Tactics to Try: 2022 EMR Holiday Predictions
As dollars are tight this Holiday season, spending on tactics that drive your brand forward will be imperative. Using real Enterprise Marketing Return (EMR) data from our clients, we can predict which channels will win this Holiday!
Check out our predictions below, and contact us to learn more about planning for holiday.
Contact us to plan your holiday strategy!
Marketers optimizing their media to the legacy metric of ROAS (Return on Ad Spend) are missing key opportunities to win as it only looks at online revenue as the metric for determining return.
This is why Ovative created EMR (Enterprise Marketing Return), a metric that holistically measures the impact of online and offline revenue, future customer value, incrementality, and profitability into a single metric of success. We use EMR every day to help our clients invest in the right tactics to grow their business. In this article, we’ll share our predictions for tactics we expect to be high-performing this holiday season based on their average EMR that you should be testing. We will also outline which tactics we expect marketers will overspend on because they are only looking at ROAS. Check out our predictions below and be ready for the holiday season
For more information to prepare for holiday, download the full Marketer’s Guide to Holiday 2022 here.
Consider investing in these often underutilized, yet high-performing, channels. Because marketers often only use ROAS to gauge performance, they are missing the total value of these channels that we can recognize measuring to EMR.
TikTokTikTok seems to be on every marketer’s 2022 agenda. With explosive growth throughout the pandemic, users spend more time per day (average 46 minutes) on TikTok than any other channel.¹ Though user adoption is booming, the sophistication of ad serving is still within its infancy stage to drive immediate realized return. We anticipate TikTok will continue to see strong efficiency and EMR due to its strong Future Customer Value (FCR) or ability to attract customers with long-term value to the brand.
CTV: Connected TV (OTT)CTV has proven to be a great way to reach consumers who are cutting cords and moving into a digital space. 109 million US households will use a connected TV (CTV) this year, accounting for 83% of total households.² Publishers like Netflix and Disney are opening their ad-supported options in Q4 2022 or Q1 2023. Time spent with devices has returned to the same steady growth as before the pandemic, cementing consumer behavior of spending time with CTV. With more publishers offering ad-supported options, it’s more possible than ever to scale campaigns to large, relevant audiences due to the proliferation of content.
Streaming AudioStreaming Audio continues to make gains against terrestrial radio for time spent listening. Digital audio will account for over 12% of overall media time for US adults, with steady growth expected.³ This is driven largely by the subcategory of podcasts. US adult time spent with podcasts is expected to grow 15% this year.³ Podcasts will account for more than 25% of all digital audio revenues this year. Several major companies are building out huge podcast ad businesses (iHeartMedia, Spotify, Audacy, etc), making this tactic one to test into for your brand to understand the ability to reach your audiences where they are listening.⁴
Be aware of these channels commonly overspent on by marketers because they rely on ROAS. Using EMR, we can understand the true value of these channels.
OOHWhile the world has opened back up and OOH is more prevalent in marketing plans now than two years ago, consumers are continuing the move to digital. Particularly for retail brands, consumers want to be able to click on a link and seamlessly purchase. While it is still beneficial to diversify your mix, there is an opportunity to pull back investment in OOH as the channel catches up to digital maturity.
Keep An Eye On
Be aware of key trends on Meta impacting audience size and efficiency.
- Facebook is seeing usage plateau but will observe declines as older generations are losing interest and younger generations will not adopt as fast as users exit
- Instagram will remain competitive in the marketplace, generating new users, and we expect EMR performance to increase. The platform capitalizes on the sophistication of its algorithm and it is highlighting short form user-generated video content more effectively than Facebook to compete with TikTok.
The result: break-even. Facebook’s usage decline and Instagram’s increase will cause an even loss/gain and keep Meta a platform to continue watching and investing on within your mix. However, within Meta we expect tactics will continue to vary in their EMR performance:.
Meta Upper FunnelMeta Upper Funnel will see decreased EMR Performance as its algorithm is inherently designed to reach the most users at the most efficient rate without understanding the future value of those users to the brand. As advertisers diversify spend, we expect this tactic will become more expensive and decrease EMR.
Meta Lower FunnelMeta Lower Funnel will hold strong EMR and remain at the top of the EMR Rankings due to its sophisticated algorithm and targeting, which enables it to drive realized returns.
Interested in reading more Ovative Insights on 2022 Holiday Planning?
Download the full Marketer’s Guide to Holiday 2022 here.
Ovative is a digital-first media and measurement firm seeking to transform the measure of marketing success. At Ovative, we help brands move the needle. We are curious. We value your brand. We want to see you succeed. Connect with us to learn more!