Yesterday, Oracle Data Cloud brought you the first five of the 10 best practices for using Purchase-Based Targeting and ROI. Read on to discover more rules to streamline your brand’s data-driven strategy – focusing on driving sales and measuring what matters.
These best practices are grounded in analysis of more than 1,000 measurement studies conducted by Oracle Data Cloud on the sales lift produced by digital campaigns for Consumer Packages Goods clients.
Rule 6: Tell the right story to the right audience.
So after all was said and done, you ended up with three targets for your organic granola bar campaign:
1. Medium OR heavy category buyers
2. Light OR medium brand buyers
3. Heavy brand buyers
Given that you just went through all this effort to land on an audience strategy and given that the purchase behavior is vastly different between the segments, why would you communicate the same message to each audience?
Best practice would be to tailor your story to your audience.
For instance, you may want to serve heavy buyers creative on new product lines in order to get them to buy deeper into your brand. You may want to serve the category audience a competitive conquesting, focusing on buyer insights Oracle can drive for you about competitors. And you may want a simple brand equity message to stay top of mind for your light OR medium brand buyers.
Rule 7: Align targeting to your marketing objective.
In order to drive the most incremental sales, targeting light to medium buyers may be the way to go. But that doesn’t necessarily mean you’ll want to run those same audiences for every campaign.
Maybe your next campaign is designed to bring new buyers into your natural granola bar brand. If so, you’ll want to target audiences of buyers with strong potential to purchase your brand, including lapsed buyers and competitive buyers who are also category buyers.
Rule 8: Manage Frequency By Audience.
Not every audience needs to be treated equal. By measuring more than 200 CPG ROI studies in 2014, Oracle Data Cloud research showed that early impressions were generally more valuable than later impressions.
The same research also showed that the frequency levels needed to maximize sales lift varies by audience. Some of the most responsive audiences don’t require high frequency. So, you may want to target the competitive buyers twice as much as your brand buyers because it’s going to take more to drive action.
Rule 9: Measure the right KPIs.
If you’re trying to get convert new buyers to your organic granola bar brand, it’s going to take more effort than simply getting current buyers to buy more.
There’s a reason non-brand buyers don’t buy your brand, and you’re advertising is going to have to work much harder to affect change. Because of that effort and cost, sales contribution of newly acquired households isn’t often sizeable enough to drive sales lift or ROAS. So it’s important for advertisers to temper sales expectations and take a long-term view. Instead, you should use household penetration lift to measure the success of your campaign.
Rule 10: Define an internal learning agenda to guide measurement.
Measuring one-off campaigns would be a great way to determine whether your organic granola bar campaign drove incremental sales lift. The most successful brands, however, measure more than campaign-wide lift metrics.
They identify a handful of key levers they want to study (targeting, frequency, placement, creative, etc.) in order to understand what tactics worked or didn’t work. Taking that a step further, the most successful brands don’t stop at one campaign. Instead, they run repeatable studies to go deep against each tactic. After running 10-12 studies, brands are able to work with Oracle to put together a meta-analysis that provides guidelines that help brands maximize efficiency on their future campaigns.
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