Travel Super App reduces 75% of their ad spend and kept 80% of the value using INCRMNTAL 

 

INCRMNTAL Customer Case Study

 

The Objective

During travel low season, this customer had a top down objective:

"We need to use this time to reduce ad spend by as much as possible, with the most minimal impact over marketing results."

objective

The Challenge 

Reducing your paid marketing while minimizing the impact is an almost impossible task for most marketers. Being in the travel industry, the task is even more complex, as travel companies experience extreme seasonality in marketing performance due to several external factors. 

  • Holidays and special periods (such as school holidays)
  • The cost of plane tickets or gas prices 
  • Supply and demand of hotels
  • Supply and demand of rental cars 
  • Weather
challenge

The Strategy 

This customer used INCRMNTAL to measure each of their channels, across iOS, Android, Web, and across offline channels such as: linear TV and influencer marketing to setup their "baseline".

Following which, they understood which channels accounted for the most incremental conversions and which the least.

Then they started making cuts in spend.

Then by systematically and strategically reducing ad spend across each channel, the customer was able to use INCRMNTAL’s platform to identify where and when they could reduce budgets while minimizing losses. That's because INCRMNTAL's platform does not require the customer to turn on and off ad spends, in order to measure for incremental results gained or lost.

The customer repeated this process monthly to understand how to best balance the reduced spend levels by evaluating the impact each of these reductions had across their KPI’s before deciding again - which ad spend should be cut, how much and where.

strategy

The Results 

During a period of 4 months and across 10 channels and 3 platforms (iOS, Android, Web), the experiments were done repeatedly. Ultimately, delivering the most efficient marketing mix given the reduced spending goal. The customer was able to reduce total ad spend from $8M / month to just over $2M while the impact over total conversions was only a reduction of 20%.

It was inevitable that the customer would have some sort of an impact over performance for such a drastic spend reduction, but here, the proportion between spend reduced ($6M) and conversions lost (20%) was incredible.

 

Results-2

Now, more than ever, it's important to know when (and where) to make the right cuts. 

Speak to our team to understand how you too can save money and get more value out of your marketing activities. 

INCRMNTAL, 2022