TranUnion: Better Targeting Boosts ROAS
▼ Summary
– Better ad targeting can boost ROAS by up to 9x, according to TransUnion’s analysis of real-world campaigns.
– Audiences with two optimal traits saw a 3.6x ROAS increase, while those with three traits saw a 7.2x increase.
– Mis-targeted campaigns suffered significant losses, with the worst-performing seeing a 90% drop in ROAS.
– Subtle variations in targeting attributes (e.g., age, income) led to major ROAS swings, highlighting the need for precision.
– The study analyzed $1.5B in ad spend across 25 brands, showing the impact of targeting in industries like audio, CTV, and social.
Precision targeting can dramatically amplify advertising returns, with new research revealing how strategic audience selection impacts campaign performance. A recent study analyzing real-world marketing data found that refining audience targeting delivers up to 9x higher return on ad spend (ROAS) compared to less optimized approaches.
The analysis examined campaigns from 25 brands across multiple industries, tracking how different levels of targeting sophistication influenced results. When marketers combined just two well-matched consumer attributes, ROAS improved by 3.6 times. Adding a third relevant trait doubled that lift to 7.2x, while campaigns leveraging six precise characteristics saw returns spike by a factor of nine.
Poor targeting decisions, however, carry steep penalties. Campaigns aimed at mismatched audiences suffered ROAS declines as severe as 90%. Even minor missteps, like relying on overly broad income brackets or generic age ranges, led to performance drops between 49% and 88%.
The research evaluated 26 targeting variables, from household demographics to geographic indicators, proving that nuanced adjustments create outsized differences. For example, simply refining “high-income” targets to include neighborhood type or family status unlocked hidden pockets of high-value customers.
Industry experts emphasize that success hinges on moving beyond basic assumptions. “Marketers face endless targeting options, many deceptively similar,” noted one executive involved in the study. “The data shows that seemingly small choices, like prioritizing specific life stages over raw income levels, can make or break a campaign.”
The findings draw from Q4 2024 campaign data spanning $1.5 billion in ad spend across CTV, social, search, and other digital channels. With quarterly budgets ranging from $5 million to $100 million per brand, the study underscores how granular audience insights separate top performers from wasted spend.
For teams aiming to maximize paid media efficiency, the message is clear: layered, data-driven targeting isn’t just beneficial, it’s essential. Brands that identify and activate the right trait combinations stand to gain exponential returns, while those relying on guesswork risk leaving millions in unrealized revenue on the table.
(Source: MarTech)
