Today, we’re taking a deep dive into one of the buzzwords that is causing ripples in the marketing world – incrementality. But what is incrementality? Simply put, it refers to the additional growth value attributable to a specific marketing effort, from the type of ad to the channel used.
Why is this important? The understanding of incrementality offers valuable insights into how different touchpoints contribute to the purchase journey, allowing for a more customer-centric approach to planning and unlocking where marketers should invest their next ad dollar.
The power of data sharing & data clean rooms
In the past, advertisers were hindered by limited data availability, which prevented them from gaining a comprehensive view of the customer journey. However, findings from our 2023 State of Retail Media survey suggest that most advertisers are now satisfied with the capabilities of several retail media networks.
Despite this progress, a significant challenge still remains for 37% of advertisers: proving the incremental impact of their retail media investment. The inability to demonstrate this impact can inhibit the growth of this marketing channel.
Brands today are shifting their focus to first-party (1P) data from retailers. This data offers abundant sources that can be leveraged to build a customer-centric strategy, enabling a bottom-up approach rather than a top-down one. Here, data clean rooms play a crucial role in identifying various touchpoints in the customer journey, allowing advertisers to move away from the outdated last-touch attribution model and providing them with the means to prove the incremental value of their advertising investment.
Harnessing the power of Amazon Marketing Cloud (AMC)
Brand traffic is often disregarded as an incremental traffic source. However, imagine being able to prove that one of the touchpoints in your customer’s journey is driving brand interest and being able to measure exactly how much it contributes. This is where Amazon Marketing Cloud (AMC), Amazon’s data clean room, comes in.
AMC moves away from the limited view of last touch attribution, which typically overemphasizes lower funnel ad spend, to provide a holistic view of the shopper journey. With AMC, the entire journey, starting from an offsite DSP ad to the final purchase on Amazon following a click on a sponsored product ad, is visible. Essentially, while DSP creates demand, paid search captures it. However, without AMC, this invaluable data remains unexplored.
By utilizing AMC, you can effectively unlock customer behavior data and unpack the incremental value of each ad. This allows for identifying the optimal media mix and insight into boosting your campaign performance.
AMC via Skai: a case study
Our client embarked on their journey with AMC via Skai and promptly identified key insights that significantly improved their campaign strategy. They needed help with a sub-brand contributing a meager 5% towards overall sales and seemingly unprofitable. Their initial thought was to cease investment, but with Skai’s AMC Reporting, they discovered the sub-brand’s substantial brand introduction impact on other brands. It featured in 14.3% of occurrences in the path-to-purchase report, revealing its actual incremental value across the brand.
Skai allows advertisers to run unlimited customizable AMC reports, transforming Amazon’s extensive data sets into user-friendly visualizations. This aids in understanding Amazon campaign incrementality beyond standard last-click attribution in the native platform, unlocking multi-touch models, and gaining further insights into customer behavior and journey for performance optimization.
Learn more about how Skai makes your retail media programs smarter
Skai’s omnichannel marketing platform, with its retail media solution, is designed to empower brands to plan, execute, and measure digital campaigns that meet consumers when and where they shop. Equipped with industry-leading automation and optimization capabilities, our unified platform lets you manage campaigns on over 100+ retailers and publishers, including retail media giants like Amazon, Walmart, Target, and Instacart, and other publishers that contribute to the retail media flywheel, including Meta, Google, and more⸺all from a single interface.
By offering you a holistic view of your customer’s journey, Skai facilitates strategic decision-making, enabling you to understand the impact of your retail media investments fully. This comprehensive understanding of incrementality and customer behavior is key to unlocking the true potential of your brand, thereby driving profitability and growth.
With the help of Skai’s AMC reporting, you can dive deeper into your data and unlock insights that were previously unattainable. Not only does this bring clarity to your customer’s purchase path, it also opens up new avenues for understanding the role each advertising channel plays in driving brand interest and sales.
In conclusion, understanding incrementality and unlocking its power is essential to developing a customer-centric strategy. With the right tools, such as Amazon Marketing Cloud via Skai, you can gain a comprehensive understanding of your customer’s journey and the incremental value of your advertising investment. This allows you to optimize your media mix, boost your campaign performance, and ultimately drive profitable growth.
We invite you to schedule a quick demo at your convenience to witness our retail media innovation firsthand. We’re confident that once you see the capabilities of our platform, you’ll understand why so many advertisers are turning to Skai to make their retail media programs smarter and more efficient. Unlock the full potential of your retail media investments with Skai today.