Rubicon Project Unveils New Research Proving the Demonstrable Impact
of Data-Enabled Buying on Brand Sales
LOS ANGELES--(BUSINESS WIRE)--Dec. 1, 2016--
Rubicon Project (NYSE: RUBI), which operates one of the largest
advertising marketplaces in the world, today revealed new findings from
a major study conducted in partnership with The Female Quotient (TFQ)
Strategy, proving the power of programmatic investment and the impact of
data-enabled, digital media buying. The study finds that by doubling
investments in programmatic, marketers may achieve as much as a 6%
increase in sales and a 22% increase in marketing return on investment.
The study examined $20 billion of spending by top U.S. brands, each with
over $100 million on average in advertising budgets. Broken down across
all vertical markets and media spending types, the study found
overwhelming evidence in the value of programmatic and the direct impact
it has on brands’ top line results. In order for advertisers to achieve
optimal sales and MROI, programmatic should comprise, on average, 10% of
total media spend.
“This study of some of the largest brands in the world very clearly
showcases that advertisers who are underinvested in programmatic will
miss out on significant revenue opportunities,” said Harry Patz, Chief
Revenue Officer at Rubicon Project. “By reallocating advertising budgets
to double investment in programmatic, our data shows that brands will
see a significant uptick in increased sales and marketing ROI, compared
to those who do not. This is not about spending more, it’s about
spending smarter -- having the right mix of programmatic and digital ad
spending is key to a balanced portfolio in today’s environment.”
Key findings from the research study include:
Reallocation to increase programmatic is necessary: There’s no
need for additional funds. To achieve an optimal allocation of
advertising spend, marketers should on average shift spend: TV -3%,
Radio -1%, Print -1%, Digital -1% and add these collectively to
Programmatic for a 6% increase in spend
Data favors the young: Brands looking to reach younger
consumers should allocate, on average, 30% of their total marketing
spend to digital and programmatic, and half of that spend should be
allocated to mobile.
Video is a priority for beauty brands: Across every major
industry vertical and their optimal spend by digital format, the
beauty category saw a need to allocate over 50% of total budget
towards mobile and desktop video.
Beyond the walled gardens: Brand marketers may see a 4.5% lift
in top line sales by shifting spend to marketplaces outside of
Facebook and Google.
“We have always believed in the opportunity for programmatic spending,
as more data leads to dollars,” said Shelley Zalis Chief Executive
Officer at TFQ Strategy. “We commissioned this research with Rubicon
Project because we wanted to put that theory to the test. The results
were overwhelming! For advertisers who invest in programmatic, the data
clearly shows that proper allocation pays off for brands who shift
approximately 6% of their budget away from other more traditional
mediums. Clearly, programmatic is showing significant revenue
opportunities and return on marketing investment.”
Rubicon Project and TFQ Strategy utilized media spend and sales data
from a sample of the top 200 U.S. brand advertisers comprising $20
billion in advertising spend and $450 billion in sales from 2014 - 2016.
The research is based on a media mix model using multivariate data sets
to determine channel allocation, creative unit and sales impact.
Research was collected across eight industry verticals and all media
spend including TV, radio, print, digital and programmatic within
For further information on this study or insight into additional data
please visit http://rubiconproject.com/programmatic-proven.
To contact our sales team please visit www.rubiconproject.com/contact-us.
About Rubicon Project
Founded in 2007, Rubicon Project’s mission is to keep the Internet free
and open and fuel its growth by making it easy and safe to buy and sell
advertising. Rubicon Project pioneered advertising automation technology
to enable the world’s leading brands, content creators and application
developers to trade and protect trillions of advertising requests each
month and to improve the advertising experiences of consumers. Rubicon
Project is a publicly traded company (NYSE: RUBI) headquartered in Los
About TFQ Strategy - Advanced Insights For Business Growth
We are a team of insight, social and visualization strategists dedicated
to contextualizing complex information and modeling into digestible
bytes for forward-thinking business leaders and corporations. We are
passionate about what we do and constantly strive to conceive and
develop new techniques that leverage our knowledge and innovative
thinking to meet the evolving needs of our clients.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161201005420/en/
Source: Rubicon Project