Where does the most ad wastage happen when you run CPM/CPV optimised branding campaigns on YouTube or on any other branding platform (such as OTT)? For a pan India D2C e-commerce brand, in 8 out of 10 cases I have seen brands selecting the same demographic settings for paid branding campaigns (RnF) which they select for their performance campaigns (Purchase/Acquisition) and that becomes the biggest reason of ad wastage and a major reason of branding campaigns get failed to generate enough impact on top line. If you are a company which doesn't have humongous media budget (above 15-20 cr. per month), India is a vast country to run branding campaigns for pan India even if you can deliver your product pan India. If you select pan India or even top states from where you can get sales, you end up wasting 40-60% of your media budget. What needs to be done then? How the geos need to be selected? Let's understand it by an example: - Say you have Assam as the 12th highest contributor in terms of sales happening for your digital brand, and you will decide to include the whole Assam in your branding campaigns. - When you will do analysis at the end of the campaign, you would realise that 80% of your budget is spent in cities other than Guwahati while if you do the same analysis for your performance campaigns, you would realise 80% of your spend is happening in Guhawati. - If you try think from first principle of marketing, you would understand that branding campaigns were simply trying to create impressions and views for your creative which at fundamental level different than the performance campaign you have set on the same state. When brands graduate from performance to paid branding, brands forget to take care of this simple concept. The branding campaigns need to be planned at city level and not at state or country level. This phenomena is true even if you are selecting a very niche and relevant audience for branding campaigns. How to check if you are wasting money currently? - Simply compare the spend distribution of your branding campaigns (at city level) Vs. performance campaigns at city level and - map it with the cities contribution in your revenue and you would see the mismatch in pie chart for spends vs. revenue for branding campaigns. Note: This recommendation holds for digital first D2C brands trying to crack brand advertising with limited budget. If you are a mass brand such as Cadbury or Ariel, the approach will differ completely. Sharing a sample data of spends of branding campaigns across cities when run on Pan-India. I hope you can figure out what's wrong with it. #digitalbranding #paidbranding #brandingcampaigns
Interesting insight Vibha Singh. It depends alot on campaigns objective where you ads will be shown- age, geography, etc. And yes, the brand should be cautious enough when their TG is not mass.
Interesting insight Vibha Singh
Associate Director at Yum! Brands| Ex-Nestle
8moHow would it differ for mass brands selling offline