High ROAS From Beer Promotion Raises Concerns Over Retailer Margins
· 10h ago · Originally reported by PPC Land
Lisa Avery from Zitcha highlighted on an IAB Europe podcast that media teams reported very high return on ad spend (ROAS) for a beer promotion, but retailers struggled with unsold stock and reduced margins. The discussion centered on which performance metrics are most persuasive for commercial buyers.
Why it matters
This story underscores the tension between digital advertising metrics like ROAS and the actual business outcomes for retailers, highlighting the need for more holistic measurement in retail media.
Explain it like I’m new here
It's like getting a great score on a test but still failing the class because you missed the important homework.
Terms in this story
ROAS (return on ad spend)
ROAS (return on ad spend) is the revenue generated by advertising divided by the money spent on that advertising, usually shown as a ratio like 4:1 or 400%.
IAB (Interactive Advertising Bureau)
The IAB (Interactive Advertising Bureau) is the US-based trade association for the digital advertising and media industry, founded in 1996, which publishes research, guidelines and policy positions.
Advertiser
An advertiser is the company, organisation or person that pays to place ads in order to sell products, build a brand, recruit, or spread a message.
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