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How CPG Advertisers Can Boost ROAS with Recency Targeting

New Research: The Persuadables

Despite all of the data available today, a large portion of CPG marketers still do not know who makes up their best audiences and when they should target them for the highest return on ad spend (ROAS).

For the first time ever, CPG campaign data from three major US brands has been used to answer these questions.

Joel Rubinson, formerly the Chief Research Officer at the Advertising Research Foundation, Nielsen Catalina Solutions (NCS), and Viant partnered on The Persuadables in order to provide advertisers with insights on how they can use the principles of recency and consumer spend level to significantly improve ROAS.

Influential media planner, Erwin Ephron, also regarded as “the father of recency,” popularized the principle of recency in 1995. Ephron’s theory of recency, or closeness to purchase, proposed that ad impressions closest to the time of purchase are the most effective.

For example, if you know when a cat owner is about to run out of cat food based on their last purchase date and shopping cadence, you can time your ads to run during the critical days prior to when that consumer is going to order more cat food or visit the store.

In addition to looking at what stage a consumer is at in their purchase cycle, we also considered shoppers’ purchase volume and brand affinity. Our theory was that heavier buyers of a given brand (but not necessarily brand loyalists) would be the best target because they tend to buy the brand more often and they are heavier spenders. Alternatively, loyal brand buyers would likely have made the same brand purchase without any advertising at all, while non-brand buyers would not be as likely to be influenced by advertising

Combining the principles of recency and spend level, our hypothesis was that ad response would be greatest among consumers who were heavier volume shoppers that were ready to make their next purchase. We defined shoppers who fell into this intersection as the “Persuadables.”

We tested this hypothesis against three ad campaigns Viant ran for three popular CPG brands. In all three campaigns, the Persuadables segment returned a remarkable 16x the return on ad spend (ROAS), compared to the remaining audiences exposed to the campaigns

Source: Nielsen Catalina Solutions

This research is a major breakthrough in ad targeting for CPG marketers. The Persuadables can be defined for any brand and targeting them significantly increases the ROAS of marketers’ digital advertising efforts

To learn more, download the white paper.

  • #ad targeting
  • #CPG
  • #digital advertising
  • #erwin ephron
  • #nielsen catalina solutions
  • #recency targeting
  • #return on ad spend
  • #return on investment
  • #roas
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