Personal Care Brand increases ad budget with Lifesight Incrementality Measurement and Geo-Experiments

incremental campaign lift

lift in PPC ads CTR

lift in ROI from email campaigns

IN THIS STORY

About the brand
The Challenge
Two Primary Goals
Geo-Experiments Role in Incremental Lift of Media Campaigns
The Solution
- The Power of Geo-Experiments
Step-by-Step Implementation
How it works
Key Results
Conclusion

About the brand

A Texas-based women’s lifestyle and personal care brand, investing $500,000 monthly in advertising campaigns, offers a wide array of products that combine distinctive style and exceptional quality. For more than 30 years, the company has created unique organic products that are instantly recognizable for their eco-conscious branding, signature fragrances, chemical-free products. Known across the industry for its innovative and cutting-edge approach to advertising, it was no stranger to digital ads. The team had successfully used Google’s traditional shopping platform for years.

The Challenge

The digital-first brand was facing an issue of stagnant growth and was struggling to quantify the real impact of its diverse media channels and tactics on the business’s bottom line due to unclear accountability, cannibalization, and overlapping

Two Primary Goals

Assessing Marketing Channel Efficacy: Enabling strategic decisions about channel mix, campaigns are truly additive and contributing to the bottom line.
Localized Marketing Innovation: To test and innovate localized marketing strategies based on geographical variances in consumer behavior and preferences.

Geo-Experiments Role in Incremental Lift of Media Campaigns

Geo-experiments play a crucial role in measuring the incremental lift of media campaigns as they offer a reliable method to prove the incremental lift of a channel or campaign. They allow for custom test designs, applicable across all channels that support geo-level targeting, and support multi-level testing at various spending levels.

Incrementality in marketing is the lift or increase in the desired outcomes (conversions) caused by a specific marketing activity. Measuring incrementality identifies the conversions that are above and beyond what would have happened if the marketing activity being measured had not taken place.

To transcend the limitations of traditional performance metrics, the brand aimed to precisely measure and validate the incremental lift generated by each media channel and tactic. Their ultimate objective was to utilize these data-driven insights to strategically optimize marketing spend for enhanced ROI.

A geo-experiment test was implemented to deliver key insights to guide the marketing team in assessing the efficiency and effectiveness of the retargeting vendors. The brand observed the incremental CPA and evaluated the frequency of ads served

Lifesight Measure led us on an incredible testing journey with the experimental module. With this, we were able to confidently understand the incremental impact of each tactic and can ensure profitable outcomes for every dollar spent.

Lead, Digital Strategy

The Solution

The Power of Geo-Experiments

Lifesight’s Measure offers geo-experiments and this feature is backed by AI recommendations, making it easier for users to configure and analyze experiments effectively.

Geo is the optimal methodology for scale testing due to its unparalleled flexibility, universality, and expansive capabilities:

Flexibility: Geo allows for custom test designs to address specific business objectives.
Universality: It’s applicable across all channels that support geo-level targeting, making it a highly versatile tool.
Exploratory Reach: Geo enables brands to investigate and adapt strategies beyond the limitations of other methodologies.
Multi-Level Testing: Crucially, it supports the concurrent testing of various spending levels, centralizing key data for impactful decision-making.

Step-by-Step Implementation

Initiate Geo-Experiments: Users initiated a new experiment via Lifesight’s experiments module and selected the “Geo-experiment” option.
Configuration: They then configured the experiment according to their unique customized requirements.
Selection of Geos: A list of geographic locations was generated for holdout or scale-up campaigns based on the experiment’s design.
AI-Powered Recommendations: Utilizing AI-backed insights, the brand implemented the recommendations generated by the Lifesight system.
Wait and Watch: After implementing the recommendations, the experiment ran its course.
Analyze Lift Results: At the end of the experiment, the brand analyzed the results to evaluate the incremental lift generated by each channel and tactic.
Next Steps: Based on the results, the brand took data-driven steps to optimize its future marketing efforts.

How it works

Identify winners: The most promising test markets
Measure incrementality: Observe sales impact in transactional data.
Scale Test Execution: Increase the spending by 3.3X in the selected market

1. Right Sized Retargeting

Objective: To revise remarketing strategy like reducing the frequency of ads served, based on incremental cost per acquisition (CPA)
Action: It was discovered that the incremental CPA was above targets, leading to an immediate reevaluation and reduction in retargeting spend overall.The excess dollars could now be shifted to more profitable upper-funnel tactics like social media campaigns and PPC advertising.

2. Multi-Channel Scale Testing

Objective: To identify the most efficient and profitable channels for prospecting by evaluating the incremental lift in engagement, click-through rates, and ROI
Action: Utilizing AI-backed insights provided by Lifesight’s Measure, the brand implemented recommendations effectively, focusing on channels like social media, PPC advertising, and email marketing in a controlled environment and explored scale at the channel and audience level.

Key Results

By employing Lifesight’s Measure, the digital-first brand was able to:

Achieve a 15% incremental lift in engagement from their social media campaigns
Uncover a 10% lift in click-through rates from their PPC advertising
Realize a 20% lift in ROI from their email marketing campaigns

Conclusion

With Measure, the team could understand the exact in-platform ROAS that was required to land at a breakeven net profit and pace their spending accordingly. With the results of the incrementality testing, they increased their budget by 13%, which increased marketing efficiency by 3.1X as a result of the test findings. With a clear view of the incrementality of the product, they felt confident turning the dial on their budget to stay profitable and make the most of the platform.