OMD/Omnicom achieves 8% ROAS Increase for Philips Utilizing Skai’s Strategic Budget Management and Dayparting
Philips, a pioneer in the electronics industry, encountered a hurdle demanding innovative solutions. Several campaigns were exhausting their budgets prematurely, resulting in missed opportunities for substantial revenue generation. This was happening specifically in peak evening hours. Collaborating closely with OMD/Omnicom, their esteemed global media agency partner, Philips looked to resolve this issue.
Through their strategic collaboration, Philips and OMD/Omnicom harnessed the power of Skai’s cutting-edge platform, leveraging its best-in-class solutions to meticulously implement a comprehensive strategy focused on precision budget management and intricate dayparting.
The following steps were undertaken:
- Budget Estimation: OMD/Omnicom utilized Skai’s ‘Retail Media Campaigns Out of Budget by Hour of Day’ scheduled report to assess the frequency and impact of campaigns exceeding budget. This report allowed them to quantify the potential revenue loss due to campaigns running out of budget. By calculating the cost of maintaining campaign activity per hour, OMD/Omnicom determined the incremental budget required to extend campaign runtime during peak periods, thereby maximizing potential revenue.
- Dayparting Strategy: Leveraging Skai’s Dayparting feature, OMD/Omnicom strategically scheduled campaigns to align with high-converting periods. A baseline setting was established, pausing campaigns from certain hours when purchase rates were historically lower. This optimized budget allocation during times of low conversion potential.
The implementation of the optimized strategy yielded promising results, particularly benefiting smaller countries and categories with limited budgets:
- ROAS Increase: The smaller countries and categories observed a significant 8% increase in Return on Ad Spend (ROAS).
- CPC Reduction: The Cost Per Click decreased by 5%.
This improvement was a direct result of the enhanced budget management and strategic dayparting, ensuring campaigns were active during high-converting hours.
“Dayparting revolutionized our approach at OMD/Omnicom. We maximized Philips’ budget by staying active during prime conversion hours. Plus, by reallocating funds from low- to high-ROAS products, we substantially boosted Philips’ overall revenue.”
María Soler Roselló
Amazon Search Channel Lead
“OMD/Omnicom’s strategic use of dayparting via Skai has transformed our campaigns. We’ve seen an impressive 8% increase in ROAS, thanks to their expertise in optimizing our budget and targeting high-conversion times. This approach has been a game-changer for our revenue growth.”
Media Performance Lead Amazon & E-tail at Royal Philips
Philips Electronics, a prominent global technology company, has been a pioneering force in the electronics industry for over a century. The company has consistently delivered innovative solutions across a wide spectrum of sectors, including healthcare, consumer electronics, lighting, and beyond. Renowned for its advancements in medical imaging, energy-efficient lighting, and consumer products, Philips continues to shape the modern technological landscape with its commitment to improving lives through meaningful innovation.
OMD, part of the Omnicom Group, is a global media and marketing communications agency that has consistently demonstrated its prowess in delivering strategic and innovative advertising solutions. With a widespread presence across numerous countries, OMD has established itself as a leader in media planning, buying, and optimization, helping clients effectively reach and engage their target audiences. OMD continues to drive impactful campaigns and leverage data-driven insights to navigate the evolving landscape of media and advertising.