Top Food Brand drives retail media growth at Walmart
Fortune 500 Food brand with over $10 Billion in annual revenue
CHALLENGE
The brand had been utilizing a retail media software platform from a competing provider, but their ad spend was not yielding satisfactory results. The underperformance was attributed to a focus on branded campaigns that had a negative impact on organic sales. The previous retail media software was described as a “black box,” as the brand team lacked visibility into how their ad spend was allocated and struggled to identify the true drivers of performance. This lack of transparency and insights hindered their ability to make informed decisions and improve their retail media strategy over time. The team was unable to provide valuable input or make data-driven optimizations to enhance their overall approach.
SOLUTION
CommerceIQ’s integrated retail ecommerce platform
Key Feature – Incremental ROAS (iROAS): By estimating organic performance, the brand can use CommerceIQ to find keywords with the largest opportunities for incremental ad spend that won’t cannibalize organic sales. Example tactics:
- Shifting budget mix from low iROAS brands to high iROAS brands within the same category
- Boosting bids and budgets for keywords with higher iROAS
- Maintaining SOV on priority keywords
RESULTS
Brand reduced wasteful spend by matching budgets with shoppers
In Q1 2023…
- +93% total attributable sales growth for SP (Sponsored Products) manual campaigns Year over Year (YoY), indicating improved efficiency in ad spend.
- -33% decline in CPC (Cost Per Click) YoY as the brand reduced spending by targeting previously overlooked but incremental areas.
- +74% growth in ROAS (Return on Ad Spend), demonstrating a strong return on investment. Additionally, iROAS (incremental Return on Ad Spend) also experienced over 70% YoY growth, further highlighting the effectiveness of the advertising strategy.
