TransUnion's analysis reveals that effective targeting can significantly enhance return on ad spend (ROAS), potentially reaching up to 9x. By examining real-world campaigns from 25 measurement clients across five industries, it was found that targeting an audience with optimal consumer traits led to substantial ROAS increases. However, improper targeting can lead to severe drops in performance. The study emphasizes the importance of moving beyond broad assumptions in targeting and suggests that marketers should focus on more refined consumer trait combinations for optimal advertising outcomes.
In a world with thousands of targeting choices, the challenge is selecting the most effective option from many that appear similar, as performance differences can be massive.
Rather than defaulting to broad assumptions, marketers can uncover more precise combinations that lead to better returns on ad spend, avoiding common pitfalls.
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