InMarket：明智地處理廣告浪費

GETTINGSMARTABOUTADWASTE

ALWAYS-ONATTRIBUTION

ELIMINATESUPTO94%OF

MEDIAWASTE

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Doyouknowwhatpercentageofyourmediaiswasted?Doyouwanttoknow?

Andwouldyouliketoreducethatwaste?

Formarketers,agenciesandevenCFOs,theanswertothefirstquestionisverylikely“No.”Theanswertothenexttwoquestionsshould,ofcourse,beanemphatic“Yes.”

AnewstudyundertakenbyInMarket,incooperationwiththeCMOCouncil,provides

realinsightsintotheanswerstothesequestions.Ituncoversmassivedisparitiesinad

wasteandoptimizationopportunitiesamongadvertisersinsimilarconsumercategories.Anditshowsthatrigorous,always-onuseofattributionisamajorfactorinoptimizing

campaignstogainsignificantlyhigherliftinincremental

InMarketfounditshighest

visitsandsalesfrommediaspend.

performingbrands,which

Infact,someadvertisersinthisstudywastedmorethan

utilizereal-time,in-flight

75percentoftheirmarketingonimpressionsthatfailed

optimization,drove

togenerateincrementaloutcomes,whileotherskeptthat

positiveincrementalresultsfor94%oftheirmedia.

wastewellbelow10percent.Putanotherway,under-

performingadvertisershaveanopportunitytooptimize

over75percentoftheirmediaspend,andputthosemediadollarsbacktowork.

Accordingtothestudy,high-performingbrandadvertisersthatcontinuouslyoptimizecampaigns,basedonrigorousanalyticsthatidentifywhatcampaigndimensionsare

drivingincreasedsales,arerealizingasmuchasa11ximprovementinadvertising

performanceoverlaggardswhousereal-time,in-flightoptimizationonlysporadicallyor

superficially.

InMarketisaleaderin360-degreemarketing

Brandadvertiserswho

intelligenceandreal-timeadvertising.Its

usealways-onattribution

attributionplatform,LCI(LiftConversionIndex?),

andreal-timeoptimization

iscapableofmeasuringcampaignsacrossarangeofcampaigndimensionstounderstandtheimpactofthosechoicesonkeyKPIs

driveupto11xmoremediaeffectivenessthanpeers.

includingdrivingincrementalvisitsandsales.

InMarketbelieves(andmostCMOswouldagree)thatmeasuringtheimpactofmedia

onincrementalsales,i.e.visitsandpurchasesthatwouldnothavetakenplacewithout

exposuretoanadvertisingimpression,isthemostrelevantandpowerfulmetricbywhichtooptimizeadvertisingperformance.Measuringtotalpurchasesbyshoppersexposedtoadvertising,versusincrementalvisitsandpurchases,doesnotprovideanaccurateviewofwhatmediaisdrivingincreasedrevenueandsales.

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STUDYHIGHLIGHTS

Always-onattributionandreal-time,in-flightoptimizationcandeliveran11ximprovementinmediaeffectiveness.

Brandsthatcontinuouslyutilizethealways-onLCIplatformanditsreal-time,in-flightoptimizationachieveuptoan11xreductioninmediawastecomparedwithbrandsthatdon’t.

InMarketfoundthatLCIcustomersnotleveragingalways-on,real-timeoptimizationhavetheopportunitytooptimize75%ormoreoftheirmediaspend.

InMarketfounditshighestperformingbrands,whichutilizereal-time,in-flight

optimization,drovepositiveincrementalresultsfor94%oftheirmedia.Ontheotherhand,forclientsinthebottomquintileofthestudy,thereisanopportunitytooptimizemore

than75%ofmediaimpressions.

Theopportunitycostofwastedmediacanbehighlysignificant,especiallyasoverallcampaignspendincreases.

Marketersfrequentlyconcentrateonnegotiatingalowercostofmedia.Whilethis

makessense,it’snotwheretherealmoneylies.Fora$20millioncampaign,optimizing

against,say,75%ofnon-performingimpressionsequatesto$15millionthatcanbemoreeffectivelyspenttodeliveragainstkeyKPIs,includingdrivingincrementalvisitsandsales.

AleadingQSRbrand,andactiveuseroftheLCIdashboard'sreal-timeOptimizationEngine,hadjust7%ofmediawaste,comparedtoanotherQSRbrand,whereLCIwasonlyleveragedforpost-

campaignmeasurementandreporting,whichhad72%ofmediawaste.

Byactivelyleveragingalways-onattributionandreal-timeoptimization,oneQSRclientrealized10xbettermediaeffectivenessthananotherQSRwhodidn’tfullyleverageLCI.

Whatandhowyoumeasurematters—alot.

