Tag: Digital Shelf KPIs

  • Mastering Retail Media Metrics: A Deep Dive into Share of Media

    Mastering Retail Media Metrics: A Deep Dive into Share of Media

    Brands are investing millions of dollars in digital retail media to make their products stand out amid unrelenting competition.

    The ad spend on digital retail media worldwide was estimated at USD 114.4 billion in 2022, and the current projections indicate that it will grow to USD 176 billion by 2028. This amounts to a 54% increase in just six years.

    The current surge in digital retail media advertising has led brands to find an effective way to monitor the efficacy of their ad spend. While Share of Search has long been used to measure brand visibility effectively, the metrics often missed tracking ads on retail sites.

    DataWeave’s Share of Media solution helps solve this problem.

    What is the Share of Media?

    At DataWeave, Share of Media is a metric used to measure a brand’s presence in sponsored listings and banner ads on eCommerce platforms. It captures how often a brand appears in paid promotions compared to competitors, offering insights into advertising visibility and effectiveness.

    These days most marketplaces seamlessly blend banner ads and sponsored listings into organic search results. Let’s take a closer look.

    Banner Advertising

    Banner advertising strategically places creative banners across websites—often at the top, bottom, or sides. Some eCommerce platforms also integrate these banners into product search listings.

    Banner Advertising on Amazon_Share of Media Analytics to win the digital shelf

    What makes banner ads so special is the unique ability to allow marketers to use various types of media in a single ad, such as images, auto-play videos, and animations. Brands can also present curated collections of products. This flexibility provides marketers with creative opportunities to differentiate from competitors, capture customer interest, and encourage conversions.

    Sponsored Listings

    Sponsored listings are paid placements within search engine results or eCommerce platforms. They are usually marked as ‘sponsored’ or ‘ad,’ and they often appear at the top of search results and alongside organic product listing results.

    Sponsored Product Listings on Amazon_Share of Media Analytics to win the digital shelf

    Unlike organic search results, sponsored listings are prioritized based on the advertiser’s bid amount and relevance to users’ search queries.

    Sponsored listings offer a strategic advantage by enabling businesses to connect directly with consumers who are actively searching for their products. This targeted approach ensures that marketing efforts are focused on individuals with high intent of making a purchase, maximizing the potential return on investment.

    The Power of Banner Ads and Sponsored Listings

    Banner ads and sponsored listings are great choices for boosting customer engagement and product sales. Here are four key advantages they offer:

    • Enhanced Visibility: Digital retail media strategically places your brand where it will stand out—outshining competitors and grabbing the attention of high-purchase-intent consumers.
    • Precision in Reach: These ads target specific keywords or categories, allowing for highly focused advertising based on demographics and search intent.
    • Minimal Conversion Friction: Smooth transitions from ads to a brand’s native store or product listing on the marketplace keep conversion friction to a minimum.
    • Brand Awareness and Recall: Consistent exposure to your brand through banner ads and sponsored product listings can leave lasting impressions and build brand recognition.

    The bottom line is that it’s increasingly important for brands to monitor their Share of Media.

    How to Monitor Your Brand’s Share of Media

    DataWeave’s Digital Shelf Analytics (DSA) platform extends beyond the traditional Share of Search metrics and provides robust support for monitoring the Share of Media.

    DataWeave monitors the Share of Media in two ways: keywords and product categories. Users can view Share of Media insights through aggregated views, trend charts, and detailed tables. The views are designed to show brand visibility and the overall competitive landscape. For example, the screenshot below, taken from DataWeave’s dashboard, showcases the Share of Media across keywords, categories, and retailers.

    Share of Media by Keyword

    The Share of Media metric captures a brand’s advertising presence within search listings for a designated keyword. This provides a comprehensive view of a brand’s visibility and promotional efforts across retail platforms, helping brands validate and gauge the effectiveness of their ad spend.

    For example, the screenshot below shows the trend of manufacturer’s Share of Media by keyword—‘baby food.’

    Share of media by keyword_Share of Media Analytics to win the digital shelf

    Share of Media by Category

    The Share of Media metric measures the presence of brands’ banner ads and sponsored listings across product categories on retail sites. This helps brands see which product categories require more investment, making it easier for them to spend their ad budget wisely.

