Focus on incremental revenue enables marketers to drive real business outcomes
BOSTON – Nanigans, the leader in performance advertising software, announced industry-first incrementality functionality. For the first time ever, marketers can now measure and optimize digital ad spend based on incremental revenue — the ‘gold standard’ of performance metrics. Nanigans Incrementality is available now as part of its cross-channel Software-as-a-Service (SaaS) advertising platform.
“Serving ads to shoppers who are already inclined to buy is a waste of money and skews ad spend effectiveness”
Nanigans Incrementality provides marketers a complete software solution for measuring and optimizing cross-channel digital ad spend based on incremental revenue. Using machine learning, it bids to reach consumers based on predicted incrementality, thereby generating higher net-new revenue for a given amount of media spend.
“Serving ads to shoppers who are already inclined to buy is a waste of money and skews ad spend effectiveness,” said Ric Calvillo, co-founder and CEO, Nanigans. “The only true measure of ad effectiveness that matters is incremental revenue. This is the additional revenue generated by advertising that would otherwise not have been captured without the ad spend. You wouldn’t hand out $20 bills to shoppers at the register, so why advertise online to people who are about to buy without seeing an ad?”
The performance advertising status quo uses backward-looking attribution models which confuse correlation with causation. Because ads receive credit for customers previously reached and already planning to buy, ad spend is optimized for this result.
“Literally billions in ad spend is wasted by performance advertisers as a result,” continued Calvillo, “and retargeting is one of the worst culprits.”
Rue La La, an off-price, online style destination, has been using Nanigans’ methodology for driving incremental revenue, and they have seen its impact on bottom-line revenue first-hand.
“Through storytelling, Rue La La is changing the entire shopping experience, and knowing when an ad will tip the scale for a particular shopper is a critical piece of a profitable retargeting strategy,” said Rue La La’s Jeff Steeves, senior vice president of marketing. “We’re constantly analyzing the merchandise our members buy, and searching for solutions to maximize the impact our ad spend has on sales and customer loyalty. We’ve been interested in incrementality for years, and Nanigans has enabled us to directly optimize for incremental sales utilizing their functionality.”
Digital ad spending is projected to reach $260 billion in 2018. Nanigans helps marketers ensure that increasing budgets are spent on reaching the most impactful audiences for growing their business. Nanigans can reach consumers across Facebook, Instagram and display advertising channels — including Google AdX and AppNexus.
“Nanigans is helping to answer a big question: ‘Did my ad spend measurably impact net-new sales?’” said Brian O’Kelley, CEO and co-founder of AppNexus. “Nanigans’ ability to connect disparate data sets, understand purchase intent and optimize lift from advertising, allows marketers to maximize incremental revenue across the full range of inventory. This makes Nanigans’ offering an overall strong play for the industry as we move into Q4.”
For more information, please visit: http://www.nanigans.com/incrementality.
About Nanigans, Inc.
Nanigans arms marketing teams to drive incremental revenue with the most powerful and transparent cross-channel buying platform. Sophisticated commerce advertisers currently optimize more than $700M in annual ad spend through the Nanigans platform. Nanigans is headquartered in Boston with offices in New York, San Francisco, London, Singapore and Seoul. For more information on Nanigans, please visit www.nanigans.com.
