How LuckyRev’s MMM Helped an 8-Figure Brand Achieve Optimal Brand Search Spend

The data science team at LuckyRev developed our own Media Mix Model - this statistical model represents the causal relationship between net sales & each paid media channel’s spend. We revisit this quarterly to understand shifts in media alongside our in-platform results to inform decisions on where to invest ad budget.

The Challenge

This 8-figure brand came to LuckyRev at the end of Q1 2024 with upwards of 40% of Google Ads budget going to brand search. LuckyRev hypothesized this spend was being wasted, and could be reinvested into more incremental campaigns.

LuckyRev’s Approach

Utilizing our MMM, we determined that brand search was not driving as strong of an incremental value as the Google Ads platform was indicating. This is made clear by our MMM showing a lower ROI for brand search in Q1 than the Google Ads platform was attributing to brand search.

We made optimizations to reduce brand search CPC’s, CPA, and lower overall brand percentage of total ad spend. This helped us reallocate budget toward non-brand initiatives, which aided in the brand's goal of driving new customer growth.

Results showed that in Q2, our brand search MMM ROI improved by more than 50% from Q1, amidst the decrease in spend, indicating that the optimizations helped brand search drive a higher value to holistic business performance.

The Results

Q1 Brand Search MMM Median ROI: 8.5
Q2 Brand Search MMM Median ROI: 14.7

54% Increase in
MMM Attributed ROI

Q1 Brand Search Platform ROAS: 24.7X
Q2 Brand Search Platform ROAS: 36.5X

48% Increase in
In-Platform ROAS

-75% Decrease in Brand Search spend QoQ

16% Increase in
Net Sales

Brands often don’t take a deep look into the question of “how important really is brand search for our business?” Plenty of agencies will simply say “you need to max out brand budget for brand defense” without a deeper analysis. But the need for brand investment varies significantly depending on retailer, competitor presence, and budget. Further come the questions of how much am I willing to spend on branded clicks and overall brand budget? LuckyMMM has helped tremendously in determining the right costs and % of total ad budget to allocate to brand campaigns on a business-by-business basis.

- JACQUELINE RIOUX, DIRECTOR OF PAID SEARCH @ LUCKYREV

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