    The screenshot below illustrates manufacturers’ Share of Media by category across retailers.

    Share of Media: An Essential Ecommerce Metric

    As retail media continues to evolve, our analytics must follow—after all, knowledge is a competitive advantage. In the dynamic world of eCommerce, where competition is fierce and consumer attention is scarce, understanding your share of media is crucial.

    Analyzing the Share of Media can give brands a competitive edge. By regularly monitoring and analyzing this metric, you can make data-driven decisions to improve your brand’s visibility, attract more customers, and ultimately drive sales growth. With a deeper understanding of their target audience and market dynamics, brands can refine promotional efforts to drive more effective results and optimize return on ad spend (ROAS).

    For more information on how Digital Shelf Analytics can enhance your brand’s digital shelf presence, request a demo or contact us at contact@dataweave.com.

  • A Guide to Digital Shelf Metrics for Consumer Brands

    A Guide to Digital Shelf Metrics for Consumer Brands

    Our world is increasingly going online. We work online, socialize online, and shop online every day. As a consumer brand, you need to ensure complete awareness of your brand’s online presence across eCommerce platforms, search engines, and media.

    Only by deeply understanding the customer journey can you ensure that your product is reaching your ideal customers and maximizing your brand’s market share. You need data to intrinsically understand your customer journey and make changes where you’re lacking.

    As the old adage goes: ‘You can’t manage what you don’t measure.’

    You need digital shelf metrics to measure and start benchmarking your buyer’s journey. To find several of these types of key performance indicators (KPIs), you need a digital shelf analytics solution. These platforms allow you to track various metrics along the path to purchase from the awareness stage to the post-purchase phase across the entire internet, helping to inform online and offline sales strategies.

    Digital shelf analytics will help you gain insights into how your brand is doing versus the competition, which areas are lagging behind in historical performance, and what activities are driving sales. There are innumerable ways in which you can leverage these valuable insights. But how do you know which KPIs to start tracking with your digital shelf analytics solution?

    Here, we’ve summarized the top metric types your peers report, track and base their decisions on.

    With these KPIs in hand, consumer brands like yours can ensure that their products are consistently visible and appealing to their target audience across online marketplaces, ultimately enhancing conversion rates, market share, and profitability.

    Read this guide to learn more about the top digital shelf metrics consumer brands are tracking and how to use them in your own strategy.

    1. Share of Search

    Share of Search (SoS) is a KPI in digital shelf analytics that measures how frequently a consumer brand’s products appear in search results on eCommerce platforms relative to the competition for specific keywords. A good digital shelf analytics solution will be able to show this metric across all the top marketplaces and retailers, such as Amazon and Walmart, but also more niche marketplaces for industry-specific selling.

    This metric provides brands with a quantifiable way to measure how frequently their products are being “served up” to customers on online marketplaces. Essentially, it measures visibility and discoverability.

    Share of Search exmple_Digital Shelf Metrics

    With Share of Search on DataWeave, you can slice and dice your data in innumerable ways. These are a few important views you can see:

    • Aggregated SoS
    • Organic and Sponsored SoS scores
    • SoS scores across brands, retailers, keywords, cities
    • Historical SoS score trends

    Once you have benchmarked your SoS and category presence relative to your competition, you need to start interpreting the data. Here are some questions you can ask yourself to help interpret your findings:

    Share of Search exmple_Digital Shelf Metrics
    • Which of my key categories have the lowest SoS score?
    • Which products feature low on search results because they are out of stock?
    • Are my competitors’ products faring better due to sponsored searches?
    • Is my SoS low due to poor content quality?

    With insights in hand, you will know which actions to take to drive the biggest impact. For example, you could increase sponsored search results or improve organic reach by optimizing product pages.

    Understanding your SoS is essential to maximizing the awareness phase of your customer journey. It will help you improve your brand visibility and increase product conversions through better search and category presence.

    2. Share of Media

    Share of Media (SoM) is a KPI that is just as impactful, if not more so, than the SoS metric. However, only a limited number of brands track it or use it to drive strategic action. This makes it a perfect opportunity for brands looking to get an edge on the competition.