Traditionalapproaches,suchasreviewingandanalyzingafter-the-factmeasurement

reportsofacurrentcampaign,informfuturecampaignsbutdonotmaximizesuccessforcurrentin-flightcampaigns.Tyingimpressionstoincrementalvisitsandsalesisthemostrobustmetricforreal-timeoptimizationtodrivesalesgrowthandmaximizereturnonadspend(ROAS).

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TheAttributionImperative

Nodoubt,mediawasteisanage-oldproblem.There’sareasonwecontinuetoquoteJohnWanamaker,theturn-of-the-20th-Centurydepartmentstoreandmarketing

pioneerwhofamouslysaid:“HalfthemoneyIspendonadvertisingiswasted;thetroubleis,Idon'tknowwhichhalf.”

Especiallyintoday’suncertainbusinessenvironment,whenCMOsarebeingaskedtodomorewithless,optimizingtheperformanceofadvertisingspendmustbea

DrivingmeasurablerevenuegrowthisthenewCMOmandate.

priority.Advertisersneedtheirmediapartnersandanalyticsproviderstobedevotedstewardsoftheirbudgets.

TheCMOCouncilhasconductedextensiveresearchintotheissues,prioritiesandchallengesfacingmarketingexecutivesandbrandleadersglobally.Recentresearchunderscores

growingbudgetpressuresbeingfeltbymarketers,the

increasingexpectationsonthemtodrivemeasurablegainsinrevenue,andthe

importancetheyplaceonbeingabletomeasurethesalesimpactoftheirmediaandadvertisingcampaigns.

TheCMOCouncil’srecent“OutsmartAdversity”report,basedonsurveyresponsesfromnearly500marketingleaders,findsbudgetsaretightening.Just36%expectedtoincreasetheirmarketingbudgetin2023,while64%saidtheirbudgetswillremainflatordecline.Whilethisbudgetphenomenonisfarlessseverethanseeninpast

economicdownturns(ifthatiswhatweareexperiencingtoday),itistiedcloselywithanexpectationthatmarketingspendwilldriverevenue.Inanearlierstudy,9in10

marketerssaidtheircharterisnowtodriverevenue.ThatmeansCMOsmustalign

closelywithCFOstodemonstratefinancialreturns,i.e.,revenue,fromtheirmarketingbudgets.

AnotherCMOCouncilreport,“OptimizingOutcomesinMediaMarketing,”however,findsthat2in3marketersarenothighlyconfidenttheircurrentmedia/advertisingstrategywilldeliverthedesiredbusinessoutcomes.Nearlytwo-thirdspointtosalesliftasthemostmeaningfulmeasureof

Two-thirdsofmarketers

saysalesliftisthemost

meaningfulmetricfor

advertisingperformance.

performance.Some85%saybeingabletoreceiveasalesliftreportfromapublisherormedianetworkisveryimportanttotheirchoiceofchannels.

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Allthisexplainsthegrowing

importancemarketersareplacing

onattributionindevelopingtheir

marketingandmediastrategies

andplans.AlliedMarketResearch

forecaststhattheglobalattribution

softwaremarketwillexperiencea

strong15.5%CAGRfrom2022to2031,reaching$12.9billioninmarketsize.

Giventheintensepressuretofocusoncosts,itisunderstandablethatmanyCMOsandmarketingleadersfocus

theirattentiononnegotiatingalower

costofmedia.Yet,amoreimpactful

opportunityexistsinoptimizingthe

performanceofthatmediatoincreasesaleslift.Essentially,advertisersare

leavingmoneyonthetablewitheachcampaignbyfailingtoputtheirmediadollarswheretheydeliverthemost

incrementalvisitsandsales.

Mediaspendneedsto

driveincrementalsales

andrevenuegrowth.

Yet,asalludedtoabove,thereisa

verywiderangewhenitcomestothe

performanceandlackofperformance

ofmediaspend—particularlywhen

measuredbytheabilityofmediato

driveincrementalrevenue.

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ABOUTINMARKET’SLCIPLATFORM

InMarket,aleaderin360-degreemarketingintelligenceandreal-timeadvertising,developedLCI?toprovide

aholisticviewofomnichannelmediaperformance

poweredbylocationdatafromnearly200million

permission-basedmonthlyactiveusersandtransactiondatafrommorethan560millionanonymizedunique

creditcards.

Leveragingdeterministicdata,i.e.,people-based

measurement,andadvancedattributiontechnology,LCIunderstandshowmediaimpactsbothtotaland

incrementalin-storevisits,aswellasonline,in-store

andhybridsales.InMarket’suniqueandproprietary

technologyautomaticallyidentifiesthein-flightmediatacticsandcampaigndimensionsperformingbest

andenablesbrandstooptimizeinrealtime.These

optimizationopportunitiesexistacrossarange

ofdimensionsthatInMarketexaminesduringthe

campaigntohelpmaximizeperformanceandROAS.Thesedimensionsincludecreative,audience,channel/platform,geography,campaignspend,andother

client-specificrequests.

