Rubicon Project revealed on Thursday new findings of a study focusing on the sales lift marketers can achieve when using programmatic channels.
The study, conducted in
connection with The Female Quotient Strategy, showed that marketers, when doubling their programmatic investments, can raise marketing return on investment (MROI) up to 22% and increase sales up to
6%.
"This study found an undeniable correlation between investment in programmatic and significant increases in sales and marketing ROI,” Harry Patz, CRO at Rubicon Project, told
Real-Time Daily via email. “Conversely, brands not taking advantage of programmatic are missing out on significant revenue opportunities. We're not advocating an increase in spending,
but rather a reallocation of budget to double investment in programmatic ensuring a balanced portfolio."
Examining $20 billion in spending by top U.S. brands that spend on average over $100
million apiece, the report found that to achieve optimal sales and MROI outcomes, programmatic should make up around 10% of total media spend.
Top-line findings from the study:
-- To achieve the optimal marketing balance, marketers should shift on average: TV -3%, Radio -1%, Print -1%, Digital -1%, in order to add 6% to programmatic spend.
--
For brands with a focus on younger consumers, 30% of overall marketing spend should go to digital and programmatic, half of which should be allocated to mobile.
-- Beauty brands do
best with video; marketers in this space saw a need to shift over 50% of total budget to mobile and desktop video.
-- Marketers see benefits when shifting spend outside of walled
gardens. The report showed a 4.5 lift in top-line sales when moving spend out of Facebook and Google.