Macroeconomic headwinds are dealing CPG marketers a double blow: Consumers may be rethinking their purchasing behavior, and companies may be tightening budgets. In the face of an unofficial recession, it is all the more important that every CPG dollar provides a maximum return on ad spend (ROAS). An optimal strategy will be one that Goldilocks would appreciate, in which brand impressions are not too many, and not too few…but just the right frequency.
Is it more effective to remind target audiences once a week to make a purchase, or several times a day or week as they consume media across various platforms? If they want more bang for their buck, marketers will want to consider taking the first route because ad frequency of more than once a week has a much lower ROAS and incremental dollars per impression (DPM).
That’s according to research from NCSolutions (NCS), whose parent company is Nielsen. The research and development team at NCS, led by Chief Research Officer Leslie Wood, a pioneer and innovator of advertising analytics, found that recent advertising exposure — aka “recency frequency” — is more effective at increasing incremental sales for CPG brands than repeat, or iterative, frequency.
Read the full article on Forbes.