Case Study: Two Brands reduce ad spend losses and uncover the cost of going dark with OptiMine

Two Brands reduce advertising spend by 65% with OptiMine

OptiMine provided analytics for two anonymized brands, a retailer and a financial services company, which were both facing financial pressure. The challenge was to evaluate the consequences of their significant decisions to slash advertising spend by 27% and 65% respectively, assessing both the immediate and long-term impacts on their key performance indicators like sales, profit, and new customer acquisition.

Using its incremental measurement models, OptiMine quantified the severe fallout. In the short term, incremental revenue and profit dropped by 51-66%. Long-term, marketing efficiency collapsed, with modeled future ROAS 50% lower and CPAs over 175% higher if spending resumed. OptiMine's analysis concluded the cuts created an enormous opportunity cost, with lost revenue lift outweighing media savings by 10 times and resulting in substantial losses in market position to competitors.