Spreetail Launches an AI Tool to Optimize Advertising Spend
Spreetail introduces True Ads, a causal AI designed to reduce advertising costs and enhance incrementality.
Spreetail, a marketplace specialist based in Nebraska, has recently launched True Ads, an innovative advertising analytics tool that utilizes causal artificial intelligence. This product, integrated into the Smart Shelf suite of tools, enables e-commerce brands to identify advertising spend that generates incremental sales and those that do not add value.
Reducing Unnecessary Advertising Costs
According to Spreetail, the early use of True Ads has led to reductions in unnecessary advertising spend by up to 50% in some cases. Brands that have adopted this tool have also observed increases in incremental advertising revenue of up to 78% year-over-year.
The primary goal of the tool is to help brands identify and eliminate so-called "non-productive" advertising spend. By analyzing ads at the keyword, campaign, and product levels, True Ads highlights investments that generate additional sales compared to those that merely shift sales that would have occurred organically.
Causal AI-Based Technology
Spreetail claims that True Ads relies on causal inference techniques, as opposed to mere correlation. This approach allows for precise quantification of the impact of advertising spend on sales and profitability. The tool measures indicators such as incremental gross market value, incremental margin, and associated organic gain. This data is presented in a unique interface that Spreetail describes as unified profit intelligence.
Josh Smith, Chief Technology Officer at Spreetail, emphasized the importance of this tool for brands facing ongoing pressure on their margins in the e-commerce sector:
"With margins under pressure, brands cannot afford to spend on ads that simply replace demand they are already generating organically," he stated. "True Ads uses causal AI to reveal which advertising spend truly generates incremental growth. This protects brands from cannibalization, eliminates unnecessary spend, and gives them the confidence to scale only what genuinely drives profits."
A Long-Term Vision for E-Commerce Brands
In addition to analyzing short-term performance, True Ads also assesses the long-term effects of advertising campaigns. It integrates advertising data with insights on market share and organic search rankings, providing a clear view of how paid campaigns influence organic visibility and brand dynamics over time.
The product specifically targets brands selling on major marketplaces like Amazon, Walmart, and Target, where competition for advertising spend is particularly intense. Spreetail positions this tool as one of the first end-to-end incrementality engines specifically designed for e-commerce advertising.
A Broader Strategy for the "Digital Aisle"
True Ads fits into Spreetail's overall strategy around the concept of the digital aisle. The Smart Shelf suite also includes other tools such as Price Pulse for price management, Listing Doctor for product content optimization, and Promise Pro aimed at improving delivery service performance.
As the growth of e-commerce volumes drives brands to invest more in digital advertising, rising logistics, customer acquisition, and order processing costs weigh on margins. In this context, Spreetail anticipates increased demand for solutions like True Ads, which allow for maximizing the impact of advertising spend while reducing unnecessary costs. The company also plans to expand its Smart Shelf suite in the near future to offer a comprehensive range of tools for online brands.
Geoffrey G.
