CASE STUDY 1
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How can we evolve a direct-response television campaign into a full-funnel performance engine that drives brand awareness without sacrificing short-term sales?
SITUATION
In February 2020, when we first evaluated the video strategy of our client, a fast-growing subscription pet food, we observed a familiar pattern characteristic of many DTC brands migrating from digital to broader reach channels:
Low Reach: A network list dozens of rows long, most with minuscule audience reach and most with little alignment to the target audience
High Frequency: Hundreds of spots per week (often several times per hour) in tiny networks with low viewership
Erratic Clearance: Wild, unpredictable swings in budget pacing week over week
While their agency’s attribution dashboards promised strong volumes at attractive cpms, our client wisely began to suspect that this rosy picture did not reflect the clear signs of diminishing returns they could see in their own blended CAC calculations.
Our client’s instincts were correct. In fact, their media buy was neither delivering against the audience target nor volume they needed to scale. By using a measurement methodology that over-credits small airings, their previous partner had optimized them into a corner. Even when the dashboard’s recommendations were accurate, with a buying approach reliant on the “remnant of the remnant” in an increasingly tight inventory market, the clients could not consistently secure the strong-performing inventory.
STRATEGY
Over the course of two years, we have partnered closely with our client to radically alter their approach across three key dimensions:
Media Planning
Using a combination of syndicated research tools and deterministic audience reach data supplied by iSpot’s ACR panel, we identified and migrated to networks and programming with high concentrations of the client’s target audience
To preserve consistent audience reach while also maintaining an attractive CPA, we introduced a portfolio approach to network selection and optimized within network tiers
Focused high-cost CTV investment to build frequency against lighter TV viewers and surgically deliver net new reach among the unexposed
Incorporated brand building Reach and Frequency targets as a secondary KPI in concert with blended CAC
Maximized the impact of high-profile, high-cost brand “event” investments, such as the US Open, by delivering additional frequency against these newly exposed audiences for several weeks in lower cost cable sports programming, bought through the Direct Response inventory market
Media Buying
Improved budget pacing by managing to a 90%-100% clearance goal, dramatically improving weekly sales forecasting
As budgets scaled and the Direct Response inventory market’s increasing unpredictability put sales forecasts at risk, developed a highly flexible and nimble approach to the various Video inventory markets (DR, Scatter, Upfront), balancing price efficiency with confident delivery.
For '21/'22, executed a substantial buy in the Upfronts (17% total budget) to guarantee consistent clearance in our best-performing networks. In Q4 2021, our Upfront News buy was delivered at rates lower than the DR market at that time
Leveraged a combination of network-direct CTV buys to ensure more premium inventory delivery and programmatic for improved audience targeting
Measurement Strategy
Developed a Measurement Strategy and Framework that utilizes both iSpot ACR data along with more traditional spike over baseline spot attribution to inform short-term network optimizations while accounting for longer-term impact of television
Ran Scenario Plans as part of the 2022 Planning Process to identify next best opportunities for improving CAC by driving more value from TV
Developed a pro forma, reforecasted on a weekly basis, to provide a road map for success in 2022 and ensure actuals are aligned with the plan
RESULTS
In the two years since our partnership began, this client has successfully scaled video budgets 4x while retaining a positive blended CAC.