LCIincludesanoptimizationengineanddashboardthat

deliverfresh,actionablecampaigninsightseveryweekandallowsuserstoquicklyandcontinuouslyidentify

whatstrategiesandtacticsareworkingandperform

optimizationsthatmovedollarsandmediawheretheydeliverthemostvalue.Inadditiontoreal-time,in-flightoptimization,customersareabletodesignsmarter

campaignsovertimethatcontinuouslyimprove

performanceandROAS.

Corporatemarketingorganizationsatmanyofthe

largestretail,CPG,Dining/QSR,auto,andhospitalitybrandsinNorthAmericaandtheirmediapartnersrelyonLCIfortrustedattributionandmediaoptimization.Inaddition,manyoftheworld’slargestmediaand

advertisingplatformsutilizeLCItohelptheirclientsmeasureandimprovemediabuyresults.

INIMARKET

StudyFindings:

Leadersvs.LaggardsinPerformance

Optimization

Whatseparatesleadersandlaggards

inreducingmediawasteanddriving

higherperformingcampaigns?

BasedonInMarket’sstudyfindings,a

criticalsuccessfactoristherigorand

consistencywithwhichadvertisers

optimizetheircampaigns.Always-

onattributionandreal-time,in-flight

optimizationdrivedramaticallybetter

results.

InMarketlookedat109largecampaigns

servingupasmanyas1.3billion

impressions—allofthemamongLCI

customers.Someoftheadvertisers

arelong-termusersandcontinuously

leveragetheLCIdashboardand

optimizationenginetoadjusttheir

campaignsbasedonwhatfactorsare

drivingincrementalvisitsandsales

andwhatfactorsarenot.Othersin

thestudyaremorerecentusersof

theplatformandarenotyetactively

optimizingandimprovingcampaigns

basedontheplatform’sinsightsand

recommendations.

Ahugedisparityexists

betweenhigh-performing

LCIcustomersandothers

noteffectivelyusingthe

platform.

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Thefindingsareeye-opening,tosaytheleast.Forthisstudy,InMarketgroupedthe30advertisersintoquintilestoinvestigatethedifferencesinmediawastebetween

thestrongandweakperformers.Wefoundthatadvertisersinthebottomquintileofthestudygroupwastedanaverageof66percentofimpressions.Higherperformingadvertisersinthetopthreequintileswastedfarbelow10percent.

MEDIAWASTEBYQUINTILE

TheInMarketstudybreaksdownmediaperformance

intofivegroupsbasedontheaveragepercentageof

mediawaste.

TOPLCIUSERS

1stQuintile

O%WASTE

2ndQuintile

2%WASTE

3rdQuintile

8%WASTE

4thQuintile

28%WASTE

5thQuintile

66%WASTE

BOTTOMLCIUSERS

It’simportanttonotethatlower

performingadvertiserswithinthe

InMarketstudyarestillgettinga

positivereturnontheiradvertising

spend,bothintermsofsalesliftand

softermetricslikebrandawareness

andaffinity.Theyjusthavean

opportunitytogetmuchmoreby

makingtheirmoneyworksmarter.

Always-onattribution

andreal-time,in-flight

optimizationensure

bettermediaresults.

Tobetterillustratethedramatic

disparityinadspendperformance

andtheimpactofalways-on

attributionandreal-time,in-flight

optimization,InMarketcompared

majorbrandadvertisersinsimilar

categories.Allbrandsareanonymized

forthepurposesofthisreport.

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QSRComparison

AmajornationalQuickServeRestaurant(QSR)brandisanalways-onuserofLCI

attributionanditsreal-time,in-flightoptimizationengine.TheQSRchaincontinuously

usestheLCIdashboardtooptimizeitscampaigns,inrealtime,throughoutthedurationoftheirprograms.Ittracksfactors,suchascreative,audience,channel/platform,geography,campaignspend,andotherclient-specificrequests,todeterminewhatisdriving

restaurantvisitsandoutcomesonaweeklybasis.Thebrandcontinuouslymakesin-flightadjustments,divertingspendawayfromnon-performingstrategiesandincreasingspendonthestrategiesthatdriveincrementalvisitsandsales.

OneQSRbrandwastedonly7%ofimpressions;anotherwasted72%

UsinginsightsfromInMarket’sLCIplatform,thisrestaurantchainlimitedwastetojust7%ofimpressions.

