Digital Promotions Report Reveals Top Variables for Campaign Performance
We analyzed 100,000 campaigns across multiple channels to reveal the variables that influence a promotion’s activation, redemption and impact.
Today, with so many consumers focused on value, we’re unveiling an analysis of more than 100,000 promotional offers and three years of campaign results. Our 2022 Digital Promotions Report references this treasure trove of data to identify the most important variables of high-performing promotions. The report’s insights and recommendations are intended to help brands and advertisers develop effective promotion strategies and deliver value for consumers in the year ahead.
Keep reading to discover our top findings.
How Brands Can Amplify Promotion Performance
Our study examined campaign data from 300 CPG companies representing more than 800 brands and 128 product categories across drug, grocery, mass merchandiser and dollar store channels. The insights unlocked by this data are vital for advertisers to fine-tune their digital promotion strategy and maximize overall performance goals.
Additionally, the report outlines essential tactics for a data-driven approach, including when to use demographic information and purchasing behaviors to target value-driven consumers who have shown prior interest in a specific product or category.
Some high-level findings include:
01. There are five key variables of promotion performance. These include category, scale, offer value, effective discount and required purchase quantity. Most variables can be changed and optimized for improved outcomes.
02. Quantity matters. Consumers who activate promotions that require them to purchase three or more products are more likely to redeem those offers.
- It’s important to note that the bulk purchase activation is highest among non-perishable, shelf-stable items that consumers can stock up on.
03. Offer value plays a major role in redemption rates. Quotient data found that even when offer value is high, consumers are less likely to redeem if the effective discount is insufficient relative to the price of the product.
04. Scale is key for accurate campaign forecasting. While national and shopper marketing campaigns delivered comparable incremental dollars per activation, the Quotient study found that promotions with greater scale achieved more consistent results due to their ability to reach more consumers. National campaigns attracted the highest activation levels within the beverage, food and healthcare categories. By contrast, shopper marketing campaigns saw highest activations in personal care, household and pet products.
We hope you find the results of this study valuable and informative. To put these findings into action for your brand today, contact us at [email protected].