New Study of Top 200 Brand Advertisers Finds Those Who Reallocate Budget to Double Programmatic Investment Could Yield a 6% I...
December 01 2016 - 9:00AM
Business Wire
Rubicon Project Unveils New Research Proving
the Demonstrable Impact of Data-Enabled Buying on Brand Sales
Rubicon Project (NYSE: RUBI), which operates one of the largest
advertising marketplaces in the world, today revealed new findings
from a major study conducted in partnership with The Female
Quotient (TFQ) Strategy, proving the power of programmatic
investment and the impact of data-enabled, digital media buying.
The study finds that by doubling investments in programmatic,
marketers may achieve as much as a 6% increase in sales and a 22%
increase in marketing return on investment.
The study examined $20 billion of spending by top U.S. brands,
each with over $100 million on average in advertising budgets.
Broken down across all vertical markets and media spending types,
the study found overwhelming evidence in the value of programmatic
and the direct impact it has on brands’ top line results. In order
for advertisers to achieve optimal sales and MROI, programmatic
should comprise, on average, 10% of total media spend.
“This study of some of the largest brands in the world very
clearly showcases that advertisers who are underinvested in
programmatic will miss out on significant revenue opportunities,”
said Harry Patz, Chief Revenue Officer at Rubicon Project. “By
reallocating advertising budgets to double investment in
programmatic, our data shows that brands will see a significant
uptick in increased sales and marketing ROI, compared to those who
do not. This is not about spending more, it’s about spending
smarter -- having the right mix of programmatic and digital ad
spending is key to a balanced portfolio in today’s
environment.”
Key findings from the research study include:
- Reallocation to increase
programmatic is necessary: There’s no need for additional
funds. To achieve an optimal allocation of advertising spend,
marketers should on average shift spend: TV -3%, Radio -1%, Print
-1%, Digital -1% and add these collectively to Programmatic for a
6% increase in spend
- Data favors the young: Brands
looking to reach younger consumers should allocate, on average, 30%
of their total marketing spend to digital and programmatic, and
half of that spend should be allocated to mobile.
- Video is a priority for beauty
brands: Across every major industry vertical and their optimal
spend by digital format, the beauty category saw a need to allocate
over 50% of total budget towards mobile and desktop video.
- Beyond the walled gardens: Brand
marketers may see a 4.5% lift in top line sales by shifting spend
to marketplaces outside of Facebook and Google.
“We have always believed in the opportunity for programmatic
spending, as more data leads to dollars,” said Shelley Zalis Chief
Executive Officer at TFQ Strategy. “We commissioned this research
with Rubicon Project because we wanted to put that theory to the
test. The results were overwhelming! For advertisers who invest in
programmatic, the data clearly shows that proper allocation pays
off for brands who shift approximately 6% of their budget away from
other more traditional mediums. Clearly, programmatic is showing
significant revenue opportunities and return on marketing
investment.”
Methodology
Rubicon Project and TFQ Strategy utilized media spend and sales
data from a sample of the top 200 U.S. brand advertisers comprising
$20 billion in advertising spend and $450 billion in sales from
2014 - 2016. The research is based on a media mix model using
multivariate data sets to determine channel allocation, creative
unit and sales impact. Research was collected across eight industry
verticals and all media spend including TV, radio, print, digital
and programmatic within digital.
For further information on this study or insight into additional
data please visit http://rubiconproject.com/programmatic-proven. To
contact our sales team please visit
www.rubiconproject.com/contact-us.
About Rubicon Project
Founded in 2007, Rubicon Project’s mission is to keep the
Internet free and open and fuel its growth by making it easy and
safe to buy and sell advertising. Rubicon Project pioneered
advertising automation technology to enable the world’s leading
brands, content creators and application developers to trade and
protect trillions of advertising requests each month and to improve
the advertising experiences of consumers. Rubicon Project is a
publicly traded company (NYSE: RUBI) headquartered in Los Angeles,
California.
About TFQ Strategy - Advanced Insights For Business
Growth
We are a team of insight, social and visualization strategists
dedicated to contextualizing complex information and modeling into
digestible bytes for forward-thinking business leaders and
corporations. We are passionate about what we do and constantly
strive to conceive and develop new techniques that leverage our
knowledge and innovative thinking to meet the evolving needs of our
clients.
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Rubicon ProjectEric
Bonach310-207-0272press@rubiconproject.com
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