This article was originally published in the Roku Advertising blog.
Rain the Growth Agency is a full-service agency that delivers transformational growth for clients through creative, advertising, and media services. In a recent campaign for a direct-to-consumer retail apparel brand, Rain the Growth Agency set out to optimize its client’s ad spend for maximum returns and efficiency.
The Challenge
This DTC client wanted to understand the relative impact of its marketing channels, with the goal of spending more on the channels that generate the highest overall sales and return on ad spend (ROAS). This was a tall order, given that the brand’s marketing outlay spanned campaigns on linear TV, digital, social, and more. Measuring these channels can be hard when each channel brings unique qualities. Understanding these characteristics is essential to proper measurement, especially for marketing mix modeling.
The Approach
To tackle this challenge, Rain the Growth Agency partnered with Leavened, a marketing mix model (MMM) solutions provider. Leavened applied its MMM engine to help the agency measure the relative effectiveness and efficiency of its client’s TV streaming, digital, social, and linear channels. Leavened ensured each media type had sufficient media weight for modeling and classified each media type in a distinct bucket to ensure streaming TV, digital, social, and linear were modeled with unique, channel specific parameters.
To get the granular insights needed for actionable optimizations, Leavened ensured placement details of streaming TV, such as non-skippable, targetable, full view, and premium content, were modeled.
The Results
This MMM analysis proved that TV streaming ads on Roku efficiently drove revenue for the brand. In fact, compared to other streaming channels measured in the analysis, Roku delivered the highest ROAS.¹ When compared to all marketing channels (including linear, social, and digital), Roku was the second-most efficient overall.²
Here is a snapshot of some of the most compelling results:
“The media mix analysis showed that connected TV, notably through Roku, isn’t solely an awareness channel but a significant driver of sales. This highlights CTV’s potential to match the impact of traditional conversion-focused channels such as social and search, marking validation of CTV as a channel that is vital for growth.” – David Nyurenberg, Associate Director of Digital Video at Rain the Growth Agency
“Roku’s advanced targeting capabilities, flexible ad durations, and competitive CPMs likely contributed to a successful campaign. Plus, more people than ever are streaming TV. We’re happy that Leavened’s marketing mix model captured the true impact of streaming TV and our mix of reach and performance helped the brand drive sales.” – Anna Miller, Senior Manager, Enterprise Measurement & Partnerships, Roku
¹ For Q1 2021 – Q3 2023
² Measured in the analysis | Source: Internal data from Leavened MMM, 2023