TransUnion and MMA Global Study Finds an Audience Targeting Strategy that Drives up to 23x Return on Marketing Investment
13 Juin 2024 - 2:00PM
Marketers have experienced the tension between investing for
short-term results and long-term growth for decades. Today, new
research from TransUnion (NYSE: TRU) and MMA Global uncovers a
targeting strategy that performs best against both short- and
long-term objectives: the Movable Middles.
The Movable Middles audience target is defined as category
buyers who are neither loyal to the brand nor to the brand’s
competitors. Most marketing campaigns today automatically optimize
towards brand loyalists based on their high conversion rate,
without recognizing that these consumers are precisely those most
likely to convert anyway without advertising. Conquesting campaigns
are common, often against an audience committed to a competitor and
unreceptive to the brand’s message. Instead, focusing on Movable
Middles selects an audience that is both highly responsive and more
influenced by advertising, meaningfully increasing the incremental
impact of the campaign.
According to nearly a dozen case studies, targeting the Movable
Middles can:
- Yields 9.5x the
number of conversions when compared to traditional broad reach
tactics;
- Saves marketers more
than 50% to achieve the same business outcomes as other targeting
tactics;
- Produce dramatically
higher advertising returns, up to 23x.
The new research from TransUnion and MMA Global shows that
Movable Middles outperform other popular approaches for driving
short-term sales and in acquiring customers over time. As
illustrated in the study, Ally Bank achieved 2.2x (120%
increase) in short term account openings compared to
category buyer audiences and 1.9x (90% increase) in long
term customer acquisitions by targeting their Moveable
Middles.
“Marketing budgets are finite and precious, and we don’t want to
waste any of it on consumers who won’t engage or respond to
advertising,” said Kevin Howard, executive director of growth
marketing & innovation, Ally Financial. “Analyzing our existing
set up across campaigns, audience targets, placement tactics, and
creative helped us find areas of higher concentrated Movable
Middles. Then we could adjust and optimize our budget on those
consumers who would pay attention and act, which drove significant
new account openings and overall customer growth for us in a
crowded category.”
The findings are unveiled in a new whitepaper, “Breakthroughs in
Audience Strategy: Debunking the Short- and Long-Term Myth of
Marketing.” This is the latest data to come out of a multi-year
research partnership between TransUnion and MMA Global. In 2021,
the partnership first produced research on the Movable Middles as
an audience targeting strategy to optimize budget performance.
“We partnered with TransUnion to give marketers empirical tools
to improve their marketing effectiveness,” said Vas Bakopoulos,
SVP, head of industry research at MMA Global. “In our latest
publication with TransUnion, we’ve quantified the impact of
targeting Movable Middles and given CMOs a roadmap to replicate the
success we’ve seen across all the brands who have used this
approach.”
“Though it might seem counterintuitive, we knew from our
previous research that marketers leveraging the Movable Middles
approach realize significant short-term gains. We now know that
these Movable Middles drive growth in the long term as well,” said
Michael Schoen, EVP and head of TruAudience marketing solutions at
TransUnion. “Now we have a validated system to operationalize these
insights and we look forward to working with more brands to
identify, reach, and measure the effectiveness of targeting their
Movable Middles.”
Click here to read “Breakthroughs in Audience Strategy:
Debunking the Short- and Long-Term Myth of Marketing.”
Methodology
Built upon the framework in the previous paper, TransUnion and
MMA Global embarked on a study with Ally Bank, which ran a 10-week
campaign targeted at audiences rich in Ally’s Movable Middles.
Using TransUnion’s TruAudience identity graph to track conversions
across 18-months post-campaign, the Movable Middles audiences
achieved over 2x return on ad spend and 2x customer growth compared
to broad reach tactics in both the short and long terms.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with
over 13,000 associates operating in more than 30 countries. We make
trust possible by ensuring each person is reliably represented in
the marketplace. We do this with a Tru™ picture of each person: an
actionable view of consumers, stewarded with care. Through our
acquisitions and technology investments we have developed
innovative solutions that extend beyond our strong foundation in
core credit into areas such as marketing, fraud, risk and advanced
analytics. As a result, consumers and businesses can transact with
confidence and achieve great things. We call this Information for
Good® — and it leads to economic opportunity, great experiences and
personal empowerment for millions of people around the
world. http://www.transunion.com/business
Contact |
Dave
Blumberg |
|
TransUnion |
E-mail |
david.blumberg@transunion.com |
Telephone |
312-972-6646 |
TransUnion (NYSE:TRU)
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