    But what is SoM in digital shelf analytics? Essentially, it’s a way of measuring retail media advertising activities like brand-sponsored banners, listings, videos, ads, and promotions that sometimes blend into search results. The main types of retail media advertising exist in two categories: banner advertising and sponsored listings.

    Banner advertising involves strategically placing designed banners within websites and search listings. These banners raise brand awareness and drive traffic to online storefronts.

    Sponsored listings are paid placements within search results on search engines or eCommerce platforms. They are prioritized based on the total bid amount and the product’s relevance. These paid listings are marked with “sponsored” or “ad.”

    Sponsored listings on an Amazon webpage

    It’s important to run these types of advertising campaigns on eCommerce platforms to gain customer visibility. In fact, “some 57% of US consumers started their online shopping searches on Amazon as of Q2 2023.” If you aren’t showing up, paying for placement can help.

    These listings serve to enhance your brand’s overall visibility, help you gain more precise reach, increase conversions, and drive better brand awareness and recall with your customers.

    These efforts aren’t free, however, so measuring their effectiveness is critical not only to gain all the listed benefits but to also not waste your valuable marketing budget. The SoM KPI can help a consumer brand answer questions like:

    • Where are the opportunities to increase paid ads?
    • Which categories could benefit from a promotional boost or a strategic and streamlined allocation of ad spend?
    • Which of my competitors have active banners and what is their share of media by keyword?
    • How has my ad spend trended historically in comparison to my competitor?
    Analytics Dashboard on Dataweave

    DataWeave’s digital shelf analytics (DSA) is among the first providers to offer Share of Media KPI tracking and analysis. This is because it requires advanced, multi-modal AI to gather, view, and aggregate listings that encompass text, images, and video. With Share of Media tracking facilitated by DataWeave, consumer brands can track and analyze the effectiveness of their own promotional investments as well as those of their competitors.

    3. Content Quality

    The content quality metric measures how well your product content adheres to the retailer’s specific guidelines, which are in place to steer traffic and sales on their sites.

    With the help of a DSA platform’s AI and ML capabilities, you can measure different elements of your product detail pages (PDPs), such as titles, descriptions, images, videos, and even customer reviews. You need to know which elements are missing, where they are missing, and which ones are negatively affecting sales so you can take corrective action.

    Did you know that the average cart abandonment rate is 69.99%? The quality of your content can significantly impact this number. Ensuring that your content is high-quality will help influence product discoverability, customer engagement, and conversion rates. It will also help position you ahead of the competition. If your content quality is poor, you may find yourself with lower search rankings, a higher return rate, and more abandoned carts.

    Here are some questions you can answer with the help of the content quality digital shelf metric:

    • Is my product content at a retail site exactly what was syndicated?
    • Are there any retailer initiated changes to my product content?
    • Are my product content updates reflected on the retailer platforms?
    • How well does my product content comply with the retailer guidelines?
    • How do I optimize my product content for enhanced discoverability and conversion?

    DataWeave’s content quality digital shelf analysis helps consumer brands ensure that product content on eCommerce platforms is high-quality and benchmark their product listings against the competition. It does this through a combination of AI-driven quality analysis and by presenting brands with actionable recommendations. These optimized suggestions are based on the top-performing products so you can focus your valuable time on the areas that will drive the biggest impact.

    4. Pricing & Promotions

    Your customers can easily shop around to find the best price for the product you’re selling. If your competitor is selling it cheaper, you’ll lose that sale.

    That’s why it’s essential to understand the pricing and promotional landscape for each of your products and categories. This can be a challenge, especially if it’s a common product or comes in multiple pack sizes or variants.

    It’s equally important to track pricing and promotions even at individual, physical stores. Doing so will allow you to remain competitive and responsive to local market dynamics by tailoring your pricing strategies based on regional competition. You don’t want your products to be overpriced (lost sales) or underpriced (lost profit) in specific markets.

    Harmonizing insights when operating an omnichannel consumer brand is extremely difficult without the aid of a digital shelf analytics solution. Insights need to be aggregated between desktop sites, mobile sites, and mobile applications, as well as from physical storefronts.

    Questions you can answer with the help of the pricing & promotions digital shelf metric include:

    • How do my product prices and promotions compare to my competitors?
    • How consistent is my product pricing across retail websites?
    • How does my product pricing vary across regions, ZIPs, and stores?
    • How do price changes influence my sales numbers?
    • Are there regional differences in pricing and promotion effectiveness?

