Prove in-store media impact by comparing conversions made with and without ad influence.
What is Incrementality?
Incrementality is the study of the influence that an ad has on prospective purchasers, and is used in measurements of the incremental return on ad spend (IROAS). In other words, how many additional conversions were created as a direct result of the ad. The primary measurement of incrementality is incremental lift, which compares the clients who would’ve bought regardless of an ad, with those influenced by the ad, showcasing the increase in conversions that can be directly attributed to retail media. The incremental lift formula can be rearranged to find other measurements of incrementality, including incremental impact on revenue.
With PoS integration, Venvee is able to measure incremental lift, so brands gain a fully transparent understanding on the effectiveness of their ad.
Incremental lift is found using 4 client scenarios:
Client Saw the Ad
Client Didn’t See the Ad
And Didn’t Purchase
And Didn’t Purchase
Client Saw the Ad and Purchased
Client Saw Ad and Didn’t Purchase
Client Didn’t See Ad and Didn’t Purchase
Client Didn’t Se Ad and Purchased
Start With All Client Paths
First, Venvee start with a view of all clients who shopped during the time an ad campaign was live, collected with novel single camera technology. This provides all the data necessary to measure incremental lift, but requires filtering clients into the four pre-mentioned categories.
Conversions Without Ad Impressions
Venvee then filters for clients who didn’t see the ad, split into those who purchased the advertised product, and those who did not. This provides a ratio of clients purchasing regardless of ad influence, and can be combined with pre and post ad PoS data for the most comprehensive measurement.
Conversions With Ad Impressions
In parallel, Venvee filters for clients with ad impressions, split into those who purchased the advertised product, and those who did not. This creates a ratio of clients purchasing due to ad influence.
Measure Incremental Lift
Finally, Venvee compares the two found ratios to measure incremental lift, as well as the incremental impact on revenue.
The ratio of purchases without ad influence acts as the control group. This ratio shows that X% of clients who saw the ad would’ve purchased regardless of seeing it.
By subtracting the control ratio with the ad impressions ratio, then dividing by the control ratio, Venvee is able to measure incremental lift. By performing the same subtraction, but dividing by the ad impression ratio, Venvee can show the incremental impact on revenue attributed to the retail media.
Example - Incremental Impact on Revenue
20 clients shopped in your store today while an ad ran for boxed candy.
12 clients didn’t see the ad. 4 of those bought boxed candy. 4/12 = 33%
8 clients did see the ad. 4 of those purchased the advertised item. 4/8 = 50%
(50 – 33) / 50 = 0.34% Incremental Impact on Revenue
In other words, the ad influence created 34% more revenue on boxed candy.
Want to Learn More?
Standardize Audience Metrics
Using pathing data and novel AI, Venvee collects client impressions and actions, and ties them with conversions for full in-store closed-loop attribution.
Physical to Digital Retargeting
Through loyalty program integration, Venvee can turn in-store client intent into actionable retargeting, creating a valuable omni-channel experience.