable? Why or why not?
- Which measurement capability can I rely on going forward to better answer how marketing and media tactics help achieve business outcomes?
- Can I rely on one partner to solve this challenge, or do I need to consider an ecosystem of partners?
Before closed-loop measurement—measuring engagement.
Prior to better data and ad technology that enabled closed-loop measurement, advertisers relied on engagement metrics to analyze digital ad performance. But these vanity metrics alone couldn’t tie back to real conversions or sales, leaving the advertiser to hypothesize that proxies like high click-through rates would consistently drive an uptick in sales.
Without the ability to effectively track ad performance and connect media to actual sales, many advertisers and agencies likely undervalued their media activity and over-relied on more traditional, marketing-centric key performance indicators (KPIs), like brand awareness. In a survey of 468 senior marketing leaders, 39% said that media measurement is one of the biggest gaps in their marketing research.
Multichannel attribution and true return on ad spend (ROAS) were once marketing dreams, not a reality … until now, with closed-loop measurement.
From measuring engagements to measuring results.
True closed-loop measurement gives advertisers the power to do the never before: Tie a media campaign back to real sales. Today, advertisers can add to upper-funnel engagement metrics by growing the optimal audiences at the top of the funnel and delivering real measurement at the bottom.
With more access to campaign data and consumer behavior—and deeper insights—advertisers can see media’s impact across the full sales funnel and then focus their media spend on tactics that drive the greatest ROAS for their business.
While advertisers can deploy closed-loop measurement in their advertising campaigns in several ways, few achieve the best market solution. Many advertisers must base their multichannel attribution on assumptions and data extrapolations, not real-people data. So, while the current version of closed-loop measurement provides a benchmark for improving media campaigns and evaluating ROAS, “hypotheses” still factor into the equation.
The best solutions in the market of closed-loop measurement—getting granular with media results and ROAS. What separates the best solutions in the marketplace from other versions of closed-loop measurement is how media partners tie data back to actual purchases, including in-store and online. No more extrapolations. Advertisers can calculate true ROAS based on real people and real purchases.
This closed-loop measurement presents a simpler way to do multi-touch attribution and enables advertisers to see a more granular level of data: real-people, first-party data across multiple touchpoints. Now that advertisers can track customer behavior through their devices and ID graphs, we can answer questions like these:
- Is this customer new to my brand?
- How much of my online media resulted in in-store sales?
- Which channels drive greater ROAS based on my target audience(s)?
Most advertisers can’t achieve this level of granularity on their own. They need media partners that hold themselves accountable to delivering a higher standard in the media programs they offer and proof of performance—all built around advertisers’ objectives and KPIs. That’s what happened when PepsiCo partnered with Roundel to measure its Google ad exposure across channels.
“The fact that the data was pretty near real time, on top of just how granular and how sales-focused it was, made it a very exciting opportunity.”- Stephanie Pegler, E-commerce Digital Media Manager at PepsiCo
Analyze item-level sales performance with a media partner who gets real people.
When choosing a media partner, reframe the initial three questions you asked yourself in the beginning:
- Is the closed-loop measurement I’m using today holding all tactics accountable? Why or why not?
- What closed-loop measurement can I rely on going forward to better answer how marketing and media tactics help achieve business outcomes?
- Which media partner is willing to work in partnership to deliver the solution I need to prove marketing grows my business?
With cookies dying and more calls for media transparency, it’s more important than ever to have first-party, real-people data—and a media partner who can support that.
Roundel lets advertisers securely match their data with Target’s high-quality, first-party data to measure multichannel performance. That includes actual in-store and online purchases for millions of guests across many channels. It’s just one of the ways we’re changing media for good.
Want to close the loop and discover the true impact and ROAS of your media? Contact us to learn more about Roundel and Media For Good.
¹Kantar, “Getting Media Right,” 2018 study, https://www.millwardbrown.com/gettingmediaright/2018 (accessed July 8, 2020).
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