JFFD Digital Efficiency and Optimization: A Path to Lower CAC
Demonstrating Proven Wins and Future Optimization Potential
Campaign duration: October 24th 2024 - April 30, 2025
Original Audience Targeting
1
Terrestrial Behavior
Active shoppers at retail locations selling Just Food For Dogs (last 30 days)
2
UPC Behavior
Purchased competitor brand product in last 30 days
3
Geo
Northern & Southern California
4
Household Income
Must be >$200k
Campaign Goal Shift - March 2025
Previous Campaign Goal - TOF New Demand Creation
1
Brand Awareness
Increase awareness of Just Food For Dogs among pet owners & conquest competing brands
2
Online Acquisition
Drive online sales and acquire new customers through an OmniChannel Campaign anchored by CTV
3
Offline Support
Support retail presence in major California markets.
Current Campaign Goals
1
Online New Customer Acquisition
Online Focus and E-Commerce Performance/Digital Team Support
Campaign Adjustments to Target New Brand Goals
1
Behavioral Targeting Budget Adjustment
Budget adjusted to now 40% of spend - focused on high-intent visitors, excluding known buyers
2
Removed Terrestrial Targeting Layer
Removed the terrestrial shopper targeting layer that directly supported retail traffic at stores that sell JFFD
3
Removed Audio Prospecting
Reallocated to better performing formats
4
DMA Targeting Adjustments
Prospecting refined to top-performing DMAs: LA, San Diego, SF
Campaign Snapshot 10/24-4/30
$1,162,062
Spend
28.59M
Impressions
6.38M
Unique Households Reached
13,151
Omni-Channel Conversions
$88.36
Blended Omni-Channel CAC
$0.18
Cost Per HH Reached
Executive Summary
Objective: Secure increased D2C budget by demonstrating digital efficiency
Key Points
1
Behavioral is driving +171.97% Incrementality and $205.38 CPIO
2
Current campaign configuration is not yet fully optimized for online efficiency
3
With additional budget, we can accelerate CAC reduction through strategic digital focus
Monthly Blended CAC Summary
Monthly Online CAC Summary
Performance volatility due to budget fluctuations and front loaded media spend for customer activation
Optimizing JFFD's Digital-First D2C Strategy
We've discovered a game-changing approach to lower customer acquisition costs while driving predictable revenue growth through Behavioral Online Targeting.
Understanding Incrementality
What is Incrementality?
Incrementality measures the true impact of advertising by comparing test and control groups.
The Formula
Incrementality = (Test conversion rate - Control conversion rate) / Control conversion rate
Our Approach
"Attributed" visits become the "Test" group. "Holdout" (Raw - Attributed) becomes the "Control" group.
Prospecting Incrementality Calculation
Identify Conversion Rates
Test group: .94% conversion rate
Control group: 0.65% conversion rate
Apply Incrementality Formula
(.94% - 0.65%) / 0.65% = +45.30%
Determine Campaign Impact
Prospecting shows +45.30% incremental lift
Behavioral Targeting Incrementality Calculation
Identify Conversion Rates
Test group: 1.73% conversion rate
Control group: 0.64% conversion rate
Apply Incrementality Formula
(1.73% - 0.64%) / 0.64% = +171.97%
Determine Campaign Impact
Behavioral Targeting shows +171.97% incremental lift
Campaign Performance Metrics
CPIO: Using Incrementality and the CPG media spend we can calculate the cost per incremental order
Targeting Efficiency Comparison
Behavioral Online Targeting delivers nearly 4x the efficiency of traditional prospecting methods. This translates directly to lower customer acquisition costs.
Prospecting Campaign Results
Behavioral Targeting Campaign Results
Behavioral Targeting Drives Digital Success
171.97%
Incrementality
Audience performance data
$205.38
CPIO
Cost Per Incremental Order
1,447
Conversions
From Behavioral Online Targeting
D2C Optimization Potential
Current Mix
Prospecting + Behavioral Online Targeting
Budget Shift
More resources to high-performing channels
Further Optimization
Refine for bottom-funnel efficiency
Scale Results
Amplify success with increased budget
Our campaign is not yet fully optimized for bottom-funnel efficiency. Additional budget will accelerate this transformation.
CAC Reduction Pathway
Current CAC
Starting point for optimization
Digital Targeting
Behavioral strategies improve efficiency
Optimized Funnel
Full alignment with purchase intent
Target CAC
Achieving JFFD CAC goals
Competitor Landscape:Why CTV Matters?
The CTV Ad Spending Boom
CTV ad spending in the US will reach $32.6B in 2025. This represents dramatic growth of 18.8% year-over-year.
The market has nearly doubled since 2021 levels. New ad tiers, interactive formats, and expanding inventory drive this surge.
By 2026, US adults will spend 20% of daily media time on CTV apps. The growing disparity between viewer attention and ad dollars continues to widen each year.
Competitive Benchmark
Investment in CTV & Brand Building throughout Fresh Pet Food industry
According to MediaRadar, The Farmer’s Dog spent over $100 million on digital and national TV advertising in the past year, reflecting a significant increase from their estimated $40 million spend in 2023. This substantial investment underscores their commitment to channels like Connected TV (CTV) to drive brand awareness and customer acquisition Freshpet also continues to invest heavily in streaming.
Recommendations For Scale
- Expand Behavioral Online Targeting to full capacity - 2MM/Month in elasticity