IAB Europe releases retail media measurement standards

The Interactive Advertising Bureau (IAB) Europe has published its measurement standards for retail media in Europe. This gives brands a framework to measure the effectiveness of their digital advertising campaigns. It is a first step in IAB Europe’s plans to create industry standards for retail media.

IAB Europe is an international association that represents the digital advertising and marketing ecosystem. Media, technology, marketing companies and other international IAB’s are members of the association. It aims to promote industry cooperation and provide frameworks and industry standards.

Ads on online stores and marketplaces

Retail media is a relatively new phenomenon. It entails available advertising space at retailers. Think of ads in search results, on overview pages and product groups. These ads are shown on the websites of online stores or in shopping apps.

Amazon generated 15 billion dollars by selling advertising spaces in the last quarter of 2023.

Another example are ads on online marketplaces. Amazon is already actively selling ad space, in Q4 last year it generated almost 15 billion dollars by selling those spaces. This was an increase of 27 percent compared to a year before.

Workgroup started last summer

Last summer, IAB Europe established a workgroup that will create standards for this industry. This is an effort to professionalize the market. The association has now released its measurement standards. This will give advertisers more insight into what the investment into the advertising campaign is getting them. Their media agency will receive data on reach, attribution and other campaign insights.

Metrics covered

So far, the measurement standards cover primary media metrics (like impressions and viewability) to ensure that digital retail media ads stick to the same standards as other digital ads. It also covers attribution metrics, to make sure that brands can compare their advertising investments with a standard lookback window and iROAS definition.

Some standards for additional insights have also been set. However, the association still wants to include more and will continue working on a broader set of standards. It already has released a roadmap for its plans in the rest of this year.

‘Crucial media solution’

“In the advancing landscape of digital advertising, Retail Media emerges as a crucial media solution, yet its potential was hindered by challenges such as the lack of standardization. According to IAB Europe research, only half of buyers currently recognize the efficiencies of Retail Media and seek consistent measurement and standards”, said Jessica Wegner, VP New Business & Retail Media at Douglas Marketing Solutions.

‘Moving beyond traditional KPIs will unlock retail media’s true efficiency.’

“To unleash the full power of Retail Media, addressing this critical gap through standardized measurement methods is paramount. Moving beyond traditional KPIs like ROAS or CPC, the focus on standardization, particularly in media and attribution measurement, holds the key to unlocking its true efficiency.”

‘Fostering transparency’

“With the publication of the first set of European Retail Media Measurement Standards, we affirm our dedication and commitment to providing industry stakeholders with a robust framework that ensures consistency across the ecosystem and enables Retail Media to thrive. These standards not only establish much-needed uniform metrics but also foster transparency, making room for greater innovation and investment in this space”, said Townsend Feehan, CEO of IAB Europe.