    DataWeave’s digital shelf analytics platform stands out with its sophisticated location-aware capabilities, which enable the aggregation and analysis of localized pricing and promotions. The platform defines locations based on a range of identifiers, such as latitudes and longitudes, regions, states, ZIP codes, or specific store numbers.

    The platform can also extract promotional information, such as credit card-based or volume-based promotions. You can see variances across retailers, split by price groups, brands, and competitors. DataWeave specializes in enabling brands to conduct in-depth analyses across a wide array of attributes so you can answer just about any pricing or promotional question you have.

    Digital shelf pricing insights via Dataweave

    5. Availability

    The availability KPI in digital shelf analytics measures the in-stock and availability rates for a brand’s products across eCommerce and physical locations. Similar to the pricing and promotions metric, it relies heavily on location awareness, down to individual stores. Measuring both online availability and offline in-stock rates will help you understand the big picture and take more informed replenishment action.

    When you start leveraging the availability KPI with the help of digital shelf analytics, you can improve inventory management, boost product discoverability, increase the frequency with which your online product listings convert, and generally drive more sales. This KPI is essential for ensuring your customers can always find and buy the products they want.

    With the availability KPI, you can start answering questions like:

    • What is my overall in-stock rate?
    • Which of my products frequently go out of stock?
    • How does product availability vary across different regions and stores?
    • What is the impact of availability on my conversion rates?
    • Are there any seasonal trends in product availability that I need to address?
    • How quickly are we resolving stockout issues across different locations?
    • What are my biggest opportunities to reduce stockouts?

    DataWeave enables consumer brands to track their product availability metric through automated data collection from various eCommerce platforms in conjunction with physical in-stock rates. The platform provides granular, store-level insights so you can understand regional stock variations and optimize inventory distribution. By tracking historical availability data, you can identify seasonal patterns and predict future demand to pre-empt stockout issues. All of this can be configured with automatic notifications to alert you when there has been a stockout event or when a low stock threshold has been passed, facilitating timely replenishment.

    Graph showing availability across locations

    6. Ratings & Reviews

    The final KPI in our guide is the ratings & reviews digital shelf metric. Consumers rely heavily on genuine feedback from their peers and refer to star ratings, posted comments, and uploaded pictures to inform their buying decisions. This KPI analyzes the impact of customer feedback and reviews on your products’ performance across eCommerce platforms so you can measure overall brand perception and isolate areas of opportunity.

    This metric does something other digital shelf metrics don’t; it can inform your product strategy. It can help you identify repeat complaints that your product team can address with the manufacturer or use for the design of future products.

    Some questions you can answer with this powerful KPI include:

    • What is the overall customer sentiment towards my products based on ratings and reviews?
    • Which product features are frequently mentioned positively or negatively by customers?
    • How do my product ratings and reviews compare to those of my competitors?
    • Are there common issues or complaints that need to be addressed to improve customer satisfaction?
    • Which products have the highest and lowest ratings, and why?

    With DataWeave’s digital ratings and reviews feature, you can keep a pulse on customer sentiment to take short-term action as well as decide long-term strategy. You can leverage reviews to influence product perception, refine products, and enhance overall customer satisfaction.

    DataWeave’s Digital Shelf Metrics

    Each one of these metrics is interconnected and collectively influences a brand’s success. For instance, improving content quality and earning higher ratings can significantly enhance your product’s visibility in search results, thereby boosting the Share of Search digital shelf metric. By focusing on a comprehensive approach that integrates these metrics, brands can ensure their products are consistently visible, competitively priced, well-reviewed, and readily available.

    DataWeave gives consumer brands the means to execute a holistic digital shelf strategy. From a single portal, track and improve digital shelf metrics like Share of Search, Share of Media, Pricing and promotions, Availability, and Ratings and Reviews.

    Our solutions help audit and optimize the most critical KPIs that drive sales and market share for brands so you can stay competitive in a dynamic digital landscape and foster long-term customer satisfaction.

    Ready to get started? Schedule a call with a specialist to see how it can work for your brand.

