Unsurprisingly, we’ve spent a lot of time exploring what a potential recession will mean for CPG advertisers in 2022. If we’ve learned anything over the past two-and-a-half years, advertising works even during difficult situations. Consumer packaged goods (CPG) brands that continue to stay in the market regardless of the social or economic climate will see sales grow more than brands that pull back. Every. Single. Time. On the other hand, it becomes harder to justify spending in the face of rising costs and potential consumer spending declines.
Every conversation returns to advertisers ensuring their spending is as effective as possible – this means optimization. Not just post-campaign adjustments but regular optimization for a higher return on advertising spend (ROAS) even as campaigns are running. If we’re starting to sound like we believe advertising optimization to be the perfect remedy, it’s because we pretty much do. We’ve proven it to be true for countless brands.
Is there a cost associated with optimization? Yes. Does it require you to buckle in and continue spending, even with an uncertain future? Yes. Do we believe it will more than pay for itself in incremental sales and ROAS? 100%.
Don’t just take our word for it. Our latest case study with Viant and a leading cereal brand shows how effective optimization can be.
During pandemic quarantines (when in-person brand experiences were off the table), a leading cereal brand needed to rely more heavily on digital advertising to sell its products. With NCSolutions and their advertising partner Viant, the marketing team set out to increase sales by continuously optimizing their digital campaigns to reach the most responsive audience. Meeting weekly to review sales signals, they were able to move impressions to the highest performing audiences - over and over again.
The result? Four quarters of continuously increased return on ad spend (ROAS). With a starting ROAS of $1.11 and a final ROAS of $3.03, the brand is a prime example of the value of optimization. When your money is being spent more effectively, it’s easier to keep spending it.