Why Marketers Need a Transparent Solution for Retail Media iROAS

Retail media measurement remains a complex puzzle, with countless ad formats, channels, retailers, and fragmented data points adding to the challenge. As brands grow their year-over-year investments in retail media, the stakes have never been higher—and performance goals are becoming harder to achieve. Incrementality has emerged as the go-to approach for understanding “true” impact, but not all solutions are created equal. In this high-stakes environment, accurate measurement isn’t just helpful—it’s essential for making smarter, more effective decisions.

Throughout my career, from working within both front-end and back-end Amazon teams to leading strategic account teams within an agency, I’ve seen firsthand how the right tools and approaches can transform a marketer’s ability to move from generic reporting to actionable, business-specific insights. These experiences taught me that solving the retail media puzzle means embracing tools that go beyond surface-level metrics and address the nuances across channels.

Today, early evergreen incrementality solutions like iROAS (incremental Return on Ad Spend) are paving the way for actionable measurement. While these tools provide an important step forward, it’s critical to ask the right questions before committing to any one approach. Not all solutions offer the iROAS core requirements of transparency, context, and flexibility that marketers need to make decisions confidently and effectively.

Unlocking the power of iROAS in a complex retail media landscape

The evolution of retail media continues to set these channels apart from traditional media, offering solutions that embrace the publisher and the point of sale as the same. It blends the complexities of media and commerce in ways that challenge traditional measurement approaches. The evolution brings more data for a singular channel; however, this both enables and hinders marketers as they try to solve for incrementality. Walled gardens and fragmented attribution systems make achieving a unified view of performance difficult. On top of this, the endless variations in metrics, operational levers (pricing, promotion, rating, inventory, etc.), and the interplay between online and in-store performance add layers of complexity. 

Even within organizations, teams often disagree on the baselines for incremental analysis. In fact, a recent joint study by the Path to Purchase Institute and Skai found that 70% of advertisers struggle to measure the incremental performance of their retail media, underscoring the need for more accurate and adaptable measurement approaches.

The introduction of iROAS (incremental Return on Ad Spend) marks a significant step in this evolution. It has up-leveled the foundational digital marketing metric of ROAS by measuring the potential causal impact of advertising spend in real terms. While it provides a valuable starting point, vendors often approach iROAS in different ways, leading to varying levels of transparency and customization. The result? Marketers must carefully evaluate which tools truly meet their needs.

The Skai iROAS core requirements difference: a tailored, transparent, and actionable incrementality solution

At Skai, we’ve built our iROAS solution with one goal in mind: to address the real-world challenges of retail media measurement. Incrementality should never be a buzzword; it should be a strategic suite of solutions that empower marketers to refine their approach and make smarter decisions.

We believe that the iROAS core requirements are threefold:

First, transparency is foundational to building trust in any measurement solution. Many vendors offer black-box iROAS calculations, leaving marketers unclear on how calculations are made. This can be compared to fumbling for a light switch in a dark room—it’s inefficient and frustrating. That’s why Skai prioritizes clarity. Our solution offers full visibility into data inputs, methodologies, and assumptions so marketers can confidently act on insights – understanding the inputs required to optimize the outputs.

Second, customization is essential because no two brands, campaigns, or goals are alike. Skai’s iROAS solution adapts to each business’s unique needs, whether that means aligning calculations with product categories, price points, or campaign setups. Measurement isn’t one-size-fits-all, and it’s critical that tools reflect this reality. Incrementality solutions like iROAS require context before blindly making optimization decisions. Without it, brands are left guessing which levers to pull.

Finally, keyword granularity isn’t just a ‘nice to have’ but a true need. By delivering insights at the keyword level, we help marketers get closer to customer intent and make precise optimizations. Granular insights help marketers turn data into action, especially at the keyword level. This level of detail bridges the gap between strategy and execution, enabling marketers to refine campaigns with confidence.

By combining transparency, customization, and granularity, Skai’s iROAS solution equips marketers to not just measure impact but to use those insights as a competitive advantage.

Seven questions when evaluating an iROAS solution

1. How transparent is your iROAS calculation process? Can you provide visibility into your measurement’s data inputs, methodologies, and assumptions?
2. Does your solution allow for customization to align with our business needs? For example, can we tailor the metrics to account for unique factors like campaign setup, product categories, or specific business objectives?
3. What level of granularity does your solution offer? Can we access insights at the keyword level or other detailed metrics that allow for actionable decision-making?
4. How does your solution handle cross-publisher measurement and standardization? For instance, can it provide parity across networks like Amazon and Walmart, and how does it manage differences in metrics or attribution windows?
5. What level of support and integration does your solution offer? How easily does it integrate with existing tools, and what support is provided for onboarding and ongoing optimization?
6. How does your solution ensure scalability for evergreen incrementality measurement? Does it allow for always-on measurement, and how does it adapt to changing data availability or campaign structures over time?

Conclusion: Elevate retail media incrementality for long-term growth

The retail media landscape is evolving, and so should the way we measure success. Metrics like iROAS are a strong starting point, but they’re only as effective as the context and customization behind them. The future of retail media measurement lies in incrementality solutions that go beyond surface-level insights to deliver actionable, always-on guidance.

For marketers, this means shifting from one-off tests to scalable strategies that refine how they spend, not just where they spend. With Skai’s tailored approach to iROAS, I believe we’re equipping brands to turn measurement into a competitive advantage.

Incrementality isn’t just about proving the value of your campaigns; it’s about driving smarter, long-term growth. And that’s a goal worth pursuing.