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Off-price, on-line style destination, Rue La La, achieved a dramatic increase in revenue from site visitors by switching to an incrementality optimization strategy.
In order to accurately measure the lift in revenue from its retargeting programs, Rue La La abandoned the industry-standard, yet misleading, click and view-based measurement. This methodology does not take into account the organic baseline revenue of users that were predisposed to purchase. To solve this problem, Rue La La moved to Nanigans Incrementality, where incremental revenue is calculated as the difference in revenue between two groups: those assigned to a retargeting group versus those in a control group.
Rue La La implemented a new optimization strategy for site retargeting using Nanigans Incrementality—one that’s aligned with its business objective of maximizing revenue growth while maintaining profitability.
Nanigans Incrementality focuses ad spend on users whose decision to purchase will be influenced by advertising. The platform predicts the increased likelihood of future revenue from each site visitor and impression opportunity.
When Rue La La adopted this approach using Nanigans Incrementality, the audience reached differed by more than 50%, as compared to the flawed, last-click strategy. The last-click strategy focused ad spend on users having high organic purchase rates, while Nanigans Incrementality bid only on the predicted lift in revenue from the ads.
By switching from click-attributed to incremental revenue optimization, Rue La La realized a 6.5X increase in incremental revenue, given the same amount of ad spend.
increase in incremental revenue by adopting Incrementality Optimization
“We’ve been interested in incrementality for years, and Nanigans has enabled us to directly optimize for incremental sales utilizing their functionality.”
JEFF STEEVES, SVP Marketing, Rue La La
Download the Case Study [PDF]