ComparethatwithanothermajornationalQSRbrand.Thisadvertisertypicallyusesthird-party"autooptimizations"

withintheplatformsrunningtheirmedia,butthesedonot

optimizetoincrementality.ThebrandhasusedLCItomeasureonlyafewcampaignsanddoesn’tuseLCItoactivelyoptimizemediainrealtime.InMarketanalysisshowsthatthisrestaurantchainwastedanenormous72%ofimpressionsoncampaignsthatgeneratedzeroincrementalrestaurantvisitsorsales.Inotherwords,thissecondQSRchainhasanopportunitytodrivesignificantlyhighersalesfromitsadspend.

Basedonanadvertisingbudgetof$50million,theunderperformingbrandwouldhavewasted$36millioninadspendversusjust$3.5millionwastedbythealways-onuserofLCI.Thedifferenceinwasteisafactorof10times.

QSRLCITOPPERFORMERVS.BOTTOMPERFORMER:

CAMPAIGNSPENDVS.WASTE

$100M

$7M

$72M

$65M

$25M

$1.8M

$18M

$16.2M

$200M

$14M

$144M

$130M

TOPPERFORMERS

BOTTOMPERFORMERS

CAMPAIGNSPEND

$32.5M

$3.5M

$50M

$36M

DIFFERENCE

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RetailComparison

Similarly,InMarketcomparedtwomajornationalretailchainswhoareLCIcustomers.Oneisahighlyactive,always-onuserofLCI.TheycontinuouslyleveragetheLCIdashboard

InMarketfounda11x

factordifferenceinmediawastebetweentwolargenationalretailers.

anditsrecommendationstoadjustcampaignsin-flightand

alsousetheseinsightstoimprovesubsequentcampaigns

basedonwhat’sworkingandwhat’snot.Thesecondretail

chainisanoffandonuserofLCIanddoesnottakeadvantageofthedashboardtooptimizeitscampaigns.

Some94%ofimpressionsdroveincrementalsalesforthe

always-onuser,representingjust6%wasteacrossallofthecampaignsitranwithLCI.Theotherretailerwasted68%ofimpressions—afactordifferenceof11times.

RETAILLCITOPPERFORMERVS.BOTTOMPERFORMER:

CAMPAIGNSPENDVS.WASTE

$100M

$6M

$68M

$62M

$200M

$12M

$136M

$144M

$25M

$1.5M

$17M

$15.5M

TOPPERFORMERS

BOTTOMPERFORMERS

CAMPAIGNSPEND

$34M

$50M

DIFFERENCE

$31M

$3M

HOWTOFUNDALWAYS-ONATTRIBUTION

CMOsknowthatmarketingattributionisacriticalcomponentofanymarketingstrategy,but

insufficientoruncertainfundingcanbecomeahindrancetobetteroutcomes.Theopportunity

costsofmediathatdonotdriveincrementaloutcomesdwarfthatoftheinvestmentsinmarketingattributionsolutions,soitishighlyimportantthatthefundingquestionnotgetintheway.

Generally,therearethreewaysbywhichmarketingattributionsolutionsarefunded:

1.Themediapublisherpaysforit

2.Thebrandpaysforitwithfundsgainedbyeliminatingmediawaste

3.TheagencyembedsitasacomponentoftheirCPM

REPORT

GETTINGSMARTABOUTADWASTE

CONCLUSION

Today’sCMOs,theirmediapartnersandanalyticsprovidersarefeelinggrowingpressuretomakemarketingandadvertisingdollarsworkharder,especiallyinthecurrentuncertainbusinessenvironmentwherebudgetsarecarefullyscrutinized.Andwhilemanybelieve

cuttingbudgetsisaneasyroute-itismostoftenthewrongdirectiontogo.

Advancesinattributionrepresentamajoropportunitytoachievebetterbusinessresultsthoughsmartermediaspendthatdrivesmeasurableincrementalsaleslift.InMarket’s

LCIplatformisaleadingexampleandhasbecomeastapleformanyoftoday’stop

brandsseekingtousealways-onattributiontoeffectivelymeasureandoptimizemediacampaignstocontinuouslymovedollarswheretheydrivethegreatestreturn.

However,eventhebestattributionandoptimizationplatformsareonlyasgoodas

thecommitmentoftheiruserstoactivelyandintelligentlyemploytheinsightsand

recommendationsanoptimizationenginedelivers.Thepathtoabrightermediafutureisthroughactivelearningandimprovement.

ThefutureofmediameasurementisaboutimprovingeffectivenessandaligningKPIstothemetricsthatmattermost.DemonstratingtheabilitytomeasureandimproveperformancewillchangethenatureoftheconversationbetweenCMOsandCFOs.

Whentheopportunitytoeliminateadwaste—byupto94%—bymakingmediadollarsworkharderthroughcontinuousreal-timeoptimizationspresentsitself,willyour

brandbealeaderoralaggard?

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