Sponsored brands and brand videos drive better incremental returns than sponsored products

A summary of the difference in effectiveness of return on ad spend (ROAS) and incremental return on ad spend (iROAS).

While Sponsored Products drive a higher return on ad spend (ROAS), Sponsored Brands and Sponsored Brands Video formats drive a higher incremental ROAS (iROAS), according to a recent study by consultant Andrew Lipsman based on data sourced from Incremental, a retail media analytics company. Sponsored Brands Video format drives an iROAS nearly 2.5 times that of Sponsored Products, according to this study.

Measuring incremental return on ad spend addresses a well-known defect with traditional ROAS data: ads get credit for all sales that occur, including those that would have happened without the ad spend. Focusing on incrementality enables...

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