Using MDF and Agency Dollars Smarter to Drive Measurable Impact

Opportunity

Spend More or Spend Smarter

For years, the default playbook has been simple: add dollars, expect growth. Increase MDF, layer on top agency investments, and performance is assumed to rise accordingly. But in an environment where every dollar is scrutinized and incrementality has become table stakes, assumptions are no longer sufficient.

The real question isn’t whether incremental spend drives incremental sales—it’s where does incremental investment actually create incremental value.

We set out to answer that question by examining one of the fastest‑growing funding models in retail media: the combination of MDF dollars with agency investments. While this co‑investment model is becoming increasingly common, its true impact has been inconsistent and, in many cases, anecdotal.

Solution

Analyze lift not noise.

To isolate impact, we conducted a matched‑pairs analysis across FY26, comparing campaigns supported by both MDF and agency funding against comparable MDF‑only campaigns. Spend, SKU count, campaign length, and channel were carefully controlled to ensure we were measuring lift—not noise.

We analyzed performance across four core environments:

• Onsite Display & Video
• Offsite Display & Video
• Sponsored Products
• Paid Search

The result was a clearer picture of incrementality—not as a broad concept, but as a channel‑specific lever.

Results

Rethinking the role of agency investment.

At a headline level, campaigns with agency backing delivered 26% higher ROAS than their MDF‑only counterparts. That alone validates the role of agency investment—but the story doesn’t end there.

The lift was highly concentrated, not universal.

The strongest gains appeared in Sponsored Products (+38%) and Onsite Media (+19%). These channels operate closest to the point of purchase, where customer intent is already high and performance efficiencies compound quickly.

In contrast, Offsite Media and Paid Search showed limited incremental lift. In these environments, additional agency investment increased complexity without delivering proportional performance gains.*

This distinction is critical. It tells us that agency investment doesn’t inherently create incrementality—it amplifies existing momentum when applied in the right context. The implication is straightforward but powerful: Agency dollars should be treated as a precision tool, not a blanket strategy.

When applied intentionally, they serve as a performance accelerator, not only delivering greater ROAS, but also increasing awareness, intent and recall. When applied indiscriminately, they risk becoming expensive noise.

This shift in thinking enables better outcomes for everyone involved:

• Vendors make smarter, more confident investment decisions
• Campaigns focus on execution where lift is provable
• Teams avoid unnecessary layers in channels where performance plateaus

Incrementality, in other words, isn’t about doing more. It’s about doing what works, more often. Let us help you get the most out of every dollar—reach out today.

^{*These channels had a lower sample size. More analysis may be needed to validate if any lift exists with these channels.}