Targeting Online Advertising: A Manufacturing Case Study
The CompanyA leading multinational manufacturer whose retail partner has an established online presence and over 800 US locations.
The ChallengeThe manufacturer and its partner were evaluating trade promotion spend across media channels, and needed a clear idea of how much online advertising was driving in-store sales. Some executives believed that the ROI of online ads was greater than that of traditional weekly circulars, but they had no accurate way to validate this hypothesis.
The SolutionAPT’s Test & Learn™ showed that geographically targeted online advertising generated a 1.1% lift of in-store sales, with a 2.1% lift in promoted categories and a significant lift in non-promoted categories. For the manufacturer, Test & Learn™ calculated a net ROI of over 150%. Comparing this 150% ROI to returns on other media vehicles, the company identified a clear opportunity to optimize media mix by gradually and intelligently shifting more spend towards online advertising.
The ResultsAPT’s optimization of the manufacturer’s media mix generated $10.5MM in incremental sales.
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