IAB Australia unveils Retail Media measurement guidelines for 2024

The Interactive Advertising Bureau (IAB) Australia this month released comprehensive guidelines for retail media measurement. The document, titled Australian Retail Media Measurement Principles and Guidance 2024, was published on August 28, 2024, just two days ago. This initiative aims to establish standardized practices for measuring the effectiveness of retail media campaigns in the country.

The IAB Australia's Retail Media Council spearheaded the creation of these guidelines, recognizing the rapid evolution of the retail media sector. Rather than reinventing the wheel, the council leveraged existing local media and ad effectiveness resources, as well as global retail media guidelines from various jurisdictions and industry bodies. Notably, the retail media measurement guidelines from both IAB US and IAB Europe played a fundamental role in shaping the Australian framework.

The new guidelines address several key areas of retail media measurement. They begin by establishing core principles that should guide the development of measurement best practices and standards. These principles include transparency and consistency, accuracy and reliability, shopper-centricity, privacy and security, and compliance with industry standards and best practices.

One of the primary focuses of the document is the media measurement framework. This framework identifies factors that drive success in advertising investment, categorizes metrics, and outlines measurement solutions. The guidelines emphasize that a combination of tried-and-tested techniques and metrics is likely necessary to understand the holistic impact of all advertising investment.

The document delves into specific media metrics and audience measurement techniques. It provides clear definitions for primary media metrics such as ad impressions, click-throughs, and viewability for display and video ads. The guidelines recommend adopting the IAB / Media Rating Council (MRC) standards for these metrics. For instance, the viewability standard for display ads requires at least 50% of the ad's pixels to be visible on the user's screen for a minimum of one continuous second.

Attribution is another crucial aspect covered in the guidelines. The document outlines standards for SKU and Halo attribution, Return on Ad Spend (ROAS), and incremental ROAS (iROAS). It also addresses the concept of lookback windows, which determine the amount of time after an ad is viewed or clicked that a conversion can be attributed to the ad.

The guidelines emphasize the importance of audience measurement in retail media. They outline key audience segments that are commonly analyzed, including demographic segments, behavioral segments, and geographic segments. The document stresses the importance of combining data from multiple sources to gain a comprehensive, actionable view of the audience.

Data collection, transparency, processing, and quality control form a significant portion of the guidelines. The document outlines best practices for data capture, accumulation, and processing methods. It emphasizes the need for data transparency and quality assurance, as well as robust data validation and verification techniques. The guidelines also address the critical issue of data storage and retention, highlighting the importance of secure and compliant data storage practices.

The concept of incrementality receives special attention in the guidelines. The document defines incrementality as the true value created by any business strategy, determined by isolating and measuring related results, independent of other potential business factors. It outlines various methodologies to measure incrementality, including randomized controlled trials, synthetic controls, matched-market tests, and incremental lift studies.

Transparency in reporting is another key focus of the guidelines. The document stresses that providers should clearly outline their methodologies and partners involved, disclose limitations or biases, and define key metrics if they differ from standard definitions. It also emphasizes the importance of adhering to privacy regulations when designing outcomes measurement methodologies.

The guidelines conclude with checklists and considerations for different players in the ecosystem. These include actions that retailers need to take, questions that brands should ask their retail media partners, and reasons why agencies should care about these guidelines.

Key facts

• Released on August 28, 2024
• Developed by IAB Australia's Retail Media Council
• Leverages existing local and global resources, including guidelines from IAB US and IAB Europe
• Establishes core principles: transparency, consistency, accuracy, shopper-centricity, privacy, and compliance
• Outlines media measurement framework and specific media metrics
• Addresses attribution, audience measurement, and incrementality
• Provides guidelines for data collection, processing, and quality control
• Emphasizes transparency in reporting and adherence to privacy regulations
• Includes checklists and considerations for retailers, brands, and agencies