PROGRAMMATIC Case Study
Luxury Handbag Brand Hits 7+:1 CTV ROAS with Programmatic Advertising
Luxury Handbag & Accessory Brand Profitably Acquires New Customers Using CTV
7+:1
Overall CTV ROAS
TL;DR
A well-known American luxury handbag and accessory brand partnered with the programmatic experts at ROI Revolution to test whether connected TV could acquire new customers at an efficient ROAS. Through a mix of retargeting and in-market prospecting campaigns, the team cleared its 6:1 goal with a 7+:1 overall CTV ROAS and drove $147k in incremental revenue over the three-month test. A 3+:1 new customer acquisition ROAS showed CTV can scale as a profitable acquisition channel.
Service
Programmatic Advertising
Industry
Luxury Handbags & Accessories
Focus
Connected TV
Goal
Profitably acquire new customers using CTV Advertising
The Situation
Testing CTV to Acquire New Customers
A well-known American luxury handbag and accessory brand was looking to acquire new customers at an efficient ROAS using connected TV. While connected TV (CTV) is a top channel for increasing brand awareness, successfully driving revenue at an efficient ROAS can be tough for even the most experienced media buyers. This brand turned to our programmatic experts to execute a three-month connected TV test where success would be measured by direct return in revenue.
Opportunity Identified
One Media Buy, Numerous Streaming Networks
With the limitations and reputation of advertising with CTV in mind, the ROI team developed a strategy that would balance new customer acquisition and customer retention efforts while delivering efficient revenue performance in both areas. Working with our team, this luxury brand only had to place one media buy and our programmatic experts handled the rest, developing a complex targeting strategy and placing their brand on numerous popular streaming networks like HGTV, Peacock, and more.
ROI in Action
Retargeting Meets In-Market Prospecting
Our programmatic team’s initial goal was to clear a ROAS of 6:1 as measured in the brand’s own instance of GA4. To do this, they strategically built a collection of campaigns. Some retargeted website visitors as many brands do with CTV, and others targeted new third-party data segments of viewers that were currently in the market for luxury handbags & apparel. This combined approach would meet ROAS expectations while also heavily focusing on new customer acquisition which the brand stated was its initial goal.
The Results
Results Achieved
7+:1
Overall CTV ROAS
3+:1
New Customer Acquisition ROAS
$147k
Incremental Revenue over Test Period
By the end of the three-month test flight, the ROI team was not only successful in achieving their overall goal of a 6:1 ROAS, but they surpassed it with an all-in metric of over 7:1.
The major wins were revealed when the team dug into the brand’s prospecting campaign’s incrementality reporting. Over the course of the campaigns, the reporting showed between 76.5% and 89% of all revenue from prospecting was fully incremental. This yielded an in-platform incremental ROAS range of 3.12–3.96 for acquiring net new customers.
The above results of the three-month CTV test coupled with our experts’ insights around untapped reach in the targeted audiences indicate that our team could confidently continue to scale spend on this traditionally upper funnel channel while increasing the brand’s bottom line and driving significant incremental revenue.
With the right targeting strategy paired with compelling creative, a programmatic campaign can be the most cost-efficient strategy to drive new shoppers to your website. When you have programmatic capabilities beyond standard demographic, geographic, and interest-based targeting, your brand has the opportunity to reach and convert new, high-value, and relevant shoppers..
Ready to reach new, high-value shoppers? Book a meeting with our programmatic team. View the case study PDF here.
Case Studies
$125MM+ Brand
Peter Millar
