Precision Targeting Drives Up Marketing ROI: Real World Evidence

Igor Levin, Senior Director. Global Lead - Analytics for Precision Marketing and Data Science at Johnson & Johnson

Joel Rubinson, President, Rubinson Partners, Inc.joel@rubinsonpartners.com

Attribution Accelerator Conference

October 11, 2018

Confidential property of Rubinson Partners, Inc. Not to be re-shared without prior permission

“Marketing has to look a lot more like digital…it can’t go the other way.”

Irwin Gotlieb, former CEO Group M

Certainly true, but what does this really mean?

Confidential property of Rubinson Partners, Inc. Not to be re-shared without prior permission

The sea change is addressable marketing

Adtech unifies IDs

Marketers define targets

Publishers deliver

opportunities

Programmatic delivers

message to right person,

right time, any device

Confidential property of Rubinson Partners, Inc. Not to be re-shared without prior permission

The sea change is addressable marketing

Adtech unifies IDs

Marketers define targets

Publishers deliver

opportunities

Programmatic delivers

message to right person,

right time, any device

If addressable marketing IS the future, we can expect…

Proof points

Programmatic dominates 80%+ of display is programmatic. Linear TV buys optimized for targets

Ad serving mostly in proportion to time spent 90% of Facebook ad revenues now mobile

Retailers becoming AdTech Amazon will be #3, Walmart following close on their heels

Increasing focus on Journey-based marketing Consistent with Google search trends

Programmatic targeting of segments would result in considerably higher ROAS ?

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“Persuadables” white paper 2017: the power of precision targeting of the right segments

Early* Late*

Average ROAS 1.31 $2.95

Heavy brand 10.68 $29.75

Medium brand$3.56 $5.9

Light brand $2.21 $4.18

Non-Brand ROAS $0.42 $.91

• Consistent findings across 3 campaigns• Typically, without targeting, more than half of ad $s are wasted on unprofitable segments• As a generalization, recency doubles ROAS

Results from experiment on 3 CPG campaigns: Rubinson Partners, Inc, Viant, NCS. White paper “The Persuadables” available on request.

The Persuadables

*”Early” refers to ads serve within 4/5ths of that shopper’s purchase cycle from the last category purchase. “Late” means ads were served more than 4/5ths from the last category purchase

ROAS* results

*ROAS, Return on Ad Spending defined as incremental revenue divided by incremental ad spending. Used the NCS standard methodology.

The “Money Pit”

How is precision targeting impacting marketing efforts?

Not only targeting delivers strong ROI, but it also allows us to be more efficient in driving brand strategies

§ Acquiring new customers (through gaining share or growing category)

§ Retaining customers and increasing their loyalty

§ Increasing usage, trading consumers up or cross-selling products within our portfolio

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Richness of available data and advances in technology, boost our marketing efficiency.Without data guiding our investments, many audiences are difficult and costly to reach.

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Expectant Mothers Concerned about hair loss

Trying to quit

The proof is in the pudding!• Based on the results of Multiple Touchpoint Attribution,

Marketing Mix and Sales Effects studies, we established that – Precision Digital Media ROI >> than Non Precision ROI – Precision media could be used to drive consumer acquisition,

retention and buy rate with superior ROIs.

• This holds true across regions, markets and brands.– The degree of advantage varies significantly (driven by data quality and costs,

scale / data-media integration capabilities, sophistication of execution, etc.)

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Key Factors for Success • Train or acquire resources for precision marketing and analytics.

• Start with the brand strategy and focus on the consumer.

• Build or access data to gain insights and target consumers.– Aim to use persistent IDs level rather than cookies.

• Integrate granular audience insights into planning, creative development and activation.

• Measure and optimize.

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Thank you.