REDWOOD CITY, Calif.--(BUSINESS WIRE)--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.
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.