An executive from Target’s Roundel advertising business said he’s confident in the retailer’s approach to measuring a specific key metric but suggested that advertisers aren’t ready to fully rely on it.
For the past couple of years, Target and other retailers have encouraged advertisers to use incrementality to measure their retail campaigns. Incrementality is a metric that aims to determine the sales revenue generated by a campaign versus sales that would have happened without showing the ad, often comparing sales across test-and-control groups.
During an event for advertisers in New York on Tuesday, Shawn McGahee, senior director of performance and insights for Roundel, said that only 8% of Roundel’s advertisers are using incrementality measurement as the primary performance metric for their business.