  • From Data to Dollars: How Digital Shelf Analytics Drives Tangible Business Impact and ROI for Brands

    From Data to Dollars: How Digital Shelf Analytics Drives Tangible Business Impact and ROI for Brands

    For consumer brands, the digital marketplace presents an unparalleled landscape of opportunities for engaging with consumers and expanding their market presence. Within this dynamic environment, Digital Shelf Analytics has emerged as a crucial pillar in a brand’s eCommerce strategy. This technology provides valuable insights into a brand’s organic and paid visibility on marketplaces, content quality, pricing strategies, promotional efforts, and product availability. These insights help brands gain a comprehensive understanding of their competitive positioning and overall market performance.

    Nevertheless, many brands often grapple with the question of whether this understanding translates into tangible actions that drive real business impact and return on investment (ROI). This uncertainty stems from a lack of clarity about the direct correlation between digital shelf insights and key metrics such as enhanced sales conversions.

    Nonetheless, there is compelling evidence that when these insights are effectively harnessed and strategic actions are taken, brands can realize significant, measurable benefits.

    So, the question arises: does Digital Shelf Analytics genuinely deliver on its promises?

    At DataWeave, we’ve partnered with numerous brands to fuel their eCommerce growth through the application of digital shelf analytics. In this article, we will delve into these insights, uncovering the concrete and quantifiable results that brands can achieve through their investments in digital shelf analytics.

    Digital Shelf KPIs and Their Impact

    Digital Shelf Analytics is a robust system that analyzes specific key performance indicators (KPIs) about the digital shelf, furnishing brands with precise recommendations to not only bolster these KPIs but also to monitor the enhancements over time. The following is a brief explanation of digital shelf KPis and their expected impact areas:

    Product Availability: Ensuring Shoppers Never Hear “Out of Stock” Again

    Timely insights on the availability of products ensures brands reduce replenishment times at scale, which can significantly impact sales, creating an unbreakable link between product availability and revenue. With Digital Shelf Analytics, procurement and replenishment teams can set up notifications to promptly identify low or out-of-stock items and take swift action. This can also be done for specific ZIP codes or individual stores. In addition, availability plays a crucial role in a brand’s Share of Search and search rankings, as online marketplaces often ensure only in-stock products are shown among the top ranks.

    Share of Search: Dominating the Digital Aisles

    If a product isn’t visible, does it even exist? In fact, 70% of consumers never go beyond the first page of search results on major online marketplaces. Therefore, as a brand, the visibility of your products for relevant search keywords and their appearance on the first page can heavily determine your awareness metrics. This is where the concept of Share of Search comes into play. Think of it as securing prime shelf space in a physical store. Digital shelf insights and benchmarking with category leaders for Share of Search help ensure your products command relevant attention on the digital shelf.

    Content Quality: Crafting the Perfect Product Story

    Creating engaging product descriptions and visuals is akin to giving your products a megaphone in a crowded marketplace. By enhancing content quality, including product names, titles, descriptions, and images, brands can climb the search result rankings, leading to increased visibility and subsequently, more sales.

    Ratings and Reviews: The Power of Social Proof

    Public opinion holds immense sway. Research indicates that a single positive review can trigger a 10% surge in sales, while a multitude of favorable reviews can propel your product to a 44% higher trajectory. The correlation between ratings and sales is not surprising—each step up the rating ladder can translate to substantial revenue growth.

    While it’s reasonable to anticipate a connection between these KPIs and downstream impact metrics such as impressions, clicks, and conversions, we were driven to explore this correlation through the lens of real-world data. To do so, we meticulously monitored the digital shelf KPIs for one of our clients and analyzed the improvements in these metrics.

    It’s essential to acknowledge that not all observed impact areas can be solely attributed to enhancements in digital shelf KPIs. Still, it’s evident that a robust correlation exists. The following section presents an in-depth case study, shedding light on the results of this analysis.

    A Success Story: Real-World Impact of Digital Shelf Analytics

    Let’s dive into the journey of one of our clients – a prominent CPG brand specializing in the sale of baked goods and desserts. Through their experience, we will illustrate the transformative impact of our DataWeave Digital Shelf Analytics product suite.

