Independent Study Shows Rocket Fuel Programmatic Marketing Platform Drives More Than 8x Improvement in Spending Efficiency
December 03 2015 - 9:00AM
Business Wire
Implementation of Rocket Fuel Platform Provided
“Almost Immediate” Cost Recovery via Media Spend Efficiency, Study
Says
Rocket Fuel (NASDAQ: FUEL), a leading Programmatic Marketing
Platform provider, today announced that a November 2015 study of
the Rocket Fuel DMP commissioned by the company and conducted by
Forrester Consulting showed dramatic ROI for the clients studied,
producing an aggregate net benefit of more than $65 million.
Forrester Consulting’s “Total Economic Impact™ (TEI) of the Rocket
Fuel Programmatic Marketing Platform” study created two composite
organizations based on four Rocket Fuel clients. One of the
composite organizations saw an 8.3x return on media spend
efficiency, and the other composite organization saw a site benefit
resulting in a 3.5x return.
“Our programmatic marketing platform is about much more than
data storage and segmentation -- it’s about the outcomes clients
need for their businesses,” said Simon Hayhurst, Rocket Fuel senior
vice president of product development. “The study clearly proves
this ROI benefit out. Not only did implementation of the Rocket
Fuel platform more than pay for itself in short order, it produced
millions of dollars in savings almost immediately, enabling clients
to lower marketing costs significantly.”
Forrester interviewed existing, long-term Rocket Fuel DMP
customers, creating two composite organizations for the purposes of
the study. Financial analysis of the composite organizations showed
that:
- Composite organization A realized
risk-adjusted media efficiency benefits of approximately $21.3
million versus implementation costs of approximately $2.3 million,
adding up to a net present value (NPV) of approximately $19
million.
- Composite organization B saw
risk-adjusted site optimization benefits of approximately $62.6
million versus implementation costs of approximately $13.8 million,
adding up to an NPV of approximately $48.7 million.
- Both composite organizations saw rapid
implementation cost recovery. In the study, composite organization
A recovered implementation costs almost immediately, and composite
organization B had a net cash-flow benefit by the end of the second
year.
Rocket Fuel Programmatic Marketing
Platform Benefits
With the Rocket Fuel DMP and DSP using Moment Scoring™
technology, organizations saw improved media efficiency and more
effective conversions as well as additional benefits such as better
customer experience, improved performance as a result of data
aggregation across silos, increased understanding of customer
value, improved customer intelligence, and better reporting and
visibility.
Additionally, the Forrester study highlights that the composite
organizations experienced the following benefits:
Improved media efficiency with reduction in overfrequencing of
ads. Composite organization A used 1st-party data and Moment
Scoring technology in the platform to coordinate their media buys
to reduce overfrequencing of ads, resulting in 20% savings on their
annual media buy. This benefit is quantified at $14.18 million over
the three-year analysis.
Ten percent of annual media buy saved in prospecting campaigns
with anti-targeting of known users. With the Rocket Fuel DMP,
organizations were able to distinguish current customers from
prospects. As a result of more accurate targeting, composite
organization A saved 10% of their annual media buy resulting in
$7.09 million in savings over three years.
Revenue and savings from more effective conversions from site
optimization. Composite organization B used the Rocket Fuel
platform to power all marketing offerings on their main website.
The overall value from site optimization through Rocket Fuel was
quantified as $62.54 million over the three-year analysis.
Flexibility. A number of the companies interviewed were
considering or beginning to undertake projects to expand use of the
Rocket Fuel platform to other channels such as search and email. As
these organizations implement new use cases for the Rocket Fuel
DMP, extend use of the platform to additional channels and increase
adoption within the organization, future benefits could include
additional media spend savings from improved efficiency, higher
conversion rates, and increased revenue and savings, the study
concludes.
Methodology
From the information provided in the interviews, Forrester
constructed a TEI framework. The objective of the framework is to
identify the cost, benefit, flexibility, and risk factors that
affect the investment decision, to help organizations understand
how to take advantage of specific benefits, reduce costs, and
improve the overall business goals of winning, serving, and
retaining customers.
The full study, which was published on December 3, 2015, can be
downloaded here. It was commissioned by Rocket Fuel and conducted
by Forrester Consulting. While it was reviewed by Rocket Fuel and
the company was provided the opportunity to give feedback,
Forrester maintains editorial control over the study and its
findings and does not accept changes to the study that contradict
Forrester’s findings or obscure the meaning of the study.
About Rocket Fuel
A leading Programmatic Marketing Platform provider, Rocket Fuel
(NASDAQ: FUEL) offers brands, agencies, and platform partners
managed services, as well as a SaaS-based Data Management Platform
(DMP) and Demand Side Platform (DSP), to optimize performance,
awareness, and lift across marketing objectives, channels and
devices. By applying artificial intelligence at big data scale,
Rocket Fuel’s Moment Scoring™ technology performs a real-time
calculation of each ad opportunity based on a marketer’s goal to
determine the likelihood a consumer will engage in a desired
action. Moment Scoring goes beyond 1:1 marketing by learning to
predict what marketing actions to take with a campaign at a precise
moment in time, which results in a much more efficient use of
marketing dollars. Rocket Fuel serves 96 of the Ad Age 100, three
of the top five agency holding company trading desks, and partners
with some of the world’s leading CRM platforms, marketing platforms
and systems integrators. Headquartered in Redwood City, California,
Rocket Fuel has more than 20 offices worldwide.
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version on businesswire.com: http://www.businesswire.com/news/home/20151203005443/en/
Rocket FuelKristin Holloway, 650-481-6178pr@rocketfuel.com
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