Rubicon: Targeted Digital Media Buys Can Increase ROI by 22%

Fri Dec 9, 2016

Kathy Crosett

If your clients want to connect with younger consumers, they should allocate more of their marketing funds to smartphonedigitalwallettargeted digital media buys. A new study from Rubicon, carried out with The Female Quotient, focused on the practices of large media buyers. The researchers explain exactly what percentage of the media budget should be directed to programmatic buys and the specific sales boosts an average advertiser can expect.

In analyzing the results of over $200 billion spent on advertising, done by companies that typically spend over $100 million a year on this effort, researchers concluded that marketers are missing out. Specifically, large companies that are not shifting at least 10% of their marketing budgets to programmatic, risk missing out on a 6% sales increase and a 22% boost on the marketing ROI.

Part of this trend is linked to increased consumer use of media through mobile devices. In fact, researchers urge brands that target young consumers to spend 30% of their budgets on digital and mobile. From that budget, the wise marketer will allocate 50% to programmatic formats to target specific audiences. TFQ researchers also highlighted trends in one industry – beauty products. Marketers looking for peak performance from their marketing outlay may want to allocate up to 50% of their funds to mobile and desktop video.

Analysts are also suggesting that marketers shift their media mix instead of increasing their budgets. Specifically, a large marketer may realize a higher ROI by reducing ad spending on traditional media formats. Marketers who cut traditional media spending by the following percentages – TV (3%), radio (1%) and print (1%) – and move these funds to programmatic formats can optimize ROI.

This suggestion is not welcome news for media companies and reps that sell traditional. But, as large brands shift their ad spending, media sellers must position themselves as experts in digital and programmatic and offer services to help client achieve their marketing goals.

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About Kathy Crosett

Kathy is the Research Director for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel.

View all posts by Kathy Crosett