    Over a period of one year, from August 2022 to July 2023, the brand leveraged several key modules of Digital Shelf Analytics for Amazon, including Share of Search, Share of Category, Availability, Ratings and Reviews, and Content Audit. Each of these digital shelf KPIs played a vital role in shaping the brand’s performance across various stages of the buyer’s journey.

    The buyer’s journey is typically delineated into three key stages:

    • Awareness: At this stage, shoppers peruse multiple product options presented on search and category listing pages, gaining an initial understanding of the available choices.
    • Consideration: Here, shoppers narrow down their selections and evaluate a handful of products, moving closer to a purchase decision.
    • Conversion: In this final stage, shoppers make their ultimate product choice and proceed to complete the purchase.

    Let’s now examine the data to understand how digital shelf KPIs helped drive tangible ROI on Amazon for the brand across the stages of the buyer journey.

    Stage 1: Raising Awareness

    Enhancing Share of Search and Share of Category can help brands boost product visibility and raise brand awareness. The following chart demonstrates the steady, incremental improvements in our client’s Share of Search and Share of Category (in the top 20 ranks of each listing page) throughout the analyzed period. These enhancements were achieved through various measures, including product sponsorship, content enhancement, price optimization, promotional initiatives, and more.

    This amplified Share of Search and Share of Category directly translates into improved product discoverability, as evident from the surge in impressions depicted in the chart below.

    Stage 2: All Things Considered

    In the consideration stage, shoppers make their product selections by clicking on items that meet their criteria, which may include factors like average rating, number of ratings, price, product title, and images. For brands, this underscores the importance of crafting meticulously detailed product content and accumulating a substantial number of ratings.

    The subsequent chart illustrates the year-long trend in both average ratings and the number of ratings, both of which have displayed steady improvement over time.

    The enhancements in the number of ratings and the average rating have a direct and positive impact on product consideration. This, in turn, has led to a noticeable year-over-year increase in page views, as indicated in the chart below.

    These improvements are likely to have also been influenced by the overall enhancement of content quality, which is detailed separately in the section below.

    Stage 3: Driving Decisions

    As buyers progress to the next stage, they reach the pivotal point of making a purchase decision. This decision is influenced by multiple factors, including product availability, content quality, and the quality of reviews, reflecting customer sentiment.

    Our client effectively harnessed our Availability insights, significantly reducing the likelihood of potential out-of-stock scenarios and enhancing replenishment rates, as highlighted in the chart below. The same chart also indicates improvements in content quality, measured by the degree to which the content on Amazon aligns with the brand’s ideal content standards.

    Below, you’ll find the year-over-year growth in conversion rates for the brand on Amazon. This metric stands as the ultimate measure of business impact, directly translating into increased revenue for brands.

    As the data uncovers, growth in key digital shelf KPIs cumulatively had a strong correlation with impressions, page views, and conversion rates.

    It is also important to note that the effect of each KPI cannot be viewed in isolation, since they are often interdependent. For example, improvement in content and availability could boost Share of Search. Accurate content could also influence more positive customer feedback. Brands need to consider optimizing digital shelf KPIs holistically to create sustained business impact.

    Impact on eCommerce Sales

    After the implementation of digital shelf analytics, the results spoke for themselves. Sales consistently outperformed the previous year’s records month after month. As shown in the chart below, the diligent application of DataWeave’s recommendations paved the way for an impressive 8.5% year-over-year increase in sales, leaving an indelible mark on the brand’s eCommerce success.

    From boosting product visibility to catapulting conversion rates, Digital Shelf Analytics serves as the key to unlocking unparalleled online success.

    While the success story detailed above does not establish a direct causation between Digital Shelf Analytics and sales revenue, there is undoubtedly a strong correlation. It’s evident that digital shelf KPIs play a pivotal role in optimizing a brand’s eCommerce performance across all stages of the buyer journey. Hence, for brands, it is vital that they collaborate with the right partner and harness digital shelf insights to fine-tune their eCommerce strategies and tactics.

    That said, the eCommerce landscape is in a constant state of flux, and there is still much to learn about how each digital shelf KPI influences brand performance in the online realm. With more data and an increasing number of brands embracing Digital Shelf Analytics, it’s only a matter of time before a direct causation is firmly established.

    Reach out to us today to know more about how your brand can leverage Digital Shelf Analytics to drive higher sales and market share in eCommerce.