Maximizing Marketing Impact for a $100M Revenue Retail Brand to Reach $200M
A $100M revenue retail brand faced significant challenges in scaling profitably and refining their performance marketing strategy. Despite advertising across a wide array of channels and utilizing advanced multi-touch attribution (MTA) and marketing mix modeling (MMM), they struggled to identify the next steps for optimization. We introduced Geo Lift incrementality testing into their measurement framework. Within two months, we conducted five critical tests, leading to strategic adjustments
5
Geo Tests in first 2 months
3
Strategic Adjustments to Media Mix
$100M
Unlocked Revenue scale from CAC decrease
The Challenge
The client, a prominent retail brand with $100M in revenue, was at a crossroads in their performance marketing strategy. They were actively advertising across digital social, programmatic, TV, podcast, direct mail, and other typical channels. Despite having an advanced multi-touch attribution (MTA) system and running marketing mix modeling (MMM), they faced difficulties in scaling profitably and determining the most effective next steps. The complexity of accurately measuring and attributing the impact of various marketing channels created uncertainties that hindered their ability to optimize and grow.
Our Solution
Collaborating with Haus.io, we integrated Geo Lift incrementality testing into the client's measurement framework. This advanced approach enabled us to isolate and measure the true incremental impact of different marketing channels. Over the course of two months, we ran five targeted tests to address the most pressing questions about their marketing strategy. The results revealed that YouTube was driving significantly more value than initially measured by the MTA, outperforming initial MMM estimates in profitability. We also confirmed the importance of maintaining Branded Search, and strategically adjusted TV and OTT spend and tactics. These data-driven insights led to clear improvements in weekly blended customer acquisition cost (CAC) and return on ad spend (ROAS).
Strategic adjustments based on our incrementality tests and data-driven insights led to substantial improvements in marketing efficiency and effectiveness. The client saw a notable reduction in CAC and enhancements in ROAS, validating the new approach's effectiveness. This allowed the retail brand to comfortably scale their revenue from $100M to $200M annually while maintaining strong profit levels, showcasing the power of precise marketing attribution and strategic optimization.