Closed-loop measurement: More attainable than ever
An ever-growing number of consumer marketing channels makes it challenging to directly measure the impact of marketing efforts on sales. Shoppers may be exposed to a product or service via an online or in-store ad. They might decide to learn more about the brand through online reviews or chats. When they’re ready to purchase, they might go in-store to talk to a salesperson or customer service rep. And when they’re in the store, they may be influenced by in-store displays or on-shelf messaging. All of these available interaction points can make it difficult for brands to know how, where and when to activate their marketing strategies to drive purchases. But these new platforms also provide more touch points and opportunities for CPG brands to better understand each stage of the customer journey and improve the customer experience. From on-site display ads to more top-of-the-funnel channels such as social media and connected TV, brands must be present where their shoppers are to build awareness and drive purchases.
In response to this growth, new technologies are opening the door to more comprehensive data insights, whether customers are shopping online or in-store. By connecting that data to their marketing efforts, brands are better able to understand the customer actions driven by each touch point – from first exposures to post-purchase behaviors – to ensure their media spend is as effective and efficient as possible.
Verifying business impact
Closed-loop measurement refers to the process of understanding the effectiveness of advertising campaigns and other marketing efforts through the entire customer journey, from upper funnel awareness efforts to post-purchase customer behaviors. This type of analysis “closes the loop” between media exposure and sales, to identify the most impactful campaign elements and measure the effects those elements have on sales.
Some of the key benefits of closed-loop measurement for brands include:
Attribution: When using closed-loop measurement, advertisers can attribute conversions or sales to specific ads or campaigns. This helps them understand which ads are driving results and allows for more accurate return on investment (ROI) calculations.
Optimization: Because closed-loop measurement involves continuous feedback and data analysis at each stage, the insights gained from closed-loop measurement enable advertisers to optimize their programmatic campaigns in real time. They can adjust bidding strategies, creative elements, and other campaign parameters to improve performance based on actual outcomes rather than just click-through rates or impressions.
Personalization: Closed-loop data can inform programmatic advertising by identifying which messages or creative variations resonate best with different audience segments. This enables more personalized and effective advertising.
Budget Allocation: Advertisers can use closed-loop measurement to make informed decisions about where to allocate their advertising budgets. By understanding which channels and tactics are most effective, they can invest more in high-performing strategies and reduce spending on those that do not yield desired results.
Tailored and transparent
Closed-loop measurement helps marketers make data-driven decisions to enhance their strategies and optimize their media purchases. By tying campaign exposure data to shopper purchase data, it helps companies accurately measure the ROI of their ad spend. Measurable results should be available on every campaign. As innovation continues in the analytics and technology, brands will be able to better learn how their media investment impacts the metrics that matter, from incremental sales lift and return on ad spend, to category share and household penetration shifts. Armed with those insights, they can ensure their media spend is optimized for maximum results.
Accurate closed loop measurement with Kroger Precision Marketing
The Kroger Precision Marketing (KPM) retail media network closes the loop between media exposure and store sales by matching ad exposure of custom audiences to in-store and online sales at Kroger. KPM’s programmatic capability enables advertisers to activate and measure the effectiveness of campaigns ranging from targeted on-site display ads to online video and connected TV.
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