Boost Sales, Not Just Clicks: The Power of PrecisionBid

October 07, 2024

Your goals should guide your actions. Without action, goals are just daydreams.

For brand marketers, the ultimate goal is sales.

Historically, digital metrics like click-thru rates have been a useful measure, but they don't always align with real sales outcomes. While CTR remains a valuable metric for optimization, data increasingly shows that clicks alone don’t tell the full story.

Retail media is now transforming marketing by linking digital actions to meaningful business outcomes, offering a clearer path to achieving sales goals.

KPM is excited to introduce PrecisionBid, a programmatic bidding capability designed to optimize advertising towards sales with unparalleled precision.

PrecisionBid marks the next step in KPM’s programmatic evolution. By combining our data science with real-time optimization, we are enhancing the way media campaigns are delivered—making them more agile, adaptive, and effective. The result? Higher returns on every media dollar spent, driving incremental sales for brands at scale.

What is PrecisionBid?

PrecisionBid is KPM’s proprietary machine-learning-driven bidding tool, designed to optimize average Return on Ad Spend (aROAS) and other critical KPIs. It continuously refreshes bids at the individual household level, ensuring your messages are aligned with high-value shoppers and real purchase performance.

PrecisionBid introduces real-time decision-making at every bid. This model seamlessly integrates into our managed service campaigns, ensuring peak performance with every impression.

How PrecisionBid works

At its core, PrecisionBid applies KPM’s retail purchase signals to determine the optimal bid in real-time. Here’s how it works: Image - Retrieve and Predict Image - Shape and Push

Real-Time Bidding: Unlike traditional static models, PrecisionBid adjusts bids on the fly, responding dynamically to shifting shopper behaviors and conditions. This ensures your ads are shown where they have the highest chance of converting into real sales.
Sales-Driven Optimization: PrecisionBid prioritizes sales lift, household penetration, and other meaningful outcomes over clicks or impressions, delivering ads to households most likely to convert.
Data-Backed Efficiency: Powered by KPM’s proprietary audience insights, PrecisionBid minimizes wasted impressions, driving higher returns and more efficient media buys.

Early results and what’s next

Initial tests of PrecisionBid have delivered exceptional results across managed service display campaigns, including:

Up to 25% uplift in aROAS
Up to 40% increase in household penetration

Image - Enhanced Media Performance with PrecisionBid

These early successes showcase PrecisionBid’s ability to drive real, measurable improvements in campaign performance. Starting in September 2024, PrecisionBid is being fully applied to all KPM-managed display campaigns at no additional cost.

By mid-2025, PrecisionBid will also cover social, CTV, and audio channels.

Why it matters for your brand

With PrecisionBid, brands gain access to automated, real-time optimizations rooted in purchase data. By shifting the focus from traditional metrics to actual sales impact, brands can maximize their media investment more effectively than ever before.

In an industry often focused on impressions and clicks, PrecisionBid redefines success by putting sales at the heart of your campaign. With PrecisionBid, every media dollar works harder, driving incremental improvements across your most valuable shopper segments.

What’s next?

PrecisionBid is just the beginning. As technology evolves, so does KPM. We remain committed to delivering innovations that redefine what’s possible in programmatic media. Stay tuned as we continue expanding PrecisionBid across new channels, empowering more brands to connect with high-value households in meaningful ways.