Marketers Demand Data-Driven ROI in Q1 Spending
From Caution to Clarity: The AI and Measurement Imperative
Economic uncertainty left many brands cautious in Q1, but budgets were not frozen. Marketers set a higher bar: every dollar must show outcome. AI tools are being adopted to predict outcomes, optimize bids and speed audience targeting. At the same time, advanced measurement techniques such as media mix modeling and controlled experiments are guiding where those AI-driven allocations land.
Rebalancing Budgets: Brand and Performance United
Marketing teams are reintroducing brand activity without abandoning performance. The common thread is measurement. Brand campaigns now come with test-and-learn frameworks and performance guardrails so reach and long-term equity sit alongside short-term sales metrics. Channels like CTV and YouTube are part of this blended approach because they can be instrumented for both awareness and measurable outcomes.
Retail Media Emerges as a Key Destination for Ad Dollars
Shifting Spend from Walled Gardens to First-Party Data
Returns from the digital duopoly (Meta and Google) are showing diminishing marginal gains for some categories, prompting reallocations. Retail media networks are attractive because they combine transactional first-party data with shopper intent. That closed-loop data helps brands see which exposures lead to actual purchases, making retail media a logical home for dollars prioritized for accountability.
Proving Performance: The Accountability Challenge
Major CPG advertisers, including P&G and Diageo, are clear that retail media must demonstrate incremental sales uplift, not just last-click metrics. Brands expect rigorous incrementality testing, linkage to CRM and commerce outcomes, and transparency in measurement. Retail media networks that offer experiment design, unified measurement and clean data connections are best positioned to capture ongoing investment.
What marketers should do now
- Prioritize first-party data strategies and integrations with retail partners.
- Run controlled incrementality tests before scaling spend in new channels.
- Choose retail media partners that combine AI-driven optimization with transparent measurement.
