Even a few years ago, online retail media campaigns came with interim or post-campaign reports on sponsored product clicks and store sales lift, but not the kind of data Spectrum wants to optimize ad spend, Glick said.
If a brand promotes a product with a retailer in a certain market, and that retailer also discounted the price or ran coupons for that product, the brand could actually have an unprofitable jump in store sales – which would just be reported as a jump in store sales. The brand may have spent heavily to acquire some new shoppers who are more interested in the discount than the product, and sold at a discount to many customers who would have purchased at the normal, profitable price tag.
That kind of ACOS data, which Glick said are the overall components of incremental growth, are built into Amazon’s advertising platform, and are only now gaining adoption across the web.
When a campaign must be optimized based on common KPIs such as click-through rates, last-click sales or ROI, Spectrum’s marketers must take a more hands-on approach. None of those metrics align with what Spectrum actually wants from its ad spend: improved discoverability in search indexes and online retail, and incremental customer growth. And so those campaigns need constant adjustment to stay on track.
“If we can set the campaign by the KPIs we’re going for, then we can let the platform make the hundreds of tactical decisions,” he said. “Any chance to get my team out of that tactical decision-making mode to leveraging automation, that’s a good place to head towards.”
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