Fjällräven discovers new strategy to boost ROAS and revenue with Skai’s Impact Navigator
Fjällräven has consistently invested in brand building. When FastG8 proposed running brand ads on YouTube and CTV, the Fjällräven team was enthusiastic. However, like all marketers, the team needed to strike a balance between brand and ROI initiatives, so they asked FastG8 to quantify the impact these ads would make on short-term revenues. Unfortunately, standard attribution models can’t accurately quantify upper-funnel activities like YouTube and CTV, and custom statistical analysis would take at least four months to prepare the data, execute tests, and analyze 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. Results showed that YouTube and CTV do boost short-term revenues.
The test: How do brand ads on YouTube and CTV impact immediate revenues?
With Impact Navigator, the FastG8 team created a 40:60 test-control geo split with 98% correlation.
- Group A – Test: Run brand ads on YouTube and CTV.
- Group B – Control: Hold out YouTube and CTV brand ads.
Insight: Compared against the control group B, group A had an incremental revenue lift of 10% and an incremental ROAS of 6.2. This shows that brand ads on YouTube and CTV are very effective at boosting short-term revenues and ROAS.
- Scale the revenue growth by expanding the YouTube and CTV brand ads to all geographies.
- Run more incrementality tests to find the level of investment into YouTube and CTV that produces the maximum revenue and ROAS increase.
- Test other tactics that could grow revenues and ROAS. The FastG8 and Skai teams suspect that increasing investments into non-brand search, social, and apps by as little as $80,000 per month could result in considerable lifts of revenues and ROAS.
Hailing from the small town of Örnsköldsvik in Sweden, a place where mountains and forest meet the sea, Fjällräven is an outdoor clothing and equipment company that’s been committed to making nature more accessible since 1960.
The Fjällräven marketing team relies on FastG8, a data-driven digital agency for premier active-lifestyle brands, to programmatically execute its digital advertising campaigns.