How an Award-Winning Data-Driven TV Strategy Drove Sales Success for Applegate

In recent years, the CPG industry has been met with a variety of challenges. From lingering supply chain issues to rising costs associated with inflation to competition among emerging brands, to changing consumer preferences.  

Recent research from McKinsey & Company indicated that several key trends are top of mind for consumers: 

• 45% of consumers plan to find more ways to save money when shopping  
• 29% of consumers will actively research the best promotions more frequently 
• 40% of consumers plan to increase their focus on healthy eating and nutrition 

As a result of these industry-wide changes, CPG companies are seeking ways to stand out from the crowd and rethinking their marketing strategy to reach shoppers at critical points on the path to purchase. Among the innovative ways to reach shoppers, Connected TV (CTV) has emerged as an invaluable tool.  

Applegate’s Challenge 

Over the past two years, Applegate’s diverse range of products has steadily generated increased sales. For this campaign, Applegate was looking for a way to efficiently continue to acquire new buyers, bring back lapsed buyers, and defend loyal customers – all while driving cross-category purchases across their entire portfolio.

Goals  
• Increase customer acquisition  
• Boost customer loyalty  
• Lift sales and dollars spent per customer  
• Improve campaign efficiency

To boost sales, Applegate would need to find a creative way to reach and engage these customers. 

The Solution 

By partnering with Cadent and Catalina, Applegate was able to implement a targeted and cost-effective CTV campaign.  

The Plan 

Together, Cadent and Catalina developed a sequential messaging strategy to deliver household-level targeted CTV ads to 4.2MM existing and new shoppers. By monitoring consumption and purchase behavior in real time, they were able to activate a responsive marketing approach to promotions.  

Shoppers who were exposed to 3 CTV ads but did not make a purchase received an in-store offer to try the new Applegate product. On the other hand, shoppers who were exposed to the ads but did make a purchase did not receive the initial offer and were instead delivered a promotion to try other products, with the aim of expanding these customers’ share of wallet.  

The Results 

Through CTV ad impressions and in-store sequential offers, the campaign generated a significant return on ad spend (ROAS) and sales lift, as well as providing Applegate with powerful buyer insights.  

By The Numbers
• $2.13 Incremental ROAS 
• 24.9% Sales Lift
• 42% Increase in Dollars Spent Per Transaction
• $250,000 in Savings through Targeted Promotions

This strategic activation drove a 24.9% lift in sales and a 42% increase in dollars spent by customers per shopping trip. The campaign also resulted in an impressive $250k in promotional savings.   

Recently, the campaign earned the 2022 AdExchanger Award for Best Data-Driven TV Campaign. 

Next Steps 

Want to learn more about how Cadent and Catalina partnered for Applegate’s CTV and responsive marketing campaign?