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Targeting the movable middle matt unplugged 2021 final

Reach based planning is the wrong thing for marketers to strive for. Target a new segment called the Movable Middle that offers 5 times the ROAS and improves conquesting of non-buyers

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Targeting the movable middle matt unplugged 2021 final

  1. 1. How Targeting the 'Movable Middle' Drives Superior Brand Growth Joel.rubinson@mmaglobal.com MATT Unplugged 2021
  2. 2. Extending thoughts about a new growth framework 2 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. 3 In a nutshell, what this presentation is about
  4. 4. Why Outcomes Based Marketing 2.0 (OBM2) is a big deal 4 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. 5. What is OBM2? 5 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. 6. Traditional thinking: “Buy as much reach as you can afford” 6 6 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. 7. Traditional thinking: “Buy as much reach as they can afford” 7 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. 8. Truth: The “movable middle” is FIVE TIMES more responsive to advertising 8 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. 9. Marketers with first party data or who use shopper data, where would you plot your buyers and non-buyers? 9 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. 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. 11. Reach-based planning is a recipe for sub-optimal ROAS 11 $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. 12. OBM2 changes the recipe through targeting! 12 $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. 13. Finding the Movable middles for a top 5 brand of frozen pizza: (Neustar E1 segments) 13 16% 17% 34% 9% 3% 3rd Quartile 2nd Quartile Bottom Quartile Top quartile Brand average
  14. 14. By reallocating to more responsive segments we can boost campaign ROAS overall. 14 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. 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 15
  16. 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 16 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
  17. 17. 17 Joel.rubinson@mmaglobal.com

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