We recommend setting ROAS goals based on your customers’ potential lifetime value. Through this lens, marketers deem their performance TV prospecting to be successful if every dollar invested in MNTN results in at least one dollar of incremental revenue generated over the course of a customer’s lifetime. As a result of assessing lifetime value, you can set your incremental ROAS goal below 1x because the new customers you acquire with your MNTN campaigns are likely to spend more via repeat purchases over their lifetime. This would result in your campaign’s total returns exceeding your spend.
You can also consider evaluating the one-time profitability of your campaigns. Through this lens, marketers assess their performance TV prospecting based on whether every dollar invested in MNTN results in at least one dollar of incremental revenue within their campaign window. When considering one-time profitability, you can set your incremental ROAS goal at 1x. This lens is less popular among advertisers who leverage marketing techniques to drive repeat purchases from past customers, such as loyalty emails or retargeting campaigns.
How to leverage campaign insights:
You can use your incrementality results to adjust your investment strategies and feed MNTN’s automated optimizations with new inputs that empower it to increase ROAS at a faster rate. Based on your incrementality results, below are two actions we recommend:
Increase your investment:
If your MNTN prospecting is exceeding your incrementality goals, then you have room to scale your efforts and efficiently drive more incremental results. Thanks to the massive size of connected TV audiences (more than 120 million households in the U.S.), most advertisers can scale their spend before they hit diminishing returns. If you are exceeding your incrementality goal, we recommend using the following formula to estimate a budget that is likely to scale your campaign while still meeting that goal:
(Incremental ROAS Result x Spend) / Incremental ROAS Goal
So if you spent $10,000, earned an incremental ROAS of 2x, and had an incremental ROAS goal of 1x, then you can calculate your recommended budget:
(2 x $10,000) / 1x = $20,000
We recommend keeping your targeting and creative strategies constant, so you can isolate investment as the variable being tested.
Optimize your inputs:
If your MNTN prospecting is not meeting your incrementality goals, here are some changes you can test:
- Test new audience segments: Use your audience segment report to identify your top performing audiences, and consider adding new, complementary segments to expand the audience pool that MNTN’s automated optimizations can use to drive results. For example, if you’re targeting baseball fans and that segment is performing well, consider expanding your targeting to include sports fans to capture a wider range of relevant users.
- Analyze your creatives: Which of your creatives is driving better performance, and what are the qualities that define that creative? If you need to set up your first creative testing plan, check out our knowledge base article for guidance.
- Evaluate your geos: If you’re currently targeting a limited number of geos, consider expanding your geos to give MNTN’s automated optimizations additional opportunities to drive performance.
As always, your MNTN Customer Success team is here to offer additional guidance to help you achieve and exceed your goals.