The document discusses a new growth framework called Outcomes Based Marketing 2.0 (OBM2), which focuses on targeting the 'movable middle' segment of consumers for superior brand growth. This approach is mathematically validated to outperform traditional reach-based planning by over 50% and emphasizes immediately actionable strategies for marketers. By reallocating media spending towards this responsive audience, brands can increase return on ad spend (ROAS) and better convert non-buyers.

1. How Targeting the 'Movable Middle'
Drives Superior Brand Growth
Joel.rubinson@mmaglobal.com
MATT Unplugged 2021

2. Extending thoughts about a new growth framework
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2
Confidential and Proprietary
Academic Advisors
Marketer Advisors
Bill Cramblit
Senior Manager
Precision Marketing
Analytics & Optimization
Molson Coors
Kay Vizon
Director Media
Kroger
Kevin Moeller
Head of Media Insights
& Analytics, NA
Pepsico
Tim Lewis
Director Customer
Acquisition
Choice Hotels
Dr. Dominique
Hanssens
Anderson Graduate
School of Management
UCLA
Dr. Felipe Thomaz
Saïd Business School
University of Oxford
Dr. Andrew Stephen
Saïd Business School
University of Oxford
Numerator
Data Partner
Data Partner
Neustar
Marketing Sciences
Advisor &
Data Partner
MATT
Marketing Attribution
Think Tank
Study Leaders

3. 3
In a nutshell,
what this
presentation
is about

4. Why Outcomes Based Marketing 2.0 (OBM2) is a big deal
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1. OBM2 is a new growth framework that is centered on targeting a segment
called the Movable Middle
2. OBM2 is mathematically validated to outperform reach-based planning by
more than 50%.
3. Because lookalikes are found alongside (in the same audiences) as
Movable Middles, OBM2 is also a superior strategy to win over non-
buyers and build for the future of the brand.
4. A practical approach to drive outcomes immediately by identifying,
quantifying and targeting the most responsive target audience for any brand.
• “Practical” because it can be executed in many media channels, even walled gardens, in
a repeatable way.

5. What is OBM2?
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1. How are the science and principles
different from prior thinking?
2. Which consumers are in this new
segment called Movable Middle”?
3. Practically, what would a marketer do
differently?

6. Traditional thinking: “Buy as much reach as you can afford”
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Confidential and Proprietary
• …assumes you have no prior knowledge that differentiates consumers in their probability of responding
to your advertising.
• Implies: avoid targeting
• Implies: incrementality comes mostly from converting non-buyers
Ad Responsiveness

7. Traditional thinking: “Buy as much reach as they can afford”
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7
Confidential and Proprietary
• …assumes you have no prior knowledge that differentiates consumers in their probability of responding
to your advertising.
• Implies: avoid targeting
• Implies: incrementality comes mostly from converting non-buyers
Ad Responsiveness
X

8. Truth: The “movable middle” is FIVE TIMES more responsive to advertising
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Ad Responsiveness
Very LOW probability to buy (0-20%)
Very HIGH probability
to buy (80%-100%)
MOVABLE MIDDLES
(20%-80%)
The Movable Middle is defined by a consumer’s PROBABILITY of choosing your brand

9. Marketers with first party data or who use shopper data, where would you
plot your buyers and non-buyers?
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Ad Responsiveness
Very LOW probability to buy (0-20%)
Very HIGH probability
to buy (80%-100%)
MOVABLE MIDDLES
(20%-80%)
Heavy
brand
Moderate
brand
Light
brand
Non
brand
buyers

10. Marketers with first party data or who use shopper data, where would you
plot your buyers and non-buyers?
10
Ad Responsiveness
Very LOW probability to buy (0-20%)
Very HIGH probability
to buy (80%-100%)
MOVABLE MIDDLES
(20%-80%)
Heavy
brand
Moderate
brand
Light
brand
Non-
brand
buyers

11. Reach-based planning is a recipe for sub-optimal ROAS
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$1.38 ROAS
$6.70
ROAS
$1.84 ROAS
Very LOW probability to buy (0-20%)
Very HIGH probability
to buy (80%-100%)
MOVABLE MIDDLES
(20%-80%)

12. OBM2 changes the recipe
through targeting!
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$1.38 ROAS
$6.70
ROAS
$1.84 ROAS
Very LOW probability to buy (0-20%)
Very HIGH probability
to buy (80%-100%)
MOVABLE MIDDLES
(20%-80%)

13. Finding the Movable middles for a top 5 brand of frozen pizza:
(Neustar E1 segments)
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16%
17%
34%
9%
3%
3rd Quartile
2nd Quartile
Bottom
Quartile
Top quartile
Brand average

14. By reallocating to more responsive segments we can boost campaign
ROAS overall.
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13%
22% 27% 22%
7%
5%
3%
1%
0%
10%
20%
30%
40%
50%
60%
Top 2nd 3rd 4th
Non responsive Movable Middle
37%
17% 12% 10%
19%
4%
1% 0%
0%
10%
20%
30%
40%
50%
60%
Top 2nd 3rd 4th
Non responsive Movable Middle
REACH
ROAS $2.15
OBM2
ROAS $3.27
(+50%)
16%
24%
Distribution of media spend
across Segments

15. OBM2 debunks a false
equivalence…that incrementality
comes from targeting non- brand
buyers via a broad reach media
plan.
Actually, the most productive
approach is to target a consumer
segment called the Movable Middle.
Evidence shows that an OBM2
strategy of shifting funds towards
the Movable Middle increases
ROAS by 50% AND drives more
conversion of non-buyers vs. reach
based media plans.​
Summary: Targeting the 'Movable Middle' Drives Brand
Growth
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16. 1. Calculate the average size of the segment of “movable
middles”
• Benchmark for audience evaluation
• Generate seed samples for lookalike modeling.
2. Find and create audiences with high concentrations of
Movable Middles and build Lookalike Models
3. Create a media plan where each channel’s tactics are
redesigned to move at least 20% of the budget away
from low unresponsives towards the Movable Middle
4. Measure & validate impact of OBM2.
Testing OBM2 for one of your brands…change the recipe, measure
and validate
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MMA Support
•Expert advice to guide you to
best source for sizing the
movable middle
•The MMA can help you create
an activation plan across all
media channels
•MMA to help with case study
development/release

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Joel.rubinson@mmaglobal.com