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Method · Retail media & performance

Retail Media Optimization Framework

A method for steering paid media on retail platforms by incrementality, profit and growth – not by attributed sales alone.

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What it is

Retail media reports make most campaigns look profitable, because they count sales that would partly have happened anyway. The Retail Media Optimization Framework sets targets that reflect what advertising adds: incremental sales, total advertising cost of sales and margin after media.

The framework links each product’s role in the portfolio to how it should be advertised, and allocates budget where the expected return is highest.

When to use it: Use it when advertising costs rise faster than sales, when budgets are spread evenly across products, or when it is unclear what the media spend actually achieves.

What goes in

  • Campaign data
  • Total sales
  • Margin per product
  • Funnel data

What you get

  • Budget allocation
  • An optimisation plan
  • Targets and guardrails

How it works

  1. Set commercial targetsDefine targets per product role, including margin after advertising.
  2. Structure campaignsOrganise campaigns so spend can be steered by product and intent.
  3. Allocate budgetShift budget towards the highest expected incremental return.
  4. Measure and adjustReview ROAS, ACOS and TACoS together with total sales and margin.

Decisions this helps you make

  1. Optimise media investmentRetail media & performance
  2. Choose the media mixRetail media & performance

Typical KPIs

  • ROAS
  • ACOS
  • TACoS
  • CPC

Where this method is used

ServiceBrand growth

Performance Growth Strategy

A strategy for demand generation and performance that scales growth profitably – connecting visibility, conversion and media investment into one plan.

ServiceRetail media

Retail Media Management

Ongoing management and optimisation of retail media on Amazon and other retail platforms – steered by incrementality and profit, not only by sales.

Knowledge and analysis

Want to apply this to your business?

We can run a first assessment on your own data and show what the method would change in your decisions.

Talk to a specialistSee how we can help