Outdoor clothing and equipment company Fjällräven has consistently invested in brand building. When its digital agency FastG8 proposed running brand ads on YouTube and CTV, the Fjällräven team was enthusiastic. Like most marketers, the team was concerned about maintaining a healthy balance between long-term brand awareness and short-term performance.
Before getting started, FastG8 needed a way to quantify the impact these ads would make on short-term revenue. Standard attribution models can’t accurately measure upper-funnel advertising, like YouTube CTV ads, and custom statistical analysis would take months to provide useful results.
With Skai’s incrementality testing solution Impact Navigator, FastG8 was able to design, run, and analyze a statistically significant test in just eight weeks.
Fjallraven Incrementality Test
- The hypothesis: Do brand ads on YouTube and CTV impact immediate revenues?
- The test: FastG8 created a 40:60 test-control geo split with a 98% correlation.
- Test group: Run brand ads on YouTube and CTV.
- Control group: Do not run brand ads on YouTube and CTV.
Test Result: Compared to the control group, the test group had an incremental revenue lift of 10% and an incremental ROAS of 6.2.
Conclusion: Brand ads on YouTube and CTV are very effective at boosting short-term revenues and ROAS.
Media optimization implications
- Spend more on upper-funnel media because it’s working. Scale revenue growth by expanding the YouTube and CTV brand ads to all regions.
- More test and learn is needed. Additional incrementality tests will find the level of investment into YouTube and CTV that produces the maximum revenue and ROAS increase.
- Test other tactics. FastG8 and Skai suspect that increasing investments into non-brand search, social, and apps by as little as $80,000 per month could result in considerable lifts in revenues and ROAS.
Skai’s Impact Navigator solution helps you understand the effectiveness of your marketing mix without cookies or tracking, optimize your budget, and achieve your KPIs. With the support of our experts, run tests in just a few clicks and uncover results in just a few weeks.